Railway Budget 2015-16: Clear Road Map for 5 years with 52% higher spending for FY16 :: Edelweiss

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Mr Prabhu technocrat minister presented railway budget for 2015-16. The  Budget gave clear roadmap for next 5 years on allocation of funds. Focus of the budget was on making railways self sustainable, decentralisation of authority for quick decision making and improving efficiency. Overall we believe it was a positive budget.

• Making Railways self sustainable - 1) Propose operating ratio of 88.5 percent for FY16 Vs 91.8 percent FY15  2) Pension Fund and Multilateral banks have shown interest. Also budget has proposed for seperate finance cell for project funding decision.
• Decentralisation of authority for quick decision making :  1) Station Redevelopment - Zonal and Divisional offices be empowered for quicker decision making  2) Decisions to be made at General Manager level for clearing projects
• Buying of electricity through bidding process will result in cost savings of INR 3000 cr in next few years
• No hike in passenger fare rates
• Budget also focused on Swach railway (in-line with Swach Bharat) by introducing new department for the same.
• To spend INR 8.56 lac crores over 5 years - Increase daily passenger carrying capacity from 21million to 30 million: increase track length by 20% from 1,14,000 km to 1,38,000 km: grow our annual freight carrying capacity from 1 billion to 1.5 billion tonnes.
  
  Focusing on improving efficiency by decongestion, adding new network, safety and station redevelopment.

LINK
https://www.edelweiss.in/research/Railway-Budget-2015-16-Clear-Road-Map-for-5-years-with-52-higher-spending-for-FY16/10005650.html