Highlights of the Railway Budget – FY 2011-12 :: Goldman Sachs

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Highlights of the Railway Budget – FY 2011-12 
The Railway Budget released today (FY2011-12)  attempts to combine a strong economic focus with equal emphasis on social inclusion
Annual Plan 2011-12
Highest ever plan outlay of INR 576 bn  
Gross Budgetary Support INR 200 bn  
Diesel Cess INR 10.4 bn  
Internal Resources INR 142 bn  
Market Borrowing  INR 206 bn; PPP/WIS INR 17.8 bn  
1,300 km new lines, 867 km doubling, 1,017 km gauge conversion targeted in FY 2011-12  
ock  INR 96 bn provided for new lines, INR 54 bn for doubling, INR 24.7 bn for gauge conversion and INR 138 bn for acquisition of st 
Financial Performance 2010-11
Disruption of train movement resulted in loss of INR 15 bn and INR 20 bn due to the ban on export of iron ore  
Loading target reduced by 20 MT to 924 MT.  
Gross Traffic Receipts fixed at INR 948 bn, higher by INR 0.75 bn over Budget Estimate  
Ordinary Working Expenses fixed at INR 670 bn, an increase of INR 20 bn over Budget Estimate.  
Current dividend liability to be fully discharged   
Excess of INR 41 bn  
Operating Ratio of 92.1% as compared to 92.3% in Budget Estimates  
Revised Plan Outlay of INR 403 bn  
Budget Estimates 2011-12
Freight loading of 993 MT and passenger growth of 6.4%.  
Gross Traffic Receipts at INR 1.06 tn to exceed 1 tn mark for the first time.  
Ordinary Working Expenses assessed at INR 737 bn  
Appropriation to DRF at INR 70 bn  
made for dividend payment  Provision of INR 67.4 bn  
Excess at INR 52.6 bn and Operating Ratio of 91.1%  
Projects in 2011-12
ing projects are proposed to be taken up.  25 new line, 6 gauge conversion and 28 doubl 
t up  Implementation (COPI) with offices at Delhi, Kolkata, Mumbai and Bangalore proposed to be se A Central Organization for Project  
doubling surveys are proposed to be taken up in 2011-12  107 new line surveys, 4 gauge conversion surveys and 16  
In 2011-12, 1,000 km route to be electrified  
Expansion of Rail Infrastructure
700 km of new lines being completed in 2010-11  
800 km gauge conversion, 700 km doubling and 1,000 km electrification targeted for completion in 2010-11  
Survey of 94 out of 114 socially desirable new lines completed.  
to start to fund socially desirable projects   A new scheme ‘Pradhan Mantri Rail Vikas Yojana’  
ct unserved and underserved regions.  Construction of 4 new lines to conne 
Increase in allocation of 19 projects in under-developed and underserved areas to INR 7.7 bn  
Non-lapsable fund for railway projects in North East region created   
All state capitals in the North East except Sikkim to be connected in next 7 years 
Source: Indian Railways, GS Global ECS Research