Railway Budget 2013-14

Feb 26, 2013

Key Highlights from Railway Budget 2013-14 Freights India in 1 billion tonne freight club Increase in Freight rates Railways freight loading traffic scaled down by 100 million tonnes from 1025 million tonnes because of economic slowdown

New Contracts & Plans By end of 2013-14, 1,500 km of contracts to be awarded for two dedicated rail corridors 9 new factories and workshops 67 new Express and 26 new passenger trains to run; 8 DEMU services and 5 MEMU services to be introduced 22 new rail lines to be taken up in 2013-14 72 additional suburban services in Mumbai and 18 in Kolkata

Financials Safety Smoke and fire detection system envisaged Introduction of Train Protection Warning System on Automatic Signalling System Rigorous trials of indigenously developed Train Collision Avoidance System A plan investment of Rs 63,363 crore is proposed for 2013-14 Losses up from Rs 22,500 crore in 2011-12 to Rs 24,600 crore in 2012-13 Rs 6,600 crore increase in earnings from fare adjustment in January Passenger earnings of Rs 42,000 crore estimated in 2013-14 Freight earning to grow by 9% to Rs 93,554 crore

Railway Budget 2013-14 - Freight Freight Freight Capacity Freight target fixed at 1,047 MT for 2013-14, 40 MT over the current year To run freight trains of more than 10,000 tones load, 49 long loops, that could hold 1.5 km long trains, have been sanctioned this year, besides large scale induction of Distributed Power Systems to mitigate capacity constraints and improve wagon utilization Preliminary Engineering-cum-Traffic Studies (PETS) have been taken up on four future Dedicated Freight Corridors

Freight Rate 5% average increase in freight rates Freight rates have been increased due to deregulation of diesel prices for bulk consumers. Increase in Freight Rate Increased to Rs. 1,403.6 per tonne from the current Rs. 1,326.8 per tonne at an average lead of 1,307 km Increased by 5.8% Increased to Rs. 1,848 per tonne from the present Rs. 1,746.60 per tonne at an average lead of 1650 km Increased to Rs. 920 per tonne from the current Rs. 869.60 per tonnes at an average lead of 886 km (Increased by 5.8 per cent,
which could have an impact on the government's fertiliser subsidy bill)

Commodity Grains and pulses Steel, iron ore and cement Groundnut oil Urea Diesel, Kerosene & LPG

Increased by 5.79 per cent o Diesel Freight increased to Rs. 1,041.80 per tonne from Rs. 984.80 a tonne currently o Kerosene Freight increased by 5.79 per cent from Rs. 886.30 per tonne to Rs. 937.60 a tonne o LPG freight increased to Rs 937.60 a tonne

Oil companies transport over about 32-33 per cent of diesel, LPG and kerosene through railways and the hike in freight will either have to be passed on to consumers or have to be accounted as under-recoveries which the government would compensate from the General Budget The rates exclude development charge and busy season charges which essentially means that actual hike for oil companies would be higher

Railway Budget 2013-14 New factories/workshops New factories/workshops to be set up: What New Forged Wheel Factory Greenfield Mainline Electrical Multiple Units (MEMU) manufacturing facility Coach Manufacturing Unit Rehabilitation Workshop POH of BG wagons Where Rae Bareli (Uttar Pradesh) Bhilwara (Rajasthan) Sonepat (Haryana) Kurnool (Andhra Pradesh) Bikaner (Rajasthan) and Pratapgarh (Uttar Pradesh) Misrod (Madhya Pradesh) Kalahandi (Odisha) Chandigarh Collaboration With RashtriyaIspat Nigam Ltd. State Govt. and BHEL State Govt. State Govt. NA

Repair and rehabilitation of motorized bogies Wagon maintenance workshop Modern signalling equipment facility

NA NA Public Private Partnership

Railway Budget 2013-14 Investment plans Investment Plan Setting up of 75 MW capacity windmill plants and energizing 1000 level crossings with solar power To set up 8-10 more mechanized laundries for rail linen Rs 63,363 crore annual plan for railways in 2013-14. The plan is proposed to be financed through Gross budgetary support (GBS) of Rs 26,000 crore Railways share in Road Safety Fund of Rs 2,000 crore Internal resources of Rs 14,260 crore Market borrowings of Rs 15,103 crore Rs 6,000 crore through the public private partnership (PPP) route

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