a cash surplus before Dividend of Rs. 20,000 crore in fiscal* 2006-07
signifying an impressive Rs. 5300 crore in a year from Rs. 14,700
cr. in the previous fiscal.
Budget proposal would give enough encouragement for huge capacity
building of steel, cement and coal sectors." - Venugopal
N Dhoot, President, ASSOCHAM
budget truly heralds a modern approach to managing the largest public
service through use of technology and innovation.” - R.Seshasayee,
fiscal year begins on April 1
dynamic pricing policy for freight traffic introduced in the year
2006-07, has paid rich dividend. This has prompted the Railways
to make a policy for reducing fares at varying rates, for all services
of AC Ist class and AC II tier class and new design coaches for
AC III tier and AC Chair Car, during peak and non-peak seasons,
in popular and unpopular trains. Similarly commercial policy for
freight transportation has also been made dynamic and different
wharfage rates have been prescribed for busy and non-busy goods
far as passenger service is concerned, railways had introduced a
reduction of Re 1 per passenger in the fares of second class in
August 2005 and this reduction notwithstanding, passenger earnings
grew by 14 percent. Being enthused by such encouraging response
the daily ticket fares of non suburban ordinary passenger and non
super fast mail-express trains has been reduced further by Re 1
per passenger. This apart, the super fast surcharge levied on second-class
tickets for super fast trains are being reduced by 20 percent during
Railways have designed new Sleeper class, AC Chair Car and AC 3
tier Coaches. Only these high capacity coaches will be manufactured
from 2007-08.A portion of the benefits of this enhanced capacity
with our customers. In the newly designed sleeper class coach there
will be a general reduction in fare by 4 percent. This reduction
will be applicable during both lean and peak seasons. The fares
for the newly designed AC-3 tier and AC chair car coaches would
be reduced by 8 percent in lean season and 4 percent in peak season.
In popular trains, this reduction will be uniformly 4 percent throughout
the year. Fares for AC I class will be reduced by 6 percent in the
lean season and 3 percent in the peak season. The fare will be reduced
uniformly throughout the year by 3 percent in popular trains.
for AC-2 tier class will be reduced by 2 percent during the peak
season and 4 percent during the lean season. The fares will be reduced
uniformly throughout the year by 2 percent in popular trains.
Railways plans conduct pre-feasibility studies for construction
of high speed passenger corridors with state of art signaling
and train control systems for running high speed trains at
a speed of 300 to 350 kms per hour. All the four regions will
have one each of these corridors, where trains will cover
distances of up to 600 kms in two to three hours. Among other
public private partnership would also be considered to implement
An highly important task the railways minister is stressing
on is gauge conversion. Indian railways has been losing thousands
of crores of rupees annually as these narrow gauges are cut
off from the main network and give less than 1 percent of
freight traffic whereas they constitute 20 percent of the
total network. To offset this huge financial loss, majority
of metre gauge lines are planned to be converted into broad
gauge lines during the 11th Plan Period begining with the
next fiscal year (2007-08). Gauge conversion will facilitate
integrating the remote and far-flung areas of the country
with the national mainstream. Projects where State governments
contribute 50 percent of the total cost would be given priority
in sanction and implementation.
enhancement in the suburban services of Mumbai would be undertaken
during the 11th Plan period. Alongwith completion of MUTP-Phase
I work on Rs. 5000-crore MUTP-Phase II project would start
during this Plan period. Expected to enhance capacity by 56
percent the project would be taken up through joint participation
of Railways, state governments and multilateral funding institutions.
Ongoing works on suburban services in Kolkata and Chennai
will also be completed on priority basis. Air conditioned
class services in suburban trains in Mumbai, Chennai and Kolkata
and escalators at major stations would also be set up during
this Plan Period.
railways has been witnessing unprecedented growth in freight transportation,
to maintain this tempo, Railways have initiated number of measures
with effect from April 1, 2007. The tariff was reduced by 9 percent
to reduce the classification for diesel and petrol from class 240
to 220. Taking the rationalization process further, the highest
class is being reduced from 220 to 210. This will bring down the
freight for diesel, petrol and ammonia etc, by about 5 percent.
the demand of mineral based industries like steel, cement etc.,
freight rates for transportation of all minerals including iron
ore and limestone will be charged at Class 160 in place of 170.
This will reduce the freight rates for these commodities by about
Flow Direction Freight Discount Scheme
ensure better utilization of empty wagons in the return direction,
last year Railways introduced a freight discount of 30 percent during
lean season and 20 percent during peak season on incremental loading
in the empty flow direction. To make this policy more effective,
the empty flow discount is raised to 30 percent during the peak
season also. This discount will apply to both open and covered wagons
in both peak and lean season for traffic with a lead of more than
empty flow direction, in addition to block rake loading, facility
will be given for loading of less than trainload traffic. In open
wagon rakes 20 percent discount will be given for loading 31 to
57 wagons and 10 percent discount will be given for loading 20 to
30 wagons. In covered wagon rakes 20 percent discount will be given
for loading of 31 to 39 wagons and 10 percent discount will be given
for loading 20 to 30 wagons. Permission to load less than 20 wagons
will not be given during the peak season. However in the non-peak
season from July to September, facility to load 15 to 19 wagons
would be available but no discount would be given.
this discount is not available on transportation of coal, coke and
all types of raw material meant for steel plants. With a view point
of making this discount more brad based it is proposed to extend
this discount to all commodities except coal, coke and iron ore.
Leg Freight Discount Scheme
trainload traffic is offered in covered wagons for both up and down
directions, then, a discount of 20 percent in lean season and 15
percent in peak season would be given for traffic in both directions.
This discount will not be available for commodities placed in LR-1
or lower classes.
Freight Discount Scheme for Non-peak Season
15 percent incremental freight discount will be available on all
commodities except for all types of coal, coke, iron ore and commodities
placed in class 120 or below during the lean season. The maximum
distance between two unloading points will be increased from 200
to 400 kms for the immensely popular two point rake scheme during
Based Freight Policy
and expectations of customers for specific commodities are different.
A commodity based tariff policy is being developed to better address
the needs of our customers for major commodities transported by
rail and to provide a stronger base to railway’s competitive capabilities.
This new policy will be introduced on an experimental basis from
1st April through an exclusive package for cement.
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