Indian Railway plans Rs. 850,000 crore investment in 5 years

Discussion in 'Economy & Infrastructure' started by Srinivas_K, Feb 26, 2015.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Indian Railway plans Rs.850,000 crore investment in 5 years

    The Railway Budget 2015-16, that left passenger and freight fares untouched, envisages an investment of Rs.850,000 crore over the next five years -- mostly directed towards modernizing existing tracks and introducing faster trains.

    Railway Minister Suresh Prabhu on Thursday told the Lok Sabha that the proportion of rail revenue available for investments would rise to 11.5 percent in the next fiscal -- up from 8.2 percent in the current fiscal.

    The latest rail budget comes at a time when its finances and efficiency are, perhaps, at their worst - as measured by a common parameter, the operating ratio. It suggests how much money is spent on day-to-day operations to earn the revenues, giving an indication of the funds left for safety and expansion.

    This ratio for Indian Railways declined to an unsustainable level of over 90 percent in 2010-11 from around 80 percent in the 1950s. Globally, a figure of 75-80 percent or lower is what is seen as a healthy benchmark, but India ranks among the worst networks on this count.

    Prabhu Thursday proposed an operating ratio at 88.5 percent as against the targeted ratio of 92.5 percent for 2014-15, which has actually improved to 91.8 percent.

    "This (proposed) operating ratio will be the best in nine years," Prabhu told parliament.

    He has said the railways need $100 billion or Rs.600,000 crore in funding over the next three to four years.

    "Budgetary support is the easiest way," Prabhu said adding, however, that the finance minister due to present the government's first full budget on Saturday has his own constraints in the matter.

    The railways expect to get around Rs.50,000 as budgetary support from the government, while the rest has to come from external sources of funding and public-private participation.

    "We'll tap other sources. Multilateral development banks and pension funds have shown keen interest in investing in the Indian Railways," Prabhu said on organisational plans to leverage finance.

    Read more at: Indian Railway plans Rs.850,000 crore investment in 5 years : Budget 2015, News - India Today
     
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  3. no smoking

    no smoking Senior Member Senior Member

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    How much is that in US dollars?
     
  4. tarunraju

    tarunraju Moderator Moderator

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    US $135 Billion. For a low-cost organization which sources locally and runs on cheap labour, that's a lot of investment.
     
    Last edited: Feb 27, 2015
  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    It is a relief that the silly populism of trains for States and so on has been totally made redundant.

    Target driven.

    Enjoyed the cribbing of all ex Railway Ministers who have been proved to be wet blankets and imagination deficient.

    I found it very perplexing that some women felt that installing CCTVs in ladies compartments, as 'creepy'. They said it would make it uncomfortable for them that they are being 'watched' and that, in no way, is safety.

    What exactly the what in the form of safety? Beefy, crude Railway Protection Police standing as 'guard' with them? I find it most irritating when these chaps strut around aimlessly in the corridors of trains up and down, as if they are being useful.
    @pmaitra, what is this 'disposal bedding' that is being given on payment? As it is we get bedding as a part of the fare which they take back on termination of the hourney.
     
    Last edited by a moderator: May 10, 2015
  6. pmaitra

    pmaitra Moderator Moderator

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    Sir, it is bedding that is "use and throw." You use it once, and it is disposed off. Sometimes, in flights the provide small pillows that are meant to be discarded. Passengers either take them with them, or just leave them at the seat. I suppose they will save on the costs of cleaning the beddings. Disposable sheets, I understand, but what about blankets? Are they going to toss them away as well?
     
    Last edited by a moderator: May 10, 2015
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  7. mayfair

    mayfair Elite Member Elite Member

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    As per Bibek Debroy, these disposable packs will consist of bedding and linen and will cost approx. Rs 65 per pack.

    Railways: Choice and Competition – IX | Swarajya

    Not sure if blankets are included.
     
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  8. salute

    salute Senior Member Senior Member

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    you thought its gonna be nothing in US dollars.:lol:
     

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