Railway Budget 2016 - 2017 Highlights [ English / Hindi - Download As PDF ]

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Theme of the Budget

  • Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways: ‘Chalo, Milkar Kuch Naya Karen’

  • Three pillars of the strategy i.e. Nav Arjan – New revenues, Nav Manak – New norms, Nav Sanrachna – New Structures.

Financial Performance

  • 2015-16- Savings of Rs. 8,720 crore neutralizing most of the revenue shortfall, expected OR 90%;
  • 2016-17- Targeted Operating Ratio (OR) - 92%, restrict growth of Ordinary Working Expenses by 11.6% after building in immediate impact of 7 th PC, reductions planned in diesel and electricity consumption, Revenue generation targeted at Rs. 1,84,820 crore.
  • Investments and Resources

  • Process bottlenecks overhauled including delegation of powers to functional levels; average capital expenditure over 2009-14 is Rs. 48,100 crore, average growth of 8% per annum.
  • 2015-16 investment would be close to double of the average of previous 5 years. 2016-17 CAPEX pegged at Rs. 1.21 lakh crore; implementation through joint ventures with states, developing new frameworks for PPP, etc.
  • Vision

  • By 2020, long-felt desires of the common man to be fulfilled i.e, reserved accommodation on trains available on demand, time tabled freight trains, high end technology to improve safety record, elimination of all unmanned level crossings, improved punctuality, higher average speed of freight trains, semi high speed trains running along the golden quadrilateral, zero direct discharge of human waste.


  • Action initiated on 139 budget announcements of 2015-16.

  • Project execution

  • 2015-16 - assured funding through LIC; commissioning of 2,500 kms Broad Gauge lines; commissioning of 1,600 kms of electrification, highest ever. In 2016-17 - targeted commissioning 2,800 kms of track; commissioning Broad Gauge lines @ over 7 kms per day against an average of about 4.3 kms per day in the last 6 years. Would increase to about 13 kms per day in 2017-18 and 19 kms per day in 2018-19; will generate employment of about 9 crore man days in 2017-18 and 14 crore man days in 2018-19. Outlay for railway electrification increased in 2016-17 by almost 50%; target to electrify 2,000 kms.

  • Dedicated Freight Corridor

  • Almost all contracts for civil engineering works to be awarded by March 31st 2016; Rs. 24,000 crore contracts awarded since November 2014 as against Rs. 13,000 crore contracts awarded in last 6 years; propose to take up North-South, East-West & East Coast freight corridors through innovative financing including PPP.

  • Port connectivity

  • Tuna Port commissioned and rail connectivity projects to ports of Jaigarh, Dighi, Rewas and Paradip under implementation; implementation of rail connectivity for the ports of Nargol and Hazira under PPP in 2016-17.

  • North East

  • BG Lumding-Silchar section in Assam opened thus connecting Barak Valley with rest of the country; Agartala brought on to the BG network. States of Mizoram and Manipur shortly to come on BG map of the country with commissioning of the Kathakal-Bhairabi and Arunachal-Jiribam Gauge Conversion projects.

  • Jammu and Kashmir

  • Work on Katra-Banihal section of Udhampur-Srinagar-Baramulla Rail Link Project progressing satisfactorily- 35 kms of tunnelling out of total of 95 kms completed; Decongestion work on Jalandhar - Jammu line in full swing and doubling of two bridges to be commissioned by March 2016, while the other two bridges will be completed by 2016-17

  • Make in India: Finalised bids for two loco factories; proposed to increase the current procurement of train sets by 30%.

  • Capacity Building for the future through:

  • Transparency – initiated recruitments online in 2015-16, process now being replicated for all positions, social media being used as a tool to bring in transparency, all procurement including procurement of works moved to the e-platform, completed trial of process leading to award of tender electronically and to be rolled out on a Pan- India basis in 2016-17.

  • Governance - delegation led to compression of project sanction time to 6-8 months from 2 years earlier, key result areas identified to judge performance of GMs and DRMs, performance related MOUs signed with few Zones, to be replicated for all zones.

  • Internal audit measures - specialised teams mandated to screen railway operations in specific areas to detect inefficiencies and prevent wastages, every zone preparing 2 reports by March 31, 2016.

  • Partnerships – Cabinet approval for JVs with State Governments, 17 consented and 6 MOUs signed with State Governments. 44 new partnership works covering about 5,300 kms and valuing about Rs. 92,714 crore have been indicated in the Budget documents.

  • Customer Interface

  • Interaction and feedback through social media & dedicated IVRS system. Making travel comfortable by generating over 65,000 additional berths, installing 2,500 water vending machines; introducing ‘Mahamana Express’ with modern refurbished coaches; 17,000 bio-toilets in trains; world’s first Bio-Vacuum toilet developed.

  • Improving punctuality – operations audit for Ghaziabad to Mughalsarai section.
  • Ticketing: Introduced 1,780 Automatic Ticket Vending Machines, mobile apps & GoIndia smartcard for cashless purchase of UTS and PRS tickets, enhanced capacity of e-ticketing system from 2,000 tickets per minute to 7,200 tickets per minute and to support 1,20,000 concurrent users as against only 40,000 earlier.

  • Social initiatives: One-time registration for availing concessions while booking tickets online, online booking of wheelchairs & Braille enabled new coaches introduced for the Divyang, increased quota of lower berths for senior citizens and women, middle bays reserved in coaches for women.

  • Wi-Fi provided in 100 stations, to be provided in 400 more.

  • Stations being redeveloped – financial bid received for Habibganj, Bhopal; Cabinet approval for stations to be taken up under PPP.

  • Security through helplines & CCTVs.

  • Safety - 350 manned level crossings closed, eliminated 1,000 unmanned level crossings, 820 ROB/RUB completed in the current year and work going on in 1,350 of them.
........To Be Continued

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