Rail Budget 2016: What to expect from Suresh Prabhu

Being known as one of the best performing ministers in Prime Minister Narendra Modi’s cabinet, Suresh Prabhu will have a tough task in hand today. His second showdown this year in the Lok Sabha at noon today will announce the fate for its commuters and the small/large business sectors using the freight route.

Prabhu has a lot of challenges in his route. Last year’s budget announced a zero hike in passenger fares, but this time there could be a turnaround. With a proposed hike of around 24 per cent in salaries for almost 2.6 million employees and pensioners, the railways will have to make up for a whopping $4.7 billion in the wages bill. However, two senior government officers told the media that freight tariffs and passenger fare hikes were not on Prabhu’s cards this time.

With slower and costly economic activity by road, businesses will shift from road to rail, further hitting the railway volumes. This would prompt the railway minister to focus on the capacity creation in the rail sector.

Additionally, a huge move towards safety, upgradation and modernization of the existing rails, engines and yards are also on the cards. New trains, premium high-speed parcel trains and few others are expected to be announced today.  In order to rationalize the freight tariff, Prabhu may also announce long-term contracts and container services in addition to the high-speed parcel trains to boost earnings.

Suresh Prabhu is also expected to announce his 'green initiative' at noon. All of the 400 stations would be planned to be developed by private sector participation. These would include eco-friendly measures such as solar energy, water and waste recycling, bio-toilets, LED lights and a few others to form ‘Green Stations’.  

Taking the green initiative further, the railways will now use less paper (around 12 lakh A4 sheets less) for official purposes. The move towards using IT tools such as the internet and intranet along with email and others will help in saving almost 12 lakh sheets of A4 paper that the railways presently uses each year.  

The railway minister is also under stress in having to decide whether safety cess is to be imposed to strengthen safety measures to prevent accidents.

Addition of an extra compartment on every train to increase passenger accommodation is also likely to be proposed. Adding an extra compartment will allow passengers to travel on a general ticket without the need for reservations. However, this plan could hit a roadblock since the existing railway rules bars trains from having more than 24 coaches.

Suresh Prabhu also seems to be looking at upscaling the present railway services in the country. A proposed measure for ensuring quality travel for the commuter is also on the plate. Expansion of e-catering to all stations, bar-coded ticketing and travel insurance for passengers are expected.

Lastly, also expected is an announcement of the much talked about NHSRC (National High Speed Rail Corporation) bullet trains and also a new train for low income passengers.

Will Prabhu be able to please both sides? Stay tuned for updates post the Railway Budget 2016 announcement at 12pm today.