Great Expectations From Minister Suresh Prabhu in Rail Budget Today

Railway Minister Suresh Prabhu will present his first Rail Budget today amid huge expectations of major reforms. The chartered accountant turned politician may lay the roadmap for attracting private investment in railways in a bid to raise more funds for project completions and infrastructure expansion.

Here are some of the expectations from Railway Budget:

1) Mr Prabhu has said the railways need $100 billion or Rs 6 lakh crore in funding over the next 3-4 years. It is expected to get a mere Rs 50,000 crore as budgetary support from the Central government. The rest has to come from external source of funding, either through foreign direct investment or public-private participation.

2) The railway minister is expected to cut down bureaucracy and red tape in railways to attract investments. Partial privatisation of goods and passenger trains could be announced. A minimum return assurance will also help boost private investment in railways, analysts say. Railways can also monetise some of its land assets.

3) A first step to tighten purse strings could begin with fewer new trains and projects announcements. The railway has 359 projects pending, which will cost Rs. 1.82 lakh crore.

4) Passenger fares are unlikely to be hiked, but freight fares may be rationalized. Freight fares have been kept high in India to cross-subsidize passenger fares.

5) More details about the Mumbai-Ahmedabad bullet train, for which just Rs. 100 crore has been set aside, are likely to come through. Plan to procure 20 train sets for operating on the Rajdhani and Shatabdi routes may be announced.

6) Announcements on passenger amenities are likely. A proposal to redevelop 100 stations can be made. AC coaches for inter-city services may be announced. Extensive use of IT systems, apps for passengers and Wi-Fi on rail premises may be announced.

7) Measures to enhance safety and security for passengers are expected. Railways has sought Rs. 20,000 crore from the finance ministry as safety fund to do away with unmanned level crossings, a major reason for train mishaps across the country.

8) Proposals to implement schemes to push 'Make in India' are expected. Domestic firms may get more incentives to manufacture locomotive components and coaches locally.

9) To implement 'Swachh Bharat' campaign, the Rail Budget will include measures on cleanliness. 100 more trains may be covered under 'On-Board Housekeeping Services'. Bio-toilets in trains and stations could be announced.

10) Green initiatives: Use of solar energy, launching of waste-to-energy project and proliferation of CNG in train operations are expected. Announcements on water recycling plants could be made.

(With inputs from PTI)