Rail Budget 2015: Overview

and Highlights
Last Updated: Friday, February 27, 2015, 09:05
Zee Media BureauNew Delhi: Railway Minister Suresh
Prabhu on Thursday spared passengers from any hike in
fares but made changes in freight rates to rake in more
money while ruling out privatisation.Presenting the first
full-fledged Rail Budget of the Modi government for
2015-16, Prabhu also announced a number of new
passenger-friendly initiatives like 'Operation 5-minute'
so that ticketless passengers get regular tickets within
five minutes of entering station.Also Read-Rail Budget
2015: 15 Best TakeawaysOther steps include making
railway helpline number 138 operational 24x7, toll-free
number 182 for security-related complaints and CCTVs
in select trains for women safety.SMS alert service is to
be introduced to inform passengers about train
arrival/departure, while wi-fi facility would be introduced
at 400 railway stations.Also read-Want to make Indian
Railways self-sustainable, profitable: Suresh PrabhuRailcum-road ticket is to be extended to many stations and
more trains are proposed to be added under scheme for
ordering food while booking tickets.More general class
coaches are to be added in identified trains and more
air-conditioned EMU services would be introduced on
Mumbai suburban section.Tickets can now be booked
120 days ahead of travel date, instead of 60 days now,
to tackle tout menace.Projects worth Rs 96,182 crore to
be undertaken to expand capacity of 9,420 km rail lines.
The Minister did not project any figures that will accrue
out of the adjustment in freight rates to be effective
from April 1 this year.Also Read- Rail Budget 2015 a
watershed moment for Railways: ModiHe did not
announce any new trains, saying on the ground that a
review was on about the capacity to add more trains
which will be announced after the review is over.
Following are the highlights of the Railway Budget for

2015-16 presented by Railway Minister Suresh Prabhu in

Parliament:

PASSENGER AMENITIES * Ticket booking allowed 120

days in advance instead of 60 days * To allow SMS as
valid proof of ticket* IRCTC to provide concierge service
enabling pick and drop facility on payment * To launch
138 as 24x7 helpline number* To launch mobile app for
complaints* To have Braille-enabled new coaches* To
introduce e-catering in 108 trains* To provide WiFi
services at 400 railway stations* To introduce onboard
entertainment in Shatabdi trains* Mobile phone
charging to be available in general coaches* To increase
quota of lower berths for senior citizens* Escalators and
wider entrances for specially abled * Online booking of
wheelchair to be available on IRCTC* Propose SMS alert
for arrival-departure services* Plan project to cut
unreserved ticket buying time to 5 minute* Defence
personnel won't need 'warrant' for rail travel* To have
water vending machines in most stations* Operation 5
minute for quick tickets * To introduce debit cardoperated ticket machines* To launch multi-lingual eticket portal* Unreserved passengers can book tickets in
5 minutes

SAFETY & SECURITY * Preparing action plan for rail

safety* To invest 1.27 trillion rupees 2015-19 for
enhancing safety* Toll-free number 182 for security
related complaints* To increase quota of lower berths
for pregnant women* Cameras in some trains on pilot
basis for women safety* Aim to remove all un-manned
level crossings* 5-year corporate safety plan to be
ready by June* To utilise funds from Nirbhaya Fund for

women safety

CLEANLINESS/HYGIENE BOOST* To hire professional

cleaning agencies* Ensuring higher standards of
cleanliness a priority* "Swachh Rail" to be a driving
force* To create new dept for cleaning stations, trains*
To improve quality of bed linen in 6 months * Online
booking of disposable bed rolls * To increase number of
mechanised laundries* To introduce vacuum toilets in 6
months* To replace 17,000 toilets with bio-toilets* To
build new toilets at 650 additional stations* To set up
waste-to-energy plants

FARES, FREIGHT* No hike in passenger fares* Freight

rate hikes also on 10% increase in Base Class-100* Most
freight rate changes due to revised classification* To
invest Rs 1.99 trillion over 2015-19 to decongest
network* To invest Rs 1.93 trillion for network expansion
2015-19* Freight rate for LPG to go up by avg 0.8%*
Freight rate for kerosene to go up by avg 0.8%*
Elevated corridors part of Rs 650 billion INVESTMENT
2015-19* Freight rate for groundnut oil to go up by avg
2.1%* Freight rate for diesel to go down by avg 1%* To
invest Rs 650 billion 2015-19 for high speed trains*
Freight rate for domestic iron ore to go up by avg 0.8%*
Limestone, manganese ore freight rate to go dn by avg
0.3%* Must substantially regain freight mkt share*
Freight carrying capacity to be raised to 1.5 billion tn*
Must make freight transport reliable, comfortable* Four
freight corridors will be completed this year* Must

expand freight handling capacity* To partner with PSUs

to build capacity for freight movement* To give 750 km
civil contract for dedicated freight corridor* Freight rate
for over 1,500 km distance "rationalised"* To launch
pan-India automatic freight rebate scheme* To
maximise loading in freight train to up to 22.82 tn*
Propose to start automatic freight rebate scheme across
India* Freight rate for urea to go up by average 10%*
Freight rate for grains, pulses to go up by average 10%*
Freight rate for iron, steel to go up by average 0.8%*
Freight rate for coal to go up by average 6.3%* Freight
rate for cement to go up by average 2.7%* Freight rate
for cement to go up by 2.7%* Freight structure for Base
Class-100 hiked by 10%

NEW LINES, TRAINS TEST RUNS * Emphasis on

gauge conversion over next 5 years* To Increase speed
of fast trains like Rajdhani, Shatabdi* To up track length
by 20% to 138,000 km in next 5 years* 1,219 sections
on high density network* Plan to run 1st set of high
speed special trains in 2 years* To introduce high speed
trains along lines of bullet trains* Mumbai-Ahmedabad
high-speed train study at advanced stage* Feasibility
study for Delhi-Mumbai corridor in advanced stage*
Mumbai-Ahmedabad high-speed train report by mid this
year* To take up Mumbai Urban Transport Plan-III for
suburban rail

INFRASTRUCTURE / MODERNISATIONAlso Read-Rail

Budget 2015: 15 reasons that make Suresh Prabhu

tech-savvy* Aim 30 million daily passenger-carrying

capacity in next 5 yrs* Hand-held terminal to be given
to ticketing personnel* Focus on doubling, tripling
existing high-density network* To up capacity in high
density network a priority next 5 yrs* To introduce airconditioned coaches in Mumbai suburban network*
More general class coaches to be introduced* More
berths in coaches to be introduced* 200 more stations
to be upgraded to model stations* To focus on superior
coach design* Capacity augmentation has suffered over
the years* Railway facilities have not improved in last
few decades* WiFi in all A1, B category stations* 492
sections on high density network working at over 100%
capacity* Plan steps to systematically address customer
grievances* To review wagon leasing plan over next 3
months* To develop air cargo sector* Setting up
perishable cargo centre at Azadpur mandi* To mull new
wagon design for higher capacity, fuel efficiency* Intend
to address issues in private freight terminal scheme* To
fast-track highest priority works* Need to accelerate
railway electrification* 10 satellite terminals to be taken
up FY16* Coal, steel, cement need new lines for
transportation* To revamp station redevelopment policy
completely* To invite bids for station revamp* Will
partner with privatize sector to modernise stations' infra
* Sustained, measurable improvement in travel
experience a goal* Centrally-managed display to be set
up in 2,000 stations* Working on system to use SMS as
valid proof for ID* Putting in place integrated customer
portal* Propose satellite terminals to decongest major
city stations* Want local culture to be reflected at
stations* To have 26 coaches in place of 24 in select
trains* Plan infra fund for raising long-term debt*
Digitised mapping of land records started* To work with
states to create infra

INVESTMENT PUSHAlso Read- Rail Budget 2015: The

financial implications * Investment in railways to create
more jobs* Under-investment has led to reduced
efficiencies* Rs 1.20-billion- provided for lifts, elevators
at stations* Cycle of poor investment in railways must
end* Railway envisages 8.5 trln rupee investment in 5
yrs* States can raise FINANCE through SPVs* Railway
investment to need multiple sources of funding* To
partner with multilateral agencies for accessing funds*
To monetise assets rather than sell them* To tap
insurance, PFs, global agencies for long-term funds*
Some projects can be equity driven in partnership with
states* To set up FINANCING cell in Rail Board* Funding
for projects may be equity driven* Can generate
resources via mkt borrowing* To invest total 8.56 trln
rupees over 2015-19* To invest Rs 132 billion over
2015-19 for other projects* To invest Rs 125 billion over
2015-19 for passenger amenities* Rs 390-billion- invest
2015-19 for J&K, north-east connectivity* To invest Rs
1.02 trillion 2015-19 for rolling stock

Also Read- Rail Budget 2015-16: Full Text

FY16 ESTIMATES* Aim to make Railways financially

self-sustainable* FY16 plan outlay Rs 1 trillion* FY16
total expenditure seen Rs 1.63 trillion* Plan 750 km of
civil contracts for Dedicated Freight Corridor* Rail
electrification to be done on 6,608 km in FY16*
Sanctioned 77 projects of 9,400 km for raising track
capacity* Allotted Rs 86.86- billion for gauge conversion
* Target 800 km of gauge conversion in FY16* Allotment
for passenger amenities increased by 67%* To mobilise
Rs 20 billion investment for coastal connectivity*
Railway FY16 operating ratio seen 88.5%* FY16 internal
revenue generation seen up 17.8% on yr* FY16 gross
budgetary support up 41.6% on yr* FY16 net revenue
seen Rs 250.76 billion* FY16 goods earnings target Rs
1.21 trillion* FY16 passenger earnings target Rs 501.75

billion* FY16 plan outlay from internal resources Rs

177.93 billion* FY16 freight target Rs 1.186 billion* FY16
gross budgetary support seen Rs 400 billion* FY16
appropriation to pension fund Rs 349 billion* FY16
surplus seen Rs 143 billion* FY16 dividend seen Rs 108
billion* FY16 total expenditure seen Rs 1.63 billion*
FY16 total receipts seen Rs 1.89 trillion* FY16 ordinary
working expenses Rs 1.19 trillion* FY16 gross traffic
receipt Rs 1.84 trillion* Railways' FY16 market
borrowing pegged Rs 173 trillion* FY16 invest on
wagons seen Rs 45 billion rupees vs Rs 24 billion year
ago* Aim Rs 62 million tn food grain freight FY16 vs
57.3 mln yr ago* Aim 120.5 mln tn cement freight FY16
vs 113.2 million tn yr ago* Aim 125 million tn iron ore
freight FY16 vs 116 million tn yr ago* Aim 585 million tn
coal freight in FY16 vs 543 million tn yr ago* FY16
invest on locomotives seen Rs 85 billion, unch on yr*
FY16 rolling stock spend seen Rs 193 billion vs 174
billion FY15* FY16 institutional FINANCE seen Rs
171.36 billion* FY16 invest via PPP seen Rs 57.81 billion
* FY16 freight earning target Rs 1.21 trillion* Rail Vikas
Nigam FY16 mkt borrowing pegged Rs 3.79 billion*
Share of diesel cess from road fund Rs 16.46 billion
FY16* IRFC FY16 mkt borrowing pegged Rs 172.76
billion* Sanction Rs 65.8 billion to remove 3,438 level
crossings FY16* FY16 total mkt borrow pegged Rs
176.55 billion* Plan to buy 16,800 wagons FY16 vs
10,000 yr ago* Plan to buy 3,390 coaches in FY16 vs
3,359 yr ago* Plan to buy 261 electric locomotives FY16
vs 250 yr ago* Plan to buy 375 diesel locomotives FY16
vs 397 yr ago* Aim gauge conversion of 500 route km
FY16 vs 450 yr ago* To construct 300 route km new
lines FY16 vs 300 route km FY15* To electrify 1,600
route km FY16 vs 1,350 route km yr ago

FY15 REVISED* Revised FY15 ordinary working

expense by Rs 36.79 billion* Revised FY15 targeted

operating ratio to 91.8% from 92.5%* Revised FY15
pension fund appropriation to Rs 295.4 billion* FY15
operating ratio 91.8%* FY15 passenger earnings
estimate revised to 17.7% from 22.2%* FY15 plan size
revised to Rs 657.98 billion from 654.45 billion* FY15
surplus at Rs 72.8 billion* FY15 freight loading revised
target 1.101 billion tn

READYING FOR FUTURE * Working on high-speed rail

in Diamond Quadrilateral* Studies to be undertaken for
Golden Quadrilateral rail line* Speed of 9 railway
corridors to be hiked* Aim to make Delhi-Kolkata, DelhiMumbai journey overnight* Average speed of freight
trains to be enhanced* Inter-metro train speeds to be
enhanced* Rs 1-trillion invest 2015-19 in station
revamp, logistic parks* To invest Rs 50 billion over
2015-19 for IT, research* To set up railway research
centres in four universities* Plan tie-up with multilateral,
bilateral bodies for overseas tech* To digitally integrate
vendors along Digital India plan* To explore mechanised
track maintenance* Formed rail, science, HRD min
consortium for tech upgrade* To introduce bar-coded
freight tracking* To set up tech portal for innovative
solutions* E-procurement to be extended to all
departments* To mobilise Rs 20 billion investment for
costal connectivity* To have ERP-based HR system

MISCELLANEOUS* Budget part of trilogy of vision to

improve railways* Plan Vision 2030 document later this

year* Railway Budget proposals be seen as part of 5year plan* Improvement of connectivity an imperative*
Working on feasible views of over 20,000 in social
media* Legacy of past decades to take some time to
neutralise* Railways has to transform in next five years*
To set standards for governance, transparency* Need to
make changes to speed up operational efficiency* Need
tighter control on costs* Pension funds have shown
interest in investing in railways* Need to revamp
management practices* To partner with PSUs to
transport coal, iron, cement* Railways to partner private
sector for last mile connectivity* Committed to faster
railway connectivity in J&K* Invite state govts, municipal
bodies to partner with us* Invite states, local bodies for
station development* Need to expand network capacity
* To create divisional committees chaired by MPs* To
improve project selection, appraisal mechanism* To
modify present accounting system* Propose working
group to track expenditure* To launch EPC system for
rail projects contracts* Plan system audit over next 2
months* Freight rules to be simplified* To set up
Transport Logistic Corp of India to handle freight* To set
up JV with PSUs for new lines* To launch foreign rail tech
plan to achieve better quality* JVs with states for land
acquisition, project implementation* To launch foreign
railway technology co-operation scheme* To set up JV
with states for land acquisition* To upgrade 10 goods
sheds* To revamp existing PPP cell to make it more
result-oriented* Loading density to be raised on all
routes to 22.82 tn* To have train anti-collision system on
select routes* Commodity-specific carriers planned*
Sanctioned Rs 65.81 billion for over, under-bridges next
FY* Radio-based signal design project to be taken up* To
conduct study on spare capacity usage* Commissioning
of rail factories to be reviewed* Electrification included
in Rs 1.93-trillion invest in 2015-19* Net reduction in
FY16 gross traffic receipt Rs 9.17 billion* IRCTC working
on special travel scheme Kisan Yatra* To give coaches
on revenue share basis for select tour spots* Review of
new train svcs on, to be announced soon* To give
coaches on revenue share basis to travel agencies* To

offer some coaches to travel agents on revenue share

basis* Konkan Railway aims to create 50,000 jobs*
1,000 MW solar plant to be set up on railway land* Plan
to launch 100 more CNG-based DEMU in northern
railway* LNG-based locomotives under development* To
set up recycling plants at major water consumption
centres* Energy audit being worked out for energy
saving* To launch mission for water harvesting* To
enhance sourcing of solar power* Will save Rs 30 billion
via new power procurement plan* To save Rs 30 billion
from open power sourcing in few yrs* Coastal
connectivity project invest seen Rs 20 billion* To procure
power via open bidding process* Detailed energy audit
being worked out* To procure power via open bidding
process* To start repair work on staff quarters, RPF
barracks* To set up full-fledged railway university FY16*
Revamping scrap disposal to EARN MORE from them*
Plan rail connectivity to Dighi, Rewas ports* To launch
Rs 25 billion BOT annuity projects* Plan coastal
connectivity project in partnership with ports* Drawing
up comprehensive policy for advertising potential* Plan
JVs of IRFC with NBFCs, PSUs for long-term FINANCING
* To set up infra fund, JV with IRFC for long-term funding
* To partner with pvt cos to modernise station
infrastructure* To partner with pvt cos to expand fleet of
rolling stock* Aim to further decentralise, deregulate
decision making* Delegated store, work tender
decisions to general managers