Union Budget 2018-19 Focus : Railway Sector 'All Time High' Allocation For The Railway Sector! Over Rs 1.48 Lakh Crore to be allocated to the Railways in the next fiscal year
What The Budget 2018 Says? India needs massive investments estimated to be in excess of Rs 50 Lakh Crore in Infrastructure to increase growth of GDP connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people. In this Union Budget, the government has made an all time high allocation to rail and road sectors. The major focus of the Government has been on Strengthening the railway network and enhancing Railways carrying capacity. Railways Capex for the year 2018-19 has been pegged at 1,48,528 crore. A huge part of this Capex is devoted to capacity creation. Operating ratio of 2018-19 is estimated at 92.8% as against 96% in 2017-18. Total Revenue receipts in 2018-19 are estimated to increase by 7% to Rs. 2,01,090 crore Total Revenue expenditure in 2018-19 is estimated to increase by 4% to Rs. 1,88,100 crore.
Focus on Railway Sector Key Points New Lines, Railway Track Doubling & Gauge Conversion : 18,000 Kms of doubling, third and fourth line works and 5000 kms of gauge conversion would eliminate capacity constraints and transform almost entire network into Broad gauge. The government will spend as much as Rs 11,000 Crore to add tracks to Mumbai Local Train Network. Maintenance of track infrastructure is being given special attention. Over 3600 kms of track renewal is targeted during the current fiscal. 14000 12000 Increase 68.5% 10000 8000 6000 4000 2000 Increase 148.8% Increase 74.2% Increase 122.0% 2017-18 2018-19 0 New lines (RKMs) Gauge conversion (RKMs) Doubling (RKMs) Wagons(vehicle units)
Railway Electrification There has been significant improvement in the achievement of Physical targets by Railways as well. The government is moving fast towards optimal electrification of railway network. 4000 kilometers are targeted for commissioning during 2017-18. Dedicated Freight Corridor Work on both Eastern and Western Dedicated Freight Corridors is in full swing. Rolling Stock During 2018-19, Procurement will be done for : 12000 Wagons 5160 Coaches 700 Locomotives (approximately) Modern trainsets with state-of-the-art amenities and features are being designed at Integrated Coach Factory, Perambur. First such train-set will be commissioned during 2018-19.
Safety In Railways The total expenditure planned on safety activities including Rashtriya Rail Sanraksha Kosh (RRSK) is Rs. 73,065 Cr. Besides the elimination of Unmanned Railway Crossings on all busy routes and shift to production of safer LHB coaches, there is focus on track renewal with the highest ever outlay ever. CCTVs will be provided at all stations and on trains to enhance security of passengers. Railway Station Redevelopment Redevelopment of 600 major railway stations is being taken up by IRSDC. All stations with more than 25000 footfalls will have escalators. All railway stations and trains will be progressively provided with wi-fi.
Mumbai-Ahmedabad Bullet Train Project Foundation for the Mumbai-Ahmedabad bullet train project, India s first high speed rail project was laid on September 14, 2017. An Institute is coming up at Vadodara to train manpower required for high speed rail projects. Other Major Steps A suburban network of approximately 160 kilometers at an estimated cost of Rs.17,000 crore is being planned to cater to the growth of the Bengaluru metropolis. Increasing use of technology like Fog Safe and Train Protection and Warning System. A decision has been taken to eliminate 4267 unmanned level crossings in the broad gauge network in the next two years.
Viewpoints of Industry Experts on Budget 2018-19 Focus Railway Sector Bombardier is very pleased with the vision of India s Railway Minister Piyush Goyal of a world-class, environmentally sustainable, energy efficient rail transportation in India. His approach clearly outlines the path to creating a safer railway system. Safety is one of Bombardier s core business priorities. Rail Transportation sector in India is on the right path and momentum is built to significantly reform Railways in the years to come. As a leading supplier of Rail systems and products, we welcome the priority given to execution of projects. Capital expenditure of Rs 1.48 lakh crore, highest ever for Indian Railways, was announced and most of this money will be spent on capacity expansion which represents huge business opportunities for rail suppliers. Bombardier is exploring various projects in India which are strategic for our local operations and are pleased with the projects announced to increase train speeds, introduce modern trains, upgrade existing rail infrastructure with increased track capacity, modernize signalling system, improve passenger comfort and technology innovations. With a vision to modernize signalling systems, Bombardier will be keen to support with its proven signalling solutions. For over 100 years, our expertise in developing, engineering and installing advanced rail control and signalling systems has helped us gain recognition as a world leader in this field. Our rail vehicles from commuter trains to metros, monorails to locomotives, high speed trains to light rail vehicles provide sustainable mobility across cities globally moving millions daily. We are pleased with the intent for procurement of rolling stock by Indian Railways. Mr. Sudhir Rao, Managing Director, India, Bombardier Transportation
Our rail vehicles from commuter trains to metros, monorails to locomotives, high speed trains to light rail vehicles provide sustainable mobility across cities globally moving millions daily. We are pleased with the intent for procurement of rolling stock by Indian Railways. We are pleased with efforts to improve rail transport in Mumbai. Bombardier has been supporting Mumbai s rail ecosystem from 2002. We have installed and maintained the Traffic Management System (TMS) on Mumbai s Western and Central lines. Currently, trains equipped with our propulsion are operating successfully in Mumbai s Suburban Rail network and moving around 3.5 million passengers daily. These projects further boost our long-term relationship in this important ecosystem and Bombardier intends to continue to contribute to the success of Mumbai by delivering more of our high-performance metro vehicles, monorails and signalling systems. Railways in India is stabilizing and becoming more sustainable on its own with fast decision making and ironing out administration issues. We are pleased that commitment to Private sector is visible in every initiative which gives confidence to industry players like Bombardier to invest, produce and grow in India. Bombardier Transportation is a global leader in rail technology and offers the broadest portfolio in the industry. It covers the full spectrum of rail solutions, ranging from trains to sub-systems and signalling. The company also provides complete transport systems, e-mobility technology and maintenance services. Mr. Sudhir Rao, Managing Director, India, Bombardier Transportation
Viewpoints of Industry Experts on Budget 2018-19 Focus Railway Sector What are your opinions on the Union Budget 2018-19? The Railway portion of Budget basically attempts to take care of underinvestment syndrome which has Historically affected growth of Railway sector in the country. It attempts to make Railway the preferred mode of transportation. What will be the impact of the Budget 2018-19 on the different Infrastructure projects in Railways in India? The Budget gives a boost to 1. Railway electrification 2. Enhanced production of LHB coaches. 3. Boost to Railway suburban systems in general and to Mumbai and Banglore in particular. 4. Elimination of level crossings which are a drag equally to Road and Railway traffic. This is also expected to provide a boost to Rail and Road safety. Mr. L.C TRIVEDI CME, ICF
Since This was the last Budget of BJP Government Before 2019 Elections, so what do you think it could bring out? Inspite of impending elections in 2019, Govt has successfully resisted temptation to yield to populism, Rather the Budget attempts to rectify and take care of basic infrastructural deficiencies in Railway system. In coming years, Railways are expected to be more agile and will be in a position to meet requirements of 6 trillion dollar economy in 2022. What are your viewpoints about the progress of Railways since 2014? Since 2014 major thrust area have been : 1. Railway Electrification 2. Stopping production of conventional ICF coaches and switching over to 100% production of Stainless Steel coaches including LHB. 3. Elimination of Level crossings. 4. Massive organizational reforms - resulting in Ease of doing Business. 5. Massive Capex in New lines, gauge conversion, electrification, Rolling stock, suburban transportation system etc. Do you find the Budget 2018-19 Satisfactory? Overall opinion : Excellent Budget which has refused to yield to populism inspite of being the last Budget before elections. Mr. L.C TRIVEDI CME, ICF
Viewpoints Of Industry Experts On Budget 2018-19 Focus Railway Sector What are your opinions on the Union Budget 2018-19? The Union Budget 2018-19 focuses on infrastructure as much as it does on agriculture and healthcare. It is heartening to note that the Government continues to recognise this sector to be the growth driver for the economy. From the perspective of railways in particular, the government is on the right track with the largest capital allocation to railways ever. Safety and modernisation are both top priorities of the Railways and is reflected in the measures announced. Even Railway Minister s focus on introducing state of the art signalling system is a welcome move and one that will benefit the Railways immensely. What will be the impact of the Budget 2018-19 on the different Infrastructure projects in Railways in India? Indian Railways focus on capacity augmentation should ultimately lead to improved fluidity, higher speeds and better customer satisfaction through decongestion of the rail network. This should in turn improve reliability of rail services and in turn give a fillip to freight and passenger growth. The focus on electrification should allow Indian Railways to not only reduce dependence on fossil fuel-based traction but also save the nation s precious foreign exchange. The proposal to electrify the remaining non-electrified network, provides several opportunities for Alstom be it enhancing the production of electric locomotives or implementing electrification projects using mechanised means that could allow execution of up to 12 km per day. Do you find the Budget 2018-19 Satisfactory? Let s say that the budget for us has been a Work in Progress. Mr. Bharat Salhotra Vice President, Sales & Business Development, APAC, Alstom
Viewpoints Of Industry Experts On Budget 2018-19 Focus Railway Sector What are your opinions on the Union Budget 2018-19? It s good to see that Infrastructure Development is given a massive push in the budget. As India is gaining importance in the global economy and encouraging global companies to set up their manufacturing in India, it is extremely important that infrastructure which is the backbone to support this movement, is given importance. The budget allocation for urban infrastructure development and smart cities are a good move. I am pleasantly surprised by the decision of the government to development tourist attractions and heritage cities. These will help in promoting tourism and attracting more tourists. The decision to focus on safety of the Railways is a necessary step to ensure safe and sustainable transportation for the commuters. On the corporate front, reduction of corporate tax by 5% for companies with turnover under 250 crores INR is a good move to boost medium sized companies and help their expansion. However, I feel it should have been extended to companies with up to 400 crores of turnover for greater impact. I am pleased with the decision of the government to invest in digital infrastructure, educational and social security measures announced as it is taking us closer to being a developed nation from being a developing nation. What will be the impact of the Budget 2018-19 on the different Infrastructure projects in Railways in India? I feel that the impact of the budget will be two pronged. Firstly, it will help achieve the vision of the government to go electric by 2030 and railways in all its different avatars will play a pivotal role. Secondly, I feel that It will Mr. Ashish Tandon MD, Egis India
make the public transport system more robust than it is now in the near future which will encourage the use of public transportation amongst the masses and thereby reduce the financial burden of crude oil import and improve the environment with reduced vehicular emissions. So the way I see it, this budget is sowing the seeds for a more sustainable tomorrow. Since This was the last Budget of BJP Government Before 2019 Elections, so what do you think it could bring out? This government has shown the risk appetite to take tough decisions which in the short term may cause pain but will deliver gains in the long run. Since India is still a developing country, I feel the budget is very pro-development wherein a lot of investment is made towards building the nation. So in my view it s not a populist budget but it s a budget that will be good for the nation in the long run What are your viewpoints about the progress of Railways since 2014? The intention of the government to go electric by 2030 has been a big boon for the railways. It is seeing more acceptance and expansion. The focus has now moved towards modernization to make railways world class and comfortable. The metros are on the rise and the super-fast trains have become a must have rather than a good to have. Technological advancements are also sweeping the sector which is making the sector more relevant for the long term. Do you find the Budget 2018-19 Satisfactory? As they say that the journey of a thousand miles begins with a step. In my opinion, this budget is quite a few steps in the right direction Mr. Ashish Tandon MD, Egis India
Viewpoints Of Industry Experts On Budget 2018-19 Focus Railway Sector What are your opinions on the Rail Budget 2018-19? Looks good overall! The highest-ever capital investment of Rs. 1.48 L Cr for capacity creation is the need of the hour. Though the details of the allocation of such expenditures are not known, I do hope that the monies will be invested in not only procuring new Rolling Stocks, but also in laying new railway lines to unconnected areas, particularly in the North Eastern part of the country. It is heartening to note that in their enthusiasm for expansion of railways, the government has not lost sight on safety issue with the subject becoming the corner stone of the railway policy. I also hope that a some of the investment is also allocated to renewable energies to meet the non traction power requirements of the trains and stations. What will be the impact of the Budget 2018-19 on the different Infrastructure projects in Railways in India? The Year 2018-19 will be a pivotal year, not just for the Indian Railways but for the new Railway Minister as well. The year will see the Mumbai Ahmedabad HSR (MAHSR) project coming out from drawing board to the actual start of construction works on ground. In addition, several up-gradation, gauge conversion and station redevelopment projects will be taking off simultaneously. The electrification of railway track that is yet be accomplished in the left out 65% of the track km will also see a significant boost. Overall, the companies engaged in the infrastructure sector, particularly in Railways, are in for an exciting time ahead. Mr. Sushil Kumar Vice President Business Development & Coordination - Gannon Dunkerley & Co., Ltd.,
Since This was the last Budget of BJP Government Before 2019 Elections, so what do you think it could bring out? The government has tried to strike a balance between creating new capacitates and focusing on improving the efficiency and safety on the existing system. I must congratulate the government for not resorting to the usual populism and for catching the bull by its horns by addressing the real issues. Having said this, I would definitely invite government s attention on matters like non-punctuality of trains, poor quality of food, uncleanliness etc that directly affect the common traveller and mask the great work that the government is doing behind the scene. What are your viewpoints about the progress of Railways since 2014? A lot has been done and a lot is being done that will soon fructify in the coming couple of years. I think the people are seeing changes and the development growth is in the right direction. Do you find the Budget 2018-19 Satisfactory? It may not sound a very popular budget for the people at the grass-root and the government may have difficulty in selling this budget to them. But for the people in the know of things, a deviation from populism to development is the right direction to take. What the government tends to lose by way un-populism may more than make up by improving efficiency and safety in the system. At the end of the day, people will take a note of it. Mr. Sushil Kumar Vice President Business Development & Coordination - Gannon Dunkerley & Co., Ltd.,
Announcing our Special Magazine Edition! Magazine on the Railway Industry of India Releasing in March, 2018 Our Print magazine is distributed to the decision makers in the Railway Industry. The Digital magazine is Sent to 20,000+ companies in India and another 30,000+ Overseas. We provide you a very effective marketing platform. Reach Out to the Railway Industry in India. Book Now, For Premium Spots : magazine@railanalysis.com
www.railanalysis.in Email : support@railanalysis.in Indian Tel : +919811979598, +919811979599 www.railanalysis.in Thank you for your precious time! Disclaimer : Rail Analysis ( c/o M/s Projections Strategy LLP ) assumes no liability or responsibility for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained about each individual, project, event or organization has been provided by such individual, project managers, organization available in the public domain without verification by us. The opinion expressed does not necessarily reflect the opinion of Rail Analysis. Therefore, Rail Analysis carries no responsibility for the opinion expressed thereon. or any feedback, please contact us at support@railanalysis.com