Railway Budget: No change in passenger fares, freight rates

Union Railway Minister Mamata Banerjee today presented the Railway Budget for 2009-2010 which left passenger fares and freight rates unchanged. While presenting her speech, Ms Banerjee made it clear that her focus was on railway network development under which she announced introduction of 12 non-stop train services between select cities, developing 50 stations as world class, availability of tickets via 5000 post offices across the country etc. 
Ms Banerjee stated that targets set in the interim budget were not sustainable in FY10 due to economic slowdown but said the budgetary allocation for the Railways had been increased by Rs 5000 crore.
This is Ms Banerjee's third Railway Budget (she served as the Union Railway Minister between October 13, 1999 and March 16, 2001 under the previous NDA government) but first as the minister of the newly-constituted United Progressive Alliance.
The Railway Budget also mentioned plans to acquire 18,000 wagons in FY10. Reacting to this information, Umesh Choudhary, Managing Director of one of India's leading private sector wagon manufacturers, Titagarh Wagons , said the increase in wagon off-take was very positive. While VRS Natrajan, CMD, BEML , manufacturer of rail coaches and spare parts, said the dedicated freight corridor and the additional coaches would generate business for the company. "We are also tying up with an MNC for technology required for double-decker coaches."

Also Read: BEML, Titagarh cheer proposal for increased wagons

Commending Banerjee, Prime Minister Manmohan Singh said she has done a highly competent job. "She has presented a budget which does not impose any burden by way of increase in freight charges or passenger charges," he added.

Here are the key highlights:

- No change in passenger fares and freight rates

- Tatkal fares reduced by Rs 50 to Rs 100

- Plans to acquire 18,000 wagons in FY10 

- FY10 freight target set at 882 million tonne

- Railways to set up 1,000 MW captive power plant with NTPC

- 50 stations to be developed with world class facilities.

- To upgrade Mumbai, Pune, New Delhi, Jaipur, Howrah stations

- Allocation for new lines raised to Rs 2920 crore