Volatility follows uncertainty..
From today,consecutive 3 important days for our nation.Hon.Minister of Indian Railways Ms.Mamata Banarjee will announce Railway Budget today. Tomorrow there is a Feb Derivative contracts' expiry and on Friday,26th Feb.Hon.Finance Minister Mr.Pranav Mukherjee will announce Union Budget 2010-2011 which will be very tough for both.
Railway Budget :
As far as rail budget is concerned, the Railway minister Mamata Banerjee is likely to present a populist budget leaving passenger fares untouched, but rationalise the freight rates of certain commodities like iron ore, coal and cement. Banerjee is unlikely to tinker with the freight rates of essential commodities including food grains.
Ms.Banerjee is expected to announce measures that will kickstart the railways journey to accomplish the Vision-2020 targets. Envisaging investments of Rs 14,00,000 crore by year 2020, the document had called for more public private partnership to lay down new rail lines of 25,000 kilo metre in the next 10 years, development of world-class stations and wagon manufacturing.
The Railways may unveil its big focus on private investments. It may seek private investments in all possible sectors like lines and sidings. The move could benefit companies like L&T, Adani, and ACC. Stocks of companies whose fortunes are lined to orders from the Railways viz. Container Corporation of India, Kernex Microsystems, Stone India, Kalindee Rail Nirman, Titagarh Wagons, Texmaco, Gateway Distriparks and Simplex Casting may see action.
The Budget may also see the unveiling of a new public-private policy and focus on cost saving and higher efficiencies. It may boost wagon capacity utilisation. Private companies have made a case for greater wagon purchase. The move is likely to benefit companies like Texmaco and Titagarh Wagons.
It is expected that the passenger fares will have no hike. However, there may be some changes in the freight tariff that has to be undertaken in view of the drying revenues. People of West Bengal can look forward to greater facilities in the upcoming Budget like the introduction of new routes and higher frequency of presently running trains. Mamata Banerjee seems to make the best of her efforts to please the people of her mother state especially when the assembly polls are approaching.
Though this year had been considerably good for the Indian Railways, yet it scored badly in terms of transfer of goods, vis a vis truckers. As per the statistical data, railway earning has gone high up 8.6 percent that contributed to Rs. 70, 561.65 crore which is much higher than the previous fiscal earning that recorded Rs. 64943.32 crore.
Though the earning both in terms of the passenger revenue and the goods revenue went high, India Railways’ contribution in the movement of goods, vis a vis truckers, has gone down to 20.89 percent against 24.07 percent in 2001-02. It is quite obvious that that the freight fares which form the main source of earning for the Indian Railway has to be channelized to get the higher share of freight.
At present Indian Railway moves 14 million passengers with 7,000 trains daily from 6,906 stations leaving cargo trains. So question is that, whether any increase will be marked or will it be steady at present. At present as per ministerial data, the total goods earnings grew 8.47 percent and the total passenger revenue earnings were up 7.40 percent. So definitely from this angle, it seems that freight charges will increase more profit and decrease in passenger fairs will increase people loyalty.
Highlights of Rail Budget 2009 :
* No increase in passenger fare and freight tariff.
* Budget to have inclusive growth and expansion of railway network to every corner of the country.
* Plan outlay of rs.40,745 cr. proposed for 2009-2010, passenger amenities get high priority, to get 119% increase .
* Traffic receipts during 2008-09 increase by 11.4 % while freight loading grew @ 5% Special trains for perishable farm produce, facilities for transportation of rural craft.
* Works for 7 new lines, gauge conversion of 17 lines and doubling of 13 lines to be taken up.
* Faster parcel services proposed on three routs.
* Tatkal scheme to be made passenger friendly.
* Railway tickets to be made available through post offices and ‘mushkil aasaan’ mobile vans.
* Concession for press persons increased to 50%.
* Monthly ticket of rs. 25/- for unorganized sector/poor under ‘izzat’ scheme .
* “only ladies’ emu trains at Delhi, Kolkata and Chennai.
* ‘Yuva trains’ from rural hinterland to metros at concessional fare.
* 12 new point-to-point ‘duranto’ trains.
* 57 new trains, extension of 27 trains and increase in frequency of 13 trains and air-conditioned double-decker trains proposed.
* 50 stations to be upgraded to world class stations.
* Long distance trains to have on-board doctors and infotainment services.
* Handicapped and aged persons to have more amenities.
* Special trains to ferry perishable agro products and rural handicrafts.
* Special fund for the development of north east railway.
* Quazigund-Anantnag line to be completed by August 2009.
* 6560 railway staff quarters to be constructed and group‘d’ employees to get scholarships for their girl child.
* Railways to come out with while paper on financial status and vision-2020 document.
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