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Speech of the Minister for Railways Budget 2014-15
July, 08th 2014
                              Budget 2014-2015
                                 Speech of
                        Shri D.V. Sadananda Gowda
                            Minister of Railways
                                July 8, 2014

     Madam Speaker,

1.   I rise to present before this august House the Statement of Estimated
     Receipts and Expenditure for 2014-15 for Railways. As I stand in this
     Temple of Democracy, I owe this opportunity to the people of this
     country who have elected us to represent them and to shape their

2.   I am grateful to the Hon'ble Prime Minister Shri Narendra Modi ji
     for having reposed his faith in me and entrusting this huge
     responsibility of leading Indian Railways. I promise to fulfill this
     responsibility and make every endeavour not only to lead Indian
     Railways, but also aid in building a vibrant India under the dynamic
     leadership of Shri Narendra Modi ji.

3.   It gives me immense pleasure to present my maiden Railway
     Budget. Indian Railways, being the nation's prime mover, is the
     structure and soul of Indian economy. It echoes rhyme and rhythm
     in the hearts of every citizen of this country ­ from Baramulla in the
     North to Kanyakumari in the South and from Okha in the West to
     Lekhapani in the East. Madam Speaker, we all know that Indian
     Railways cut across all barriers of regions, classes and creed and is
     a microcosm of India on the move.

4.   From a man on the streets of Bengaluru to fish vendors in Kolkata to
     the hustle bustle at Nizamuddin Station, everywhere you find
     a citizen of this country rushing to connect with Indian Railways.

5.   Madam Speaker, though I am hardly a month old in the office, I am
     flooded with requests and suggestions for new trains, new railway
     lines and better services from the Hon'ble Members of the
     Parliament, from my colleagues in the Government, from States,
     from stake holders, from organizations and from people of all walks
     of life. I know that everybody feels that they have a solution for the

     challenges which Indian Railways face. I too thought so when I was
     an outsider to this system before I was exposed to the intricacies and
     complexities of this vast organization. Now, I am overwhelmed with
     the enormity of my responsibility in fulfilling these expectations as
     Minister of Railways.

     This, Madam Speaker, reminds me of Kautilya's words -

                  ×  £      

           In the happiness of the people lies the Ruler's happiness
                         Their welfare is his welfare
             What pleases him, the Ruler shall not consider good
                       but whatever pleases his people
                        the Ruler shall consider good

                                        - Kautilya's Arthashastra

6.   Indian Railways run 12617 trains to carry over 23 million passengers
     per day connecting more than 7172 stations spread across the sub
     continent. It is equivalent to moving the entire population of the
     Australia. We run more than 7421 freight trains carrying about
     3 Million Tonnes of freight every day. Madam Speaker, having
     achieved the distinction of entering the select club of railways of
     China, Russia and USA in carrying more than one billion tons of
     freight, I now target to become the largest freight carrier in the

7.   Madam Speaker, as you know, apart from serving the passengers,
     Indian Railways carries coal

           It carries steel
           It carries cement
           It carries salt
           It carries food grains and fodder
           and it also carries milk.

      Thus, Indian Railways practically carries anything and everything
      and it never says no to `a thing' if it fits in the wagons. Most
      importantly, we are the backbone of supply chain of the defence
      establishment and play a very crucial role in security of the nation.

8.    Madam Speaker, while we carry 23 million passengers a day, there
      are still large number of people who have not set a foot on a train
      yet. We carry over one-billion tonnes of freight a year, connecting
      ports and mines to industrial clusters, but still there are vast tracts of
      hinterland waiting for rail connectivity. Though freight business has
      grown steadily over the years, Indian Railways carry only 31% of the
      total freight carried in the country by all modes. These are the
      challenges we have to face.

9.    Madam Speaker, an organization of this magnitude vested with
      varied responsibilities, is expected to earn like a commercial
      enterprise but serve like a welfare organization. These two objectives
      are like two rails of the railway track, which though travel together
      but never meet. So far, Indian Railways have managed to do
      tight-rope walking by balancing these twin conflicting objectives.

10.   Social service obligation rose from 9.4% of Gross Traffic Receipts in
      2000-01 to 16.6% in 2010-11. In 2012-13, such obligations stood over
      ` 20,000 crore. The total investment, which is the Plan Outlay under
      budgetary sources, in the same year, was ` 35,241 crore. As an
      amount, the burden of social service obligation is more than half of
      the size of our Plan Outlay under budgetary sources.

11.   Madam Speaker, an organization spending an amount equivalent to
      more than half of its Plan Outlay under budgetary sources on social
      obligations, can hardly have adequate resources for its development

      However, Madam Speaker, Indian Railways would continue to
      fulfill its social obligations, but sustaining these objectives beyond
      a point is not possible without compromising on efficiency and
      safety of train operations.

12.   We have a total track length of 1.16 lakh kilometers; 63,870 coaches;
      more than 2.4 lakh wagons and 13.1 lakh employees. This calls for
      expenditure on fuel, salary and pension, track & coach maintenance
      and more importantly on safety works. This takes up most of our
      earning from the Gross Traffic Receipts. In the year 2013-14, Gross
      Traffic Receipts were ` 1,39,558 crore and total Working Expenses
      were ` 1,30,321 crore, which works out to an Operating Ratio of
      almost 94%.

13.   This, Madam Speaker, implies that we spend 94 paise out of every
      rupee earned, leaving 6 paise only as surplus. This surplus, apart
      from being meager, is continuously on decline due to non-revision
      of fare. The surplus, after paying obligatory dividend and lease
      charges, was ` 11,754 crore in 2007-08 and is estimated to be
      ` 602 crore in the current financial year.

      Madam Speaker, this meager surplus so generated is required to
      finance the Plan Outlay for safety, capacity expansion,
      infrastructure, improving passenger services and amenities.

14.   Funds to the tune of about ` 5 lakh crore i.e. around ` 50,000 crore
      per year for next 10 years, are required for ongoing projects alone.
      This leaves a huge gap between what is available as surplus and
      what is needed.

15.   While prudent efforts should have been made to address this gap,
      the tariff policy adopted lacked rational approach. Passenger fares
      were kept lower than costs, thus causing loss in the passenger train
      operations. This loss kept on increasing from 10 paise per passenger
      kilometer in 2000-01 to 23 paise in 2012-13, as the passenger fares
      were kept low always.

16.   On the other hand, freight rates were revised periodically and kept
      high in order to compensate the losses sustained in passenger sector
      resulting in freight traffic getting diverted consistently. Also the
      share of railways in freight traffic came down consistently in the last
      30 years. Madam Speaker, it is important to note that decline in the
      share of total freight traffic is potential revenue loss.

17.   Madam Speaker, having spoken about how revenue was frittered
      away, now, let me touch upon how the investments were
18.   There has been focus on sanctioning projects rather than completing
      them. In the last 30 years, as many as 676 projects were sanctioned
      worth ` 1,57,883 crore. Of these, only 317 projects could be
      completed and 359 projects remain to be completed which will now
      require as much as ` 1,82,000 crore.

19.   In the last 10 years, 99 New Line projects worth ` 60,000 crore were
      sanctioned out of which only one project is complete till date. In fact,
      there are 4 projects that are as old as 30 years, but are still not
      complete for one reason or another. The more projects we add, the
      thinner we spread our resources and longer it takes to complete

      I am sure, if this trend is allowed to continue, many more thousands
      of crore will get spent yielding hardly any returns.

20.   Madam Speaker, having spoken about never-ending projects of
      Indian Railways, let me throw some light on the kind of priority
      accorded in choosing projects. It is investment in doubling and
      tripling to decongest the over-utilized network, which brings money
      to Railways. On the other hand, construction of new lines, most of
      the times do not even meet operational cost as there is no
      commensurate demand.

21.   In the last 10 years, Indian Railways made an investment of over
      ` 41,000 crore in laying 3738 kilometers of New lines. On the other
      hand, it spent only about ` 18,400 crore for doubling of
      5050 kilometers though it was a priority for the health of the system.

22.   I would like to read a comment on Indian Railways by someone,
      which I chanced upon. I did not understand it till I learnt about
      the facts I talked about so far:

            "It is unheard of a business that has a monopoly,
            that has nearly 125 crore customer base,
            that has 100% sale on advance payment;
            but still starved of funds."

      This, Madam Speaker, is the story of Indian Railways so far.
23.   Railways serving the social obligation would not have been an issue.
      However, in the name of social viability, the chosen projects were
      populist in nature, bringing hardly any revenue to the Railways.
      Investments continued in non-remunerative projects in the name of
      social responsibility. On the whole, neither the projects brought
      returns to Railways nor the social responsibility was met in full for
      many years.

24.   This mismanagement and apathy brought Railways into the
      situation of severe funds crunch for many years, which is a result of
      the `decade of golden dilemma' ­ the dilemma of choosing between
      commercial viability and social viability.

      Madam Speaker, I am sure, my esteemed predecessors were aware
      of this precarious situation, but they, however, fell prey to the
      `nasha' of claps in the House when they announced these projects.

25.   Madam Speaker, I also can get claps from this august House by
      announcing many new projects, but that would be rendering
      injustice to the struggling organization. I would like to take claps
      throughout the year by setting things in order.

26.   This state of affairs of Indian Railways needs immediate course
      correction. Among the many corrective steps that I have planned
      out, fare revision was one, which was a tough but a necessary
      decision. Madam Speaker, as they say ­


               "The medicine appears as bitter in the beginning,
                       but is like nectar in the end."

      This fare revision will bring Indian Railways an additional revenue
      of about ` 8,000 crore. However, we need more than ` 9 Lakh crore
      to complete the Golden Quadrilateral Network and about
      ` 60,000 crore for introducing one bullet train alone.

          But Madam Speaker, can I depend only on hiking fare and freight
          rates and burden the public to realize these funds?

          This is unrealistic. Thus, I need to explore the alternate means of
          resource mobilisation.


     1.   Leveraging Railway PSU Resources
          Madam Speaker, Railway PSUs have done very well and are
          financially sound. I propose to launch a scheme to bring in investible
          surplus funds of Railway PSUs in infrastructure projects of
          Railways, which can generate attractive returns for PSUs.

     2.   Private investment in Rail Infrastructure through Domestic and
          Foreign Direct Investment (FDI);
          Growth of Railway Sector depends heavily on availability of funds
          for investment in rail infrastructure. Internal revenue sources and
          government funding are insufficient to meet the requirement.
          Hence, Ministry of Railways is seeking Cabinet approval to allow
          FDI in Rail Sector.

     3.   Public Private Partnership:
          There has been a lot of talk about public private partnership for
          raising resources. Railways being a capital intensive sector have not
          been successful so far in raising substantial resource through PPP
          route. Madam Speaker, it is my endeavor to pursue this in right
          earnestness. It is our target that bulk of our future projects will be
          financed through PPP mode, including the high-speed rail which
          requires huge investments.

          Madam Speaker, apart from mobilizing resources, I also need to
          strategically manage other aspects of railway planning and

     4.   To meet this end, I propose the following initiatives:

          a)    Near Plan Holiday approach;
          b)    Prioritizing and setting timelines for completion of the
                ongoing projects;
           c)    Devising a mechanism for raising funds for Rail
           d)    Decision Support System for project implementation;
           e)    Strategic partnerships and transparency in procurements;
           f)    Aggressive indigenization of imported products;
           g)    Adopting safety standards matching international practices
                 and setting up of Simulation Center to study causes of
           h)    Encouraging development of Locomotives, Coaches and
                 Wagon Leasing Market.

           Now, Madam Speaker, let me place before this august House the
           Financial Performance of 2013-14:


      1.   Since presentation of Interim Budget and passing of the 'Vote on
           Account` in February last, financial position has undergone
           a change. Madam Speaker, Railways carried 1050.18 million tonnes.
           Goods Earnings were short only by ` 94 crore. Originating
           passengers, also, were less by 46 million over Revised target and
           Passenger earnings were short by ` 968 crore over Revised target.

      2.   Over all, though the Gross Traffic Receipts grew by 12.8% to reach
           ` 1,39,558 crore, it was short of Revised target by ` 942 crore. On the
           other hand, Ordinary Working Expenses stood at ` 97,571 crore,
           which was in excess by ` 511 crore.

      3.   Appropriation to Pension Fund had to be stepped up to match the
           actual outgo.

      4.   As a result, instead of ending the year with a surplus
           of ` 7,943 crore, the surplus was actually ` 3,783 crore i.e., a shortfall
           of ` 4,160 crore. This is after fulfilling the dividend commitment
           of ` 8,010 crore.

      5.   The internal resource generation for Plan, in 2013-14, was
           ` 11,710 crore, as against Revised target of ` 14,496 crore. This is
           short by ` 2,786 crore.

       6.   In simple language, in 2013-14, there was a decline in traffic growth
            as compared to Revised projections. Expenditure however, shot up
            and was more than what was estimated. The Operating Ratio
            deteriorated by 2.7% over Revised target to touch 93.5% by end of
            2013-14 fiscal.

       7.   So far as our Plan Expenditure for 2013-14 is concerned, it fell short
            of Revised target of ` 59,359 crore mainly due to non-materialization
            of PPP targets.

            Madam Speaker, now I proceed to present before this House the
            Budget Estimates for the year 2014-15.


       1.   Anticipating a healthier growth of economy, I hope to achieve total
            receipts of ` 1,64,374 crore and would peg total expenditure at
            ` 1,49,176 crore.

       2.   I anticipate freight traffic growth of 4.9% amounting to
            1,101.25 million tonne, an increment of 51.07 million tonne over
            2013-14, based on trends in the first two months. I also anticipate
            a small growth in Passenger Traffic over 2013-14. Earnings from
            Freight Traffic are estimated at ` 1,05,770 crore and from Passenger
            Traffic ` 44,645 crore.

       3.   The fare revision which came into effect from 25.06.2014 has
            provided Railways a much needed respite however little it may be.
            As I have considered the requests of the suburban passengers for
            revision in monthly season ticket fares, the Revenue foregone on this
            account would be around ` 610 crore.

       4.   Here I may point out that periodic revision in passenger fare and
            freight rates, as approved by this august House, will be linked to
            revisions in fuel prices in order to insulate the Railway revenues
            from fuel cost escalation.

       5.   Madam Speaker, out of total expenditure, the ordinary
            working expenses have been proposed at ` 1,12,649 crore, which is

           ` 15,078 crore higher than 2013-14. This has been necessitated by fuel
           price hike and increase in staff costs. Pension outgo in 2013-14 had
           grown by about 16%. Keeping the same trend, provision for pension
           is kept at ` 28,850 crore.

IV.   ANNUAL PLAN 2014-15:

      1.   Madam Speaker, I thank the Finance Minister for extending
           Additional Budgetary Support of ` 1,100 crore as Capital and
           ` 273 crore as Railway share from diesel cess for important Road
           Safety works. Largely owing to this measure and to the additional
           resource mobilization efforts, I propose to increase the plan outlay
           under budgetary sources to ` 47,650 crore which is higher by
           ` 9,383 crore over 2013-14. A large part of this higher plan outlay
           goes to safety related works which is also a high priority of our

      2.   As I have increased internal resource component of Plan, I propose
           to scale down market borrowings through Indian Railway Finance
           Corporation to ` 11,790 crore. Resources from PPP are kept at the
           interim level.

      3.   Madam Speaker, time overruns and consequential cost escalations in
           completion of most of the railway projects have been a chronic
           worry of Railways for years. I propose to provide full financial
           outlays to projects targeted for completion in the current year itself,
           keeping in mind the priorities and safety. I have ensured adequate
           allocations for 30 priority works for their timely progress.

      4.   It is my concern to allocate the available resources to high priority
           areas like safety and capacity augmentation in train operations and
           in improving amenities and services for passengers, with high
           emphasis on cleanliness.

           Madam Speaker, let me now spell out details of the focus areas of
           this Budget:


          Amenities at Stations:
     1.   In the passenger amenities, Indian Railways envisage to provide
          foot-over bridges, escalators and lifts at all major stations including
          through PPP route.

     2.   Indian Railways would make earnest attempt this year to provide
          sufficient water supply, platform shelters and toilets at the Railway

          Passenger Amenities through private entity:
     3.   Indian Railways propose to extend service of Battery-operated Carts
          to facilitate differently-abled and senior citizens to reach any
          platform comfortably at all major stations.

     4.   We propose to involve individuals, NGOs, Trusts, Charitable
          Institutions, Corporates, etc. to provide passenger amenities at

          Office on Wheels:
     5.   As Indian Railways carry lot of business travellers who spend
          substantial time on travel, in order to add best value to their time,
          I propose to provide workstations in select trains on payment basis.
          A pilot project will be launched by this year.

          e-Booking of Railway Retiring Room:
     6.   Online booking facility of Railway Retiring Room will be extended
          to all the stations during the course of the year.

     7.   Madam Speaker, extending passenger friendly services is the motto
          of Indian Railways. In this direction, I am expanding the scope of
          online booking:

                People can book a Train
                People can book a Coach
                People can book a Berth and
                People can book a Seat in Chair Car


           Madam Speaker, catering on Railways has been a major issue of
           concern for long.

      1.   In order to improve the quality, hygiene of on-board catering
           services and to provide variety, I propose to introduce Pre-cooked
           (Ready-to-eat) Meals of reputed brands in a phased manner.

      2.   Further, I sincerely desire to bring perceptible improvement in the
           catering services by introducing Quality Assurance Mechanism
           through Third Party Audit by NABCB certified agencies.

           In addition to the third party audit, a system of collecting feedback
           through IVRS mechanism, from the travelling passengers on the
           quality of food served, will be launched shortly.

           If the service is not to the standards set, especially in hygiene and
           the taste, severe action would be initiated against the vendors
           including cancellation of the contract.

           Food Courts at Stations and Regional Cuisine while onboard:-
      3.   Indian Railways also proposes to set up Food Courts at major
           stations to provide the option of ordering regional cuisine while
           onboard, through emails, SMS and Smart Phones, etc. A pilot project
           will be started shortly between New Delhi-Amritsar and
           New Delhi-Jammu Tawi sections.


           Madam Speaker, `Cleanliness is next to Godliness', said Mahatma
           Gandhi, our beloved Father of the Nation.

      1.   Madam, I am aware of the sorry state of affairs of cleanliness in the
           trains and stations. Railways have been attaching high priority to
           cleanliness, but it has always been a challenge to maintain the
           acceptable level of cleanliness owing to the sheer number of
           passengers handled at the stations.

     2.   Madam Speaker, I have substantially increased budget allocation for
          cleanliness in the current year, which is a 40% increase over the
          previous year. I propose to outsource cleaning activities at 50 major
          stations to professional agencies and to set up a separate
          Housekeeping Wing to have focused attention and exclusive
          responsibility of maintaining cleanliness and sanitation at stations.

     3.   Madam Speaker, a Corpus Fund for upkeep will be set up at

     4.   Use of CCTVs at Stations will be extended to monitor cleanliness
          activities. All-India level complaint / helpline number will be
          printed on the back of all PRS tickets. System of periodic third-party
          inspections will be introduced.

     5.   Further, Bio-toilets will be increased in sufficient numbers in trains
          in order to mitigate the problem of direct discharge of human waste
          on the tracks and platform aprons at stations.

     6.   Onboard Housekeeping Services, currently operational in 400 trains,
          has received good feedback from passengers. This will be extended
          to all the important trains. I also propose to increase Mechanized
          Laundries in order to improve quality of the bedrolls provided in
          AC Coaches.

          Potable Water:
     7.   We will introduce on an experimental basis RO drinking water units
          at Stations and in trains.

     8.   Reputed and willing NGOs, charitable institutions and Corporate
          Houses will be encouraged to adopt and maintain stations for better
          cleanliness and upkeep.


     1.   Madam Speaker, safety of passengers is of paramount importance
          for Indian Railways. It is estimated that over ` 40,000 crore would be
          needed to be invested in track renewals, elimination of unmanned
          level crossing and construction of Road-under-bridges and

      2.   I have received lot of requests from various States for construction of
           Road-over-bridges and Road-under-bridges. I am making provision
           of ` 1,785 crore for Road-under-bridges and Road-over-bridges in
           this Budget. I would request concerned State Governments to
           expedite their proposals and pass on their share of the cost. I have
           decided to introduce a system of speedy clearances.

           We intend to standardize designs and make these online. Delegation
           shall be done so that power of sanctioning is decentralized.

           Elimination of Unmanned Level Crossings
      3.   Indian Railways have 30348 Level Crossings, out of which 11563 are
           unmanned. Each unmanned level crossing is being examined in
           detail and depending on the site condition, action will be taken to
           eliminate it by suitable modality.

      4.   Indian Railways propose to use modern Vehicle Borne Ultrasonic
           Flaw Detection System to detect rail and weld fractures. In addition
           Ultrasonic Broken Rail Detection System (UBRD) will also be tried at
           two locations as a Pilot Project.

      5.   In order to improve the safety of travelling passengers, I propose to
           bring in technology for automatic closing of doors before start of
           train, both in main line and in sub-urban coaches. A pilot project for
           limited number of trains will be taken up.


      1.   In order to strengthen security in trains and at Stations, 17000 RPF
           constables have been recruited and shall be shortly available for
           deployment. We also propose to recruit 4000 women RPF constables.

      2.   In order to ensure security of ladies travelling alone, special
           instructions are being issued for their safety in each class of travel.
           With the induction of women RPF constables, coaches for ladies will
           be escorted. Additional care will be taken for ladies travelling alone
           in all classes.

      3.   RPF escorting teams in trains will be provided mobile phones so that
           passengers can contact them when in distress. Security helpline will
           be augmented.

      4.   We will explore the possibility of building of boundary walls around
           stations through PPP route.


      1.   Madam Speaker, I foresee a huge untapped potential in the field of
           domestic tourism in our country. We plan to take up Eco-Tourism
           and Education Tourism in North Eastern States.

      2.   Special Pilgrim Circuits like Devi Circuit, Jyotirling Circuit, Jain
           Circuit, Christian Circuit, Muslim / Sufi Circuit, Sikh Circuit,
           Buddhist Circuit, Famous Temple Circuit etc. have been identified.
           I propose to introduce specially packaged trains for these circuits.
           Private participation in this area will also be encouraged. I intend to
           introduce some trains for Pilgrims and Tourists in short run also.

      3.   One Tourist Train will run from Gadag to Pandarpur via Bagalkot,
           Bijapur and Solapur covering the pilgrim and tourist places of
           Karnataka and Maharashtra. Another such train will start from
           Rameshwaram covering pilgrim and tourist places like Bengaluru,
           Chennai, Ayodhya, Varanasi and Haridwar. I also plan to run
           a special train featuring life and work of Swami Vivekananda to
           inculcate good moral values and propagate the teachings of Swami


      1.   Madam Speaker, Railway Reservation System will be revamped into
           Next Generation e-Ticketing System. Ticket booking through mobile
           phones and through Post Offices will be popularized.

      2.   We will improve the system capabilities in e-ticketing to support
           7200 tickets per minute as against 2000 tickets per minute and allow
           1,20,000 simultaneous users at any point in time.

       3.   Facility of Coin Operated Automatic Ticket Vending Machines will
            be experimented.

       4.   Efforts will also be made to provide facility of buying Platform
            Tickets and unreserved tickets over internet.

       5.   Parking-cum-Platform Combo Tickets will be launched to facilitate
            the passengers and to save their time.


            Madam Speaker, at the moment, the Railway Board, due to
            overlapping roles of policy formulation and implementation, has
            become unwieldy. Therefore, I propose to separate these two


            Indian Railways has 13.1 lakh staff most of whom work on the
            cutting edge of providing rail services. It is my duty that they are
            taken care by providing adequate facilities. In this direction, I am
            initiating the following:

            i)     Presently an amount of ` 500 per capita is contributed
                   towards Staff Benefit Fund. I propose to increase this amount
                   to ` 800 per capita.

            ii)    I propose to announce a special scheme for the meritorious
                   wards of Railway persons for their outstanding performance
                   in academics and sports for such children.

            iii)   The Hospital Management Information system will be used
                   to integrate all health units, Divisional hospitals and Central
                   Hospitals as well as our empanelled hospitals.

            iv)    Examine feasibility of providing air-conditioning in loco


      1.   I am contemplating on setting up of a Railway University for both
           technical and non-technical subjects.

      2.   We will tie up with technical institutions for introducing railway
           oriented subject for graduation and skill development.

           In the meantime, staff at the ground level will be sent for short
           duration courses of technical and non-technical nature, involving
           locally available technical institutions. The exposure for specialized
           areas like high-speed, heavy haul operations, etc. will be undertaken
           for all level of staff and officers at appropriate institutes in India and


      1.   It is the wish and dream of every Indian that India runs a bullet train
           as early as possible. Madam Speaker, Indian Railways is on its way
           to fulfill that long cherished dream. We propose bullet trains by
           starting off with an already identified Mumbai-Ahmedabad sector,
           where a number of studies have been done.

      2.   Madam Speaker, it was the vision of our great leader,
           Shri Atal Behari Vajpayee ji, that gave India the Golden
           Quadrilateral Road Network. Today, under the leadership of
           Shri Narendra Modiji, we are embarking on an ambitious plan to
           have a Diamond Quadrilateral Network of High Speed Rail,
           connecting major Metros and growth centers of the country.
           A provision of ` 100 crore has been made in this Budget for high
           Speed project to RVNL / HSRC (High Speed Rail Corridor) for
           taking further steps.

      3.   Madam Speaker, while bullet trains would require completely new
           infrastructure, higher speed for existing trains will be achieved by
           upgrading the present network. Hence, an effort will be made to
           increase the speed of trains to 160-200 kmph in select sectors so as to
           significantly reduce travel time between major cities.

          The identified sectors are:

          i)      Delhi-Agra
          ii)     Delhi-Chandigarh
          iii)    Delhi-Kanpur
          iv)     Nagpur-Bilaspur
          v)      Mysore-Bengaluru-Chennai
          vi)     Mumbai-Goa
          vii)    Mumbai-Ahmedabad
          viii)   Chennai-Hyderabad and
          ix)     Nagpur-Secunderabad.


     1.   Madam Speaker, as you know, the I.T. revolution has permeated
          into all spheres of human life. It has not only made life comfortable,
          but also made the service delivery efficient and the onus now is on
          us to make governance transparent and accountable using
          I.T. solutions.

     2.   Though Indian Railways has taken up computerization in a large
          way, all the efforts have not been in synergized. Hence, the desired
          results are not achieved. Need of the hour is to bring in a total
          change in the work culture of Railways and delivery of Railway
          Services by going in for large scale integrated computerization of
          major functions of Indian Railways.

     3.   Madam Speaker, Indian Railways is also going for a computer
          assisted Enterprise Resource Planning Solution, so that synergy is
          brought in. To begin with, following initiatives will be taken up:

          i)      Moving towards paperless offices in Indian Railways
                  in 5 years;
          ii)     Next Generation Ticket Reservation System;
          iii)    Wi-fi Services in all A1 and A category stations and in select
          iv)     Real-time tracking of trains and rolling stock;
          v)      Mobile based Wakeup Call System for passengers;
          vi)     Mobile based Destination Arrival Alert;
          vii)    Station Navigation Information System;

          viii)   Extension of Dual Display Fare Repeaters at all the Ticket
                  Counters through PPP;
          ix)     Digital reservation charts at Stations (Bengaluru model);
          x)      Extension of Computerized Parcel Management System;
          xi)     Extension of logistics support to various e-commerce
                  Companies by providing designated pick-up centres at
                  identified Stations;
          xii)    Providing education to children of Railway staff at remote
                  locations through Railtel OFC (optical fibre cable) network.

          Digitization of GIS mapping of land assets of Indian Railways:
     4.   Indian Railways hold vast land assets which need to be digitized
          and GIS mapped for better management and usage. This would help
          Railways in protecting the lands as well as leveraging it for raising
          resources. The resource mobilization using land assets will be
          explored through private participation in setting up railway related
          business in railway lands as well as for commercial development


     1.   Madam Speaker, in an effort to keep pace with developments of the
          modern world, Railways have to adopt and reinvent itself
          constantly. Challenges of tomorrow cannot be met by the tools of
          yesterday. In this direction, I propose to set up an Innovations
          Incubation Center. This Center will harness the ideas generated
          from the staff of Indian Railways and convert them into practical
          solutions to increase efficiency of the system. Such innovations
          which result in cost saving as well as revenue generation will be
          suitably rewarded in the form of incentive.

     2.   As part of this exercise, I also propose to set up summer internships
          for the under-graduates of engineering and management studies.
          Students can intern at any of the various units of Railways
          i.e. Divisions, PSUs and Production Units.


     1.   With a large backlog of sanctioned projects, funding continues to be
          the biggest challenge for the Railways. While private investment and
          customer funding for some port connectivity projects and few other

     Power Sector Projects has started, much more needs to happen if
     infrastructure creation has to keep pace with the requirement.
     We will interact with Industry and take further steps to attract
     investment under PPP through BOT and Annuity route and 8 to 10
     capacity augmentation projects on congested routes will be
     identified for this purpose. Zonal Railways will be suitably
     empowered to finalize and execute such projects.

2.   Madam Speaker, Indian Railways has taken up port connectivity on
     a priority through PPP mode of funding in tandem with Sagar Mala
     Project of Port Development. Railways will facilitate connectivity to
     the new and upcoming ports through private participation. So far, in
     principle approval has been granted for building rail connectivity to
     the Ports of Jaigarh, Dighi, Rewas, Hazira, Tuna, Dholera and
     Astranga under Participative Model Policy of Indian Railways,
     amounting to a total of over ` 4,000 crore.

     Coal Connectivity
3.   Railways will speed up construction of critical coal connectivity
     lines in Tori-Shivpur-Kathautia Area, Jharsuguda-Barpalli-Sardega
     and Bhupdeopur ­Raigarh- Mand Area. This will bring nearly
     100 Million Tonnes of incremental traffic to railways and will also
     facilitate faster transportation of coal to Power Houses.

     Total Station Development
4.   Madam Speaker, we will take up development of identified stations
     to international standards with modern facilities and passenger
     amenities on the lines of newly developed airports through
     PPP mode. Initially, Indian Railways would develop at least
     10 major stations of metro cities and important junctions with
     state-of-the-art facilities, leveraging land and air space in and
     around the stations.

     Private Investment in Railway Logistics
5.   Madam Speaker, Indian Railways propose to modernize its logistics
     operations by setting up Logistic Parks that provide for
     warehousing, packaging, labeling, distribution, door-to-door
     delivery and consignment tracking. In order to achieve better
     efficiency, mechanization of loading and unloading will be given top

6.    In the existing pattern of traffic movement of Indian Railways, more
      than 33% of freight trains over the system run empty since return
      traffic at existing freight rates is not forthcoming. In order to garner
      additional revenue by a suitable pricing mechanism, I propose to
      launch a pilot project whereby automatic rebate from the
      computerized FOIS system will become available to customers
      offering traffic over the present expected levels of loaded movement.
      This would help reduce the empty flows on the Indian Railway
      System apart from garnering additional revenue.

      Parcel traffic:
7.    While there has been incremental growth in our parcel earning, I see
      a huge untapped potential in this segment which needs to be
      trapped by the Indian Railways. At present, most of the parcel
      business is hindering the movement of passengers on platforms.
      It is, therefore, necessary that parcel traffic is segregated to separate
      terminals where requisite facilities for storage/handling of parcels
      are made available to the customers and parcel consignments move
      in dedicated parcel trains running on fixed time table. Accordingly,
      a scheme for private participation in parcel movement will be
      launched shortly whereby procurement of parcel vans or parcel
      rakes by private parties shall be facilitated.

8.    A new design of parcel vans with better tare to pay load is being
      finalized. It is expected that by putting these measures in place,
      we would be able to substantially improve our earnings from the
      parcel segment.

      Private Freight Terminals (PFT)
9.    To develop network of freight terminals, policy of Private Freight
      Terminals on PPP model is being further refined.

      Movement of Agri-Products
10.   I propose to give a boost to rail movement of fruits and vegetables in
      partnership with the Central Railside Warehousing Corporation
      (CRWC) by providing requisite facilities of temperature controlled
      storages at 10 locations viz Vatva, Vishakhapatna, Badagara,
      Cheriyanad, Bhivandi Road, Azara, Navlur, Kalamboli and Sanand

            on Indian Railways in the first phase. The aggregation and
            distribution from Railway terminal points shall be organized by the
            CRWC. I hope, apart from avoiding national wastage of these
            products, this would help producers of fruits and vegetable in
            different parts of the country in getting better prices for their

      11.   Madam Speaker, Indian Railways propose to facilitate
            transportation of milk through rail by providing special milk tanker
            trains in association with National Dairy Development Board and


      1.    Madam, it is proposed to harness solar energy by utilizing roof top
            spaces of Railway Stations, other Railway buildings and land,
            including through the PPP mode.

      2.    Indian Railways will start using Bio-Diesel up to 5% of the total fuel
            consumption in diesel locomotives. This will save precious foreign
            exchange substantially.


            Railways have been suffering heavily because of time overrun and
            cost overrun due to poor project management. In order to overcome
            delays in project execution, I propose to set up Project Management
            Group at the level of Railway Board. Similarly, to expedite the
            projects at the ground level, a Project Monitoring & Coordination
            Group consisting of officials of State Government, Railways and
            professionals will be set up.


      1.    Simplification of procedures and easy access to information bring
            transparency and trust in public. Transparency in administration,
            execution of projects and procurement will be given top priority.

    2.   Strategic Procurement Policies will be adopted to make the
         procurement process transparent and most efficient. E-procurement
         will be made compulsory for procurements worth ` 25 lakhs
         and above.

    3.   For the convenience of State Governments and other stakeholders,
         the status of ongoing projects will be made available online.

         Expansion of railways in Hilly States & Northeast regions:
    1.   Madam Speaker, I am happy to inform the House that there are
         23 projects underway in the Northeast, of which 11 are National
         Projects. I propose to allocate substantially higher funds for these
         projects compared to previous years. In 2014-15, an outlay of
         ` 5,116 crore is earmarked for projects of North-East. This is
         54% jump over allocations in the previous year. With higher
         allocations and by close monitoring of works in this region, I hope
         that Dudhnoi-Mendipathar New Line; Lumding-Badarpur-Silchar
         Gauge Conversion; Harmuti-Murkongselek and Balipara-
         Bhalukpong sections will soon get commissioned. These measures
         will also give a boost to the State capital connectivity projects in the

    2.   Madam Speaker, this august House is already aware that the
         Udhampur-Katra Rail link has recently been dedicated to Nation by
         Hon'ble PM fulfilling the long cherished dream of millions of
         pilgrims across the country. We have also tied up with Government
         of J&K for bridging Udhampur-Banihal portion by bus so that
         passengers can reach Srinagar with one single ticket from origin to

    3.   Now, Railways will focus on the completion of missing link of
         Banihal to Katra.

    1.   There are 29 projects running in Andhra Pradesh and Telangana at
         an estimated cost of ` 20,680 crore. I intend to hold coordination
         meetings with the officials of the newly created States and consider
         their requirements so as to give necessary economic boost.
    2.   On the issues concerning Railways in the twin states of Andhra
         Pradesh and Telangana, a committee has already been set up of the
         Railways and State Government officials. Further action will be
         taken after receipt of the Report of the Committee.

         Urban Transport
    1.   With the challenges posed by the steadily increasing urban
         population concentration in metros and in million plus cities,
         a holistic approach to urban transport is required. A smooth and
         seamless inter-modal access is essential to improve urban mobility
         and, therefore, a Passenger centric focus will be given to urban
         transport infrastructure creation. We will coordinate with other
         transport Ministries and urban bodies to develop optimal systems of
         integration of Railways with other transport modes.

    2.   Mumbai city will get 864 additional state-of-the-art EMUs over
         a period of two years. With completion of the conversion of traction
         from 1500 Volts DC to 25 KV AC in Mumbai Suburban Railways, the
         efficiency of operations would improve besides reducing cost of

    3.   Madam Speaker, as you are aware, Bengaluru with bustling
         business activity attracts large commuters from surrounding rural
         areas and towns necessitating better connectivity of Bengaluru City
         with its suburban areas and hinterland. Study to Explore Possibility
         of enhancing the existing IR network of Bengaluru for meeting the
         above need will be taken up.

         In addition, to cater to the demand of Passenger Traffic in Bengaluru
         area, Byyappanahalli will be developed as a coaching terminal.

         Online Wagon Demand registration:
    1.   Online registration of demand for wagons will be launched in the
         next two months. This will facilitate online payment of Wagon
         Registration fee as well as registering demand for wagons. Further
         a process for ERR (Electronic Railway Receipt) will also be initiated
         during the year.

     2.   Indian Railways propose to introduce corrosion-free wagons with
          low tare weight for movement of salt.

     3.   Dedicated Freight Corridor Project Implementation of Eastern and
          Western DFCs, a critical infrastructure project, will be closely
          monitored.     The      World       Bank loan    agreement      for
          Kanpur-Mughalsarai section of Eastern corridor of Dedicated
          Freight Corridor will be signed in the current year for
          US$ 1100 million. During 2014-15, award of nearly 1000 kms of civil
          construction contracts is targeted.

     1.   Ever since assuming office, I have received innumerable requests for
          continuance of experimental stoppages from Hon'ble Members of
          Parliament and various public representatives. I understand that
          large number of stoppages have been provided on experimental
          basis over a period of time. While I appreciate the wish of everyone
          wanting a stoppage close to their place of work or residence, there is
          a cost to the system for each stoppage. Also too many stoppages
          result in slowing down of trains and increase the travel time
          particularly for long distance passengers. If this trend continues,
          most of our express trains will become passenger trains.

     2.   I would like to inform the House that I have allowed continuation of
          these experimental stoppages for a further period of 3 months, that
          is up to 30th of September 2014. These stoppages will be reviewed
          solely on the basis of operational feasibility and commercial
          justification. Demand for new stoppages hereafter will also be
          considered on the same criteria. We will try to provide alternate
          train connectivity to meet genuine demands of the public.

     1.   Besides expansion and capacity augmentation projects, assessment
          of future needs and requirements in the form of providing
          connectivity to hitherto unconnected regions, requirement of
          movement of goods from new production / consumption centre
          needs to be assessed on a continuous basis. I have also been

          receiving requests for projects from the Hon'ble Members, State
          governments and other public representatives. To honour their
          requests, I propose to undertake 18 Surveys for New Lines and
          10 Surveys for Doubling, 3rd & 4th line and Gauge Conversion
          Projects in 2014-15. A list is appended at Annexure-1.

     2.   Surveys for Sagar-Chatarpur-Khujraho-Bhopal and Jabalpur-
          Udaipura-Sagar New line have been completed. I will get them
          examined expeditiously. Survey for Indore-Jabalpur New line will
          be expedited.

     3.   I am happy to announce that the survey for Mysore-Kushalnagar
          portion of Mysore-Kushalnagar-Medekere New line has been
          completed and State Government has agreed to share cost of the
          project. This will provide Rail connectivity to important tourist
          destinations in Kodagu (Coorg). I propose to pursue this project for
          obtaining requisite approvals after completion of remaining survey
          up to Madikere.

     4.   A survey for new line between Tarighat and Ghazipur has been
          completed. However, the same needs to be examined by extending
          survey up to Mau so as to connect the line to the rail network
          further. It will be undertaken expeditiously.

     1.   I would like to inform this august House that while I have received
          innumerable requests from various quarters for running new train
          services, resource constraints preclude me from meeting many of
          them. Nonetheless, to meet the critical demands of the un-reserved
          and reserved segments for different sectors, I have decided to run
          Jansadharan group of trains and a Premium group of trains
          respectively, including those announced in the interim Railway
          Budget 2014-15. These services would be meeting the demand
          surges which manifest themselves on special occasions. Special
          trains would continue to run to meet the holiday and festival rush
          including services for Melmaruvathur, Velankanni, Jhalawar etc. for
          which I have received special requests from the public

     2.   I also propose to introduce 5 Jansadharan Trains, 5 Premium Trains,
          6 AC Express Trains, 27 Express Trains, 8 Passenger Trains,
          2 MEMU services and 5 DEMU services. Besides, I also propose to
          extend the run of 11 existing trains. These have been listed at

          Madam Speaker, I am aware that I would receive both praise and
          criticism alike.

          Lastly, I would like to recall a popular verse of Shri D.V. Gundappa,
          a famous poet, philosopher and writer of Kannada, who wrote
          under the penname ­ Mankutimma.

                                    Ç ®
                                   ¡     Ð   Ð
                                    ¡  ¡      Ð
                                       ­     Ì

              "It is not that after reading this book, there will be no more doubts.
                     It is not that what we believe today will hold up forever.
                               If someone points at some shortcoming,
                                    I have an open mind to correct.
                                  But for now, I believe this is right."

                                                                         ­ Mankutimma

XXIX. With these words, Madam Speaker, I commend the Railway Budget for
           2014-15 to the august House.



                               Annexure 1
                            (XXVII, Para No.1)

                           List of New Surveys

     i)     Kanhangad-Panathur-Kaniyuru
     ii)    Mughalsarai - Bhabua vai Naughar
     iii)   Hoshiarpur ­ Amb - Andaura
     iv)    Aurangabad - Chalisgaon
     v)     Singrauli - Ghorawal Lusa
     vi)    Gabbur ­ Bellary
     vii) Shimoga ­ Sringeri - Mangalore
     viii) Badovan ­ Jhargram via Chandil
     ix)    Talguppa-Siddapur
     x)     Bhabua-Mundeshwari
     xi)    Jind - Hissar
     xii) Gadag- Harphanhalli (Updating)
     xiii) Una-Hamirpur
     xiv) Ujjain-Jhalawar-Agar-Susner-Soyath (Updating)
     xv) Hissar-Narwana
     xvi) Solapur-Tuljapur (Updating)
     xvii) Rail connectivity to Char-Dham, Kedarnath, Badrinath, etc.
     xviii) Rail connectivity to Iron ore mines between Nayagarh-Banspani

     i)    Doubling of Jaipur - Kota
     ii)   Doubling of Chandna-Fort ­ Nagbhir
     iii)  Doubling of Mangalore-Ullal - Surathkal
     iv)   Doubling of Rewari-Mahendergarh
     v)    Bhusawal- Badnera- Wardha 3rd line
     vi)   Kasara- Igatpuri 4th line
     vii) Karjat-Lonavala 4th line
     viii) Itarsi-Bhusawal 3rd line
     ix)   Gauge Conversion of Meter Gauge line in Ahmedabad area upto
     x)    Gauge Conversion of Pilibhit-Shahjahanpur (Updating)

                              Annexure 2
                           (XXVIII, Para No.2)

List of new Jansadharan Trains, Premium Trains, AC Express Trains,
Express Trains, Passenger Trains, MEMU services, DEMU services and
Extension of run of existing Trains:

A)   Jansadharan Trains
     i)    Ahmedabad ­ Darbhanga Jansadharan Express via Surat
     ii)   Jaynagar ­ Mumbai Jansadharan Express
     iii)  Mumbai ­ Gorakhpur Jansadharan Express
     iv)   Saharasa ­ Anand Vihar Jansadharan Express via Motihari
     v)    Saharasa ­ Amritsar Jansadharan Express

B)   Premium Trains
     i)   Mumbai Central ­ New Delhi Premium AC Express
     ii)  Shalimar ­ Chennai Premium AC Express
     iii) Secunderabad- Hazrat Nizamuddin Premium AC Express
     iv)  Jaipur ­ Madurai Premium Express
     v)   Kamakhya ­ Bengaluru Premium Express

C)   AC Express Trains
     i)   Vijayawada-New Delhi AP Express (Daily)
     ii)  Lokmanya Tilak (T) ­ Lucknow (Weekly)
     iii) Nagpur ­ Pune (Weekly)
     iv)  Nagpur ­ Amritsar (Weekly)
     v)   Naharlagun ­ New Delhi (Weekly)
     vi)  Nizamuddin ­ Pune (Weekly)

D)   Express Trains
     i)   Ahmedabad ­ Patna Express (Weekly) via Varanasi
     ii)  Ahmedabad - Chennai Express (Bi-weekly) via Vasai Road
     iii) Bengaluru ­ Mangalore Express (Daily)
     iv)  Bengaluru ­ Shimoga Express (Bi-weekly)
     v)   Bandra (T) ­ Jaipur Express (Weekly) Via Nagda, Kota
     vi)  Bidar ­ Mumbai Express (Weekly)
     vii) Chhapra ­ Lucknow Express (Tri-weekly) via Ballia, Ghazipur,

     viii) Ferozpur ­ Chandigarh Express (6 days a week)
     ix)    Guwahati ­ Naharlagun Intercity Express (Daily)
     x)     Guwahati ­ Murkongselek Intercity Express (Daily)
     xi)    Gorakhpur ­ Anand Vihar Express (Weekly)
     xii) Hapa ­ Bilaspur Express (Weekly) via Nagpur
     xiii) Hazur Saheb Nanded ­ Bikaner Express (Weekly)
     xiv) Indore ­ Jammu Tawi Express (Weekly)
     xv) Kamakhya ­ Katra Express (Weekly) via Darbhanga
     xvi) Kanpur ­ Jammu Tawi Express (Bi-weekly)
     xvii) Lokmanya Tilak (T) ­ Azamgarh Express (Weekly)
     xviii) Mumbai _ Kazipeth Express (Weekly) via Balharshah
     xix) Mumbai ­ Palitana Express (Weekly)
     xx) New Delhi - Bhatinda Shatabdi Express (Bi-weekly)
     xxi) New Delhi ­ Varanasi Express (Daily)
     xxii) Paradeep ­ Howrah Express (Weekly)
     xxiii) Paradeep ­ Visakhapatnam Express (Weekly)
     xxiv) Rajkot ­ Rewa Express (Weekly)
     xxv) Ramnagar ­ Agra Express (Weekly)
     xxvi) Tatanagar ­ Baiyyappanahali (Bengaluru) Express (Weekly)
     xxvii) Visakhapatnam ­ Chennai Express (Weekly)

E)   Passenger Trains
     i)    Bikaner ­ Rewari Passenger (Daily)
     ii)   Dharwad ­ Dandeli Passenger (Daily) via Alnavar
     iii)  Gorakhpur ­ Nautanwa Passenger (Daily)
     iv)   Guwahati ­ Mendipathar Passenger (Daily)
     v)    Hatia ­ Rourkela Passenger
     vi)   Byndoor ­ Kasaragod Passenger (Daily)
     vii) Rangapara North ­ Rangiya Passenger (Daily)
     viii) Yesvantpur ­ Tumkur Passenger (Daily)

F)   MEMU services
     i)  Bengaluru ­ Ramanagaram 6 days a week (3 Pairs)
     ii) Palwal ­ Delhi ­ Aligarh

G)   DEMU services
     i)   Bengaluru ­ Neelmangala (Daily)
     ii)  Chhapra ­ Manduadih (6 days a week) via Ballia
     iii) Baramula ­ Banihal (Daily)
     iv)  Sambalpur ­ Rourkela (6 days a week)
     v)    Yesvantpur- Hosur (6 days a week)

H)   Extension of run of existing Trains
     i)    22409/22410 Anand Vihar ­ Sasaram Garib Rath Express to Gaya
     ii)   12455/12456 Delhi Sarai Rohilla ­ Sriganganagar Express to Bikaner
     iii)  15231/15232 Gondia ­ Muzaffarpur Express to Barauni
     iv)   12001/12002 New Delhi ­ Bhopal Shatabdi Express to Habibganj
     v)    54602 Ludhiana ­ Hissar Passenger to Sadulpur
     vi)   55007/55008 Sonpur ­ Kaptanganj Passenger to Gorakhpur
     vii) 55072/55073 Gorakhpur ­ Thawe Passenger to Siwan
     viii) 63237/63238 Buxar ­ Mughalsarai MEMU to Varanasi
     ix)   63208/63211 Jhajha ­ Patna MEMU to Jasidih
     x)    64221/64222 Lucknow ­ Hardoi MEMU to Shahjahanpur
     xi)   68002/68007 Howrah ­ Belda MEMU to Jaleswar


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