Railway Budget 2009-10: Indain Railays to invest Rs230,000 crore in 11th Plan period

During the 11th 5-year Plan (2007-12) Indian Railways plans to invest thee times the amount it spent in the 10th Plan period, even as it deployed a Rs70,000 crore investible surplus to boost productivity.

Speaking at he interim Railway Budget 2009-10 and Supplemantary grants inthe Lok Sabha today, railway minister Lalu Prasad, said the railways would invest Rs230,000 crore in 11th Plan period - almost three times the amount allocated in the 10th Plan.

Railways has stepped up its investment outlays from Rs13,394 crore in 2003-04 to Rs36,773 crore in 2008-09.

The world's largest employer also said that it had ploughed back its Rs70,000 crore investible surplus earned between 2004-05 and 2008-09 to increase productivity.

Announcing this Prasad said the objective of larger investment is to increase the transport capacity of the Railways and to reduce the unit cost of operations.

Railways would be completing the work of 4,900 km of gauge conversion, 1800 km of doubling and laying 1100 km of new lines over the five years of the 11th plan period, the minister said.

The Railways has set a freight loading target of 910 million tonnes – an increment of 60 million tonnes on 2008-09 – and a 7 per cent increase in the number of passengers.

Gross traffic receipts is estimated at Rs93,159 crore – up Rs10,766 crore from 2008-09.

The Railways expects its operating ratio 89.9 per cent and has kept the Plan outlay at Rs37,905 crore. It expects its ordinary working expenses to go up to Rs62,900 crore to cover the full year impact of Sixth Central Pay Commission and the payment of 60 per cent arrears due in 2009-10.

Dividend payable to general revenues is estimated at Rs5,304 crore at the current applicable rates.

Passenger Services

43 new train services to be started in 2009-10, extension of 14 trains envisaged and frequency of 14 trains to be increased.
Others

With a view to facilitate improved train operations, it has been decided to set  up two new railway divisions at Bhagalpur and Thawe.

The Railways propose to undertake 25 surveys comprising 14 for new lines, 3 for gauge conversion and 28 for doubling projects.

A pre-feasibility study for running high speed bullet trains is also being pursued.

Construction of the Rail Wheel Factory at Chapra in Bihar is on in full swing; Work on diesel and electric locomotive factories at Marhoura and Madhepura is expected to start early.

Bharat Wagon Limited, Mokama and Muzaffarpur has been transferred to the ministry of railways while the transfer of wagon units of Burn Standard at Burnpur and Howrah is also under consideration.