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RAILWAY BUDGET 2009 - 10
Team Members
• S.Sivakumar,MBA
• B.Velmurugan,MBA
• M.Palanikumar,MBA
Introduction about indian govt
(UPA)
• In keeping with this mandate, the Congress and
  its pre-poll allies that include the
  DMK,NCP,TC,JMM,NC,have come together to
  form a United Progressive Alliance (UPA).
Election Results' impact on
Stock Markets
• The Left is out of the Government and UPA is emerging
  as the majority coalition without the regional parties.
  These two points are major positives for the markets.



ELECTION RESULT
  CABINET MINISTERS
Budget
 A plan for income and expenditure over a
 future period which is supposed to
 achieve stated objectives - in a
 government's case raising taxes and other
 revenue and spending to provide services
 such as defence, education or social
 security.
INDIAN BUDGET
PROCESS
STAGE 1: Estimates. Part A - Expenditure
STAGE 1: Estimates. Part B - Revenue.
STAGE 2: First estimates of deficit.
STAGE 3: Narrowing of the deficit.
STAGE 4: The Budget
Introduction to railway budget
Railway Minister
Introduction

• “Inclusive growth” and expansion of rail
  network to reach development to every
  corner of the country is core to
  developmental approach.
• Economically unviable projects need to be
  viewed with social perspective being
• economic necessity for backward areas and
  under privileged. Expert committee to advise
  on innovative financing and
  implementation of such projects.
Budget Estimates 2009-10

• Freight loading targeted at 882 MT – an
  increment of 49 MT; number of
  passengers likely to grow by around 6%.
• Gross Traffic Receipts (GTR) estimated at
  Rs 88,419 cr. Rs 8,557 cr more than
  2008-09.
• The dividend payable to General
  Revenues kept at Rs 5,479 cr.
• Budgeted Operating Ratio 92.5%.
New Train Services

• 57 new train services to be introduced.
• Extension of 27 trains also envisaged.
• Frequency of 13 trains to be increased
Annual Plan 2009-10
• Plan outlay is Rs 40,745 cr. Increase of Rs
  2,840 cr on Interim Budget.
• New lines outlay - Rs. 2,921 cr ; increase of
  166% on interim budget
• Gauge conversion - Rs 1,750 cr. – increase of
  24% on interim budget
• Passenger amenities - Rs 1,102 cr - 119%
  increase on interim budget excluding
• PPP provision, which is unlikely to materialize
• Staff Quarters - Rs 335 cr - increase of 49% on
  interim budget
• Staff Amenities - Rs 424 cr- increase of 79% on
  interim budget
• Acquisition of 18,000 wagons in 2009-10
  against 11,000 in 2008-09.
• Additional budgetary support of Rs. 1,949
  cr. sought for 11 national projects.
• Proposals for better integration of
  passengers’ movement in Kolkata
  suburban area.
• Railways to set up a 1000 MW power
  plant.
• Special fund for the development of north
  east railway.
• Railways to develop cold storages for
  farmers to store vegetables and fruits.
• Railway Budget 2009-10: 50 railway
  stations to be of world standard
• Tatkal bookings charges from Rs 150 to
  Rs 100
New scheme
•   Izzat
•   EMU trains
•   Yuva trains
•   Duronto
•   5,000 post offices
Impact of Railway Budget




              Palanikumar. M
Railway Budget pulls sensex by
           255 points
• The Sensex spurted 254.56 points, or 1.74 per
  cent, to close at 14,913.05. The CNX Nifty
  closed at 4,424, up 1.73 per cent.


• The Sensex spurted 254.56 points, or 1.74 per
  cent, to close at 14,913.05. The CNX Nifty
  closed at 4,424, up 1.73 per cent.
Gainers
•   HDFC         -   7.74%
•   Tata Steel -     4.32%
•   M&M          -   3.59%
•   Rel infra    -   3.17%
•   ICICI Bank -     3.05%
•   JP Associate -   3.03%
losers
•   Hero Honda   -   -1.08%
•   Hindalco     -   -0.95%
•   Sterlite     -   -0.74%
•   Rel Comm.    -   -0.24%
•   ITC          -   -0.03%
TAKING STOCK
                        Share price on
                                               %
Company                   BSE in Rs
                                           Change
                         July 2   July 3
Titagarh Wagons         439.30 417.35        -5.00
Kalindee Rail Nirman    223.55 212.40        -4.99
Texmaco                 120.45 114.45        -4.98
BEML                   1081.75 1033.00       -4.51
BHEL                   2149.90 2182.05       1.50
Container Corp          971.45 1010.35       4.00
Stone India              44.95   47.15       4.89
Sectoral Indices
•   Bankex          -   2.19%
•   Capital Goods   -   1.90%
•   Power           -   1.84%
•   Health care     -   1.80%
•   Reality         -   1.18%
FII’s and DII’s Inflow
• FII   -   Rs. 210.82 crore
• DII   -   Rs. 298.58 crore
Sum gains for five rail
          companies
• Indian Railway Finance Corporation
• Rail Vikas Nigam Ltd
• Dedicated Freight Corridor Corporation of India
  (DFCC)
• Bhartiya Rail Bijlee Company Ltd
• Bharat Wagon and Engineering Ltd.
Opportunities
• With the construction of multifunction complexes
  on railway land, enhanced security at railway
  stations or air conditioned double-decker inter
  city trains across the country—the goodies for
  industry from Mamata's bag just did not seem to
  stop.
For the work to be undertaken at the stations,
companies like IVRCL, Gammon and L&T stand to
gain. Companies like Titagarh Wagons, Texmaco
and BEML can expect a healthier orderbook with the
double-decker coaches that are planned and the
dedicated freight corridor could be an opportunity for
companies    like   Mahindra   Logistics,   Transport
Corporation, Gati and Adani Logistics. NTPC has
already been named as a partner for the 1000 MW
captive power plant
Challenges
• Delay in implementing
• Oppositions from opposite parties
• Political and Legal influences and etc..

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Railwaybudget

  • 2. Team Members • S.Sivakumar,MBA • B.Velmurugan,MBA • M.Palanikumar,MBA
  • 3. Introduction about indian govt (UPA) • In keeping with this mandate, the Congress and its pre-poll allies that include the DMK,NCP,TC,JMM,NC,have come together to form a United Progressive Alliance (UPA).
  • 4. Election Results' impact on Stock Markets • The Left is out of the Government and UPA is emerging as the majority coalition without the regional parties. These two points are major positives for the markets. ELECTION RESULT CABINET MINISTERS
  • 5. Budget A plan for income and expenditure over a future period which is supposed to achieve stated objectives - in a government's case raising taxes and other revenue and spending to provide services such as defence, education or social security.
  • 7. STAGE 1: Estimates. Part A - Expenditure
  • 8. STAGE 1: Estimates. Part B - Revenue.
  • 9. STAGE 2: First estimates of deficit.
  • 10. STAGE 3: Narrowing of the deficit.
  • 11. STAGE 4: The Budget
  • 14. Introduction • “Inclusive growth” and expansion of rail network to reach development to every corner of the country is core to developmental approach. • Economically unviable projects need to be viewed with social perspective being • economic necessity for backward areas and under privileged. Expert committee to advise on innovative financing and implementation of such projects.
  • 15. Budget Estimates 2009-10 • Freight loading targeted at 882 MT – an increment of 49 MT; number of passengers likely to grow by around 6%. • Gross Traffic Receipts (GTR) estimated at Rs 88,419 cr. Rs 8,557 cr more than 2008-09. • The dividend payable to General Revenues kept at Rs 5,479 cr. • Budgeted Operating Ratio 92.5%.
  • 16. New Train Services • 57 new train services to be introduced. • Extension of 27 trains also envisaged. • Frequency of 13 trains to be increased
  • 17. Annual Plan 2009-10 • Plan outlay is Rs 40,745 cr. Increase of Rs 2,840 cr on Interim Budget. • New lines outlay - Rs. 2,921 cr ; increase of 166% on interim budget • Gauge conversion - Rs 1,750 cr. – increase of 24% on interim budget • Passenger amenities - Rs 1,102 cr - 119% increase on interim budget excluding • PPP provision, which is unlikely to materialize • Staff Quarters - Rs 335 cr - increase of 49% on interim budget • Staff Amenities - Rs 424 cr- increase of 79% on interim budget
  • 18. • Acquisition of 18,000 wagons in 2009-10 against 11,000 in 2008-09. • Additional budgetary support of Rs. 1,949 cr. sought for 11 national projects. • Proposals for better integration of passengers’ movement in Kolkata suburban area. • Railways to set up a 1000 MW power plant. • Special fund for the development of north east railway. • Railways to develop cold storages for farmers to store vegetables and fruits.
  • 19. • Railway Budget 2009-10: 50 railway stations to be of world standard • Tatkal bookings charges from Rs 150 to Rs 100
  • 20. New scheme • Izzat • EMU trains • Yuva trains • Duronto • 5,000 post offices
  • 21. Impact of Railway Budget Palanikumar. M
  • 22. Railway Budget pulls sensex by 255 points • The Sensex spurted 254.56 points, or 1.74 per cent, to close at 14,913.05. The CNX Nifty closed at 4,424, up 1.73 per cent. • The Sensex spurted 254.56 points, or 1.74 per cent, to close at 14,913.05. The CNX Nifty closed at 4,424, up 1.73 per cent.
  • 23. Gainers • HDFC - 7.74% • Tata Steel - 4.32% • M&M - 3.59% • Rel infra - 3.17% • ICICI Bank - 3.05% • JP Associate - 3.03%
  • 24. losers • Hero Honda - -1.08% • Hindalco - -0.95% • Sterlite - -0.74% • Rel Comm. - -0.24% • ITC - -0.03%
  • 25. TAKING STOCK Share price on % Company BSE in Rs Change July 2 July 3 Titagarh Wagons 439.30 417.35 -5.00 Kalindee Rail Nirman 223.55 212.40 -4.99 Texmaco 120.45 114.45 -4.98 BEML 1081.75 1033.00 -4.51 BHEL 2149.90 2182.05 1.50 Container Corp 971.45 1010.35 4.00 Stone India 44.95 47.15 4.89
  • 26. Sectoral Indices • Bankex - 2.19% • Capital Goods - 1.90% • Power - 1.84% • Health care - 1.80% • Reality - 1.18%
  • 27. FII’s and DII’s Inflow • FII - Rs. 210.82 crore • DII - Rs. 298.58 crore
  • 28. Sum gains for five rail companies • Indian Railway Finance Corporation • Rail Vikas Nigam Ltd • Dedicated Freight Corridor Corporation of India (DFCC) • Bhartiya Rail Bijlee Company Ltd • Bharat Wagon and Engineering Ltd.
  • 29. Opportunities • With the construction of multifunction complexes on railway land, enhanced security at railway stations or air conditioned double-decker inter city trains across the country—the goodies for industry from Mamata's bag just did not seem to stop.
  • 30. For the work to be undertaken at the stations, companies like IVRCL, Gammon and L&T stand to gain. Companies like Titagarh Wagons, Texmaco and BEML can expect a healthier orderbook with the double-decker coaches that are planned and the dedicated freight corridor could be an opportunity for companies like Mahindra Logistics, Transport Corporation, Gati and Adani Logistics. NTPC has already been named as a partner for the 1000 MW captive power plant
  • 31. Challenges • Delay in implementing • Oppositions from opposite parties • Political and Legal influences and etc..