Indian share markets have rejectted the rail budget presented by Mamta Banerjee for the year 2010-11. The market was expecting that the government would double its order for railway wagons this year to around 40,000, to be executed by companies such as Texmaco and Kalindee Rail Nirman. The sentiment turned negative as Railway Minister Mamta Banerjee kept the order for new railway wagons static at last year’s level of 18,000. The share prices of companies catering to the railways, which had witnessed a sharp rise during the past couple of weeks, fell sharply after the railway budget failed to meet market expectations.
Large number of new trains
In view of the increasing demand, Railway Minister Mamata Banerjee has announced a large number of long distance new trains and everal suburban trains. As many as 52 new long-distance trains have been proposed in addition to 16 trains that are to be run on the routes having places of tourist importance, and six new non-stop t'Durantos', introduced last year. Besides, four more new Duranto trains would run during the day time.
Railways strives for sports
Railway Minister Mamata Banerjee announced that Railways are the proud recipient of first Rashtriya Khel Protsahan Puraskar. Continuing the good work, she announced that five sports academies will be set up at at Delhi, Secunderabad, Chennai, Kolkata and Mumbai. Along with this some other major steps include astro-turf to be provided at more places for hockey, lead partnership of railways at Common Wealth Games and run of an exhibition train for Commonwealth games.
Indian Railways to introduce double-decker trains
Railway Minister Mamata Banerjee announced that to keep pace with modernization, the Indian Railways would introduce double-decker train-sets as a pilot project. Presenting the Railway Budget for the year 2010-2011 in the parliament, Mamata said "Double-decker train-sets matching the best in global standards will be introduced in two trains each from Delhi and Kolkata as a pilot project."
Flurry of concessions in Rail Budget
Railway Minister Mamata Banerjee announced a series of concessions including carriage of foodgrains, kerosene and fertiliser. There would be a reduction of Rs 100 per wagon in freight charges for these products.
Concessions for technicians of the regional film industry includes 75 per cent concession in second class sleeper and 50 per cent in higher classes in all trains while travelling for film production-related work.
Cancer patients travelling for treatment would get 100 per cent concession in third AC and sleeper classes.
There will be a reduction in Service charges on e-tickets reduced to Rs 10 for sleeper class and Rs 20 for AC classes from Rs 15 and Rs 40, respectively.
The benefit of 50 per cent concession to the spouse of accredited journalists has been extended to the companions of those who do not have a spouse. Their dependent children of up to 18 years of age would also get 50 per cent concession once a year.
No hike in fares, freight tariff
Union railway minister Mamta Banerjee announced no hikes in passenger fares and freight tariff. TReiterating the Government's commitment to provide efficient railway network within the reach of common man, Mamata said that there would be a cut in service charges on sleeper class and AC class fares, which has been cut to Rs 10 and Rs 20.
Indian Railway not to be privatised: Mamata
Presenting the Union Rail Budget 2010, Mamata Banerjee put an end on all speculations regarding privatisation of Indian railways. Instead, she emphasised on private-public partnership. Banerjee ssaid that there are no plans to privatise Indian Railway, while we urge the private sector to come forward and join hands with Indian Railways to promote and develop the second largest railway network in the world. She said that the Indian Railways is also exploring new business model and partnership option for inclusive growth.
Time for partnership with Private Sector : Mamata
Railway Minister Mamata Banerjee said that it is time for private partnership in Indian Railways, but ruled out any possibility of privatising Indian Railways. In her budget speech, Mamata said that private investment will be provided clearance within 100 days to speed up projects. She appealed to business houses to join hands for building partnership with Railways. Mamata announced that a special task force will be set up for early clearance of projects.
Highlights of Railway Budget 2010-2011:
- No hike in passenger fares
- Relief for cancer patients in sleeper class
- Press concessions extended to family and dependents upto 20 years
- Concessions for film industry, technicians
- Railways to employ ex-servicemen for railway security
- National High Speed rail authority to be set up
- Bharat Teerth train in memory of Tagore to connect 16 destinations in India
- FY11 total gross earnings Rs 88,281 Crs
- Karma Bhoomi trains introduced for unorganised sector workers
- Metro Railway to be expanded in Kolkata on priority
- Rs 4,411 cr allocated for new rail lines
- No forcible acquisition of land, one member of land losing family to get a job
- Rail link to Bangladesh proposed
- Railways to borrow Rs 9120 Crs this fiscal
- FY11 working spend Rs 87100 Crs
- 54 new trains to be introduced in FY11
- FY11 Gross Budgetary Support Rs 15,800 Crs
- FY11 dividend liability Rs 6600 Crs
- FY11 Plan Outlay at Rs 41,426 Crs
- Tourist trains to be launched on 16 routes
- Pension appropriation to account for Rs. 14,500 Crs
- Funding for Metro Rail projects increased by 55%.
- FY11 Gross traffic receipts Rs 94,800 Crs
- Impact of 6th Pay Commission at Rs 55,000 Crs
- Non-core business revenue estimated at Rs 1000 Crs
- Double-decker trains to be launched on pilot basis
- Have save Rs 2000 Crs because of austerity drive
- To start door to door service for freight movement
- Premium Tatkal sevice for parcel, freight movements
- Dedicated passenger corridors planned
- 10 more Duronto trains to be introduced
- Freight on food grain and kerosene cut by Rs 100 per wagon
- Railways profit at Rs 1328 Crs
- Routes of 21 trains to be extended
- Railway exam fees to be withdrawn for minorities, women and OBCs
- Private operators can run special freight trains
- Dividend to exchequer at Rs 6608 Crs
- 2 freight corridors planned in Maharashtra
- 5 wagon factories planned
- 101 new suburban trains for Mumbai
- Service charge on sleeper class cut to Rs.10.
- Service charge on AC Class cut from Rs.40 to Rs.20
- Rae Bareli coach factory work to start within a year
- Chittaranjan Locomotive Works to be modernised
- State of the art loco pilot training centres proposed
- No change in freight rates
- Housing for all raiway employees in next 10 years
- 50 creches to be set up for railways women employees
- 381 diagonistic centres throughout India to be set up alongside hospitals
- Proposed Rabindra museum at Howrah, Geetanjali museum at Bolpur
- Special trains for commonwealth games
- Railways to provide increased job opportunities for sportsmen
- Plan to raise 20,000Crs in one year
- Railway protection force to be augmented, Mahila Vahini to be introduced
- Rs 1300Crs for passenger amenities
- 117 new trains to be flagged out by March 31
- All level crossings to be manned within next 5 years
- Latest technology to be deployed to prevent accidents
- E-ticket mobile vans to be introduced
- Modern toilets to be introduced in most stations
- Six drinking water bottling plants planned
- Multi-level parking complexes through PPP route planned
- Special drive to improve passenger amenities
- Limited funds, constraints line addition
- Major jump being planned to complete 1000 km of new railway lines in one year
- Will involve all railway unions in development
- New business models with public-private partnership needed
- Railways not to be privatised
- Special task force to clear proposals
- Business community should come forward and form partnerships with railways
- Our objective is inclusive growth
- Goals broken up into short, medium and long-term
- I want to help everbody within the limited infrastructure, says Mamata
- Commercial viability not the only criteria