Lalu announces 43 new trains, 2 pct fare cut

Friday, February 13, 2009

Posted by Snehsan

New Delhi Departing from normal practice, Railway Minister Lalu Prasad on Friday announced an across-the-board two per cent cut in fares of ordinary and AC class in the interim budget for 2009-10.
Presenting the vote-on-account for expenses in the first four months of next fiscal, he also announced reduction in the fares of ordinary passenger trains by Rs one for fares costing up to Rs 50 for journey above 10 km. The interim budget makes no changes in relation to freight rates. Normally, the interim budgets do not carry any financial proposals in view of the fact that it is a vote-on-account ahead of the General Elections. Recalling that he had decided to reduce the second class fares of all mail, express and ordinary trains by 5 per cent for tickets above Rs 50 last year, Prasad said respecting the aspirations of the long distance passengers he has decided to reduce the second class and sleeper class fares of all mail and express and ordinary passenger trains by two per cent for the ticket costing more than Rs 50. He said during the last four years, he had reduced the fares of AC First class by 28 per cent and AC II tier by 20 per cent.

Even as air travel is reportedly reflecting reduction in number of passengers due to economic slowdown, there has been a significant increase in the number of passengers of these classes on the Railways.

"Therefore, I have decided to reduce the fares of AC First Class, AC II tier and AC III tier and AC Chair Car by two per cent," he said admist thumping of desks by members of ruling benches in Lok Sabha. The Budget estimates for 2009-10 project a freight loading target at 910 million tonnes -- an increment of 60 million tonnes on 2008-09 -- and the number of passengers is likely to grow by 7 per cent. Gross Traffic Receipts (GTR) is estimated at Rs 93,159 crore, an increase of Rs 10,766 crore over revised estimate of 2008-09. Ordinary working expenses have been budgeted at Rs 62,900 crore to cover the full year impact of Sixth Pay Commission recommendation and the payment of 60 per cent arrears due in 2009-10.

Dividend payable to General Revenues has been kept at Rs 5,304 crore at the current applicable rates. Budgeting ratio has been pegged at 89.9 per cent and annual plan outlay for the next year envisages an investment of Rs 37,905 crore. The Budgetary support from General Revenue has been proposed at Rs 9,600 crore excluding Rs 1,200 crore to be received from the Central Road Fund. The Internal and Extra Budgetary Resource component would accordingly comprise 72 per cent of the annual plan. Following are the highlights of the Interim Railway Budget for 2009-2010:

HIGHLIGHTS OF INTERIM RAILWAY BUDGET

* Lalu Prasad presents UPA's last rail budget in its term
* Railways made Rs 90,000 cr profit
* 2 pct cut in all AC and mail train fares
* Rs 10,500 cr allocated for pension requirements
* 6th Pay Commission to hike expense by Rs 13,500 cr
* Rlys laid 1100 kms of new rail lines
* Bhubaneshwar-New Delhi Rajdhani becomes 4 days a week
* New Delhi-Ahmedabad Rajdhani becomes daily
* Steep fall in container traffic
* Work on Delhi-Mumbai freight corridor started
* Rlys to invest Rs 35,900 cr in 2009
* Railway connectivity to Kashmir initiated
* Passenger growth up 14 pct
* Research on for bullet trains
* FY10 operating ratio seen at 88%
* Mumbai-Bikaner super-fast bi-weekly
* Nizamuddin-Bangalore Rajdhani tri-weekly
* Passenger trains to have 22 pct more capacity
* Efficiency of passenger and goods wagons to be hiked
* Goods trains to have 78 pct added capacity
* 4 Railways inquiry call centres set up
* Electrification of 1000 km of rail lines completed
* Wagon production to be hiked from 6600 to 15000
* Railways invested Rs 70,000 cr out of surplus
* Railways to invest Rs 2,30,000 cr in 11th plan
* Railways reported Rs 25,000 cr cash surplus last year
* Revenues have risen by 39 paise a tonne/km since 2001
* Costs have fallen by 7 paise a tonne/km since 2001
* Gaps in the network will be bridged: Lalu
* Railways got loans at 4 pct
* Accidents come down from 325 in 03-04 to 194 in 07-08
* Railways has grown freight at the rate of 8 pct over last 5 yrs

Paulson to focus on infrastructure access, financial reforms on India trip

Wednesday, October 24, 2007

Posted by Snehsan

India News...

WASHINGTON (Thomson Financial) - US Treasury Secretary Henry Paulson will press Indian officials next week to loosen investment restrictions in order to attract overseas investment that can be used to build infrastructure within the country, and will also offer US support for India's plans to build a new financial services industry in Mumbai।

Paulson, who will travel to India next week, said India's work in these two areas is needed in order to further open and expand India's economy।

'It is in the best interest of India, the United States and the world for India to continue, and even accelerate, the pace of economic reform and openness,' Paulson said in remarks to the Council on Foreign Relations today।

Paulson said India plans to spend as much as 500 bln usd over the next five years on infrastructure improvements, including those that will help meet India's growing energy demands। He said the US wants to help India attract private infrastructure investment, but said the country can help itself by making it easier for foreign investment to flow into the country.

'The government can do more to encourage this private investment by establishing more hospitable investment, regulatory and financial regimes,' he said today। 'Capital limitations, combined with on-going uncertainty about contract enforcement and regulatory consistency, will make infrastructure investment more difficult to obtain.'

Paulson said he would attend a conference in Mumbai during his trip to help highlight investment opportunities for US companies।

Regarding the financial services center India wants to build in Mumbai, Paulson said he agreed with a report issued in India that says the country must make fiscal, monetary and financial reforms before this can happen। As one example, he said India must continue to loosen its capital controls.

He said he would meet with Indian regulators during his trip to discuss India's plans to develop Mumbai, which he and others see as a chance for companies to provide financial services to companies operating in India and wider Asia।

More generally, Paulson said that on the US side, he is 'committed' to ensuring a open investment regime, and said working together to conclude the ongoing Doha round of World Trade Organization talks would be the 'single most effective thing' both countries could do to ease living standards in India and around the world।

He also said the US continues to support the civil nuclear deal the two countries reached in 2005। That agreement could allow India to trade in nuclear-related materials as long as it allows inspectors from the UN's International Atomic Energy Association to inspect its nuclear facilities and continues its moratorium on nuclear weapons testing.

'This agreement will bring India into the nuclear nonproliferation mainstream, providing access to the technology which can help it reach its economic and environmental objectives,' Paulson said। 'The United States remains committed to this agreement.'

सोर्स-forbes