Highlights Of Indian Railway Budget 2013-14

Posted in Finance Articles, Total Reads: 1825 , Published on 26 February 2013

Indian Railway budget for 2013 was presented on 26th Feb 2013 with railway minister Pawan Kumar Bansal at his poetic best.  There was anticipation in the general public & media that passenger fares may be hiked again but the railway minister put the put those fears to rest as the common man was spared this time. There has been no hike in passenger fares, but marginal hike in freight charges, reservation fee, cancellation fee, tatkal charges and supplementary charges.


Following are the highlights of Rail Budget 2013

Financial Performance 2012-13

  • Loading target revised to 1007 MT against 1025 MT in BE.
  • Gross Traffic Receipts fixed at 1,25,680 cr in, short by 6,872 cr over Budget Estimates.
  • Ordinary Working Expenses retained at BE level of 84,400 cr; pension payments increased by 1,500 cr to 20,000 cr.
  • ‘Excess’ of 10,409 cr as against the budget amount of 15,557 cr.
  • Loan of 3,000 cr taken in 2011-12 fully repaid along with interest.
  • Operating Ratio of 88.8% as compared to 94.9% in 2011-12.

Budget Estimates 2013-14

  • Freight loading of 1047 MT, 40 MT more than 2012-13.
  • Passenger growth - 5.2%.
  • Gross Traffic Receipts -1,43,742 cr i.e. an increase of 18,062 cr over RE, 2012-13.
  • Ordinary Working Expenses -96,500 cr.
  • Appropriation to DRF at 7,500 cr and to Pension Fund at 22,000 cr.
  • Dividend payment estimated at 6,249 cr.
  • Operating Ratio to be 87.8%.
  • Fund Balances to exceed 12,000 cr.

Fiscal Discipline

  • No supplementary Demands for Grants introduced in Monsoon Session or Winter Session of Parliament
  • Loan of 3,000 cr repaid fully
  • 347 projects prioritized with assured funding
  • Liberal funding for Operationally important projects and also last mile projects
  • A new fund – Debt Service Fund – set up to meet committed liabilities
  • Stringent targets for efficiencies in maintenance of rolling stock and fuel consumption
  • 30,000 cr target to create fund balance in the terminal year of the 12th Plan

Fares and Freight

  • No hike in passenger fare.
  • Fuel Adjustment Component (FAC) linked revision for freight tariff to be implemented from 1st April 2013
  • Marginal increase in Supplementary charges for super fast trains, reservation fee,  cancellation charge and tatkal charge.
  • Abolishment of Enhanced reservation fee

Green Initiatives

  • Railway Energy Management Company (REMC) to harness potential of solar and wind energy will be set up.
  • 75 MW capacity windmill plants and energizing 1000 level crossings with solar power will be set up.
  • New generation energy efficient electric locomotives and EMUs will be deployed.
  • More usage of agro-based and recycled paper and ban use of plastic in catering.

IT Initiatives

  • Aadhar’ to be used for various passenger and staff related services.
  • Internet ticketing from 0030 hours to 2330 hours.
  • e-ticketing through mobile phones.
  • Project of SMS alerts to passengers will provide the updates on reservation status.
  • Real Time Information System will cover larger number of trains.
  • Rolling out of Next-Gen e-ticketing system capable of handling 7200 tickets per minute against 2000 now & 1.20 lakh users simultaneously against 40,000 now.

New Trains

  • Introduction of 67 new Express trains
  • Introduction of 26 new passenger services, 8 DEMU services and 5 MEMU services
  • Run of 57 trains to be extended
  • Increase in frequency of 24 trains

Sub-urban Services

  • First AC EMU rake to be introduced on Mumbai suburban network in 2013-14
  • 72 additional services to be introduced in Mumbai and 18 in Kolkata
  • Rake length increased from 9 cars to 12 cars for 80 services in Kolkata and 30 services in Chennai

Passenger/Rail Users’ Amenities

  • Progressive extension of bio-toilets on trains.
  • Provision of concrete aprons on platforms with mechanized cleaning facilities
  • Rail Neer bottling plants will be set up, six more at Vijayawada, Nagpur, Lalitpur, Bilaspur, Jaipur and Ahmedabad.
  • Pilot project on select trains to facilitate passengers to contact on board staff through SMS/phone call/e-mail for coach cleanliness and real time feedback.
  • Provision of announcement facility and electronic display boards in trains.
  • Free Wi-Fi facilities will be provided on several trains.
  • 60 stations will be upgraded as Adarsh Stations in addition to 980 already selected.
  • ‘Anubhuti’ coach in select trains will be introduced to provide excellent ambience and latest facilities and services.
  • Installation of 179 escalators and 400 lifts at A-1 and other major stations to facilitate elderly and differently abled.
  • Coached will be made more wheel-chair friendly with affixing Braille stickers with layout of coaches including toilets, provision of wheel chairs and battery operated vehicles at more stations.
  • Third party audit and tie up will be done with food testing laboratories for food quality control;
  • ISO certified state-of-the-art base kitchens to be set up in railway premises.
  • IR will fill 1.52 lakh vacancies this year. 47,000 vacancies for weaker sections and physically challenged will also be filled soon

Measures for improving Safety & Security

  • 10797 level crossings will be eliminated during the 12th Plan and no addition of new LCs to the IR system henceforth.
  • Significant reduction in accidents - .41 per million kms in 2003-04 to .13 in 2011- 12.
  • Train Protecti on Warning System on Automatic Signalling Systems will be introduced.
  • Rigorous trials of the indigenously developed Train Collision Avoidance System
  • Using 60 kg rails, 260 meter long welded rail panels and improved flash butt welding technology.
  • 160/200 kmph Self Propelled Accident Relief Trains will be introduced
  • Crash worthy LHB coaches with anti-climb feature will be introduced
  • Rehabilitation of identified 17 distressed bridges over next one year.
  • Provision of portable fire extinguishers in Guard-cum-Brake Vans, AC Coaches and Pantry Cars in all trains.
  • Fire retardant furnishing materials in coaches will be used
  • Four companies of women RPF personnel set up and another 8 to be set up to strengthen the security of rail passengers, especially women passengers.
  • Recruitment to RPF with 10% vacancies reserved for women.

Some Achievements/Initiative

  • IR enters the one billion tonne Select Club joining Chinese, Russian and US Railways;
  • IR also joins Select Club running freight trains of more than 10000 tonne load;
  • Rs 1000 crore target set each fixed for Rail Land Development Authority and IR Station Development Corporation to be raised through PPP in 2013-14;
  • New fund – Debt Service Fund – to be set up to meet committed liabilities of debt servicing.


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