The Indian Railways is facing a massive depletion in finances due to the slowing down of growth in its freight business.

Online PR News – 25-February-2011 – – Indian Railway – Now and Then
The Indian Railways is facing a massive depletion in finances due to the slowing down of growth in its freight business. It is also struggling with the financial burden of the payout for the sixth Pay Commission (around Rs. 55,000 crore between 2008 and 2011). The national transporter is expected to register a shortfall of over Rs. 4,000 crore on an estimated Rs. 92,000 crore in revenue from freight and passenger business this year. The Railways has faced several problems since the last budget.

The increase in fuel prices is expected to inflate its expenses by Rs. 1,000 crore. Private container train operators have complained that the Railways is not helping them carry more freight and have decided to hold up around Rs. 2,000 crore of investment in the sector. This explains why the incremental freight loading target for 2010-11 is only 52 million tonnes compared to 60.3 million tonnes in 2009-10. Several other public-private projects including modernization of railway stations have not taken off due to a paucity of funds.

Key Highlights

• High demand for coach, wagons can't be met immediately

• To set-up single window for PPP approval

• To set-up rail-based industries for passenger coaches

• To set up 1300 MW thermal power plant in AP

• To set up rail industrial park at new Bongaigaon, Nandigram

• Some rolling stock materials not available

• Have to depend on imports for rolling stock material

• To set up coach factory in Palaghat

• To set up metro coach factory in Singur

• To set-up diesel locomotive centre in Manipur

• Got 85 proposals for PPP

• Imphal to be connected with rail network soon

• To set up new coach factory at Kolar via PPP or JV

• To set up two more wagon units under JV mode

• To set up two more wagon units in Kerala

• To set up 700 MW gas-based power plant in Maharashtra

• Giving economic share to industrials to invest in rail

• Planning 1320 MW thermal power plant in Agra

• Aiming 700 km of annual rail line addition as compared to the current 150 kms

• Working on 1000 MW captive power plant in Bihar

• To build new rail line capacity of 700km versus 180km a year

• To raise Rs 10,000 crore via tax free bonds

• Annual plan for FY12 at Rs 57,630 crore

• Annual gross budgetary support at Rs 20,000 crore

• Market borrowing at Rs 20,594 crore

• Rs 13,824 crore for acquisition of rolling stock

• Doubling spend on gauge conversion to Rs 2,470 crore

• To spend Rs 9,583 crore for new line in FY12

• To create fund to implement socially desirable plans

• Railways earnings likely to exceed Rs 1 lakh crore

• Three railway zones to implement anti-collision devices

• To construct 172 rail over bridges in FY12

• To do away with all unmanned rail crossings in FY12

• Started e-procurement system to ensure transparency

• Saved Rs 300 crore on rail re-alignment

• To give 12,000 acre for dedicated freight corridor

• 442 station up-gradation to be completed by March

• To cut booking charge on AC to Rs 10 versus Rs 20

• Freight loading aim at 993 million tonne in FY12

• Wagon procurement target at 18,000 units in FY12

• To launch nine new Duranto, three Shatabdi trains

• To introduce 56 new express trains

• Frequency of 17 trains to be increased

• To fill up 13,000 RPF jobs

• FY12 operating ratio pegged at 91.1%

• Lost Rs 2,000 crore in FY11 on iron ore export curbs

• Disruption cost Rs 1,500 crore loss in FY11

• Railways saved Rs 3,700 crore due to austerity steps

• Operating ratio excluding pay panel arrears at 84% now

• Double-stack container train from Gujarat to Gurgaon

• Railway earnings set to top Rs 1 lakh crore mark in FY12

• Expect railways financial health to revive in FY12

• To see Rs 5,260 crore savings in FY12

• See Rs 5,258 crore excess funds with railways in FY12

• Freight target reduced by 20 million tonne to 924 million tonne

• To complete 1,075 km new rail lines in FY12

• Aim to complete dedicated freight corridor by December 2016

• Concession for women senior citizen cut to 58 years versus 60 years

• To double-line 867 km of rail tracks in FY12