Rail Budget 2010

The Railway Budget 2010-11 carries the agenda forward from the last Budget presented by the Hon’ble Railways Minister. Mamata Banerjee has made the most encouraging announcements in terms of involvement of the Private sector in the development of Railways, particularly in the vision that has been laid out in the 2020 document.

The budget gives a positive short term statement of optimism. It clearly reinforces the plans unveiled in July 2009 budget. Lack of progress in select areas (Public Private Partnership) has been duly recognized and attempts to simplify policy guidelines have been underlined. Finally, from the Industry perspective of efficient (time & cost) execution of projects has been reinforced in the various pronouncements. The budget has addressed various segments of society & industry in adequate manner creating opportunities for the Private sector. There is an underlying flavour of inclusiveness in the budget statement. Overall it’s an industry friendly budget, said Rajeev Jyoti, President & Managing Director, Bombardier Transportation India.

Reiterated focus on Railway Infrastructure up gradation like ambitious plans of 1000 route kms of track in the next one year, capacity expansion of CLW from 200 to 275 electric locomotives, 5 new Wagon factories, modernization of ICF, a new axle factory at New Jalpaiguri, 10 auto auxiliary hubs etc.

The minister reinforced commitment to Public Private Partnership underlining the need for a win-win situation for Private Sector and Indian Railways. The project definition would be based on strong “business” case of the project.

To reduce delays in processing Public Private Partnership Proposals, setting up “Special Task Force” and committing to clear projects in less than 100 days reflects her recognition of her challenge under the PPP model. She has reiterated the need to focus on Fast track approvals.

The Minister has recognized the delicate balancing that she would need to perform wherein on one side she has stated that Indian Railways needs to stick to its core competencies of “Operations & Management” and this area will not be privatized while on the other hand involving Private Sector to facilitate fast movement of strategic projects. Her action of involving Unions early on is indeed a positive step to make the process succeed.
Large numbers of areas for PPP have been identified including new manufacturing units, new high speed trains, multi function complexes, station upgrades etc.

Unlocking of land value and similar innovative ideas have been generated to achieve the growth plans to generate earnings from Non Core activities.

Technology Up gradation

"The need to leverage high technology has been underlined in multiple areas. Specific reference to safety has been made with the clearance of 4 projects covering 824 route kms. for “Train Protection & Warning System (TPWS)”. TPWS is the state of the art system that provides continuous supervision of train speed and automatic braking enabling prevention of accidents. Similar direction is seen through introduction of new generation of Electric Locomotives for Madhepura project and Diesel Locomotives for Marhowra project," said Rajeev Jyoti.

Countering Competition with Road / Air Sector
Freight :
Freight targets have been enhanced reflecting growth in economy. Dedicated Freight Corridor project has been underlined as a priority project with a focus from the Prime Minister. With the implementation of this project, Indian Railways will increase its capability to carry freight effectively and counter challenge from Roads with the ever expanding Road Network.

Passenger:
High Speed Passenger corridor with International Cooperation underlines the action to counter competition from low cost airlines for short distance connectivity. Creation of “National High Speed Rail Authority” could support this initiative.