Prabhu proposes Rs.121000 crore in projects for next fiscal

Prabhu said that core objective is to become an engine of employment generation and economic growth at national level. These include creation of dedicated rail corridors, improving railway infrastructure and revamping the suburban railways system.

The second, “Nav Manak” (New Norms) denotes to a “zero-based budgeting” approach to the financials of the ensuing year, including improvement in efficiency yardsticks and procurement practices to bring them in line with global best practices. Trying to tap revenues elsewhere in Railways’ operations, Prabhu left the passenger fares untouched.

“For the year 2016-17, we expect an operating ratio of 92 percent after including the immediate impact of the 7th Pay Commission, as against 90 percent likely to be achieved in the current year”. Prabhu said he targeted to earn a revenue of about Rs.1,17,933 crore by carrying 50 million tonnes of freight.

The formation of an independent authority was proposed past year. No wonder, the revenue projection for 2016-17 has been kept at just Rs 184,820 crore, a mere 0.7 per cent growth over last fiscal’s budgetary estimate and a 10 per cent growth over the revised estimate. The only help this year came from benign oil prices that contributed a major chunk of the Rs 8,720 crore neutralising a large part of the revenue shortfall. This is where Prabhu should put his foot down and make sure that the expansion strategy doesn’t remain on the paper.

The unrest by the community demanding reservation in government jobs has already hit the Indian railways with damages totalling to at least Rs200 crore. “The announcement on two locomotive factories is also old; it was decided when I was the railway minister”, he said.

Shwetank Singh, VP – Development & Asset Management, Interglobe Hotels We are happy with the Railway Budget, and believe that it presents many progressive steps to boost not just the sector. but ancillary industries as well. Indian Railways is partnering with NABARD to provide support and access to our IRCTC website to ensure extensive e- marketing for products produced by the self-help groups which would lead to increase in rural incomes. Indian Railway will explore the possibility of unifying cadres for fresh recruitment of officers. Passengers can now request toilets on stations and trains to be cleaned via SMS. Wi-Fi services will also be introduced in 100 stations by this year and will extend to 400 more stations over the next two years.

Third, monetising the assets is another key area Prabhu stressed in the last budget. “Certainly this Railway Budget will give a good result in the future”. This is even more critical now to win the confidence of private investors about a proper overseeing mechanism. The draft Bill in this regard will be ready after holding extensive stakeholder consultations.

All eyes will be on Prabhu as he will table the Rail Budget 2016-17 in the Parliament at 12pm on Thursday. But, the real challenge for Prabhu lies on the implementation-front.