Railway Budget:

Railway is a guided means of land transport designed to be used by trains, both

passengers and freight are transported on railways. Rail transport is an extremely
energy efficient means of transport. In all if the conditions are right, a train needs
50-70% less energy to transport a given tonnage of freight or to transport a given
number of passengers than by road. It is also one of the safest modes of transport
and also an efficient means of transport, because a rail line can carry more
passengers or freight than a four laned road.

Indian Railway Budget: A Brief Summary

The Indian railways have one of the largest networks of trains in the world and since
the first rail from Bombay to Thane stated in 1853, Indian railways has come a long
way. Indian railways carry millions of passengers daily from one place to another
place. The ministry of railways controls the Indian railways. Every year the ministry
of railways presents the Indian railway budget in the parliament. The Budget is
presented two days before the general budget. It has to be passed by the Lok
Sabha before it is accepted. The rail budget deals with the improvement in the
existing trains and contains details of the new trains. It also gives details about the
passenger fares and tarries to be levied. The formation of policy and overall control
of the railways is vested in Railway Board, comprising the Chairman, the Financial
Commissioner and other functional members of Traffic, Engineering, Mechanical,
Electrical and Staff departments.

Union Railway Minister Mamata Banerjee presented the Railway Budget for 2009-10 in Parliament
on Friday, 3rd July 2009. Railway minister Mamata Banerjee unveiled a mix of populist measures,
including cheap tickets for the poor and no increase in freight or passenger fares, as well as steps to
boost the sprawling system's efficiency and finances.

Highlights of Railway Budget 2009-10 are as follows:-

Reduced Tariffs
• For ordinary passenger trains there is reduction in passenger fares by Rupee 1 for fares
costing up to Rs 50 per passenger for journey above 10 km.
• For all mail/express and ordinary passenger trains, second class and sleeper class fares
are to be reduced by 2 per cent for tickets costing Rs 50 and more per passenger.
• Also there is to be a fare Reduction of 2 per cent for AC First Class, AC II tier, AC III
tier and AC Chair Car.

New Passenger Services

• 43 new train services to be started in 2009-10.
• Extension of 14 trains envisaged.

• Frequency of 14 trains is to be increased.

Indian Railways' Financial Health During The Year 2008-09

 Ordinary Working Expenses (OWE) increased to Rs 55,000 crore (Rs 550 billion) in the R.E
and the appropriation to Pension Fund to Rs 10,500 crore (Rs 105 billion). This is done keeping
in view the increased financial burden due to implementation of VI Central Pay Commission.
 Revised plan outlay kept at Rs 36,773 crore (Rs 367.73 billion).
 Cash surplus before dividend projected at Rs 19,320 crore (Rs 193.20 billion) and the
Operating Ratio at 88.3% despite implementation of the VI CPC.
 Appropriation to DRF retained at Rs 7,000 crore (Rs 70 billion).
 Dividend payable to General Revenues kept at Rs 4,711 crore (Rs 47.11 billion).

Indian Railway's Performance Review

• Tripura's capital Agartala is now connected by railway line.
• Kashmir Valley's first train service commenced between Anantnag and Rajwansher. This
is to be followed by extension of rail services to Baramulla and Qazigund.
• The number of consequential accidents has come down to 194.

• Work on Eastern Dedicated Freight Corridor commenced near Delhi on 10th February,
2009 while Work on Western DFC to commence this month.
• completion of successful trials for running electric locomotives with OHE at a height of
about 7.5 mts in preparation for running double stack containers on electrified Western
Dedicated Freight Corridor.

Indian Railway Budget Estimates For The Year 2009-10

• Freight loading targeted at 910 mt while number of passengers estimated to grow by
around 7%.
• Budgeted Operating Ratio 89.9%.

• Plan outlay kept at Rs 37,905 crore (Rs 379.05 billion).

• Gross Traffic Receipts estimated at Rs 93,159 crore (Rs 931.59 billion) i.e. Rs 10,766
crore (Rs 107.66 billion) more than RE 2008-09.
• Ordinary Working Expenses (OWE) budgeted at Rs 62,900 crore (Rs 629 billion) to
cover the full year impact of VI CPC and the payment of 60% arrears due in 2009-10.
• Dividend payable to General Revenues kept at Rs 5,304 crore (Rs 53.04 billion) at the
current applicable rates.

Other Announcements Of Railway Budget 2009-10

• New railway divisions at Bhagalpur and Thawe will be set up to facilitate improved train
operations.
• 25 surveys proposed comprising 14 for new lines, 3 for gauge conversion and 28 for
doubling projects.
• For running high speed bullet trains, a pre-feasibility study is being pursued.
Indian Railways: The Future:

Indian Railways is one of the premier organizations of the world. It's wide
and dense network, daily passenger carrying capacity in millions and its reach in
even the remotest part of a big and geographically diverse nation like India, makes
it special.

In addition, one of marked spatiality of this organization is its users or

specifically called as passengers who are of different cast ,creed or religion ; and to
serve a nation like ours with diversity in culture, language and religion, just seems
impossible. Even then, frequently occurring accidents and inconvenience caused by
delays makes people annoyed.

We know that lifeline of a service like Indian Rail is its tracks and
communication system. Thus most important organ of this mammoth organisation
could be its tracks and signals. Govt could create an agency for looking after these
tracks and signals .It could be named as Indian Tracks and Signal Corp. Even the
land owned by railways adjacent to tracks could be made available to it. Installation
of new signals, tracks and communication system would also be under its
responsibility.

Next is Railway Stations or platforms, after all for passengers like us, it is
the most important part of the system. Also first impression about Railways is made
just after reaching the station. All of us is familiar with chaos and mismanagement
of stations .So why not we create a PPP (Public- Private Partnership) in which both
govt. and private sector participate to built world-class railway stations. Also,
platform security would be its one of important business and we hope funds
availability would not be a constrain for it.

There should be more sources of income like cafeteria operating on station,

ATM(s) ,cyber centers and book shops etc .Also it could earn revenue from
advertising on station . With providing other value added services like WiFi network
in neighborhood of platform ,videogame parlors, guest houses ,retail shopping hubs
and efficient utilization of 'real estate' available ,it can further increase it's profits.

The future of Indian railways is very much bright as it is a gaint organization &
lifeline in some of the states. Thus by improving on certain flaws & custumer
services public can enjoy railways & thus INDIAN RAILWAYS will continue to be
gaint & diverse organization in the world.
 Conclusion:-
Many of people compare it with efficient railway system of Japan and Europe
(especially Germany and France), but they neglect the operating conditions in these
nations like their small area, less network length and density; and usually
disciplined citizens. Thus the problems faced by Indian Railways and great variation
in demand of passengers make it a versatile organisation. Some times privatization
is seen as solution to all these problems.

Role of Indian government is very much important in this reformation of

INDIAN RAILWAYS as government has denied to privatise railways, but it can
corporatize it so that passengers are happy travelling in railways. Being a gaint
organization the flaws can be removed not as easily so government to take its
futher measure to make INDIAN RAILWAYS, an example in front of other countries
who complaint about it.

INDIAN RAILWAYS has entered its profit making phase after such a long
duration, so to maintain this railways should take possible measures. Along with
railway ministry public should also maintain best possible condition of railways as
they should always remember that INDIAN RAILWAYS IS THEIR PROPERTY &
MAINTAINENCE OF IT SHOULD BE LIKE THEIR HOUSE.

SO LETS MAKE INDIAN RAILWAYS AN EXAMPLE & GIVE OUR PART TO

COUNTRY & RAILWAYS BY KEEPING IT CLEAN & ENJOY ITS FACILITIES BY RIDING ON
ITS PROSPERITY.