In his last full Railway Budget presentation, Railways Minister, Lalu Prasad Yadav offered everything from cheaper fares, lower freights to inclusion of technology in everyday rail life. Lalu had maintained that his Budget would focus on the common man. His Budget has promised the aam aadmi facilities such as more passenger trains, faster and easy travel procedures (ticket-booking and transport), reduction in passenger fares and fuel freights, discounts to females and senior citizens; to name a few. His Budget may have been directed to deliver part of his aforementioned promises.

Fare cuts

The Railway Minister has introduced a 5% cut in sleeper class as well as second class fares. Further fares for AC I, AC-II and AC-II have been cut by 7%, 4% and 3%, respectively.

All passengers above 60 years of age will now get a 30% discount, while females above 60 years would get a 50% discount.

Freight – related initiatives

The freight on petrol and diesel has been cut by 5%, while those on fly ash have been cut by 14%. The Railway Minister has cut the highest freight rate classification to 200. He sees the FY08 coal freight loading at 336 metric tonne. Yadav sees the total FY09 freight loading at 790 metric tonne as against 785 metric tonnes in FY08. He estimates around 310 metric tonne of additional freight loading in the next three years.

Easy Travel/ Better facilities

The Railways would be launching the Go-Mumbai Card/ Smart Card facility soon for easier ticketing for commuters. Besides, there will be an increase in ticketing counters to 15,000 in the next two years from the current 3,000 now. The number of auto ticket-sale machines would go up by 6,000 in the next two years. Yadav plans to look at leveraging the telecom boom for ticketing purposes. In this regard, trials for mobile ticketing have already started. The Railways plans to display online information in overnight trains of long distance.

For the convenience of commuters, especially senior citizens, 50 large stations across the country will have lifts and escalators, while 30 bigger stations would have multi-level parking system. The Ministry plans to run the Mother-Child Healthcare Express in alliance with the Rajiv Gandhi Foundation.

Apart from the facilities to the consumers, for those interested in joining the railways, the Group-D railway examinations would be taken in Urdu also, where it is the second language.

Technology updation

Lalu Prasad Yadav announced that the Government would introduce low maintenance and more comfortable stainless steel coaches from 2010. He said that Rs 4000 crore would be spent on green toilets for 36000 coaches in the next 5-year plan. All the trains will be run via online control in the next two years, Yadav promised. The trains would be linked via software communication by 2009.

The Railways need Rs 250,000 crore worth of funds over the next five years for IT upgradation, Yadav said. CCTVs and metal detectors would be put up at all stations, he informed. He will look look at multi model parks for Railways at various locations, he said.

Infrastructure updation

The Railways will start 53 new passenger trains. It will upgrade its infrastructure in the next seven years at the cost of Rs 75,000 crore. These funds would be employed to further develop saturated transportation lines. It plans to set up a 20,000 km high-density network. The work on connecting road for Pipavav Port has been completed, Yadav said. 25 tonne and 30 tonne axle-load trains will now be allowed for iron ore transport, he informed.

The Railway Minister informed that their 100 million tonne-worth business will come from the cement industry; which he targets as 200 million till 2011. Also, he aims to raise the annual steel traffic to 200 metric tonne in 2011 from the current 120 metric tonne.

Further, 50 new terminals would be developed for storage. He announced Special Purpose Vehicles (SPVs) for for links to Mundra, Kandla and Krishnapatnam ports.

The Railways will introduce new coaches in all Rajdhani trains by 2010-11. It will start making steel coaches from FY09. The level of platforms would be upgraded for passenger convenience. It will manufacture 20000 wagons in 2008-09, each having capacity of 22.9 tonnes. Lalu Prasad informed that 50 big terminals have been planned in Mumbai, Pune and Ghaziabad. Concor would set up 8 depots. Railway wagons would be available on lease here on, Yadav said. The Ministry has 15 licensed operators for container trains. It plans to increase container train operators to 50-55 trains. Yadav said that the Railways would have a new wagon leasing policy.

New Bulk handling facilities would be erected for cement, the Rail Minister said. There would not be a busy season surcharge for cement transported in bulk via new facilities, he promised. There would be a new policy for bulk handling terminals, he said. There will be a special focus on door-to-door and value added services. Yadav has planned SBUs (Strategic Business Unit) for cement, steel, coal and container sectors. In addition, Rs 1 lakh crore worth of PPP (Public Private Partnerships) have also been planned over the next five years.

Railways would introduce fire prevention devices in coaches on a pilot basis. The anti-fire gear would cost Rs 7,000 crore, if the pilot is successful, Lalu Prasad Yadav said.

Past Performance

According to the Budget Report, the Railways have a cash surplus of Rs 25000 crore in FY08. Its operating ratio is at 76%. Its work force stood at 14 lakh workers in FY08. The Minister informed that reduced fares increased volumes and profits.

The Railways has earned a cash surplus of Rs 25000 crore in FY08. Its operating ratio is at 76%. Its work force stood at 14 lakh workers in FY08. Yadav informed that reduced fares increased volumes and profits.

The Railways have Rs 68788 crore for five years as cash surplus, Lalu said. The Rail Corporation’s divident stood at Rs 88 he said.

Looking back at last year, the Rail Minister said, that they had offered lean season discounts and also, peak season had attracted surcharges, he said. The Railway Fund Balance is up at Rs 20,480 crore, Lalu informed. The Railways has adopted its tariff to up market share and revenues, he said. The April-December freight loading revenue is up 8-10% at Rs 34,700 crore, he said, adding that revenue from passenger fares has increased by 14%. Its property would fetch Rs 4000 crore in 2008-09, Yadav said. He also informed that 233 million tonne loading was done in the year and its additional earnings of Rs 2000 crore were on freight service.

Some highlights of the Railway Minister's speech:
Sleeper, II class fares cut 5%
10 Garib Raths in FY09
Fares for AC-I cut by 7%, AC-II 4%, AC-III 3%
Freight on fuels cut 5%
Rs 68788 cr for 5 years cash surplus
Dividend of Rs 88 rupees
There were lean season discounts offered
Peak season attracted surcharges
Railway Fund Balance up at Rs 20,480 cr
Railways adopted tariff to up market share; revenue
Apr-Dec freight loading revenue is up 8-10% at Rs 34,700 cr
Railways will look at leveraging telecom boom for ticketing
There will be an increase in ticketing counters to 15,000 in 2 years from the current 3,000 now
Revenue from passenger fares increased by 14%
FY09 freight loading seen at 790 MT vs 785 MT in FY08
FY08 rail operating ratio at 76.3%
Trials for mobile ticketing have already started
Railways to launch the Go-Mumbai Card/ Smart Card
Online information display in overnight trains of long distance
Rs 4000 cr to be spent on 36000 coaches for greent toilets in next 5 year plan
Low mainenance and more comfortable stainless steel coaches to be introduced from 2010
To have online control of trains in 2 years
To link trains via software communication by 2009
New coaches in all Rajdhani trains by 2010-11
To start making steel coaches from FY09
Level of Platforms to be upgraded for passenger convenience
30 Bigger stations to have multi level parking system
50 large stations to have lifts / escalators- for convenience of senior citizens
233 million ton loading was done in the year
Additional earnings of Rs 2000 cr on freight service
To upgrade infrastructure in 7 years at Rs 75,000 cr
310 mn tonnes of additional freight loading in the next 3 yrs
75000 cr in next 7 yrs to further develop saturated transportation lines
To up auto ticket sale machines to 6,000 in 2 years
Plan to set up 20,000 km high density network
FY08 coal freight loading seen at 336 MT
Work on connecting road for Pipavav Port completed
25 tonne and 30 tonne axel load trains allowed for iron ore transport
100 mn tonne business from cement industry
200 mn target targeted till 2011
50 new terminals to be developed for storage
SPV for links to Mundra, Kandla, Krishnapatnam ports
25-30 tonne axle load trains to be started
Annual steel traffic aim of 200 mt in 2011 vs 120 mt now
To manufacture 20000 wagons in 2008-09
To manufacture wagons having capacity of 22.9 tonnes in 2008-09
50 big terminals planned in Mumbai, Pune, Ghaziabad
Concor to set up 8 depots
Wagons would be available on lease here on
Have 15 licensed operators for container trains
To increase container train operators to 50-55 trains
To have new wagon leasing policy
New Bulk handling facilities to be erected for cement
No busy season surcharge for cement transported in bulk via new facilities
To have new policy for bulk handling terminals
Special focus on door to door and value added services
No busy season surcharge for bulk cement transport via new facilities
SBUs (Strategic Business Unit) planned for cement, steel, coal, container sectors
Rs 250,000 cr worth of funds required by the Railways over the next 5 years for IT upgradation
1 lakh crore worth of PPP (Public Private Partnerships) planned over the next 5 years
Will look at multi model parks for Railways at various locations
Railway property to fetch 4000 crore in 2008-09
CCTVs and metal detectors to be put up at all stations
60 yrs and older passengers get 30% discount, female above 60 get 50% discount
Plan fire prevention device in coaches on pilot basis
Anti-fire gear to cost Rs 7,000 cr if pilot successful
Mother-Child Healthcare Express to be run in alliance with Rajiv Gandhi Foundation
Group-D railway examinations to be taken in Urdu also, where it is the second language
To start 53 new passenger trains