Rail Budget: Focus on safety, consolidation, passenger amenities
The Railway Budget for 2013-14, while emphasizing on its priority to increase rail safety and security, also seeks to raise investment in modernization and up gradation of rail infrastructure: CARE Ratings
Railway Budget: FY14
The Railway Budget for 2013-14, while emphasizing on its priority to increase rail safety and security, also seeks to raise investment in modernization and up gradation of rail infrastructure. The rail Budget has also proposed a plan outlay of Rs.63,363 crore for the railways, the highest ever outlay by far. This in a way is persistence in the thrust of Railways to improve structures and systems, and hence signifies ‘continuity’ in ideology. This is understandable given that the area to be covered is large, given the entire perimeter of the railways, and there can only be small efforts put in every year to improve the overall system of the department.
The Railway Minister has envisaged 4 focus areas for the coming year – safety, consolidation, passenger amenities and fiscal discipline.
- Increase in freight charges by approximately 5%
- 67 new Express trains to be introduced
- 26 new passenger services to be introduced
- Elimination of 10,797 level crossing during 12th Plan
- Setting up of Railway Energy Management Company (REMC) to harness potential of solar and wind energy
- Highest ever plan outlay of Rs 63,363 crore that would be financed through
- Gross budgetary support – Rs 26,000 crore
- Railway safety fund – Rs 2,000 crore
- Internal resources – Rs 14,260 crore
- Extra budgetary resources – Rs 21,103 crore, which includes market borrowing of Rs 15,103 crore and PPP of Rs 6,000 crore
- 500 km new lines, 750 km doubling, 450 km gauge conversion targeted in FY14
Financial Performance FY13
- Loading target reduced by 18MT to 1,007MT
- Gross traffic receipts revised to Rs 12,680 crore, lower by Rs 6,872 crore over budget estimates
- Working expenses retained at BE level of Rs 84,000 crore
- Pension payments increased by Rs 1,500 crore to Rs 20,000 crore
- Current dividend liability to be fully discharged.
- Excess of receipts over expenditure of Rs 10,409 crore as against the budget amount of Rs 15,557 crore
- Operating ratio of 88.8% as compared to 94.9% in FY12
Budget Estimates FY14
- Freight load of 1,047MT
- Passenger growth pegged at 5.2%
- Gross receipts – Rs 1,43,742 crore
- Ordinary Working Expenses – Rs 96,500 crore
- Dividend payment estimated at Rs 6,249 crore
- Operating ratio estimated at 87.8%
- Fund balance expected to exceed Rs 12,000 crore
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