Budget 2015


Rail Budget 2015-16 India Update : Faster rail network growth in J&K, commits Prabhu

There would be faster rail network growth in Jammu and Kashmir and connectivity provided to all the Northeastern states, Railway Minister Suresh Prabhu said on Thursday. “Indian Railways is committed for faster rail network in Jammu and Kashmir.

The rail connectivity between Jammu region and the Kashmir valley through the Banihal tunnel provides all-weather connectivity with the rest of the country,” he said in his Budget address.

Prabhu said the commissioning of Udhampur-Katra was “like a dream come true for millions of pilgrims”. He also said the Railways was “committed to provide rail connectivity to all the Northeastern States” and announced that Meghalaya has been brought on the railway map of India, while direct connectivity to Delhi has been provided to Arunachal Pradesh.

Further, the Barak Valley of Assam would be brought on the broad gauge in March this year. “The work for connecting the remaining states of this (Northeastern) region is progressing well,” the Minister said.


Rail Budget 2015-16 India Update : Suresh Prabhu’s Speech (PART 12)

Rail Budget

Mr. Suresh Prabhu’s Speech Continues…

K. Transparency and Governance initiatives

113. As the Hon’ble Members of the House are aware, Indian Railways recruits various categories of employees through its 21 recruitment boards. As a major transparency initiative, the system of on-line applications has been introduced for two categories as a pilot project. It is proposed to extend this further to include all future recruitments.

114. Corruption at all levels continues to affect the common man. We will explore all possible solutions to address this menace.

115. In order to provide a thrust to transparency, eprocurement value chain is being expanded to cover all Divisions, Depots and Workshops.

116. Indian Railways currently is the only rail-based trans-city infrastructure provider and operator in the country. Therefore, for the purpose of orderly development of infrastructure services, enabling competition and protection of customer interests, it is important to have a regulation mechanism independent of the service provider. Initially it was contemplated to set up only a Tariff Regulator, however, it is now proposed to set up a mechanism, which will be entrusted with making regulations, setting performance standards and determining tariffs. It will also adjudicate on disputes among licensees/private partners and the Ministry, subject to review in appeal.

117. Even as we pursue this transformation agenda, Indian Railways will continue to honour its wider obligations to the nation. With this in mind and in keeping with our Government’s high priority on skill development, Indian Railways, with its vast spread, will contribute by making available its infrastructure like stations and training centres for skill development. Indian Railways has a huge talent of skilled personnel and their services are also available for this national cause.

118. To encourage self-employment, we will promote products made by Self Help Groups, consisting mainly of women and youth. Konkan Railway (KR) has already launched this programme in three states during the past three months. KR expects to generate employment for approximately 50,000 persons from this scheme in the next few years.

119. Tourism holds a great potential for job creation and economic development of a region. Indian Railways will join this effort Incredible Rail for Incredible India. We have successfully experimented on Konkan Railway tourism promotion through training of auto-rickshaw and taxioperators as tourist-guides since they are the first point of contact for our passengers. We intend replicating this at major tourist stations.

120. We propose to explore the possibility of offering some coaches in select trains connecting major tourist destinations to travel agencies on a revenue sharing model.

121. Madam Speaker, I have the honour to recall that this year we are celebrating 100 years of the return of Mahatma Gandhi from South Africa to India. IRCTC will work on promoting the Gandhi circuit to attract tourists to mark this occasion. To help farmers to learn about new farming and marketing techniques, IRCTC will work on Kisan Yatra, a special travel scheme.

122. The Financial Performance for 2014-15 and Budget Estimates of Receipts and Expenditure for 2015-16 are at Annex II.

123. At present, due to over-utilised line capacity and backlog in track renewals, there are speed restrictions, which lead to delay in running more number of trains. The review will be completed soon so that we can announce new trains and increased frequency in this session.

124. Madam Speaker, the actions in the eleven thrust areas, which I have described, cannot remain mere policy pronouncements. Railways cannot function in a ‘Business As Usual’ mode. We have to gear up to face future challenges. Madam, I will ensure that Indian Railways delivers quantifiable and visible improvements. Our most critical initiatives will be pursued in mission mode under the direct oversight of designated senior officials in the Ministry of Railways as Mission Directors. A similar structure will be replicated in all Zonal Railways. I will personally monitor on all major thrust areas. I am confident that I have the support of 13 lakh dedicated men and women in this endeavour.

125. Swami Vivekanand once said, “Take up one idea. Make that one idea your life – think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body be full of that idea, and just leave every other idea alone. This is the way to success.”

He Ended the Speech with following words

For me, that idea is the transformation of Indian Railways. We can, and will, turn the Railways around. We will fulfil the Prime Minister’s vision for the Railways. We seek the support of all of you in this national endeavour which holds the key to the transformation of India itself into Ek Bharat Shrestha Bharat. With these words, Madam Speaker, I commend the Railway Budget for 2015-16 to the August House.


Rail Budget 2015-16 India Update : Suresh Prabhu’s Speech (PART 11)

Mr. Suresh Prabhu’s Speech Continues…

I. Human Resources

100. I strongly believe that the workforce of Indian Railways is its strength. To prepare them for the future and for enhancing organizational performance, systematic Human Resource Audit would be undertaken. As part of the focused Human Resource strategy, measures would be adopted to raise employee productivity in line with global standards. It is also proposed to pursue creation a separate accounting head for HRD and develop ERP based Human Resource Management System.

101. Our frontline staff is the first point of contact with the public. We intend to start a special training module on soft skills for them so that our customers feel welcomed. Training in yoga will be imparted to our staff, especially from RPF. 102. We are in the process of setting up a full-fledged University during 2015-16. 103. We will take up the work of repair of staff quarters and also of RPF barracks. We will also improve the delivery of health services to our employees. For the recreational pursuit of our staff we have decided to upgrade four Holiday Homes, to begin with.

J. Energy and sustainability

104. Madam Speaker, we have set up an Environment Directorate in Railway Board to give increased focus and thrust on environment management.

105. Indian Railways is the largest consumer of electricity and thus has substantial potential for reducing energy consumption through various energy conservation measures. Thrust will also be given for adoption of energy efficient LED luminaries, appliances, etc. as a part of an energy conservation drive. A detailed energy audit will reveal huge potential for energy saving.

106. Although a bulk consumer, Railways pays extremely high charges for traction power. It is proposed to procure power through the bidding process at economical tariff from generating companies, power exchanges, and bilateral arrangements. This initiative is likely to result in substantial savings of at least Rs. 3,000 crore in next few years.

107. To reduce dependence on fossil fuels, it is intended to expand sourcing of Solar Power as part of the Solar Mission of Railways. Work is in full swing at the solar power plant at Katra station and is slated for completion in March 2015. Further, 1000 MW solar plants will be set up by the developers on Railway/private land and on rooftop of Railway buildings at their own cost with subsidy/viability gap funding support of Ministry of NonRenewable Energy in next five years.

108. We have launched a mission for water conservation. Water recycling plants will be set up at major water consumption centres after conducting water audit. Expansion of water harvesting systems will also continue.

109. All our workshops are in the process of getting accredited for environment management. This will be extended to the loco-sheds, and major coaching and wagon maintenance depots.

110. Madam Speaker, the House will be happy to note that CNG based DEMUs have been introduced on Northern Railway and it is proposed to convert 100 DEMUs to dual fuel – CNG and diesel. Locomotives running on LNG are also currently under development.

111. We are making efforts to bring noise levels of locos at par with international norms. We will demonstrate our sensitivity to the wildlife by factoring in concerns related to their environment.

112. Madam Speaker, we need to invest in Indian Railways also because it is necessary for our ecological sustenance. The annual consumption of fuel by the Railways is just about 7% of the annual fuel consumption by the road sector. The energy consumption is about 75%-90% less for freight traffic when compared to road. The carbon dioxide emission is about 80% less than road. Investment in Indian Railways is an investment in our future. It is an investment in our sustainability. It is an investment for posterity.

Mr. Suresh Prabhu’s Speech Continues…


Rail Budget 2015-16 India Update : Suresh Prabhu’s Speech (PART 10)

Mr. Suresh Prabhu’s Speech Continues…

H. Resource Mobilisation

91.Madam Speaker, IR today is resource-light. This is unsustainable. Let alone capital investment, there is not even enough for depreciation. Conventionally, we have looked for Gross Budgetary Support from the Union Government. But this is business as usual. This is neither viable nor necessary.

92.First, the Union government’s financial resources are themselves over-stretched. Second, internal generation of resources will pick up once the Railway reforms start, GDP growth occurs and the Railways begin to attract traffic that has moved elsewhere, especially to the road transport sector. Third, for remunerative projects, it should be possible to generate resources through market borrowings, routed through partnerships with Railway PSUs and IRFC. Fourth, there are several areas where resources can be generated through PPP. Fifth, moving away from debt, some projects can be equity-driven, through partnerships with State governments. All these lead to a simple proposition. One can leverage the resources one possesses better.

93.The size of the Plan Budget has gone up by 52% from Rs. 65,798 crore in 2014-15 to Rs. 1,00,011 crore in 2015-16. Support from the Central Government constitutes 41.6% of the total Plan Budget and Internal generation 17.8 %. In view of the fact that it would be a challenging task to initiate the mobilization of extra-budgetary resources, it is proposed to set up a Financing Cell in the Railway Board, which would seek the benefit of advice from experts in this field.

94.For financing remunerative projects through market borrowings, it is intended to tap low cost long term funds from insurance and pension funds, multi-lateral and bilateral agencies which can be serviced through incremental revenues. Railways will create new vehicles to crowd in investment from long-term institutional investors and other partners. These may include setting up an infrastructure fund, a holding company and a JV with an existing NBFC of a PSU with IRFC, for raising long term debt from domestic as well as overseas sources, including multilateral and bilateral financial institutions that have expressed keen interest in working closely with Railways in this endeavor. We will monetize our assets rather than sell them.

95.I wish to state that encroachment on Railway land is a serious issue. To counter this, digitized mapping of land records has been initiated and responsibility will be fixed on officials for any encroachments.

96.Madam Speaker, we are drawing up a comprehensive policy to tap the latent advertising potential. The new strategy would harness all avenues including offering stations and trains for corporate branding.

97.We are launching a Coastal Connectivity Program this year where Railways in partnership with the concerned ports will deliver rail connectivity to Nargol, Chharra, Dighi, Rewas and Tuna. This programme is expected to mobilize investments of approximately Rs 2000 crore.

98.We propose to launch projects worth Rs 2500 crore through BOT/ Annuity route. These include Wardha- Nagpur 3rd line, Kazipet-Vijaywada 3rd line, Bhadrak –Nargundi 3rd line and Bhuj- Nalia Gauge Conversion.

99.Scrap disposal policy of the Indian Railways will be reviewed for speedier scrap disposal.

Mr. Suresh Prabhu’s Speech Continues…

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