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


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