The new NDA government faced its first major challenge as the Union Railway Minister Mr. Sadananda Gowda presented the annual railway budget in parliament yesterday. Already under a cloud for hiking rail fare prices recently, all eyes were fixed on this. Away from the populism of previous budgets, the railway budget has successfully initiated measures to put the Indian railways on a path of modernisation. With the railways struggling for finances, the railway minister highlighted plans to revive the financial health through public-private partnerships while seeking cabinet approval to allow FDI in railway infrastructure. Though the speech was often interrupted by the opposition, the railway minister managed to impress industry experts and analysts with a pro reform budget devoid of any populist schemes and announcements. Focus on improving passenger safety and security: With a constant poor record in passenger safety and security for the Indian railway, the railway minister through this budget has emphasized on a dedicated focus for improving this. The government has announced the introduction of an indigenously developed Train Collision Avoidance System which will go a long way in eliminating accidents that occur due to human error. Vigilance control devices would be made available in all locomotives while special measures have been taken to avoid fire incidents on train. All trains including passenger and mail trains would have a multi-tier protection for electric circuits. The LPG used in pantry cars will be replaced by induction based cooking to avoid any fire hazards. Fire retardant materials would be used in the coaches for trains apart from increase in fire intensive checks. On the rail-road safety network, the Railway Minister has announced improvement of audio – visual warning to road users in advance of approaching trains along with total elimination of unmanned level crossings in the country. Investments and FDI: The railway budget did not announce any further increase in passenger fares and freight charges after the recent hike as expected. However there has been a dedicated focus on investments in the railway mechanism both through PPP mode and FDI route. Leading the way is the diamond quadrilateral network for high-speed trains along with Rs. 5116 Crore projects for the North Eastern states both through Public Private Partnership model. Railway minister also requested the cabinet to consider the proposal for FDI in railway infrastructure to lessen the resource crunch facing today. FDI in railway, if approved can pave way for internationally acclaimed companies to work in tandem to improve the railway infrastructure network across the country. The passenger fares which have not been touched as of now would be evaluated once every six months as per the Fuel Adjustment Costs (FAC) formula of the Indian railways. High speed trains announced: Bullet train, which was considered to be a pet project of the Prime Minister Narendra Modi has been given a green signal with Mumbai-Ahmedabad route shortlisted for the first bullet train corridor in the country. A provision of Rs 100 crore has been made in the budget for this project. The railway minister has also announced an average increase in speed of trains to 160-200 kmph in as many as nine sectors to pave way for further high speed trains in the country. Environmental friendly initiatives: The introduction of environment friendly initiatives adds a sense of corporate social responsibility in the union rail budget. Railway Minister has announced increasing bio-toilets in trains to mitigate the problem of direct discharge of human waste on the tracks and platforms. Utilizing station roof tops, railway buildings and lands to harness solar energy preferably through a PPP model augers well to make Indian railways eco friendly. The railway minister has also suggested the use of bio diesel replacing the normal diesel in as much as 5% of the total consumption. Improvement of reservation system: The rail budget has announced a total revamping of railway reservation system into Next Generation e-ticketing system. This would bring smile to many who use online railway booking system. Once implemented, this would handle 7200 tickets per minute for almost 1, 20,000 users simultaneously. Platform tickets and unreserved tickets would also be made available online through IRCTC website soon. Resource augmentation: Railway minister has announced special emphasis on freight trains with an aim to introduce dedicated parcel terminals and special parcel trains with scheduled timings. The government is hopeful that it would bypass the loading target of 1047 million tons achieved in 2013-14. A special milk tanker train has been announced in association with National Dairy Board and Amul to facilitate transportation of milk through rail. Certain identified stations would be upgraded to international standards offering Wi-Fi connectivity. Rail Budget in Numbers:
- Receipts in 2013-14 were Rs.139, 550 crore; expenditure was Rs.130, 321 crore
- 4,000 women constables recruited in RPF to make travel in women`s coaches safer
- 40% increase in expenditure on cleanliness; CCTVs to monitor cleanliness at stations
- Diamond quadrilateral to be launched for high-speed trains
- Bullet train on Mumbai-Ahmedabad Sector
- Plan to hike speed of trains to 160-200 km/hr in 9 sector
- Target to become largest freight carrier in the world with a target to carry one billion tons of freight every year
- Battery operated cars for disabled and senior citizens at major stations
- Pre-cooked ready-to-eat meals to be introduced