Splurge on rail infra likely thanks to cheaper oil
According to a Reuters report, India's decrepit state-run train services stand to receive at least a 25 percent boost in investment to over $9 billion, funded solely by falling fuel costs.
According to officials, Railway Minister Suresh Prabhu has factored in savings from cheaper diesel totalling between Rs 12000-15000 crore ($1.9 billion-$2.4 billion) in the 2015/16 fiscal year, starting on 1 April.
The fall in diesel prices and a pick-up in freight earnings has given the Modi government a golden chance to raise investments.
No reduction of fares, focus likely to be on FDI and joint ventures
Minister of State for Railways Manoj Sinha had earlier ruled out a reduction in fares in the context of lowering of diesel rates but Prabhu is expected to make a tight rope walk as he tries to bridge the huge gap in finances.
This means that Prabhu will rely on higher support from the Union Budget as well as joint ventures with private sector players to put the railways back on track. Sources told that the government is keen on Public Private Partnerships to raise money. NGOs and corporate sectors can advertise on the coaches of railways to generate more revenue.
Prior to the 2013 rail budget, fares had not been increased for a decade but even then former railways minister Dinesh Trivedi was forced to roll back the across-the-board hike in second and sleeper class categories. However, in the first Rail Budget presented by the Modi government last year, fares were increased by 14.2 percent and freight by 6.5 percent.
"Prabhu is likely to unravel his grand plans of how to decrease the cross-subsidy for passenger service from freight earnings which is touching Rs 24,000 crore and the steps to increase goods transportation share in the national transporter with or without hiking fares".
Cess for cleanliness a possibility, fares for Tatkal maybe hiked
And while a fare hike is unlikely across the board since passenger growth has been negative in the last year, a cess for cleanliness cannot be ruled out. According to a report in Economic Times, minor adjustments in fares of tatkals and premium special trains that run on dynamic pricing cannot be ruled out.
New trains unlikely
Given the funds constraints, Prabhu is likely to go slow in announcing new trains and projects in the budget and funds allocation will be made only for those projects including new lines which are strategically crucial, doubling and route electrification which are nearing completion.
It has been a popular practice of the Railways to announce launching of about 150 to 180 new trains in its budget every year. About 160 trains were announced last year. But Prabhu may just take a different approach by not announcing too many new trains in his maiden budget speech and instead do it gradually over the course of the year.
As the railway minister has stressed on improvement in passenger amenities before increasing fares, there will be a series of measures including utilisation of CSR funds to improve amenities at rail premises.
Cleanliness of stations and bio-toilets a priority
Prabhu might also focus on aspects related to passenger satisfaction which include cleanliness, catering, linen, ease of access to booking information and tickets.
59,000 coaches are likely to be converted into vacuum toilets, a technology that's available in air planes. In line with the 'Swachh Bharat' campaign, Rail Budget is likely to give special attention on cleanliness exercise and a slew of measures like provision for dustbins in all coaches besides proposal to cover 100 more trains under 'On Board Housekeeping Services'.
Bullet trains and AC rakes
Keeping with the NDA government's bullet train promise, Prabhu could announce the way forward for the ambitious high-speed train project between Mumbai-Ahmedabad and survey programmes for the proposed diamond quadrilateral route.
The budget could also announce the much-awaited plan to procure 20 train sets for operating on the Rajdhani and Shatabdi routes to reduce travel time.The budget is likely announce plans for manufacturing coaches to run at a 200 km per hour speed at its Chennai facility in keeping with the Modi government's 'Make in India' initiative.
Introduction of AC rakes in the inter-city services to make the journey more comfortable will also be proposed in the Rail Budget 2015-16.
Customer satisfaction will be a focus area of this year's Rail Budget as a series of steps including air-conditioning of Diesel Electric Multiple Unit (DEMU) trains for inter-city services and noise reduction in diesel locomotive cabs are likely to be proposed, the sources said.
Make In India for Railways too
Manufacturing of many locomotive components like crank shafts, alternators and forged wheels will also be proposed to be undertaken indigenously instead of importing these parts from outside as part of 'Make in India' campaign.
Since many premium trains with higher fares have been introduced to boost revenue collection, the railways will undertake an exercise for upgrading of coach interiors including redesigning user-friendly toilets.National Institute of Design (NID) is likely to be roped in for redesigning the interiors of coaches.
Making Railways disabled-friendly
Prabhu, in his bid to make the railways disabled-friendly, is likely to make a proposal to provide for Braille signs in all new coaches to facilitate vision-impaired passengers.
IT and Wifi
The budget is expected to propose extensive use of IT systems in everything from the management of rolling stock to the development of Apps for passengers and provision for WiFi on rail premises.
Green initiatives
Use of solar energy in a big way, launching of waste-to-energy project and proliferation of CNG in train operations are some of the green initiatives likely to be announced in the Rail Budget this time. Besides an elaborate exercise of water conservation including setting up of water recycling plants will also be announced by Prabhu in his budget address on 26 February.
Security
To ensure safety and security, a proposal to install CCTVs in coaches and on stations is likely to be presented.
Branding of trains
There might also be a proposal to brand some of the trains in a move to generate additional funds.
As per the proposal, these trains will carry advertisements of some popular brands and may even be named on them such as the Coca Cola Express or Haldiram Express.
The Rail Budget is also likely to have proposal for more unreserved trains with general second class coaches such as the 'Jan Sadharan Express' on popular routes to facilitate travel for the common man. Besides some popular destinations will be connected with new service as tourist trains.
Trains for Bihar, a political move considering the upcoming Assembly elections, and the northeast are also likely to be announced. Attempts are being made to maintain a regional balance while announcing new trains for states including Uttar Pradesh, Odisha, Bengal and Gujarat.
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