Rail budget 2016 17 highlights

SPECIAL REPORT ON
RAIL BUDGET 2016-17
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Special Report On RAILWAY BUDGET
20 Feb 2016
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RAIL BUDGET 2016-17 HIGHLIGHTS:

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Cabinet Approves Rs. 10,700-Cr Rail Line
Expansion Plan
The Cabinet Committee on Economic Affairs on Wednesday approved construction
of six rail lines and a railway bridge at an estimated cost of Rs. 10,700 crore to cater
to increased passenger and freight needs.
The CCEA, chaired by Prime Minister Narendra Modi, gave its nod for the
construction in a 908 km stretch, which will cost over Rs. 10,700 crore. Most part of
the expenditure will be met through extra budgetary resources (institutional
financing).
The expansion includes doubling of the Hubli-Chickajur line, the Wardha
(Sewagram)-Ballarshah third line, doubling of the Ramna-Singrauli line, third line

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between Anuppur and Katni, doubling of the Katni-Singrauli line and an additional
bridge, and doubling of the Rampur Dumra-Tal-Rajendrapul line.
The doubling of 190 km long Hubli-Chickajur railway line is likely to be completed
in more than four years during the 13th Plan period and will cover Chitradurga,
Davangere, Haveri and Dharwad areas of Karnataka.
The Pune-Miraj-Hubli-Bangalore route has been identified for doubling, which will
improve rail traffic flow and boost overall development of the region.The stretch is
part of an important rail link of passenger trains between Mumbai and Bangalore
and goods trains to the ports at Mangalore. The doubling of tracks between
Bangalore and Tumkur, and Arsikere and Chickajur has already been completed on
this link.
Construction of the 132 km long Wardha (Sewagram) - Ballarshah third railway line
is likely to be completed in five years in Wardha and Chandrapur districts of
Maharashtra.The line capacity utilization of the section is saturated and running of
additional Mail/Express and goods traffic over causes delay in movement of the
trains.

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CCEA approved doubling of 160 km long Ramna-Singarauli railway line at a cost
Rs. 2,675.64 cr and is likely to be completed by 2019-20. The project will cover the
districts of Garhwa in Jharkhand, Singrauli in Madhya Pradesh and Sonbhadra in
Uttar Pradesh.The Ramna-Singrauli section falls in Dhanbad Division of East
Central Railway. At present traffic utilization of the section is 105 per cent, resulting
in detention of trains and loss of revenue.
In order to attain the desired fluidity and increase in the sectional capacity, doubling
of this single line section is very essential from operational point of
view.Construction of 165 km long third railway line between Anuppur-Katni in
Madhya Pradesh has also been approved at a cost of Rs. 1595.76 crore. The project
is likely to be completed in over five years spanning over 12th and 13th plan period.
The project would cover the districts of Anuppur, Shahdol, Umaria and Katni
districts of Madhya Pradesh.There has been tremendous surge in coal and ore mining
recently. A number of industrial townships have also grown up along the project
line. These developments have resulted in large demand for additional railway coach
services on the section.With an increase in freight traffic in the area, the capacity
utilization will reach upto 175 per cent. Apart from this substantial additional coal
traffic from IB valley, Korba area, East Corridor and Gevra Road - Pendra Road
Project will be channelised through this route to the respective destinations.
To meet the growth in the freight and passenger traffic, tripling of third line between
Anuppur-Katni is essential.The doubling of 261 km long Katni-Singarauli railway
at an estimated cost of Rs. 2,084.90 crore has been approved by the CCEA and the
project will be completed in over five years. The project will cover the districts of
Katni, Shahdol, Sidhi and Singrauli in Madhya Pradesh.Katni-Singrauli is a critical
and busy section carrying coal from Northern Coal Fields towards Western and
Northern thermal power plants.Construction of additional Bridge and doubling
project of Rampur Dumra-Tal-Rajendrapul sector in Bihar at a cost of Rs. 1700.24
crore was also granted CCEA's approval.
The project is likely to be completed by 2019-20. The project is located in Begusarai
and Patna districts of Bihar. To streamline traffic operation on this single line
section, it is very essential that one additional bridge and doubling of this section is
undertaken.

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Changes to Ticketing Policy Sought in Rail
Budget
Changes to the ticketing policy such as 50 per cent refund on 'tatkal' cancellations
and no limit in ticket bookings for travelers are some of the suggestions for the
railways budget 2016-17 made by the people in a survey. Citizens have also raised
concerns over bribes taken by TTEs (train ticket examiners) and misuse of
emergency quota and sought such issues to be addressed in the 'Make Railways
Better' survey. Approximately 63 per cent of the citizens surveyed have experienced
or observed TTEs taking bribes for giving seats/ticketless travel.
"This is an area where citizens are keen that through policies, processes and systemic
changes the Railways must address it otherwise the bribes taken by TTEs translate
into revenue loss for the organization."
About 17 per cent of the citizens indicated that they would approach a tout or agent
for a last minute travel requirement, 9 per cent of them indicated that they would
prefer to approach someone in the Railways to secure the ticket under special quota,
62 per cent said they would prefer to use the IRCTC website while 12 per cent said

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they would prefer going to the Railways reservation counter. According to the
survey, people want a transparent system for emergency and VIP seat allocation, and
guidelines to be issued defining emergency and VIP. They have suggested this quota
should be cut down by 75 per cent. Suggesting a curb in tout involvement in
ticketing, the survey has advocated for deployment GRP and RPF to keep a strict
vigil on the stations and reservation counters to prevent tout operation beside
installation of CCTV cameras strategically around the booking windows to deter
unscrupulous elements in illegal ticketing.
Respondents in the survey have suggested that a 50 per cent refund should be given
on 'tatkal' ticket cancellation six hours before departure and also a quota for online
bookings of such tickets should be introduced. There are suggestions for allotment
of lower/middle berths for senior citizens and women with young kids and no limit
should be put on booking tickets for self as first traveler.
Railways to tap auto and FMCG sectors in big way
Facing a decline in loadings demand, railways is mulling various options including
entering into untapped areas like auto and FMCG to increase freight revenue.
"The need of the hour is to enter new areas to expand the freight operation in a
significant way," said a senior Railway Ministry official, adding, "The aim is to enter
into untapped areas."

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Some of the proposals, including tapping automobile and FMCG sectors in a big
way, are likely to come up in Rail Budget 2016-17.Currently, railways mainly
carries commodities such as coal, iron ore, steel, cement, minerals, fertilizers and
food grains. However, there are no demands for steel, cement and coal due the
various reasons. Food grains loadings were also affected due to change in the policy.
"So we have to look for new areas potential sectors like tapping the automobile and
FMCG sectors in a big way. In fact we have listed about 46 commodities where we
can explore doing business,"
Door-to-Door transportation of goods using road railers is being actively considered.
Road railers are capable of movement on road and rail. Railways' trial run for the
road railers is over and the road railers service will be introduced on the Delhi-
Chennai route.
Reaching out to industry in the run up to Rail Budget, railways has undertaken series
of talks with stakeholders seeking their suggestions to arrest the declining freight
operation.

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Railway passenger and freight fares set to be
hiked
The Centre has decided to raise train passenger and freight charges to bail the
Railways out of a crippling financial crisis but the timing of the announcement is yet
to be finalized.
Besides failing to meet its annual revenue targets, the Railways is also groaning
under a burden of Rs 32,000 crore this year towards implementing the 7th pay
commission recommendations.“(The) rail coffers are virtually empty. A decision on
hiking fares has been taken though railways minister Suresh Prabhu remains
undecided on the timing and manner of the announcement.
They added that the fare increase can come by way of a direct increase or through
an indirect route such as an increase in the cost of services provided by the public
sector behemoth.
“The hike will be announced before or after the budget,” the sources said adding that
a raise now will enable the Railways to take advantage of the peak travel season
beginning March.
India’s largest transporter ferries around 23 million people daily, which is equivalent
to the population of Australia and New Zealand put together, on its network of tracks
running up to more than 64,000 km.
Immediately after assuming office in 2014, the NDA government had announced a
14% across-the-board hike in fares, following this up with incremental and indirect
measures at raising travel costs by increasing the minimum chargeable fare for
second class non-suburban trains or through changes in the refund rules and the
imposition of the Swach Bharat cess.
In what can be seen as a hint of the ministry’s current thinking, the Railways portal
have put up a study by a group named ‘Axis Capital’ which recommends a 10% hike
in passenger fares and a 5% raise in freight rates to improve the state-run
transporter’s finances.

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Conceding to the shortfall in freight loading targets in items including coal, cement,
steel and food items, the Railways minister recently told newsmen that the situation
was result of an economic slowdown in these sectors.
Overall performance during the current year has been worrying. Total freight
earnings (Rs 71,217 crore) until November 15 was 8.42% lower than the budget
target, while earnings from passenger services (Rs 27,991 crore) were 11.6% lower
than the targets.
RAILWAY BUDGET 2016: PASSENGERS PRIORITIES
Train passengers expected better services and better amenities in this Railway
Budget 2016-2017.
Railway Budget 2016 - 2017: Passengers priorities
In the survey around 35% of the participants listed amenities and services, 30% of
the participants demanded safety, 19% demanded cleanliness and 16% for timeliness
as their top priority. In the budget 2015-2016, passengers gave top priority to
hygiene and cleanliness.
In the survey, Amenities and services included lot of things, they divided amenities
and services into two, and those are things needed at stations and things needed in
trains.
At the stations passengers demanded
 Clean drinking water,
 Elevators and escalators for families and elders and special needs of
travelers,
 Functional toilets,
 Hassle- free coolie and porter services.

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In the Trains passengers demanded
 Improved quality of hygiene levels of food stock,
 Effective maintenance of train toilet utilities and neat and clean toilets,
 Increased number of dustbins and their effective management,
 Insect and pest free trains,
 Increased number of phone charging points,
 Friendly staffs etc.
Along with this Passenger Information Services also needed changes
including
 Customized train departure/ arrival/cancellation notification via SMS,
 Effectiveness of phone helplines and their information quality,
 Effective display of train arrival / departure and coach numbers on platforms,
 Display of all assistance/ helpline numbers on coaches and platforms etc.

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FOCUS ON INVESTMENT
 Railway Budget will focus on attracting investments for augmenting present
and future facilities.
 “Comfort of passengers is today’s requirement but augmentation of facilities
is the future need. Our effort is to take forward these initiatives hand-in-hand,”
Mr Suresh Prabhu said.
 The government is already in the process of finalizing the budget and would
continue with the measures started last year for development of Railways, he
said, adding that the BJP government had complied with the majority of
announcements and promises it made in last year’s railway budget.
“I am very happy to say that in the last budget we had promised many things
for the people of India and most of the announcements have been fully
complied with,” he said. Pointing out that Railways had suffered since many
decades due to ‘neglect’ and ‘dearth of investments’, he said efforts now were
to bring in more investments to rectify this. Steps should be taken to ensure
that Indian Railways remains the backbone of the country’s economy and
would continue to drive economic growth.
 On the new initiatives to implement projects in states, he said the Union
government had launched a program to enter into partnership with states to
float a Joint Venture company.

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As many as 17 states had come forward to cooperate with the
Joint Venture.
 “Kerala along with Andhra Pradesh is one of the first states to sign a MoU
with Indian Railways for this venture,” he said, adding that the government’s
endeavor was to make the state one of Railways’ investment hubs in the
country.
 Suresh Prabhu woos UK investors for investment in rail sector. Seeking
investments in Indian infrastructure and areas of mutual cooperation in the rail
sector, Railway Minister Suresh Prabbhu has met leading investors and
officials during his two-day UK trip.
Suresh Prabhu, who had gone to London at the invitation of UK government,
met Oliver Letwin, Chancellor of the Duchy of Lancaster and UK Minister in
charge of cabinet affairs and Patrick McLoughlin, UK Secretary of State for
Transport, to explore investment opportunities in Indian infrastructure and
areas of mutual cooperation in the Rail sector. The other members of the
Indian delegation included Ranjan Mathai, High Commissioner of India,
Rajiv Datt, Managing Director of Indian Railway Finance Corporation,
Saikant Sen Sharma, First Secretary (Economic) Indian High Commission,
UK. The proposed issuance of Rupee bonds overseas by Indian corporates
was also discussed during the meeting, according to a release issued by
Railway Ministry. The UK side welcomed these proposals and promised to
assist in ensuring success in these endeavors. Prabhu along with the UK
Ministers also addressed a high level Investors Round table and investors were
positively inclined to commit long term funds for the infrastructure sector.
Prabhu also visited the London Stock Exchange and met some leading

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investors. The investors (banks/financial institutions) who participated in the
interactions included Standard Life, Citibank, SBI UK, SBI Caps UK, Prime
Bridge Investments, London Stock Exchange, Standard Chartered Bank, ANZ
bank, HSBC bank, Kotak Mahindra , Blue Bay Investments, Black Rock
Investments, Deutche Bank, U K Green Investment Bank, Russell
Investments, Jupiter Asset Management, HSBC, SBI Capital, Investec,
BAML, Redington and JP Morgan. In addition, the Indian delegation also
visited three stations in London area where considerable redevelopment of
property has taken place. Railways have finalized plan to redevelop about 400
major stations across the country to upgrade passenger amenities.

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STOCKS TO WATCH DURING THE RAILWAY BUDGET
SESSION
TITAGARH WAGONS: THE STOCK IS LOOKING BULLISH FOR THE
UPSIDE TARGETS OF 150-160 FOR THE SHORT TERM WITH A STOPLOSS
OF 120 FROM THE CURRENT PRICE NEAR 135

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TEXRAIL: THIS STOCK TOO IS BULLISH AND CAN HAVE THE UPSIDE
TARGETS OF EVEN 200 IN MANAGES TO CROSS 150 LEVEL AND
SUSTAIN.DOWNSIDE SUPPORT FOR THE STOCK IS AT 125 NOW.

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SIEMENS: A CLOSE ABOVE 1050 WILL GIVE MOMNETUM TO THIS
STOCK VERY SOON AND THE UPSIDE TARGET FOR SHORT TERM IS
AROUND1175-1200 LEVELS.DOWNSIDE SUPPORT IS AT 995.
LT: SAME LIKE THE PREVIOUS STOCK A CLOSE ABOVE 1160 WILL GIVE
POSITIVE MOVES FOR LT AND THE UPSIDE TARGETS FOR NEAR TERM
IS AROUND 1275-1300 FOR THE STOCK.DOWNSIDE SUPPORT AT 1050.

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Rail budget 2016 17 highlights

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Rail budget 2016 17 highlights