Highlights of the Railway Budget 2012-13

Presenting his maiden Railway Budget in the Parliament, Dinesh Trivedi, stressed that the budget was aimed at the common man. He not only surprised people by hiking fares after almost 10 years he also laid stress on the need of safety and modernisation. The following are the highlights of the railway budget 2012-13:

Published: Wednesday 14 March 2012



  • Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee
  • Creating Missions as recommended by Pitroda Committee to implement the modernisation programme
  • New Board Member (Safety/Research) to be inducted
  • Rail-Road Grade Separation Corporation to be set up to eliminate level crossings
  • Three ‘Safety Villages’ to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management
  • Installation of Integrated Security System at all 202 identified stations to be completed in 2012-13
  • Escorting of trains by RPF/GRP extended to 3500 trains
  • Integration of RPF helpline with the All India Passenger Helpline


  • Aligning the Annual Plan investment with five focus areas identified by Kakodkar and Pitroda Committees i.e. (a) Track (b) Bridges (c) Signalling & Telecommunication (d) Rolling Stock and (e) Stations & Freight Terminals
  • Work to be taken up facilitating running of 12-car rakes on Harbour line
  • A National High Speed Rail Authority to be set up
  • Pre-feasibility studies on six high speed corridors already completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13
  • 725 km new lines, 700 km doubling, 800 km gauge conversion and 1,100 km electrification targeted in 2012-13.
  • Rs 6,872 cr provided for new lines, Rs 3,393 cr for doubling, Rs 1,950 cr for gauge conversion, Rs 828 cr for electrification.

Public Private Partnerships/New Resources

  • Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode
  • Logistics Corporation to be set up for development & management of existing railway goods sheds and multi-modal logistics parks
  • Private investment schemes for Wagon leasing, Sidings, Private Freight Terminals, Container train operations, Rail connectivity projects (R3i and R2C-i) being made more attractive to PPP partners
  • New Board Member (PPP/Marketing) to be inducted
  • Financial modeling of the elevated rail corridor from Churchgate to Virar firmed up with Government of Maharashtra through PPP mode.
  • A pre-feasibility survey for a similar corridor between CST and Kalyan proposed.

State-Centre partnerships

  • MoU signed with Government of Chhatisgarh to develop three rail corridors in state for movement of passenger and freight
  • 31 projects covering a length of more than 5,000 km in 10 states being executed with contribution from state governments
  • Four projects on cost sharing basis with Governments of Haryana, Andhra Pradesh & West Bengal proposed
  • 12 projects on cost sharing basis with Government of Karnataka, Andhra Pradesh, Madhya Pradesh, Jharkhand, Rajasthan and Maharashtra sent to Planning Commission for approval
  • 17 projects to facilitate the first and list mile connectivity proactively sanctioned and another 28 projects identified

Connectivity to neighbouring countries

  • Construction of Jogbani-Biratnagar and Jaynagar-Bijalpura-Bardibas new lines already in progress to provide connectivity to Nepal
  • Project to connect Agartala with Akhaura in Bangladesh to be taken up in 2012-13 Green Initiatives
  • Setting up of 72 MW capacity windmill plants in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal
  • Setting up of 200 remote railway stations as ‘green energy stations’ powered entirely by solar energy
  • Providing solar lighting system at 1,000 manned level crossing gates
  • Introduction of mobile emission test cars to measure pollution level of diesel locomotives
  • Commissioning of two bio diesel plants at Raipur and Tondiarpet
  • Introduction of a ‘Green Train’ to run through the pristine forests of North Bengal
  • 2,500 coaches to be equipped with bio toilets

Improved passenger services

  • Installation of 321 escalators at important stations of which 50 will be commissioned in 2012-13
  • 12 State of art mechanized laundries already set up and 6 more to become functional during 2012-13
  • SMS on passenger mobile phone in case of e-ticket to be accepted as proof of valid reservation
  • Introduction of regional cuisine at affordable rates; launching of Book-a ¬meal scheme to provide multiple choice of meals through SMS or email
  • Setting up of AC Executive lounges at important stations
  • Setting up of new Rail Neer Plants at Palur in Tamil Nadu and Ambernath in Maharashtra
  • Expansion of housekeeping schemes for trains
  • Introduction of Rail Bandhu on-board magazines on Rajdhanis, Shatabdis and Duronto trains
  • Introduction of coin/currency operated ticket vending machines
  • Introduction of Alternate Train Accommodation System to accommodate waitlisted passengers on alternate trains
  • Introduction of model rake with world class interiors
  • Upgradation of 929 stations as Adarsh Stations including 84 stations proposed in 2012-13; 490 stations have been completed so far
  • Construction of multi-functional complexes at 24 locations completed
  • Sale of PRS tickets through 151 post offices
  • Implementation of electronic transmission of RR for freight traffic
  • Introduction of satellite based real time train information system (SIMRAN) to provide train running information to passengers through SMS, internet, etc
  • On board passenger displays indicating next halt station and expected arrival time to be introduced
  • Specially designed coaches for differently-abled persons to be provided in each Mail/Express trains
  • Engaging reputed professional agencies for pantry cars and base kitchens
  • Specialised House-keeping body to be set up for cleanliness of stations and the trains
  • Dedicated Railway Design Centre to be set up in the National Institute of Design, Ahmedabad

Coaching terminals

  • Survey and feasiblity study for new coaching terminals at Nemam, Kottayam, Mau and Dankuni to be taken up
  • Pre-feasibility study for development of Roypuram station in Tamil Nadu for which many representations have been received
  • New coaching complex at Panvel and coach maintenance complex at Kalamboli in partnership with Government of Maharashtra through CIDCO planned
  • New coaching terminal at Naihati, the birth place of Rishi Bankim Chandra Chattopadhyay commemorating him on 175th Birth Anniversary

Railway finances 2012-13

  • Highest ever plan outlay of Rs 60,100 cr
  • Gross Budgetary Support – Rs 24,000 cr
  • Railway Safety Fund –Rs 2,000 cr
  • Internal Resources – Rs, 18,050 cr
  • Market Borrowing - Rs15,000 cr
  • PPP – Rs 1,050 cr.

Financial Performance 2011-12

  • Loading target reduced by 23 MT to 970 MT
  • Gross Traffic Receipts fixed at Rs 1,03,917 cr in RE, short by Rs 2,322 cr over Budget Estimates
  • Ordinary Working Expenses fixed at Rs 75,650 cr, an increase of Rs 2,000 cr over Budget Estimates; Pension payments also up by Rs 1,000 cr.
  • Current dividend liability to be fully discharged
  • Excess of Rs 1,492 cr as against the budget amount of Rs 5,258 cr.
  • A loan of Rs 3,000 cr extended by MoF to meet requirement of safety related works under Development Fund
  • Operating Ratio of 95.0% as compared to 91.1% in Budget Estimates

Budget Estimates 2012-13

  • Freight loading of 1025 MT, 55 MT more than 2011-12
  • Passenger growth - 5.4 per cent
  • Gross Traffic Receipts -Rs 1,32,552 cr i.e. 27.6 per cent increase over RE, 2011-¬12
  • Ordinary Working Expenses – Rs 84,400 cr
  • Appropriation to DRF at Rs 9,500 cr and to Pension Fund at Rs 18,500 cr
  • Dividend payment estimated at Rs 6,676 cr
  • Loan of Rs 3,000 cr taken in 2011-12 to be fully repaid along with interest
  • Operating Ratio estimated at 84.9 per cent

New Trains

  • 75 additional services to run in Mumbai suburban
  • 18 additional services to be run in Chennai area
  • 44 new suburban services to be introduced in Kolkata area
  • 50 new services to be introduced in Kolkata Metro in 2012-13
  • 75 new Express trains to be introduced
  • 21 new passenger services, 9 DEMU services and 8 MEMU services to be introduced
  • Run of 39 trains to be extended
  • Frequency of 23 trains to be increased

Tariff Proposals

  • Setting up of Railway Tariff Regulatory Authority to be considered;
  • Passenger fares increased by 2 paise per km for suburban and ordinary second class; 3 paise per km for mail/express second class; 5 paise per km for sleeper class; 10 paise per km for AC Chair Car, AC 3 tier and First Class; 15 paise per km for AC 2 tier and 30 paise per km for AC I
  • Fares to be rounded off to the next nearest five rupees
  • Minimum fare and platform tickets to cost Rs 5
  • Fuel Adjustment Component (FAC) in fares contemplated

Also Read: Indian Railways is on the brink of collapse. What it needs is a monetary push from the government to ensure self-sustainability


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