This will be Railway Minister Mallikarjun Kharge's maiden budget. He would be under pressure to reach out to all sections with populist measures in an election year.
No major announcements or tariff changes for freight or passenger segments are likely to be announced. Officials said premium trains on 37 identified routes were likely to be the highlight of his speech. Besides, keeping with the tradition, some new trains will also be announced.
Since the fuel adjustment component has already resulted in two hikes in freight and one hike in passenger fares, no further adjustments are expected to be made in the Budget. The UPA-II’s tenure would end with no major breakthrough in improving the financial health of the Railways. The operating ratio, which reflects the expenditure outgo incurred in earning revenue, may hover around 88 per cent, above the Budget target of 87.8 per cent, reflecting inefficiency in operations.
Although earnings and loading targets in freight might be achieved, the worry is the falling average lead per kilometre. The Budget target was set at 645 km and December registered a lead of 622 km. Lead is the average distance travelled by a commodity.
The Plan outlay due to less earnings and more expenditure is set to be cut by about Rs 5,000 crore. The earnings in December went down by Rs 5,000 crore because of lower passenger numbers and falling average lead in freight. Expenditure this year went up by about Rs 4,900 crore.
Following are the highlights of the Interim Railway Budget 2014-15 presented in the Lok Sabha by railway minister Mallikarjun Kharge:
- No increase in passenger fares and freight charges
- 17 new premium trains, 38 express trains and 10 passenger trains to be launched
- Premium AC trains with dynamic fares on Delhi-Mumbai route with shorter advance reservation period
- Passenger rail service to Katra and Vaishnodevi to start shortly
- Railways to expand services to Meghalaya
- More high-speed trains to be launched
- Railways exploring low cost option of 160-200 kmph speed trains on select routes
- Rail Tariff Authority to advise on fares and freight
- Mumbai to get AC EMUs in July
- Trains to display info on next stations, arrival times
- More Jan Ahaar outlets, escalators at stations
- Upgradation scheme extended to AC Chair Car and Executive Chair car passengers
- Annual Rail Plan envisaged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore
- FDI being enabled for creation of rail infrastructure
- Railways to end current year with surplus
- Surveys for 19 new lines and 5 doubling of tracks
- Railways to encourage transportation of milk
- Steps to reduce running of empty freight carriages
- Bio-toilet facility to be provided in more trains.
