Indian RailwaysAsia’s second largest rail network

Railways BudgetInterim Railway Budget 2014-15 presented in

the Lok Sabha by Railway Minister Mallikarjun Kharge.

Union Railways Minister Pawan Kumar Bansal presented the Railway Budget in the Lok Sabha in New Delhi on Feb 26, 2013.

Highlights of Budget 2014-15No increase in passenger fares and freight

charges.17 new premium trains, 38 express trains and

10 passenger trains to be launched.Premium AC trains with dynamic fares on Delhi-

Mumbai route with shorter advance reservation period.

Passenger rail service to Katra and Vaishno Devi to start shortly.

Railways to expand services to Meghalaya.

Highlights…Three new factories - Rail Wheel Plant in

district Chhapra, Bihar; Rail Coach Factory at Rae Bareli in Uttar Pradesh; and Diesel Component Factory at Dankuni, West Bengal, have become functional and commenced production during 2013-14.

An independent Rail Tariff Authority to be set up to advise the government on fixing fares and freight charges.

Target Set…Freight earnings target set at Rs.94,000

crore, Loading target raised to 1,052 million tonnes

Annual Rail Plan envisaged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore. 

Operating ratio budgeted at 89.8 percent.Allowing Foreign Direct Investment (FDI) in

railways is under consideration.

Indian Railway in Loss Losses to the Railways on account of passenger

traffic are likely to mount to Rs 24,600 crores in 2012-13 from Rs 22,500 crores in 2011-12.

The Railways had targeted to mop up an additional revenue of Rs.6,600 crores for the current financial year (2012-13), but the fuel price hike wiped out Rs.3,300 crores of it.

The operating ratio, a measure of expenses as a percentage of revenue, is seen deteriorating. Kharge has targeted to improve this to 89.8% in 2014-15.

Reasons for LossIndian Railways incur high losses due to

accidents and no insurance coverMounting scarcity of resources and thin

spread of funds continue to be a problem.Passengers travelling without tickets.Better facilities being provided by road

transport.