Wednesday, July 9, 2014

The Rail Budget




The rail budget introduced slew of measures for capacity expansion, infrastructure development, improving passenger service and safety of commuters.

Capacity expansion

While introducing around 58 new trains, it also proposes for special tanker train for transportation of milks and temperature controlled storage for transportation of agri products. While new trains will serve the populist motives, milk and agri transportation can help controlling inflation.

Infrastructure development

Introduction of bullet trains and diamond quadrilateral have long gestation period with huge investment. While diamond quadrilateral will cost 9 lakh crore, each bullet train will cost around 60,000 crore. While these plans require new infrastructure, high speed trains running at 150-200 kmph can operate at existing network with slight modification.  Connecting ports to main railway line can be achieved in short term if private players can be roped in successfully. PPP with domestic and international players is being envisaged. The investment through PPP model has been very low after it was started by UPA. In the absence of any concrete plan for bringing PPP, its success is still doubted by many and the same was reflected by market resulting in crashing of Sensex.
Expediting work on three DFCs (Dedicated Freight Corridor) ( Tori-Shivpur-Kathautia, Jharsuguda-Barpalli-Sardega, Bhupeopur-Raigadh-Mand ) will improve coal availability to coal based power plants. The fact that 47 out of 90 coal based power plants have critical level of fuel stock emphasizes the importance of this project. Besides, it can also help reduce import of coal.

Passenger service

After effecting increased passenger fare before the budget, the rail minister outlined services ranging from cleanliness in trains and station to providing wi-fi and workstation in major trains and stations. The outsourcing of cleanliness activity can help but people have to co-operate by not littering train floors and station platforms. Workstation and wi-fi on trains may be welcomed by business class especially by frequent travellers.  The next generation e-ticketing enhanced the capacity of e-booking to 7200 tickets/minutes from 2000 tickets/minutes and has the ability to keep 1.2 lakh used logged in at any point of time. Also, computerization of general tickets and platform tickets will help increase revenue as people won’t have to stand in a queue to get tickets.

Safety

Initiating a security helpline, employing 4000 women RPF and using ultrasonic flaw detecting system to detect rail and weld fracture are some of the safety related proposals. Replacing unmanned crossings with over-bridges or under bridges can definitely help railway reduce accidents as these are the sites for frequent accidents.

 In sum, this budget promises better and modern passenger services and safety and it will be remembered for introducing the idea of bullet train in India.  

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