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Railway Budget Plans a 13,000 cr. Surplus, High Speed Trains. Incremental, Not PathBreaking.


The Railway Budget has been provided. Here’s a quick list (with press release links) for the major announcements:

New Stuff

Changes to Trains and Stations

  • CCTV on trains, platforms, for security and cleanliness
  • Bio-Toilets so that waste is not directly discarded on track. (Thank goodness)
  • Food courts in stations (finally)
  • Cleanliness budget up 40%
  • Wifi in A and A1 category trains, workstations in trains.
  • Logistics support to e-commerce companies by segregating pick up centers.
  • Lifts and Escalators in stations, through PPP route. I don’t know how this works – do you pay to use the lift? Why PPP if the private player sees no revenue?
  • Battery operated carts to transport the old and invalid.

Outsourcing and Private Party Participation

Where’s the money going to come from?

  • They’ll earn 1.64 trillion (lakh crore) from ops. (Link)
  • They’ll spend 1.49 trillion (lakh crore) (Link)
  • Revision in prices based on the cost of fuel.
  • They’ll borrow around 11,800 cr. which for their revenue isn’t that much. Plus, they might be able to raise it at lower costs through tax free bonds with IRFC.

Positive For?

  • BEML which makes coaches.
  • Many of the rail companies like Kalindee Rail, Texmaco Rail etc. but it looks like expectations were even higher!
  • Based on the implementation, will be good for freight. Which probably means not so great for the likes of Ashok Leyland and Tata Motors which make trucks.
  • All these stocks are down big time, some limit down. However, the impact isn’t negative at all, and FDI for Railways will most likely come through after the budget.

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