Feb 25, 2016 02:16 PM IST | Source:

Rail Budget 2016: Nifty below 7000; Railway to set up 3 freight corridors

HDFC, Sun Pharma, ONGC, Coal India and Hindalco are top gainers, up 1-2 percent while Infosys, TCS, ICICI Bank and Reliance Industries declined 0.5-1 percent.

Moneycontrol Bureau

12:59 pm:
Railway ministery says Railway will develop national railway plan in consultation with states and this plan will synchronise rail with other modes of transport.

It proposes to examine creation of holding company for railway units.

Railway will increase in track laying target to up demand for steel.

Container sector will be open to all select ores.

"We will raise non-tariff revenue by monetising assets going forward and invited FM Radio to provide train borne entertainment by installing PA systems," says Prabhu.

Freight policy:
Prabhu says current freight tariff policy will be reviewed.

"We will try to evolve a competitive rate structure for freight tariff," he adds.

12:58 pm
Railway minister says at least 10 goods sheds will be developed via transloc in FY17 and proposes to develop rail site logistics warehousing.

Warehouses will be created via PPP mode, he adds.

12:56 pm Prabhu says d
etailed policy on suburban ecosystem is expected in 4 months.

"Railway will partner with state government for suburban system in tech hub of Bengaluru and also intend partnering with Gujarat, Telangana, Tamil Nadu for suburban sections.

12:55 pm Market Update
: Equity benchmarks remained lower. The Sensex fell 59.65 points to 23029.28 and the Nifty declined 28.25 points to 6990.45.

12:54 pm
Railway will install hi-tech centralised network of 20,000 screens on 2000 stations 

12:51 pm
Railway minister says three direct services, fully airconditioned Humsafar will travel at 130 km per hour.

12:49 pm Coach cleaning: Prabhu says
under 'Clean My Coach' passengers can request for coach cleaning via SMS.

12:47 pm Women Reservation:
Railway will introduce a sub-quota of 33 percent for women in each of reserved categories.

12:45 pm New Express:
Railway introduces Utkrisht Double-Decker Yatri Express, which will increase capacity by 40 percent.

It also introduces Antyodaya Express, superfast train for long routes. All operational haults will be converted in commercial haults.

12:43 pm Savings: 
Railway minister says annualised savings of Rs 3,000 crore will be achieved in FY17 and railway plans to set up a new fund for financing projects.

12:42 pm
Railway has entered into partnerships with global institutions to improve operations. Funding by LIC to ease pressure on debt market, Prabhu says.

12:41 pm KEC International up 3.5%
: Electrification of 2000 km by Railway is positive for KEC International.

12:40 pm Savings: Railway minister Suresh Prabhu says inventory management led to savings of Rs 64 crore.

He also says Railway University is being set up at Vadodara, Gujarat.

12:37 pm
Suresh Prabhu says contracts of Rs 24,000 crore were awarded since November 2014 against Rs 13,000 crore in last 6 years.

All contracts for civil engineering works will be awarded soon, he adds.

12:35 pm
Railway generated 65,000 additional berths via augmenting 884 coaches.

"We proposes to invite bids to develop few large stations under PPP model," Prabhu says.

12:31 pm Ports:
Railway will set up Margao, Hazira ports in FY17 via public private partnership model.

"We will set up 2 locomotive factories at the cost of Rs 40,000 crore," he says, adding FY17 gross budgetary support is seen at Rs 40,000 crore.

12:29 pm: Fund raising:
"We will tap rupee bond market overseas to raise funds,"
Prabhu says.

Railway plans FY17 gross traffic revenue at Rs 1.85 lakh crore, up 10 percent YoY.

12:25 pm Broad Gauge lines:
Suresh Prabhu says Railway will commission 9 km per day of broad gauge lines in FY18 & 13 km per day in FY19.

He also proposes to electrify 2,000 km of railway lines in FY17.

12:23 pm Goods earnings target:
Prabhu says FY17 goods earnings target stood at Rs 1.18 lakh crore.

12:20 pm Pension spending:
Railway targets FY17 pension spending at Rs 45,500 crore.

12:21 pm Freight corridors:
Prabhu proposes to set up 3 freight corridors.

12:19 pm Passenger revenue:
Railway targets passenger revenue at Rs 51,012 crore for FY17, up 12.4 percent over a year-ago period.

12:18 pm LIC funding to Railway:
LIC has agreed to provide Rs 1.5 lakh crore to Railway for next five years.

12:15 pm Capex:
Railway plans FY17 spending at Rs 1.21 lakh crore, up 21 percent compared to previous year.

12:12 pm Railway Savings:
Suresh Prabhu expect savings at Rs 8720 croe in FY16.

12:09 pm Operational ratio: Railway proposes FY17 operating ratio at 92% against 90 percent projected for current fiscal.

12:07 pm Rail Budget speech begins: Government's vision is to make Railway backbone of India's development by improving quality of service. It should be template for transportation.

"We are making all efforts to translate government's vision into realty," says Prabhu.

12:05 pm Rail Budget expectations:
Analysts expect 20-25 percent YoY increase in capital outlay for railway for FY17 at Rs 1.25 lakh crore.

During FY16, rail minister had promised an aggressive capex plan for the railways from 2015-19 at Rs 8.5 lakh crore. During FY16, the budgeted capital outlay was Rs 1 lakh crore.

He targeted operating ratio for 2015-16 at 88.5 percent against 91.8 percent in 2014-15, which is the best in last 9 years.

Analysts expect wagon procurement to increase to 18,000 - 19,000 units and also expect healthy improvement in allocation towards DFC (dedicated freight corridor).

Stocks lik Titagarh Wagons, Texmaco, Kalindee Rail, Siemens, ABB, CIMMCO, Stone India and BEML will be closely watched.

12:00 pm Market Check

The market remained rangebound in noon trade as the Railway Minister Suresh Prabhu will present his second Rail Budget now. The Sensex fell 23.38 points to 23065.55 and the Nifty declined 13.40 points to 7005.30.

HDFC, Sun Pharma, ONGC, Coal India and Hindalco are top gainers, up 1-2 percent while Infosys, TCS, ICICI Bank and Reliance Industries declined 0.5-1 percent.

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