Highlights of the Railway Budget 2016-17
Theme of the Budget
Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways:
‘Chalo, Milkar Kuch Naya Karen’
Three pillars of the strategy i.e. Nav Arjan – New revenues, Nav Manak – New
norms, Nav Sanrachna – New Structures.
Financial Performance
2015-16- Savings of Rs. 8,720 crore neutralizing most of the revenue shortfall,
expected OR 90%;
2016-17- Targeted Operating Ratio (OR) - 92%, restrict growth of Ordinary Working
Expenses by 11.6% after building in immediate impact of 7th PC, reductions planned
in diesel and electricity consumption, Revenue generation targeted at Rs. 1,84,820
crore.
Investments and Resources
Process bottlenecks overhauled including delegation of powers to functional levels;
average capital expenditure over 2009-14 is Rs. 48,100 crore, average growth of 8%
per annum.
2015-16 investment would be close to double of the average of previous 5 years.
2016-17 CAPEX pegged at Rs. 1.21 lakh crore; implementation through joint
ventures with states, developing new frameworks for PPP, etc.
Vision
By 2020, long-felt desires of the common man to be fulfilled i.e, reserved
accommodation on trains available on demand, time tabled freight trains, high end
technology to improve safety record, elimination of all unmanned level crossings,
improved punctuality, higher average speed of freight trains, semi high speed trains
running along the golden quadrilateral, zero direct discharge of human waste.
2015-16-Achievements
Action initiated on 139 budget announcements of 2015-16.
Project execution
2015-16 - assured funding through LIC; commissioning of 2,500 kms Broad Gauge
lines; commissioning of 1,600 kms of electrification, highest ever. In 2016-17 -
targeted commissioning 2,800 kms of track; commissioning Broad Gauge lines @
over 7 kms per day against an average of about 4.3 kms per day in the last 6 years.
Would increase to about 13 kms per day in 2017-18 and 19 kms per day in 2018-19;
will generate employment of about 9 crore man days in 2017-18 and 14 crore man
days in 2018-19. Outlay for railway electrification increased in 2016-17 by almost
50%; target to electrify 2,000 kms.
Dedicated Freight Corridor
Almost all contracts for civil engineering works to be awarded by March 31st 2016;
Rs. 24,000 crore contracts awarded since November 2014 as against Rs. 13,000 crore
contracts awarded in last 6 years; propose to take up North-South, East-West & East
Coast freight corridors through innovative financing including PPP.
Port connectivity
Tuna Port commissioned and rail connectivity projects to ports of Jaigarh, Dighi,
Rewas and Paradip under implementation; implementation of rail connectivity for the
ports of Nargol and Hazira under PPP in 2016-17.
North East
BG Lumding-Silchar section in Assam opened thus connecting Barak Valley with rest
of the country; Agartala brought on to the BG network. States of Mizoram and
Manipur shortly to come on BG map of the country with commissioning of the
Kathakal-Bhairabi and Arunachal-Jiribam Gauge Conversion projects.
Jammu and Kashmir
Work on Katra-Banihal section of Udhampur-Srinagar-Baramulla Rail Link Project
progressing satisfactorily- 35 kms of tunnelling out of total of 95 kms completed;
Decongestion work on Jalandhar - Jammu line in full swing and doubling of two
bridges to be commissioned by March 2016, while the other two bridges will be
completed by 2016-17.
Make in India: Finalised bids for two loco factories; proposed to increase the current
procurement of train sets by 30%.
Capacity Building for the future through:
Transparency – initiated recruitments online in 2015-16, process now being
replicated for all positions, social media being used as a tool to bring in transparency,
all procurement including procurement of works moved to the e-platform, completed
trial of process leading to award of tender electronically and to be rolled out on a PanIndia
basis in 2016-17.
Governance - delegation led to compression of project sanction time to 6-8 months
from 2 years earlier, key result areas identified to judge performance of GMs and
DRMs, performance related MOUs signed with few Zones, to be replicated for all
zones.
Internal audit measures - specialised teams mandated to screen railway operations
in specific areas to detect inefficiencies and prevent wastages, every zone preparing 2
reports by March 31, 2016.
Partnerships – Cabinet approval for JVs with State Governments, 17 consented and
6 MOUs signed with State Governments. 44 new partnership works covering about
5,300 kms and valuing about Rs. 92,714 crore have been indicated in the Budget
documents.
Customer Interface
Interaction and feedback through social media & dedicated IVRS system.
Making travel comfortable by generating over 65,000 additional berths, installing
2,500 water vending machines; introducing ‘Mahamana Express’ with modern
refurbished coaches; 17,000 bio-toilets in trains; world’s first Bio-Vacuum toilet
developed.
Improving punctuality – operations audit for Ghaziabad to Mughalsarai section.
Ticketing: Introduced 1,780 Automatic Ticket Vending Machines, mobile apps &
GoIndia smartcard for cashless purchase of UTS and PRS tickets, enhanced capacity
of e-ticketing system from 2,000 tickets per minute to 7,200 tickets per minute and to
support 1,20,000 concurrent users as against only 40,000 earlier.
Social initiatives: One-time registration for availing concessions while booking
tickets online, online booking of wheelchairs & Braille enabled new coaches
introduced for the Divyang, increased quota of lower berths for senior citizens and
women, middle bays reserved in coaches for women.
Wi-Fi provided in 100 stations, to be provided in 400 more.
Stations being redeveloped – financial bid received for Habibganj, Bhopal; Cabinet
approval for stations to be taken up under PPP.
Security through helplines & CCTVs.
Safety - 350 manned level crossings closed, eliminated 1,000 unmanned level
crossings, 820 ROB/RUB completed in the current year and work going on in 1,350
of them.
Other major achievements
Energy: annualized savings of Rs. 3,000 crore to be achieved in the next financial
year itself, a year earlier than announced; achieved by procuring power directly at
competitive rates using IR’s status as Deemed Distribution Licensee.
Rail University – initially identified the National Academy of Indian Railways at
Vadodara.
Digital India: application of Track Management System (TMS) launched, inventory
management module of TMS has resulted in inventory reduction by 27,000 MT
resulting in saving of Rs.64 crore and scrap identification of 22,000 MT equivalent to
Rs.53 crore.
The Way Ahead
Improving quality of travel
For the unreserved passenger –
Antyodaya Express unreserved, superfast service.
Deen Dayalu coaches – unreserved coaches with potable water and higher number of
mobile charging points.
For the reserved passenger –
Humsafar - fully air-conditioned third AC service with an optional service for meals
Tejas - will showcase the future of train travel in India. Will operate at speeds of 130
kmph and above.Will offer onboard services such as entertainment, local cuisine, WiFi,
etc. through one service provider for ensuring accountability and improved
customer satisfaction
Humsafar and Tejas to ensure cost recovery through tariff and non-tariff measures
UDAY - overnight double-decker, Utkrisht Double-Decker Air-conditioned Yatri
Express on the busiest routes, has the potential to increase carrying capacity by almost
40%.
Ticketing: Sale of tickets through hand held terminals; e- ticketing facility to foreign
debit/credit cards; bar coded tickets, scanners and access control on a pilot basis.
Expansion of Vikalp – train on demand to provide choice of accommodation in specific trains to wait-
listed passengers. E-booking of tickets facility on the concessional passes available to
journalists; facility of cancellation through the 139 helpline post verification using ‘One
Time Password’ sent on registered phone number, to improve tatkaal services CCTV
cameras on windows and periodic audit of PRS website.
Cleanliness -‘Clean my Coach’ service through SMS, ranking of A1 and A stations based on
periodic third party audit and passenger feedback; waste segregation and recycling centres;
‘Awareness campaigns’; additional 30,000 bio-toilets; providing portable structures with biotoilets
at all platforms of select stations for senior citizens, Divyang and women travellers,
plan to explore innovative means of providing and maintaining toilets such as advertisement
rights, CSR, voluntary support from social organizations.
Catering and stalls at stations -IRCTC to manage catering services in a phased manner;
explore possibility of making catering services optional, adding 10 more IRCTC operated
base kitchens; to build local ownership and empowerment, weightage will be given to district
domicile holders for commercial licenses at stations.
Stoppages: convert all operational halts into commercial halts for the benefit of the common
man.
Rail Mitra Sewa: expanding Sarathi Seva in Konkan Railway to help the old and disabled
passengers, strengthening the existing services for enabling passengers to book battery
operated cars, porter services, etc. on a paid basis in addition to the existing pick up and drop,
and wheel chair services.
Measures for Divyang: all stations under redevelopment accessible by Divyang; to provide
at least one Divyang friendly toilet at each platform in A1 class stations during the next
financial year and also ensure availability of wheelchairs in sufficient numbers at these
stations.
Travel Insurance to passengers - to offer optional travel insurance for rail journeys at the
time of booking.
Hourly booking of retiring rooms - will be handed over to IRCTC.
Janani sewa: children’s menu items on trains, baby foods, hot milk and hot water would be
made available.
SMART (Specially Modified Aesthetic Refreshing Travel) Coaches - design and layout of
our coaches to ensure higher carrying capacity and provision of new amenities including
automatic doors, bar-code readers, bio-vacuum toilets, water-level indicators, accessible
dustbins, ergonomic seating, improved aesthetics, vending machines, entertainment screens,
LED lit boards for advertising, PA system.
Mobile Apps - integrate all facilities into two mobile apps dealing with ticketing issues and
for receipt and redressal of complaints and suggestions.
Improving customer interface- skilling our front-end staff and those we employ through our
service providers, information boards in trains enumerating the on-board services and also
GPS based digital displays inside coaches to provide real time information regarding
upcoming halts. Work underway on installation of a high-tech centralized network of 20,000
screens across 2000 stations for enabling real time flow of information to passengers and also
unlock huge advertising potential. All A1 class stations will be manned with duly empowered
Station Directors supported by cross functional teams; to make one person accountable for all
facilities on trains.
Pilgrimage centres: to take up on priority the provision of passenger amenities and
beautification on stations at pilgrimage centres including Ajmer, Amritsar, Bihar
Sharif, Chengannur, Dwarka, Gaya, Haridwar, Mathura, Nagapattinam, Nanded,
Nasik, Pali, Parasnath, Puri, Tirupati, Vailankanni, Varanasi and Vasco; also intend to
run Aastha circuit trains to connect important pilgrim centres.
Porters- intend providing them with new uniforms and train them in soft skills,
henceforth, to be called sahayak.
High Speed Rail: passenger corridor from Ahmedabad to Mumbai being undertaken
with the assistance of the Government of Japan. SPV for implementing high speed
projects will be registered this month. Prime benefit would be providing IR with
technology advancements and new manufacturing capability.
Entertainment: propose to invite FM Radio stations for providing train borne
entertainment; extend ‘Rail Bandhu’ to all reserved classes of travelers and in all
regional languages.
Passenger traffic - Suburban traffic: in-principle approval for MUTP III received. Early
award of tenders for elevated suburban corridors between Churchgate-Virar and between
CSTM-Panvel; revive Ring Railway system in Delhi; launching a new investment framework
for developing suburban systems in partnership with State Governments, development in
Ahmedabad, Bangaluru, Hyderabad Chennai and Thiruvananthapuram on the anvil.
Winning back the lost modal share
Expanding the freight basket of IR - to start time-tabled freight container, parcel and
special commodity trains on a pilot basis, container sector would be opened to all traffic
barring coal, specified mineral ores and part-loads during the non-peak season. All existing
terminals/sheds would be granted access to container traffic, where considered feasible.
Rationalising the tariff structure – undertake review of tariff policy to evolve a competitive
rate structure vis a vis other modes, permit multi-point loading/unloading and apply
differentiated tariffs to increase utilization of alternate routes, explore possibility of signing
long term tariff contracts with our key freight customers using pre-determined price
escalation principles.
Building terminal capacity - proposed to develop Rail side logistics parks and warehousing
in PPP mode, 10 goods sheds will be developed by TRANSLOC, the Transport Logistics
Company of India, in 2016-17. To soon inaugurate India’s first rail auto hub in Chennai.
Encourage development of cold storage facilities on vacant land near freight terminals. Local
farmers and fisherman would be given preferential usage of the facility. A policy in this
regard would be issued in the next 3 months.
Nurturing customers - will appoint Key Customer Managers to liaison with our major
freight stakeholders; each Zonal Railway will develop customer commitment charter
indicating service level commitments of IR, will explore the feasibility of opening up leasing
of general purpose wagons.
Non fare revenues
Station redevelopment; monetizing land along tracks; monetizing soft assets – website,
data, etc; advertising – in 2016-17 target 4 times the revenue of 2015-16; overhaul of
parcel business - liberalize the current parcel policies including opening the sector to
container train operators; revenues from manufacturing activity - by 2020, aim at
generating annualised revenues of about Rs 4,000 crore.
Process Improvements
EPC projects standard document finalized, will implement at least 20 projects through
this mode in 2016-17; by 2017-18, endeavour to award all works valuing above Rs. 300
crore through EPC contracts.
Performance output parameters based contracts - to review service contracts to
integrate them and make them simpler and outcome focused.
Leveraging technology for project management- intend to use the latest drone and Geo
Spatial based satellite technology for remotely reviewing the physical progress across
major projects; monitoring of DFC to be operationalised through this mode in 2016-17.
System-wide Information Technology integration - initiated system wide integration,
both horizontal and vertical, akin to an ERP through innovative partnership models.
Rail Development Authority
To enable fair pricing of services, promote competition, protect customer interests and
determine efficiency standards; draft bill to be ready after holding extensive stakeholder
consultations.
Undertaking Navarambh – a new beginning
Navinikaran - Structural Interventions
Organisational Restructuring- proposed to reorganize the Railway Board along
business lines and suitably empower Chairman, Railway Board. As a first step, cross
functional directorates to be set up in Railway Board to focus on areas like non-fare
revenues, speed enhancement, motive power and information technology; explore the
possibility of unifying cadres for fresh recruitment of officers; strengthen PPP cell to
improve ease of doing business with IR.
Sashaktikaran – Improving our planning practices
To set up a Railway Planning & Investment Organisation for drafting medium (5
years) and long (10 years) term corporate plans; identify projects which fulfill the
corporate goal. Prepare a National Rail Plan to harmonise and integrate the rail
network with other modes of transport and create synergy for achieving seamless
multi-modal transportation network across the country
Aekikaran – Consolidation: Forming a holding company of companies owned by IR.
Shodh aur vikas - Investing in the future: to set up a R&D organization, a Special
Railway Establishment for Strategic Technology & Holistic Advancement,
SRESTHA. RDSO will now focus only on day to day issues while SRESTHA would
drive long term research.
Vishleshan – Analyzing data: a dedicated, cross functional team called Special Unit
for Transportation Research and Analytics (SUTRA) would be set up for carrying out
detailed analytics leading to optimized investment decisions and operations
Navrachna – Innovation: by setting aside a sum of Rs. 50 crore for providing
innovation grants to employees, startups and small businesses.
Avataran - Seven Missions for the transformation of IR
Missions will be headed by a Mission Director reporting directly to the Chairman,
Railway Board and heading a cross functional team empowered to take all relevant
decisions for a timely targeted delivery. Annual outcome based performance targets
for the Mission would be announced and the Missions will finalise the
implementation plans for short, medium and long terms and proceed accordingly
Mission 25 Tonne for 25 tonne axle load, Mission Zero Accident for safety, Mission
PACE (Procurement and Consumption Efficiency), Mission Raftaar for higher
speeds, Mission Hundred for commissioning 100 sidings/ freight terminals, Mission
beyond book-keeping for accounting reforms, Mission Capacity Utilisation to prepare
a blueprint for making use of the capacity created once DFC is commissioned.
Sustainability and Social Initiatives: Human Resources/ Skilling, Social initiatives,
Environment
To tie up with the Ministry of Health for ensuring an exchange between Railways
hospitals and Government hospitals; to introduce ‘AYUSH’ systems in 5 Railway
hospitals; provide gang men with devices called ‘Rakshak’ for intimating them about
approaching trains, also reduce the weight of the tools carried by them while
patrolling. To provide toilets and air-conditioning in cabs for our loco pilots.
Set up two chairs – one C T Venugopal chair on Strategic Finance, research and
policy development and another Kalpana Chawla chair on geo-spatial technology.
For youth - open our organisation to 100 students across Engineering and MBA
schools for 2-6 months’ internships each year.
Partnering with Ministry of Skill Development - skill development on IR premises.
Undertaken energy audits for reducing energy consumption in non-traction area by
10% to 15% - all new light provisions will be LED luminaire and all Railway stations
to be covered with LED luminaire in next 2 to 3 years.
Action plan drawn up for environmental accreditation, water management and waste
to energy conversion. More than 2,000 locations provided with Rain Water
Harvesting facility. In place of steel sleepers on steel bridges environmentally friendly
composite sleepers made of recycled plastic waste will be used over all girder bridges.
32 stations and 10 coaching depots have been identified for installation of water
recycling plants in the coming years.
Tourism
Partnering with State Governments for operating tourist circuit trains; recent
upgradation of National Rail Museum, promotion of tourism through Railway
museums and UNESCO world heritage Railways.
To spread awareness about our National Animal, the Tiger, complete packages
including train journey, safaris and accommodation to cover the wildlife circuit
comprising Kanha, Pench and Bandhavgarh will be offered.
Annex1 of the Speech details the financial performance of the Indian Railways & the
estimates of Receipts & Expenditure.
FINANCIAL PERFORMANCE 2015-16:
Net reduction in Gross Traffic Receipts by Rs 15,744 crore in RE 2015-16 compared to
the BE target of Rs 1,83,578 crore. Passenger earnings scaled down keeping in view the
persistent negative growth trend since 2013-14 both in the suburban and non-suburban
non-PRS segment of travel.
Freight earnings impacted mainly on account of low demand from the core sector
resulting in resetting the target in R.E. 2015-16 to Rs 1,11,853 crore.
Stringent economy and austerity measures adopted to contain the Ordinary Working
Expenses (O.W.E.) due to which budgeted Ordinary Working Expenses of Rs 1,19,410
crore decreased in the Revised Estimates 2015-16 to Rs. 1,10,690 crore i.e. by Rs 8,720
crore.
BE provided for an appropriation of Rs. 34,900 crore to the Pension Fund. However,
based on trend, the pension outgo moderately decreased to Rs. 34,500 crore in RE.
Internal resource generation diminished and appropriation to DRF moderated to Rs. 5,500
crore in RE from the BE 2015-16 provisioning of Rs. 7,900 crore. Excess of receipts
over expenditure in RE 2015-16 stands at Rs. 11,402.40 crore.
Plan size for 2015-16 is currently estimated at 1,00,000 crore i.e. the BE level.
Budget Estimates 2016-17:
The intention to improve revenues and ensure appropriate investments which can
continue the road-map of decongestion and enhance line-capacity enhancement as
detailed in 2015-16. The focus is on enhanced CAPEX with a mix of various sources of
funding in order to ensure that the projects are given assured funding.
Gross Traffic Receipts kept at Rs 1,84,820 crore . Passenger earnings growth has been
pegged at 12.4 % and earnings target budgeted at Rs. 51,012 crore. The freight traffic is
pegged at incremental traffic of 50 million tonnes, anticipating a healthier growth in the
core sector of economy. Goods earnings is accordingly proposed at Rs. 1, 17,933 crore.
Other coaching and sundries projected at Rs. 6,185 crore and Rs. 9,590.3 crore
respectively.
OWE provides for the implementation of the 7th CPC.
Pension outgo budgeted at Rs 45,500 crore in 2016-17.
Higher staff cost and pension liability impacts the internal resource position of the
Railways. Accordingly, appropriation to DRF from revenue placed at Rs 3,200 crore and
that from Production Units at Rs 200 crore. A withdrawal of Rs 3,160 crore from DRF on
net basis proposed though the gross expenditure to be met from DRF in the Annual Plan
estimated at Rs 7,160 crore. Rs 5,750 crore proposed to be appropriated to the Capital
fund. With a draw-down of Rs 1,250 crore from previous balances in the fund, plan
requirement of Rs 7,000 crore for repayment of principal component of lease charges to
IRFC met.
Railways are preparing a Plan size of Rs. 1,21,000 crore in 2016-17.
Annex-2 of the speech details the Implementation of Budget announcements 2015-16
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