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IndianRailwayBudget2016
Postedon:01Sep201611:38:37

RailwayMinisterSureshPrabhuinhissecondRailwayBudgetspeechsaid,"Weneedto
reimaginetheconventionalwaysofsolvingthings.Weplantodothisbydrawinguponour
inherentstrengths."ThesearethehighlightsoftheRailwayBudget2016.

ThemeoftheBudget:OvercomingchallengesReorganize,RestructureRejuvenateIndian
Railways:'Chalo,MilkarKuchNayaKaren'

Threepillarsofthestrategyi.e.NavArjanNewrevenues,NavManakNewnorms,Nav
SanrachnaNewStructures.

FinancialPerformance201516:SavingsofRs.8,720croreneutralizingmostofthe
revenueshortfall,expectedOR90%.

201617:TargetedOperatingRatio(OR)92%,restrictgrowthofOrdinaryWorking
Expensesby11.6%afterbuildinginimmediateimpactof7thPC,reductionsplannedindiesel
andelectricityconsumption,RevenuegenerationtargetedatRs1,84,820crore.

InvestmentsandResources:

Processbottlenecksoverhauledincludingdelegationofpowerstofunctionallevels
averagecapitalexpenditureover200914isRs.48,100crore,averagegrowthof8%per
annum.
201516investmentwouldbeclosetodoubleoftheaverageofprevious5years.
201617CAPEXpeggedatRs.1.21lakhcroreimplementationthroughjointventureswith
states,developingnewframeworksforPPP,etc.

Vision

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By2020,longfeltdesiresofthecommonmantobefulfilledi.e,reservedaccommodationon
trainsavailableondemand,timetabledfreighttrains,highendtechnologytoimprovesafety
record,eliminationofallunmannedlevelcrossings,improvedpunctuality,higheraverage
speedoffreighttrains,semihighspeedtrainsrunningalongthegoldenquadrilateral,zero
directdischargeofhumanwaste.

201516Achievements

Actioninitiatedon139budgetannouncementsof201516.

Projectexecution

201516:assuredfundingthroughLICcommissioningof2,500kmsBroadGaugelines
commissioningof1,600kmsofelectrification,highestever.In201617targeted
commissioning2,800kmsoftrackcommissioningBroadGaugelinesatover7kmsperday
againstanaverageofabout4.3kmsperdayinthelast6years.Wouldincreasetoabout13
kmsperdayin201718and19kmsperdayin201819willgenerateemploymentofabout
9croremandaysin201718.

DedicatedFreightCorridor:

AlmostallcontractsforcivilengineeringworkstobeawardedbyMarch31st2016Rs24,000
crorecontractsawardedsinceNovember2014asagainstRs13,000crorecontracts
awardedinlast6yearsproposetotakeupNorthSouth,EastWest&EastCoastfreight
corridorsthroughinnovativefinancingincludingPPP.

Portconnectivity:

TunaPortcommissionedandrailconnectivityprojectstoportsofJaigarh,Dighi,Rewasand
ParadipunderimplementationimplementationofrailconnectivityfortheportsofNargoland
HaziraunderPPPin201617.

NorthEast:

BGLumdingSilcharsectioninAssamopenedthusconnectingBarakValleywithrestofthe
countryAgartalabroughtontotheBGnetwork.StatesofMizoramandManipurshortlyto

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comeonBGmapofthecountrywithcommissioningoftheKathakalBhairabiandArunachal
JiribamGaugeConversionprojects.

JammuandKashmir:

WorkonKatraBanihalsectionofUdhampurSrinagarBaramullaRailLinkProject
progressingsatisfactorily35kmsoftunnellingoutoftotalof95kmscompleted
DecongestionworkonJalandharJammulineinfullswinganddoublingoftwobridgestobe
commissionedbyMarch2016,whiletheothertwobridgeswillbecompletedby201617.

MakeinIndia

Finalisedbidsfortwolocofactoriesproposedtoincreasethecurrentprocurementoftrain
setsby30%.

CapacityBuildingforthefuturethrough:
1.Transparency:Initiatedrecruitmentsonlinein201516,processnowbeingreplicated
forallpositions,socialmediabeingusedasatooltobringintransparency,allprocurement
includingprocurementofworksmovedtotheeplatform,completedtrialofprocessleadingto
awardoftenderelectronicallyandtoberolledoutonaPanIndiabasisin201617.
2.Governance:Delegationledtocompressionofprojectsanctiontimeto68months
from2yearsearlier,keyresultareasidentifiedtojudgeperformanceofGMsandDRMs,
performancerelatedMOUssignedwithfewZones,tobereplicatedforallzones.
3.Internalauditmeasures:Specialisedteamsmandatedtoscreenrailwayoperationsin
specificareastodetectinefficienciesandpreventwastages,everyzonepreparing2reports
byMarch31,2016.
4.Partnerships:CabinetapprovalforJVswithStateGovernments,17consentedand6
MOUssignedwithStateGovernments.44newpartnershipworkscoveringabout5,300kms
andvaluingaboutRs.92,714crorehavebeenindicatedintheBudgetdocuments.

CustomerInterface:

1.Interactionandfeedbackthroughsocialmedia&dedicatedIVRSsystem.
2.Makingtravelcomfortablebygeneratingover65,000additionalberths,installing2,500
watervendingmachinesintroducing'MahamanaExpress'withmodernrefurbished
coaches17,000biotoiletsintrainsworld'sfirstBioVacuumtoiletdeveloped.
3.Improvingpunctuality:OperationsauditforGhaziabadtoMughalsaraisection.

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4.Ticketing:Introduced1,780AutomaticTicketVendingMachines,mobileapps&GoIndia
smartcardforcashlesspurchaseofUTSandPRStickets,enhancedcapacityofeticketing
systemfrom2,000ticketsperminuteto7,200ticketsperminuteandtosupport1,20,000
concurrentusersasagainstonly40,000earlier.
5.Socialinitiatives:Onetimeregistrationforavailingconcessionswhilebookingtickets
online,onlinebookingofwheelchairs&Brailleenablednewcoachesintroducedforthe
Divyang,increasedquotaoflowerberthsforseniorcitizensandwomen,middlebays
reservedincoachesforwomen.
6.WiFiprovidedin100stations,tobeprovidedin400more.
7.StationsbeingredevelopedfinancialbidreceivedforHabibganj,BhopalCabinet
approvalforstationstobetakenupunderPPP.
8.Securitythroughhelplines&CCTVs.
9.Safety:350mannedlevelcrossingsclosed,eliminated1,000unmannedlevelcrossings,
820ROB/RUBcompletedinthecurrentyearandworkgoingonin1,350ofthem.

Othermajorachievements

1.Energy:AnnualizedsavingsofRs.3,000croretobeachievedinthenextfinancialyear
itself,ayearearlierthanannouncedachievedbyprocuringpowerdirectlyatcompetitive
ratesusingIR'sstatusasDeemedDistributionLicensee.
2.RailUniversity:InitiallyidentifiedtheNationalAcademyofIndianRailwaysatVadodara.
3.DigitalIndia:ApplicationofTrackManagementSystem(TMS)launched,inventory
managementmoduleofTMShasresultedininventoryreductionby27,000MTresultingin
savingofRs.64croreandscrapidentificationof22,000MTequivalenttoRs.53crore.
TheWayAhead
Improvingqualityoftravel
Fortheunreservedpassenger

1.AntyodayaExpressunreserved,superfastservice.
2.DeenDayalucoachesunreservedcoacheswithpotablewaterandhighernumberof
mobilechargingpoints.

Forthereservedpassenger:
1.Humsafar:FullyairconditionedthirdACservicewithanoptionalserviceformeals
2.Tejas:WillshowcasethefutureoftraintravelinIndia.Willoperateatspeedsof130
kmphandabove.Willofferonboardservicessuchasentertainment,localcuisine,WiFi,etc.
throughoneserviceproviderforensuringaccountabilityandimprovedcustomersatisfaction

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3.HumsafarandTejastoensurecostrecoverythroughtariffandnontariffmeasures
4.Overnightdoubledecker,UtkrishtDoubleDeckerAirconditionedYatriExpressonthe
busiestroutes,hasthepotentialtoincreasecarryingcapacitybyalmost40%.

Ticketing:Saleofticketsthroughhandheldterminalseticketingfacilitytoforeign
debit/creditcardsbarcodedtickets,scannersandaccesscontrolonapilotbasis.Expansion
ofVikalptrainondemandtoprovidechoiceofaccommodationinspecifictrainstowaitlisted
passengers.Ebookingofticketsfacilityontheconcessionalpassesavailabletojournalists
facilityofcancellationthroughthe139helplinepostverificationusing'OneTimePassword'
sentonregisteredphonenumber,toimprovetatkaalservicesCCTVcamerasonwindows
andperiodicauditofPRSwebsite.
Cleanliness:'CleanmyCoach'servicethroughSMS,rankingofA1andAstationsbasedon
periodicthirdpartyauditandpassengerfeedbackwastesegregationandrecyclingcentres
'Awarenesscampaigns'additional30,000biotoiletsprovidingportablestructureswith
biotoiletsatallplatformsofselectstationsforseniorcitizens,Divyangandwomentravellers,
plantoexploreinnovativemeansofprovidingandmaintainingtoiletssuchasadvertisement
rights,CSR,voluntarysupportfromsocialorganizations.

Stoppages:Convertalloperationalhaltsintocommercialhaltsforthebenefitofthecommon
man
RailMitraSewa:ExpandingSarathiSevainKonkanRailwaytohelptheoldanddisabled
passengers,strengtheningtheexistingservicesforenablingpassengerstobookbattery
operatedcars,porterservices,etc.onapaidbasisinadditiontotheexistingpickupand
drop,andwheelchairservices.
MeasuresforDivyang:AllstationsunderredevelopmentaccessiblebyDivyangtoprovideat
leastoneDivyangfriendlytoiletateachplatforminA1classstationsduringthenextfinancial
yearandalsoensureavailabilityofwheelchairsinsufficientnumbersatthesestations.
TravelInsurancetopassengers:Toofferoptionaltravelinsuranceforrailjourneysatthe
timeofbooking.
Hourlybookingofretiringrooms:WillbehandedovertoIRCTC.
Jananisewa:Children'smenuitemsontrains,babyfoods,hotmilkandhotwaterwouldbe
madeavailable.
SMART(SpeciallyModifiedAestheticRefreshingTravel)Coaches:designandlayoutof
ourcoachestoensurehighercarryingcapacityandprovisionofnewamenitiesincluding
automaticdoors,barcodereaders,biovacuumtoilets,waterlevelindicators,accessible
dustbins,ergonomicseating,improvedaesthetics,vendingmachines,entertainment
screens,LEDlitboardsforadvertising,PAsystem.

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MobileApps:Integrateallfacilitiesintotwomobileappsdealingwithticketingissuesandfor
receiptandredressalofcomplaintsandsuggestions.
Improvingcustomerinterface:Skillingourfrontendstaffandthoseweemploythroughour
serviceproviders,informationboardsintrainsenumeratingtheonboardservicesandalso
GPSbaseddigitaldisplaysinsidecoachestoproviderealtimeinformationregarding
upcominghalts.Workunderwayoninstallationofahightechcentralizednetworkof20,000
screensacross2000stationsforenablingrealtimeflowofinformationtopassengersand
alsounlockhugeadvertisingpotential.AllA1classstationswillbemannedwithduly
empoweredStationDirectorssupportedbycrossfunctionalteamstomakeoneperson
accountableforallfacilitiesontrains.

1.Pilgrimagecentres:Totakeuponprioritytheprovisionofpassengeramenitiesand
beautificationonstationsatpilgrimagecentresincludingAjmer,Amritsar,BiharSharif,
Chengannur,Dwarka,Gaya,Haridwar,Mathura,Nagapattinam,Nanded,Nasik,Pali,
Parasnath,Puri,Tirupati,Vailankanni,VaranasiandVascoalsointendtorunAasthacircuit
trainstoconnectimportantpilgrimcentres.
2.Porters:Intendprovidingthemwithnewuniformsandtraintheminsoftskills,
henceforth,tobecalledsahayak.
3.HighSpeedRail:PassengercorridorfromAhmedabadtoMumbaibeingundertaken
withtheassistanceoftheGovernmentofJapan.SPVforimplementinghighspeedprojects
willberegisteredthismonth.PrimebenefitwouldbeprovidingIRwithtechnology
advancementsandnewmanufacturingcapability.
4.Entertainment:ProposetoinviteFMRadiostationsforprovidingtrainborne
entertainmentextend'RailBandhu'toallreservedclassesoftravelersandinallregional
languages.

Passengertraffic:Suburbantraffic:inprincipleapprovalforMUTPIIIreceived.Earlyaward
oftendersforelevatedsuburbancorridorsbetweenChurchgateVirarandbetweenCSTM
PanvelreviveRingRailwaysysteminDelhilaunchinganewinvestmentframeworkfor
developingsuburbansystemsinpartnershipwithStateGovernments,developmentin
Ahmedabad,Bangaluru,HyderabadChennaiandThiruvananthapuramontheanvil.
Rationalisingthetariffstructure:Undertakereviewoftariffpolicytoevolveacompetitive
ratestructurevisavisothermodes,permitmultipointloading/unloadingandapply
differentiatedtariffstoincreaseutilizationofalternateroutes,explorepossibilityofsigning
longtermtariffcontractswithourkeyfreightcustomersusingpredeterminedpriceescalation
principles.
Buildingterminalcapacity:ProposedtodevelopRailsidelogisticsparksandwarehousing

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inPPPmode,10goodsshedswillbedevelopedbyTRANSLOC,theTransportLogistics
CompanyofIndia,in201617.TosooninaugurateIndia'sfirstrailautohubinChennai.
Encouragedevelopmentofcoldstoragefacilitiesonvacantlandnearfreightterminals.Local
farmersandfishermanwouldbegivenpreferentialusageofthefacility.Apolicyinthisregard
wouldbeissuedinthenext3months.
Nurturingcustomers:WillappointKeyCustomerManagerstoliaisonwithourmajorfreight
stakeholderseachZonalRailwaywilldevelopcustomercommitmentcharterindicating
servicelevelcommitmentsofIR,willexplorethefeasibilityofopeningupleasingofgeneral
purposewagons.

ProcessImprovements

1.EPCprojectsstandarddocumentfinalized,willimplementatleast20projectsthroughthis
modein201617by201718,endeavourtoawardallworksvaluingaboveRs.300crore
throughEPCcontracts.
2.Performanceoutputparametersbasedcontractstoreviewservicecontractsto
integratethemandmakethemsimplerandoutcomefocused.
3.LeveragingtechnologyforprojectmanagementintendtousethelatestdroneandGeo
Spatialbasedsatellitetechnologyforremotelyeviewingthephysicalprogressacrossmajor
projectsmonitoringofDFCtobeoperationalisedthroughthismodein201617.
4.SystemwideInformationTechnologyintegrationinitiatedsystemwideintegration,both
horizontalandvertical,akintoanERPthroughinnovativepartnershipmodels.

RailDevelopmentAuthority

Toenablefairpricingofservices,promotecompetition,protectcustomerinterestsand
determineefficiencystandardsdraftbilltobereadyafterholdingextensivestakeholder
consultations.

UndertakingNavarambhAnewbeginning

NavinikaranStructuralInterventions

OrganisationalRestructuringProposedtoreorganizetheRailwayBoardalongbusiness
linesandsuitablyempowerChairman,RailwayBoard.Asafirststep,crossfunctional
directoratestobesetupinRailwayBoardtofocusonareaslikenonfarerevenues,speed
enhancement,motivepowerandinformationtechnologyexplorethepossibilityofunifying

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cadresforfreshrecruitmentofofficersstrengthenPPPcelltoimproveeaseofdoing
businesswithIR.

SashaktikaranImprovingourplanningpractices

TosetupaRailwayPlanning&InvestmentOrganisationfordraftingmedium(5years)and
long(10years)termcorporateplansidentifyprojectswhichfulfillthecorporategoal.Prepare
aNationalRailPlantoharmoniseandintegratetherailnetworkwithothermodesoftransport
andcreatesynergyforachievingseamlessmultimodaltransportationnetworkacrossthe
country.

AekikaranConsolidation:FormingaholdingcompanyofcompaniesownedbyIR.

ShodhaurvikasInvestinginthefuture:tosetupaR&Dorganization,aSpecialRailway
EstablishmentforStrategicTechnology&HolisticAdvancement,SRESTHA.RDSOwillnow
focusonlyondaytodayissueswhileSRESTHAwoulddrivelongtermresearch..

VishleshanAnalyzingdata:adedicated,crossfunctionalteamcalledSpecialUnitfor
TransportationResearchandAnalytics(SUTRA)wouldbesetupforcarryingoutdetailed
analyticsleadingtooptimizedinvestmentdecisionsandoperations.
NavrachnaInnovation:bysettingasideasumofRs50croreforprovidinginnovationgrants
toemployees,startupsandsmallbusinesses.

AvataranSevenMissionsforthetransformationofIR
MissionswillbeheadedbyaMissionDirectorreportingdirectlytotheChairman,Railway
Boardandheadingacrossfunctionalteamempoweredtotakeallrelevantdecisionsfora
timelytargeteddelivery.AnnualoutcomebasedperformancetargetsfortheMissionwould
beannouncedandtheMissionswillfinalisetheimplementationplansforshort,mediumand
longtermsandproceedaccordingly.

Mission25Tonnefor25tonneaxleload,MissionZeroAccidentforsafety,MissionPACE
(ProcurementandConsumptionEfficiency),MissionRaftaarforhigherspeeds,Mission
Hundredforcommissioning100sidings/freightterminals,Missionbeyondbookkeepingfor
accountingreforms,MissionCapacityUtilisationtoprepareablueprintformakinguseofthe
capacitycreatedonceDFCiscommissioned.

SustainabilityandSocialInitiatives:HumanResources/Skilling,Socialinitiatives,

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Environment

1.TotieupwiththeMinistryofHealthforensuringanexchangebetweenRailways
hospitalsandGovernmenthospitalstointroduce'AYUSH'systemsin5Railwayhospitals
providegangmenwithdevicescalled'Rakshak'forintimatingthemaboutapproaching
trains,alsoreducetheweightofthetoolscarriedbythemwhilepatrolling.Toprovidetoilets
andairconditioninginincabsforourlocopilots.
2.Setuptwochairs:OneCTVenugopalchaironStrategicFinance,researchandpolicy
developmentandanotherKalpanaChawlachairongeospatialtechnology.
3.Foryouth:Openourorganisationto100studentsacrossEngineeringandMBAschools
for26months'internshipseachyear.
4.PartneringwithMinistryofSkillDevelopmentskilldevelopmentonIRpremises.
5.Undertakenenergyauditsforreducingenergyconsumptioninnontractionareaby10%
to15%:AllnewlightprovisionswillbeLEDluminaireandallRailwaystationstobecovered
withLEDluminaireinnext2to3years.
6.Actionplandrawnupforenvironmentalaccreditation,watermanagementandwasteto
energyconversion.Morethan2,000locationsprovidedwithRainWaterHarvestingfacility.In
placeofsteelsleepersonsteelbridgesenvironmentallyfriendlycompositesleepersmadeof
recycledplasticwastewillbeusedoverallgirderbridges.
7.32stationsand10coachingdepotshavebeenidentifiedforinstallationofwater
recyclingplantsinthecomingyears.

Tourism

1.PartneringwithStateGovernmentsforoperatingtouristcircuittrainsrecentupgradation
ofNationalRailMuseum,promotionoftourismthroughRailwaymuseumsandUNESCO
worldheritageRailways.
2.TospreadawarenessaboutourNationalAnimal,theTiger,completepackagesincluding
trainjourney,safarisandaccommodationtocoverthewildlifecircuitcomprisingKanha,
PenchandBandhavgarhwillbeoffered.

FinancialPerformance201516:

1.NetreductioninGrossTrafficReceiptsbyRs15,744croreinRE201516comparedto
theBEtargetofRs1,83,578crore.Passengerearningsscaleddownkeepinginviewthe
persistentnegativegrowthtrendsince201314bothinthesuburbanandnonsuburbannon
PRSsegmentoftravel.

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2.Freightearningsimpactedmainlyonaccountoflowdemandfromthecoresector
resultinginresettingthetargetinR.E.201516toRs1,11,853crore.
3.StringenteconomyandausteritymeasuresadoptedtocontaintheOrdinaryWorking
Expenses(O.W.E.)duetowhichbudgetedOrdinaryWorkingExpensesofRs1,19,410crore
decreasedintheRevisedEstimates201516toRs.1,10,690crorei.e.byRs8,720crore.
4.BEprovidedforanappropriationofRs34,900croretothePensionFund.However,
basedontrend,thepensionoutgomoderatelydecreasedtoRs34,500croreinRE.
5.InternalresourcegenerationdiminishedandappropriationtoDRFmoderatedtoRs
5,500croreinREfromtheBE201516provisioningofRs7,900crore.Excessofreceipts
overexpenditureinRE201516standsatRs11,402.40crore.
6.Plansizefor201516iscurrentlyestimatedat1,00,000crorei.e.theBElevel.

BudgetEstimates201617:

1.Theintentiontoimproverevenuesandensureappropriateinvestmentswhichcan
continuetheroadmapofdecongestionandenhancelinecapacityenhancementasdetailed
in201516.ThefocusisonenhancedCAPEXwithamixofvarioussourcesoffundingin
ordertoensurethattheprojectsaregivenassuredfunding.
2.GrossTrafficReceiptskeptatRs1,84,820crore.Passengerearningsgrowthhasbeen
peggedat12.4%andearningstargetbudgetedatRs51,012crore.Thefreighttrafficis
peggedatincrementaltrafficof50milliontonnes,anticipatingahealthiergrowthinthecore
sectorofeconomy.GoodsearningsisaccordinglyproposedatRs.1,17,933crore.Other
coachingandsundriesprojectedatRs6,185croreandRs9,590.3crorerespectively.
3.OWEprovidesfortheimplementationofthe7thCPC.
4.PensionoutgobudgetedatRs45,500crorein201617.
5.Higherstaffcostandpensionliabilityimpactstheinternalresourcepositionofthe
Railways.Accordingly,appropriationtoDRFfromrevenueplacedatRs3,200croreandthat
fromProductionUnitsatRs200crore.AwithdrawalofRs3,160crorefromDRFonnetbasis
proposedthoughthegrossexpendituretobemetfromDRFintheAnnualPlanestimatedat
Rs7,160crore.Rs5,750croreproposedtobeappropriatedtotheCapitalfund.Withadraw
downofRs1,250crorefrompreviousbalancesthefund,planrequirementofRs7,000crore
forrepaymentofprincipalcomponentofleasechargestoIRFCmet.
6.RailwaysarepreparingaPlansizeofRs1,21,000crorein201617

InCurrentAffairs
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