Wanted: Rs 8.56 lakh crore to put railways back on track

Promising to make the rail travel a 'happy experience', by focusing on amenities, Railway Minister Suresh Prabhu in his maiden Budget speech on Thursday, instead of making any new announcements decided to put his house in order, desisting populist measures and consolidating on existing resources. While sparing passengers from any rail fare hike, he, however, slapped a 10 per cent increase in the base class of items as well as on food grains, pulses and urea that is bound to make the farm produces costlier.

What is the focus of the budget?
The budget focuses on accelerating the pace of railway electrification. For 2015-16 alone, the Railways would take up 6,608 route kilometres for electrification, which is a whopping 1,330% increase over the previous year. Similarly, 77 projects covering 9,400 km of doubling/tripling/quadrupling works along with electrification, distributed across all states, have been given sanctions at a cost of Rs 96,182 crore, which is over 2,700% higher in terms of amount sanctioned last year.

What will be the focus areas?
Aimed at making Railways the prime mover of Indian economy, the budget emphasizes on modernisation, safety, passenger amenities, decongestion and speeding up of trains. The ministry will fast-track sanctioned works on 7,000 kms of double/third/fourth lines and commission 1,200 km of tracks for the financial year starting April this year. At a cost outlay of Rs 8,686 crore, this is a sizeable 84 percent increase from the amount spend on this work between April 2014 and March 2015.

Where the money will come from?
The railways has taken a four-pronged approach to raise funds over the next few years. Firstly, partner with state governments to form special purpose vehicles (SPV) to raise finance and complete state-specific projects. Secondly, work with public sector units (PSUs) to increase capacity to transport critical items like coal, iron ore, steel, cement etc. Thirdly, tie-up with multi-lateral organisations and other governments to get hold of long-term finance as well as overseas technology. Fourthly, to work alongside private sector for last mile connectivity for modernisation and expanding the railway fleet.

Where the money will be spend?
Of the Rs 8,56,020 crore investment plan proposed for 2015-2019, network decongestion and traffic facilities will get Rs 1,99,320 crore; network expansion (including electrification) Rs 1,93,000 crore; national projects (North Eastern & Kashmir connectivity) Rs 39,000 crore; safety (track renewal, bridge works etc) Rs 1,27,000 crore; IT / research Rs 5,000 crore; rolling stock (locomotives, coaches, wagons) Rs 1,02,000 crore; passenger amenities Rs 12,500 crore; high speed rail & elevated corridor Rs 65,000 crore; station redevelopment and logistic parks Rs 1,00,000 crore and others Rs 13,200 crore.