Hyderabad: With rail connectivity being extended by 4,000 km and 4,000 km of Bharatmala (national highways) joining states, transport infrastructure got some attention in this budget with the finance minister seeing it as an engine of growth.
The 92-year-old practice of a separate Railway budget was discontinued last year. This is the second year of merging railway budget with the Union Budget. The investment in railways in this budget of Rs 1,48,528 crore is almost three times that of the 2013-14 budget of Rs 53,989 cr.
“The scheme for development of highways and capital expenditure planned for railways will help improve connectivity, which will in turn provide support and demand for various industries, especially steel, bitumen and will create jobs,” Devendra Kumar Pant, chief economist, Indian Ranking, told Deccan Chronicle.
Mumbai gets a massive injection of funds of Rs 51,000 crore for its rail system. As Mumbai continues to expand, improved suburban services are crucial and for this, Rs 11,000 crore will be spent on creating additional tracks of 150 km and an additional Rs 40,000 has been allocated for further expansion of the rail system.
Some 600 stations across the country will be developed, and escalators will be provided at all stations with passenger footfall of more than 25,000. Stations and trains will be provided with Wi-Fi facility “for information and entertainment” and there will be CCTV cameras at all stations and in trains for security.
“The country needs an investment of over Rs 50 lakh crore in infrastructure to increase the growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services,” the finance minister said.
“The government is trying to increase its transport capacity in roadways, railways and airways.
On the state highway front, the Bharatmala of 9,000 km is a big push. Increased connectivity will improve growth around education, employment, and health and economic centres will be accessible. This will also help increase the demands for labour,” Mr Pant said.
Railways sets target operating ratio of an efficient 92.8%
The Indian Railways has set a target operating ratio of 92.8 per cent for 2018-19, as compared to 96 per cent last year. The operating ratio shows how much of revenue goes into meeting expenses. Lower the ratio better it is for the railways.
The excess of revenue over expenditure in 2018-19 is '12,990 crore. It is estimated that the total revenue receipts in 2018-19 will be increased by 7 per cent to Rs 2,01,090 crore.
Asked about the target of achieving 85 per cent operating ratio by 2022, railway minister Piyush Goyal said that it can be achieved only through efficiency.
“We intend to achieve this target through increased capacity, efficient planning. Once the signalling system is changed, that itself will have a transformational impact both on safety and on capacity,” he said.
The railways’ gross traffic receipts are also expected to increase by 7 per cent to Rs 2,00,840 crore. Sundry other earnings are also likely increase by 49 per cent to Rs 20,790 crore.
The ministry has high hopes on freight earnings with an estimated inc-rease of 51 MT in 2018-19.
The incremental loading is expected to be 45 MT in April-January 2018, over the same period last year.
