With minor-to-moderate fare hikes, 96 new passenger trains and
focus on safety, Railway Minister Dinesh Trivedi tabled his
ministry's budget for 2012-13 Wednesday, promising the highest
spending on projects worth Rs.60,100 crore ($12 billion).
"I am asking an extra two paise per km on suburban and ordinary
second class. Similarly, an increase of three paise per km for
mail and express trains," Trivedi said in his 105-minute budget
speech, listing what will be the first fare hike since 2002-03.
"For sleeper class, I am asking only 5 paise (increase) and for AC
chair car and III tier, only 10 paise per km, and for AC II tier
15 paise per km and AC I class by 30 paise per km," the minister
told the Lok Sabha in his maiden rail budget speech.
Accordingly, over a 100-km run, the fares will go up by Rs.2 on
suburban and ordinary II class trains, Rs.5 for sleeper class,
Rs.10 for AC chair car and III tier, Rs.15 for AC II tier and
Rs.30 for AC first class.
"The proposed revisions will have marginal impact on fares," the
minister said, adding: "The proposed adjustments do not even cover
fully the impact of increase in fuel prices during the last eight
But there were some immediate reactions opposing the fare hike.
Trivedi's own Trinamool Congress whose chief and West Bengal Chief
Minister Mamata Banerjee, long opposed to any exercise burdening
average travellers, has already demanded a roll back.
But Prime Minister Manmohan Singh said it was an exercise in the
right direction. "The railway minister has presented a forward
looking Budget with emphasis on safety and modernization of the
Indian Railways," he said.
The other highlights of the budget proposals are airconditioned
lounges and escalators at key stations, regional cuisine at
affordable rates, book-a-meal scheme through SMS and bio-toilets
in 200 trains and coin-operated ticket vending machines.
Trivedi, who referred to the word safety as many as 40 times in
his speech, said he had vowed to make railways accident free when
he experienced the pain of passengers and relatives after an
accident in Uttar Pradesh soon after he took charge of the
"At that very moment, I took a vow to eliminate recurrence of such
painful happenings. I decided my entire emphasis is going to be on
strengthening safety, safety and safety. Deaths on rail tracks
just can never be tolerated and it is not acceptable," he said.
"I vow to target zero deaths," he said. "I also propose to set up
an independent railway safety authority, as recommended by an
expert group headed by the former Atomic Energy Commission
chairman Anil Kakodkar."
The minister listed four other focus areas in the next five years:
consolidation, de-congestion and capacity augmentation of the
network, modernisation and bringing down the operating ratio. He
also stressed on better hygiene and higher speed of trains.
Trivedi said the operating ratio of the railways -- amount spent
on running the network against revenues -- will be lowered to 84.5
percent from the current 95 percent, and to 74 percent by the
terminal year of the 12th plan.
This is key to the network being able to garner money for
expansion and modernisation.
The minister said he was looking at the current budget not as an
exercise for the next fiscal alone, but also for the entire five
year plan, drawing from the Vision 2020 document of his
predecessor and party chief Mamata Banerjee.
The Indian Railways run the third largest railroad network in the
world spread over some 64,000 km, with 12,000 passenger and 7,000
freight trains each day from as many as 7,083 stations to ferry 23
million travellers and 2.65 million tonnes of goods daily.
Along with the networks in the US, Russia, China and Canada, the
Indian Railways figures among the top five in the world. Given its
socio-economic role, Trivedi said it was time for a national
policy on railways on the lines of those for defence and foreign
According to the minister, Indian Railways will invest Rs.7.35
lakh crore during the 12th Five Year Plan period (2012-17),
against Rs.1.92 lakh crore in the current one. By then, it will
double its contribution to India's gross domestic product to 2
Trivedi said the outlay of Rs.60,100 crore proposed for 2012-13
will be the highest ever and added that the network will require
as much as Rs.14 lakh crore in the next 10 years for
He said the plan outlay will be financed by way of Rs.24,000 crore
through budgetary support, Rs.2,000 crore from safety fund,
Rs.18,050 crore from internal sources and Rs.16,050 from extra
budgetary resources, which will include market borrowings.
Coming to specific proposals, Trivedi said 85 new line projects
would be be taken up during the next fiscal year at a cost of
Rs.6,870 crore, even as feasibility surveys would be conducted for
another 114 lines.
He said an attempt will also be made to increase train speeds to
160 km per hour from around 90-100 km per hour. With that, he
said, a journey from New Delhi to Kolkata will be brought down to
14 hours from 17 hours.
The minister also said 39 trains will be extended and the
frequency of 23 trains will be increased.
Stating that many members of parliament came to him with requests
for new trains and new lines, Trivedi said he received around
5,741 such requests ahead of the budget.