The Railways is cash strapped at the moment. The country’s largest employer’s expenses are up by Rs. 1,300 crore and earnings have gone down by Rs. 1,100 crore. The Railways has a net deficit of Rs. 2,500 crore and reserves are at the lowest in recent years at Rs. 5000 crore.
The poor finances have now started hurting projects that Banerjee banked on to create jobs and political support. So far Banerjee has been able to lay only the foundation stones for the 16 factories announced in the last budget.
The only way out is to increase passenger fares but that is unlikely to happen with Mamata determined to use the Railways as an instrument to win votes in Bengal. No significant increase is expected in freight rates as well because Railways is losing freight traffic.
Banerjee had pinned her hopes on the finance ministry but sources say Railways is likely to get a grant of Rs. 20,000 crore as gross budgetary support against Mamata's demand of Rs. 39,600 crore.
So, Mamata Banerjee will have to walk a tightrope and this budget is likely to be the most challenging of her career so far. Here's what more is expected out of this Railway Budget.
Passenger fares: Tatkal rates may increase marginally.
Investments: Railways likely to announce new incentives to boost private participation. Also new measures expected to improve interest in logistic parks in the area around Railway stations.
Freight: Update on opening of tender for dedicated freight corridor expected.
Infrastructure: 18,000 new wagons, 2,500 new coaches and 200-300 new locomotive engines expected to be added.
Safety: Focus on installation of safety-related equipments like train protection warning system (TPWS) and anti-collision device (ACD) on busy routes.
Eateries: More Jana Aahar outlets at stations likely.
Services: SMS-based service for passengers to lodge complaints against rail services likely.
New Trains and routes:
> Student special trains, keeping in mind the travel requirement during examinations, and trains with only bookings under Tatkal scheme.
> Multi-mode transport system between Hyderabad and Secunderabad likely; capacity enhancement of the Mumbai suburban rail system.
> Work on the dedicated Rail Freight Corridors project which is lagging behind schedule; to continue to maintain the dynamic pricing policy in freight.
> New coaching complexes at places like Haldia and Majerhat could figure; for the north-east, a new diesel loco shed is expected to come up in Assam.
> More DMU trains likely for the north-east; New Duronto services from Guwahati to New Delhi and Howrah
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