Railway Budget Highlights 2016
Four goals for Indian Railways to transform over next five years:
a) To deliver a sustained and measurable improvement in customer experience.
b) To make Rail a safer means of travel.
c) To expand Bhartiya Rail’s capacity substantially and modernise infrastructure.: increase daily passenger carrying capacity from 21million to 30 million: increase track length by 20% from 1,14,000 km to 1,38,000 km: grow our annual freight carrying capacity from 1 billion to 1.5 billion tonnes.
d) Finally, to make Bhartiya Rail financially self-sustainable. Generate large surpluses from operations not only to service the debt needed to fund our capacity expansion, but also to invest on an on-going basis to replace our depreciating assets.
Here are some of the key highlights from Railway Budget:
Three pillars of change: New source of revenues, new norms and new structures
• Operating ratio in 2016-17 92 percent (90 percent in 2015-16)
• Capital Expenditure in 2016-17 at Rs 1.21 lakh crore
• Savings through efficient operation in 2015-16 at Rs 8,720 crore
• LIC will invest Rs 1.5 lakh crore over next five years
• 2,500 km of broad guage line will be commissioned in 2016-17
• All civil engineering contracts for dedicated freight corridor will be released soon
• 2000 km of lines will be electrified in 2016-17
• Two locomotive factories to be set up at a cost of Rs 40,000 crore
• Gross budgetary support in 2016-17 at Rs 40,000 crore
• Gross freight earning in 2016-17 estimated at Rs 1.8 lakh crore
• New deluxe trains announced to ensure better cost recovery
• 400 stations will be upgraded through PPP route
• Contracts worth Rs 24,000 crore issued since November 2014 as against Rs 13,000 crore in the earlier six years
• Annualized savings in 2016-17 estimated at Rs 3000 crore
• Two elevated suburban corridors planned for Mumbai
• Plans afoot to increase share of non-tariff revenue from present 5 levels through monetizing physical and soft railway assets
• National High Speed Rail Corporation will be floated soon
• National Rail Plan will be announced to ensure synergy in seamless multimodal transport system across the country
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