Highlights of the Railway Budget 2006-07

General

• Freight loading in Apr-Dec 2005 up 10% & freight revenues up over 18%
• Working expenses to increase by Rs.1,200 crores mainly due to increase in fuel prices, lease charges paid for rolling stock (including principal repayment which is included in operating expenditure)
• Accounting system is being changed to reflect the correct operating & capital expenditure of lease charges

Technological Upgradation & Modernisation

• New wagons are high-capacity being designed to enable loads of up to 70 tonnes
• Exploring possibility of manufacturing aluminium & stainless steel wagons to improve payload to tare weight ratio; and hence further increase carrying capacity
• 25 tonnes axle-load wagons with carrying capacity of up to 80 tonnes is also being explored
• Technology transfer for manufacture of special wagons to increase Railways' share in the transportation of commodities like motor vehicles, petrochemicals, etc. is under consideration for which the Railways will provide the necessary policy framework

Use of Modern Signalling & Telecommunication Technology

• Modern signalling & telecommunication means to be used for improving safety & enhancing line capacity on trunk & main routes based on an in-depth study report to be submitted within three months

Use of IT in Improving Railway Services

• The Freight Operating Information System has led to substantial improvement in operational efficiencies. Rake Management System already implemented at all major locations. In the second phase, Terminal Management System to be implemented at all major locations. New Control Charting, Crew Management & Coaching Operations Information System under development, along with complete computerization of Control Office, Coaching Operations Information System & interfacing these systems with National Train Enquiry System

Public Partnership and Public-Private Partnership Schemes

• The Ministry of Railways to use varied models to ensure more public-private partnerships, especially through open bidding
• Committed to construction on ROB's on a cost sharing basis with many state governments, & assured availability of funds for this
• Policy of permitting private parties to run container trains well received with 14 applicants having deposited Rs.540 crores as registration fee. All the eligible applicants to be permitted to run container trains before 31 st March & model concession agreement to be prepared by the end of current year.
• The first double stack container train in Indian sub-continent to be inaugurated in first week of March
• Rail linked container depots & integrated logistic parks to be created to ensure success of the new container policy through the use of railways' goods sheds
• Proposals for investments of Rs.250 crores for manufacture of 25 rakes received under the Wagon Investment Scheme

Record Breaking Output in Freight Business

• 25 tonne axle load trains to be run on two non-passenger routes on a pilot basis; & next year 23 & 22.3 tonne axle load trains to be introduced on important traffic routes, in a phased manner. Also, over the next five years, the feeder routes to the new freight corridor to be strengthened to ensure the use of 25 tonne axle loads
• The Preferential Traffic Schedule is modified & freight booked for distances beyond 800 kms to be given priority within the class
• Efforts are towards reducing wagon turn around time, introduction of round-the-clock working in major sidings & goods terminals, terminal improvement and traffic facility works using modern information technology
• Production of new wagons to be substantially increased, along with increase in manufacture of electric & diesel locomotives

Reduction of Losses in Passenger Business

• Focus to be on reducing losses in coaching services by increasing number of coaches & occupancy levels; coupled with reducing travel time
• All India train time-table to be reworked on high priority basis
• More than 200 mail / express trains to be converted to superfast trains
• The number of coaches in about 190 popular passenger carrying trains to be increased up to 23-24 coaches; in addition platform lengths at 200 stations to be increased to ensure passengers are not inconvenienced
• Passengers from lower classes to be automatically upgraded to higher AC classes on all Pajdhani and mail / express trains

Reduction in Losses in Parcel & Catering Business

• Leasing out pantry cars & catering units at large stations has yielded substantial licence fees; this process to be continued through open bids to maximise revenues
• Food plazas, food courts, vending machines, etc to be installed at stations & in trains to improve catering facilities, and increase revenues
• To increase revenues from parcel business, the leasing policy of brake & parcel vans has been liberalized
• Parcels can be loaded & unloaded at all stations where the halt is 5 minutes or more
• Leaseholders to prepare the loading manifest
• To eliminate incidence of theft in luggage vans all brake vans carrying parcels and luggage will be strengthened with steel walls
• The 150 kg ceiling for booking luggage in the brake van removed
• The luggage portion of all brake vans of ordinary passenger trains to be converted to second-class compartments

Year of Passenger Service with a Smile: 2006

• The year 2006 shall be the year of Passenger Service with a smile

Strategy to Shrink Queues at Booking Counters

• The facility of i-ticket and e-ticket made available on all mail and express trains
• The charges for e-tickets reduced by Rs. 20 per ticket in higher classes and by Rs. 15 per ticket in sleeper class
• Passengers can now buy i-ticket and e-ticket through Rail Travel Service Agents
• All 1310 PRS centers & 425 UTS centres to be operational by end of the current year
• A pilot project to be implemented to install 200 automatic ticket vending machines in Mumbai suburban area of Central and Western Railways which will be connected with the UTS & will dispense tickets automatically through smart cards
• Under the Jansadharan Ticket Booking Scheme umpeloyed youth will be given ownership for pre-paid UTS counters and under the Gramin Ticket Booking Service, agency to be given at roadside stations to unemployed rural youth for issuing tickets

Improvement in Passenger Amenities

• All class 'A' & 'B' category stations to be showcased as model stations with the help of architects to make station buildings more beautiful, comfortable & with a modern look
• Modern facilities, such as ATM, cyber cafes, etc. to be provided at all major stations
• Under a new policy for commercial publicity the publicity rights for an entire division to be given to a single agency selected through open tender

Modern Facilities in Passenger Trains

• More Rajdhani and Shatabdi trains to be run with the modern LHB design passenger coaches
• During rebuilding of coaches, facilities such as more comfortable seats, public address system & electronic information display, better lights, etc. to be provided

Railway Safety

• Overaged tracks, bridges & track circuiting works on all stations on A, B & C routes to be completed by March 2007
• Light rails on golden quadrilateral & its diagonals to be replaced by heavy rails & the works of multi-aspect colour light signalling to be completed at all the stations located on A & C routes

Staff Welfare

• Contribution to Staff Benefit Fund for the next year to be increased to Rs,226 per employee (from Rs.26 per employee)
• Construction works of officers / staff quarters, community centres, staff institutes & officers' clubs in the headquarters of all new zones, divisions and other areas to be completed in a time bound manner, after acquisition of the land
• Quality shoes, socks, gloves, summer/winter uniforms and necessary implements to be made available to gangmen and keymen
• New super-specialty hospital with facilities in cardiology & nephrology to be setup at Patna
• Three new divisional hospitals to be setup at Agra, Raipur & Nanded

Concessions

• 50% concession in Second Class fares to farmers and milk producers for travel to institutes of national level in other parts of the country for the purpose of training/learning better agricultural practices and dairy farming announced earlier extended to Sleeper Class
• 50% concession in Second Class & Sleeper Class fares to persons who have lost their limbs in accidents or due to any other causes, for travel to institutes of national level, for transplantation of artificial limbs along with one attendant

Passenger Services

• Sir, on the 18th of February "the Thar Express" has been introduced between Munabao in India and Zero Point railway station near Khokhrapar in Pakistan. This weekly broad-gauge express passenger train would help cultivation of people to people contact of the two countries.
• 71. People of all religions and communities from all corners of the country visit dargah of Khwaja Garib Nawaz Hazrat Muinuddin Chishti Saheb in Ajmer to pay their obeisance. For the convenience of devotees, I propose to run Garib Nawaz Express from Ranchi, Kishanganj and Bangalore (Yashwantpur) to Ajmer.
• 72. Indian Railways have started running 150 kmph speed trains in Delhi ??“ Agra Section. Now the journey between Delhi ??“ Agra can be covered in just 1 hour 56 minutes. Soon a 150-kmph passenger train will be started on the Delhi-Kanpur-Lucknow route also. Next year the maximum speed of some mail/express trains connecting towns such as Ajmer, Jaipur, Varanasi, Chapra etc will be increased from 110 kmph to 120 kmph.
• 55 new trains to be introduced; 37 trains to be extended; frequency of 12 trains to be increased in the current year & 2 trains to be re-routed

Construction of Freight Corridor

• Proposed to construct Dedicated Multimodal High Axle Load Freight Corridor with computerised control on Western and Eastern routes at an estimated cost of Rs.22,000 crores
• First phase of the Eastern Corridor Project, a separate freight corridor to be built from Ludhiana to Sonnagar via Ambala, Saharanpur, Khurja & Allahabad. Primary feeder routes to be upgraded to carry heavier trains of coal & steel traffic & also extended up to ports in West Bengal
• The Western Corridor to be from Jawaharlal Nehru Port routed via Vadodara, Ahmedabad, Palanpur, Jaipur & Rewari to Tuglakabad & Dadri. Both the corridors will be joined by a link between Dadri & Khurja. The feeder routes of the Western Corridor connecting ports of Gujarat to also be upgraded

Annual Plan 2006-2007

• Plan outlay for 2006-07 kept at Rs.23,475 crores; excluding outlay provided for national projects
• The internal resources to contribute 46% of the outlay
• For the year 2006-07, the total funds received from General Exchequer: Rs.7,511 crores; including Rs.1,365 crores for SRSF, Rs.711 crores from Central Road Fund
• A provision of Rs.10,794 crores is proposed through internally generated resources; while the total amount to be mobilized through extra-budgetary resources is Rs.5,170 crores out of which Rs.4,170 crores to be through market borrowing
• The thrust of the Annual Plan is towards early completion of throughput enhancement works, safety, development and expansion of the network to sustain higher growth rate in Railways
• Additional funds of Rs.2,092 crores have been sought from Ministry of Finance for the national projects of Jammu & Kashmir & Northeast region

New Lines, Gauge Conversion, etc.

• Over 550 kms of New Lines to be completed in the current year; while over 1100 kms of gauge conversion to be completed
• Doubling of about 600 kms is likely to be completed

Suburban Transport Projects

• In Mumbai, four additional rakes for the suburban services of Western Railway & two rakes for passenger services in the Central Railway to be made available in the coming year
• The extension of Kolkata Circular Railway completed & commissioned to traffic
• On Chennai MRTS, Tirumailai-Tiruvamniyur section of Tirumailai-Velacheri phase II has been commissioned

Dynamic Pricing Policy for Passenger Fares & Freight Rates

• Dynamic Pricing Policy to be introduced for freight & passenger based on peak / non-peak seasons, premium / non-premium services, & busy / non-busy routes
• Non-peak season for freight to be 1^st July to 31^st October; and for passenger services non-peak seasons to be 15^th January - 15^th April & 15^th July - 15^th September

Freight Services

• No increase in freight service rates
• Highest class lowered to 220, freight rates of diesel and petrol less by 8%
• Over the next 3 years, highest class to be lowered below 200 & rates for highest classification to be less than double that of lowest classification (except rates of some light commodities)
• Commodity groups further reduced from 80 to 28 groups
• New classes 90 W1, 90 W2 & 90 W3 introduced earlier to be replaced with classes, namely, LR1, LR2, LR3, LR4 & LR5; which will be equivalent to 90%, 80%, 70%, 60% and 50% respectively of the class 100
• Freight Discount Scheme: Freight rebate of 15% to be offered for incremental freight revenues of over Rs.5 crores a month & 10 % if the incremental earning is less than Rs.5 crores during the non-peak season (1^st July ??“ 31^st October)
• Rebate to be applicable for all commodities except coal, minerals & items with classification below 120
• Empty flow Direction Freight Discount Scheme: For distances beyond 700 kms, the discount (on incremental freight) to be 30% during non peak season & 20% in the peak season (over 1000 kms only in case of open wagons in peak season)
• The scheme to be applicable for all items loaded in covered wagons; while in case of open wagons, the discount to be applicable for all commodities except coal, coke & iron-ore for export
• Loyalty Discount Scheme: During the non-peak season, discount in freight to be given based on per cent of total production of finished product transported by rail. If over 90% of the production of any steel or cement factory is transported by rail, a discount of 1% in freight to be given & the discount to be 0.5% if the share of rail transportation is above 50% but less than 90% of the total production
• Long-term Freight Discount Scheme: Zonal railway administrations empowered to offer long-term freight discount to attract new customers & new freight traffic. Discounts of up to 20% during non-peak season & up to 10% in the peak season, over the normal rates, for a period of three years can be availed. For loading in empty flow direction, the discount available would be up to 20% & 30% during peak season & non-peak season, respectively
• Mini Rake & 2-point rake Scheme:  to be extended to both peak & non-peak seasons; while during the nonpeak season, mini-rakes, 2-point rakes to be made available without any additional charge, during the peak season, for commodities up to class 130, freight rates to be at a premium of 5% more than the rate for block rake trains
• Freight Forwarder Scheme: Under this scheme during non-peak season, freight to be charged under Class LR2 in empty flow direction & under Class 100 in the loaded direction; while during peak season, freight to be charged under Classes 100 & 130 respectively. Additionally for round-trip loading i.e. for loading offered simultaneously for both the directions, the freight to be charged under LR2 during non-peak season & under Class LR1 during peak season. This scheme to be applicable only for freight offered for more than 700 kms

Passenger Services

• Passenger fares reduced by 10%-18% for AC classes
• In the new structure, the fares of AC First & AC Second Class to be 11.5 & 6.5 times the Second Class fare, respectively; a reduction of 18% in AC-I & 10% in AC-II class fares
• Fully Air-Conditioned Garib Rath: a fully air-conditioned Garib Rath to be run on a pilot project basis between Delhi-Patna, Delhi-Mumbai, Delhi-Chennai & Saharasa-Amritsar. Fares to be about 25% lower than the present AC-3 tier fares
• The renewal period of Monthly Season Tickets increased from 3 days to 10 days
• Superfast charges applicable on MSTs & QSTs reduced to 25% of current level
• Military traffic tariff's to be rationalised on no-profit no-loss basis
• "The Thar Express" between India & Pakistan inaugurated

Quick Links: Railway Minister's Budget 2006-07 Speech, Railway Budget Highlights