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Rail Budget 2016: From Suresh Prabhu’s Indian Railways, here is what passengers want

Thu February 25 2016, 9:14 am
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    Rail Budget 2016: Railway Minister Suresh Prabhu is all set to present the Rail Budget on Thursday (Feb 25) and Indian Railways passengers will keenly follow his budget speech to find out if reforms announcement are made to boost the sector or any change in passenger fares is effected. Industry body Assocham has asked Suresh Prabhu to muster political courage and go in for a hike in passenger fares. It said a passnger fare hike would reduce the drastic losses, now running at 68 per cent of passenger earnings. Indian Railways is considered to be the backbone of India’s economic development. With a widespread network of nearly 65,000 km route length, Indian Railways runs 12,000 trains every day to carry around 23 million passengers and 7000 freight trains per day to carry around 3 million tonnes (MT) of freight traffic. (Express Photo)

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    According to the brokerage house ICICIdirect.com, Indian Railways has suffered from years of low investment as populist policies of subsidising passenger traffic choked the resources generation capability. A break-up of railways earnings provides detail about segments contributing to Indian Railways’ earnings. Traditionally, the freight segment has always cross subsidised the passenger segment with around 67% contributed by freight and 27% by the passenger segment whereas the remainder coming from sundry and other coaching services. As per FY15-16 budgeted estimates the total railways earnings were expected to grow 16% YoY. However, according to January YTD numbers, the total railway earnings grew 5 per cent, an approximate deficit of 10 per cent. With the help of ICICIdirect.com, we look into the sector’s financial and 5 top budget wish list: (Express Photo)

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    2. Indian Railways fares: All fares notified in this Coaching Tariff are Base Fares. All other miscellaneous charges like Reservation Fee, Superfast Charge, Catering Charge, Service Tax etc. wherever applicable will be levied additionally. Base fares for high speed trains like Rajdhani, Shatabdi, Duronto, Garib Rath, Jan Shatabdi, Yuva etc, as given in this Coaching Tariff, are also exclusive of Reservation fee, Superfast Charge, Catering Charge, etc. These charges, wherever applicable, will be levied additionally. (Express photo)

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    2. Rail Tariff Authority (RTA): This particular tariff regulator got a clearance in January 2014. As per latest updates, the tariff regulator is expected to be in place by FY19. Expediting its formation is significant as it who would decide the fares and freight rate. The formation of a regulator would facilitate a new pricing regime, thereby rationalising cross subsidisation between segments and improve the fare to freight ratio. (Express Photo)

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    3. Freight earnings: Around 65 per cent of railways earnings come from freight. Therfore, taking steps in the budget that could boost freight and railways financial performace is the need of the hoir. With the development around eastern and western dedicated freight corridor, volumes are expected to get a positive kicker. (Express Photo)

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    Rail Budget 2016: "We have tried to meet the needs of all satisfactorily. A lot of effort has gone into making the budget. We have taken the ground reality into consideration before finalising it," he said.

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    5. Passenger amenities: Passenger amenities should be an important wish list in the budget with special focus on increasing facilities and cleanliness of trains and railway stations. (Express Photo)

  1. S
    santosh laxman
    Feb 24, 2016 at 3:54 pm
    251 mobile
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