Rail Budget 2016-17: 10 Things Suresh Prabhu Might Announce On February 25

Railway Minister Suresh Prabhu is all set to announce the Rail Budget for the fiscal year 2016-17 on February 25. It will be the second budget by BJP-led NDA government after taking charge in 2014. 

During the current financial year, railway minister had allocated around Rs 1 lakh crore towards plan outlay, but is expected to close the year with spending of around Rs 90,000 crore.
Higher allocation is expected to continue next year as well, although the rate of increase is expected to moderate from the 52 per cent rise for the current financial year.

Take a look at 10 probable announcements we might hear in the Rail Budget, this year:

1) The 269 categories of concession will be rationalized by railways in this budget.

A. Children age between 5 to 12 years will no more be entitled to proper birth on payment of half ticket, unlike earlier.

B. Cancellation charges have been doubled while Tatkal seats are raised from 10% to 30%.

C. Concession for senior citizens travelling in first AC has also been withdrawn.

2) Just like Delhi Metro, Railway is looking to monetize its property by encouraging advertisements and branding of trains. The coaches of trains or even the names of the stations could be up for the branding purpose.

3) Railway is going to rationalize its freight policy to gain back the goods traffic it has lost to trucks. The transporter is also mulling various options including entering into untapped sectors like FMCG and auto to increase the freight revenue.

4) As a feel good factor, railway minister would also announce semi-high speed “Gatimaan Express”. The train is certified to run at 160 km/hr, faster than the “Shatabdi Express”. Presently, trial runs of first ‘Gatiman’ between Delhi to Agra are in the final stage.

5) Railway minister is going to announce some new projects and lines. However, these will be the ones constructed under joint venture companies. The projects under this category are mainly those that increase connectivity with coal sector and ports.

6) An announcement on redevelopment of stations is also expected in the speech of Suresh Prabhu.

7) The railway ministry has already announced that all special trains run by it during festivals and holidays will be known as “Suvidha’ trains” with dynamic ticket prices. Under this, normal ticket prices can shoot up to 20%.

8) The government is seeking to step up its drive to modernize the railways by increasing investment in creating new capacity and assets by 20-30 percent in the rail budget.

9) Railway could also announce attractive investment for building private freight terminals and sidings.

10) Mr. Prabhu is expected to launch an online fuel management system. It will bring transparency in fuel consumption and will check oil pilferage.

Rumani
23 Feb 2016