Thursday, February 25, 2010

>Rail Budget 2010-11: Focus on PPP… (ICICI DIRECT)

Earning guidelines
Freight rates have been increased in January 2010 to the tune of 5-8% while the freight loading target is up 8 MT to 890 MT. This is getting reflected in higher freight earning estimates for FY10E by Rs 191 crore. Freight earning revenue estimates for FY11E were kept in line with volume growth expectations as freight rates were maintained at current levels. Hence, the growth indicated was much below the historic trend

However, passenger earnings and coach earnings have been trimmed down for revised FY10E but kept high for FY11E

Focus on wagon procurement
To set up five wagon manufacturing plants through PPP mode
To set up wagon repair shop at Badnera
Establishments of coach factories at Rae Bareilly, Kanchrapara and Palakkad are in progress
To set up a rail axel factory

For rail infrastructure and rail operating players
A solution in the form of setting up a special task force to clear the pending investments within 100 days is a fine step towards growth
Preliminary engineering cum traffic survey on four other freight corridors to be taken up in FY11E
To construct dedicated passenger corridors
Premium tatkal services for parcel and freight movements is under consideration
To examine the need for special wagons for iron ore, fly ash, automobiles, etc
To set up 10 auto ancillary hubs
To set up six bottling plants for clean drinking water at cheaper rates
To build multi level parking complexes through PPP mode
Modernisation of Chittaranjan Locomotive Works to augment the present capacity of 200 locomotives to 275 locomotives
Work on loco factories at Madhepura and Marhora is also in progress
Private operators investing in rail infrastructure can run special freight trains to carry automobiles, vegetable oil, molasses, chemicals, petrochemicals and bulk traffic like fly ash and cement

For public in general

To construct more under-passes, limited height subways besides road over-bridges (ROB) and road under-bridges (RUBS)
To add 10 more Duronto trains to be introduced
Routes of 21 trains to be extended
To add 101 new suburban trains for Mumbai
To set up 381 diagnostic centres throughout India alongside hospitals
Within the next seven months, 117 trains to be flagged off
Withdrawal of railway examination fees for minorities, women and OBCs
To introduce modern trolleys at railway stations
To launch double-decker trains on a pilot basis
To start five sports academies at Delhi, Chennai, Secunderabad, Kolkata and Mumbai
Service charge on sleeper class cut to Rs 10
Service charge on AC Class cut from Rs 40 to Rs 20
Larger section of the population to get connectivity over the next five years

For employees

Housing for all railway employees in the next 10 years
To set up 50 crèches for children of railways women employees.

To read the full report: RAILWAY BUDGET REVIEW