The interim railway budget for 2014-15, presented by Union Railway Minister Mallikarjun Kharge, includes no increase in fares, the launch of new trains, and an expansion of services. Key initiatives focus on new factories for railway components, establishing a rail tariff authority, and a freight earnings target of Rs. 94,000 crore. However, Indian Railways faces increasing losses, attributed to passenger traffic shortfalls, operational inefficiencies, and competition from road transport.

1. Asia’s second largest rail network

2. Railways Budget
 Interim Railway Budget 2014-15 presented in the Lok
Sabha by Railway Minister Mallikarjun Kharge.
 Union Railways Minister Pawan Kumar Bansal
presented the Railway Budget in the Lok Sabha in New
Delhi on Feb 26, 2013.

3. Highlights of Budget 2014-15
No increase in passenger fares and freight charges.
17 new premium trains, 38 express trains and 10
passenger trains to be launched.
Premium AC trains with dynamic fares on Delhi-Mumbai
route with shorter advance reservation period.
Passenger rail service to Katra and Vaishno Devi to start
shortly.
Railways to expand services to Meghalaya.

4. Highlights…
Three new factories - Rail Wheel Plant in district
Chhapra, Bihar; Rail Coach Factory at Rae Bareli in
Uttar Pradesh; and Diesel Component Factory at
Dankuni, West Bengal, have become functional and
commenced production during 2013-14.
An independent Rail Tariff Authority to be set up to
advise the government on fixing fares and freight
charges.

5. Target Set…
 Freight earnings target set at Rs.94,000 crore, Loading
target raised to 1,052 million tonnes
 Annual Rail Plan envisaged at Rs 64,305 crore with a
budgetary support of Rs 30,223 crore.
 Operating ratio budgeted at 89.8 percent.
 Allowing Foreign Direct Investment (FDI) in railways
is under consideration.

6. Indian Railway in Loss
 Losses to the Railways on account of passenger traffic
are likely to mount to Rs 24,600 crores in 2012-13
from Rs 22,500 crores in 2011-12.
 The Railways had targeted to mop up an additional
revenue of Rs.6,600 crores for the current financial
year (2012-13), but the fuel price hike wiped
out Rs.3,300 crores of it.
 The operating ratio, a measure of expenses as a
percentage of revenue, is seen deteriorating. Kharge
has targeted to improve this to 89.8% in 2014-15.

7. Reasons for Loss
 Indian Railways incur high losses due to accidents and
no insurance cover
 Mounting scarcity of resources and thin spread of
funds continue to be a problem.
 Passengers travelling without tickets.
 Better facilities being provided by road transport.