Highlights of Railway Budget 2011-2012

Posted: February 28, 2011 in 2011



Budget attempts to combine a strong economic focus with equal emphasis on social inclusion with a human face.

Policy Initiatives

▪ Railways have developed several business-oriented policies for the first time.

o Railways’ Infrastructure for Industry Initiative (R3i)

o Private Freight Terminal (PFT)

o Special Freight Train Operators (SFTO)

o Automobile Freight Train Operators (AFTO)

o Automobile and Ancillary Hubs

o Kisan Vision (Cold Chains)

o New Catering Policy

o Rail Connectivity to Coal and Iron Ore mines (R2CI)

▪ 85 proposals received; Single Window System set up to take forward

these proposals.

Rail Based Industries

▪ Setting up of rail-based industries for meeting demand for rolling stock.

▪ The works at New Jalpaiguri, Adra, Jellingham and Kulti taken up in collaboration with different PSUs.

▪ First coach from Rae Bareli coach factory to be rolled out in next three months.

▪ Projects for supply of locomotives, coaches & critical loco components being taken forward in many locations.

▪ Group of Officers working on PPP/JV project models.

▪ Work initiated at Budge Budge, Dankuni, Naopara, Anara, Tindharia, New Cooch Behar, Kharagpur, Haldia, Guwahati and Kazipet.

▪ Wagon factory in Orissa to taken up, once land identified.

▪ ICF Perambur’s second unit to come up.

▪ Setting up of Palakkad coach factory.

▪ Burn Standard Company Limited and Braithwaite Company Limited brought under Ministry of Railways.

▪ Setting up of a Bridge Factory in J&K and an Institute for Tunnel & Bridge Engineering at Jammu.

▪ Setting up of Metro Coach Factory in Singur.

▪ Setting up of a diesel locomotive centre in Manipur.

▪ Setting up of a Centre of Excellence in software at Darjeeling.

▪ Setting up of two wagon factories under JV/PPP mode at Kolar & Alappuzha and one at Buniadpur.

▪ Setting up of a factory for manufacturing on-track machines and a new track machine POH facility at Uluberia.

▪ Setting up of Rail Industrial Parks at Jellingham and New Bongaigaon.

▪ A unit to manufacture car steel bogies and couplers through JV between Burn Standard Co. Ltd and SAIL already initiated in

Jellingham Park.

▪ Setting up of 700 MW gas-based power plant at Thakurli in Maharashtra.

▪ Setting up of additional mechanized laundry cleaning units at Nagpur, Chandigarh & Bhopal. In 23 locations laundries are under installation.

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 targetted for completion in 2010-11.

▪ Survey of 94 out of 114 socially desirable new lines completed.

▪ A new scheme ‘Pradhan Mantri Rail Vikas Yojana’ to start to fund socially desirable projects.

▪ Construction of 4 new lines to connect unversed and undeserved regions.

▪ Increase in allocation of 19 projects in under-developed and under-served areas to Rs 771 cr.

▪ 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.

Dignity to the Poor

▪ Provision of small shelter through Sukhi Griha Scheme to track side dwellers. 10,000 dwelling units to be provided in Mumbai, Sealdah, Siliguri, Tiruchirapalli etc on pilot basis.

Annual Plan 2011-12

▪ Highest ever plan outlay of Rs 57,630 cr.

o Gross Budgetary Support Rs 20,000 cr

o Diesel Cess Rs 1,041 cr

o Internal Resources Rs 14,219 cr.

o Market Borrowing Rs 20,594 cr; PPP/WIS Rs 1,776 cr.

▪ 1,300 km new lines, 867 km doubling, 1017 km gauge conversion targetted in 2011-12.

▪ Rs 9,583 cr provided for new lines, Rs 5,406 cr for doubling, Rs 2,470 cr for gauge conversion and Rs 13,820 cr for acquisition of rolling stock.

Safety and Security

▪ Anti Collision Device (ACD) sanctioned to cover 8 zonal railways.

▪ All unmanned level crossings of TVU upto 3000 to be eliminated.

– Construction of 200 ROBs & 325 RUBs/subways.

▪ Deployment of GPS-based ‘Fog Safe’ device.

▪ Two new trains and two projects as a special package to states which ensure trouble free running of trains.

▪ All India Security Help line on a single number set up.

Green Initiatives

2011-12 to be ‘Year of Green Energy’

▪ Regenerative braking in Mumbai EMUs.

▪ Production of locos with ‘hotel load converters’

▪ Use of solar energy at LC gates and stations, windmill at ICF Chennai.

▪ Use of bio-diesel, CNG and LNG in locos and workshops.

▪ Free supply of 14 lakh CFLs to railway households.

Passenger/Rail Users’ Amenities

▪ 442 more stations upgraded as Adarsh Stations.

▪ 236 more stations included in the list of Adarsh Stations

▪ More MFCs and Budget Hotels to be set up at 45 locations.

▪ Introduction of pan-India multi-purpose ‘Go India’ smart card.

▪ Two new passenger terminals in Kerala and one each in Uttar Pradesh & West Bengal.

▪ Better accessibility for physically challenged customers; extension of Rail Yatri Sevaks to six more stations.

▪ New portal for e-ticketing.

▪ Internet access on Howrah- Rajdhani Express on pilot basis.

▪ Extension of Train Management System to five stations.

▪ Introduction of advance booking of Retiring Rooms.

▪ Introduction of new super AC class of travel.

▪ Feasibility study with the help of Japan to raise speed of passenger trains to 160-200 kmph.

Staff Welfare

▪ Expanding the scope of Liberalized Active Retirement Scheme for Guaranteed Employment for safety category staff.

▪ Extending medical facilities to both dependent father & mother.

▪ Increasing the scholarship for girl child of group-D employees to Rs.1,200 pm.

▪ Setting up of Railway Vidyalaya Prabandhan Board.

▪ Provision of 20 Road Medical Vans.

▪ 20 additional hostels for children of railway employees to be set up.

Training and Recruitment

▪ Recruitment for 1.75 lakh vacancies of group C & D initiated, including backlog of SC/ST quota.

▪ Mega recruitment drive on; 16,000 ex-servicemen to be inducted by end of March 2011.

▪ Training Center to be set up at Kharagpur.

▪ Three multi-disciplinary training centres to be set up with an exclusive international centre at Agra.

▪ New basic training centre at Kurseong.

▪ Five polytechnics to be set up.


Railway sportsperson won 25 medals in the Commonwealth Games 2010 and 7 out of 14 golds won by India in the Asian Games.

▪ A separate sports cadre to be created.

Cultural Activities

▪ A special ‘Sanskriti Express’ exhibition train being run to commemorate the 150 th Birth Anniversary of Gurudev Rabindranath

Tagore is being run which will also go to Bangladesh.

▪ Running of Vivekananda Express to be extended for two more years.

Financial Performance 2010-11

▪ Disruption of train movement resulted in loss of Rs 1,500 cr and Rs 2,000 cr due to ban on export of iron ore.

▪ Loading target reduced by 20 MT to 924 MT.

▪ Gross Traffic Receipts fixed at Rs 94,840 cr, higher by Rs 75 cr over Budget Estimates.

▪ Ordinary Working Expenses fixed at Rs 67,000 cr, an increase of Rs 2,000 cr over Budget Estimate.

▪ Current dividend liability to be fully discharged.

▪ Excess of Rs 4,105 cr.

▪ Operating Ratio of 92.1% as compared to 92.3% in Budget Estimates.

▪ Revised Plan Outlay of Rs 40,315 cr.

Budget Estimates 2011-12

▪ Freight loading of 993 MT and passenger growth of 6.4%.

▪ Gross Traffic Receipts at Rs 1,06,239 cr to exceed one lakh crore mark for the first time.

▪ Ordinary Working Expenses assessed at Rs 73,650 cr.

▪ Appropriation to DRF at Rs 7000 cr.

▪ Provision of Rs 6,735 cr made for dividend payment.

▪ Excess at Rs 5,258 cr and Operating Ratio of 91.1%.

Metropolitan Projects

▪ Entire section from Mahanayak Uttam Kumar to Kavi Subhash commissioned in Kolkata.

▪ 34 new services to be introduced in Kolkata Metro.

▪ Core committee set up to closely monitor progress of on-going works at four sections of Metro Railway Kolkata.

▪ Seven new surveys for new connectivity of Kolkata Metro Railway to be taken up.

▪ 20-car MEMU trains introduced on Northern Railway.

▪ Development of Integrated Suburban Railway Network in large cities.

▪ Setting up of Kolkata Rail Vikas Corporation for upgrading entire suburban system of Kolkata.

Production Units

• Capacity of DLW to be augmented to 300 locos


▪ Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.

▪ Concession of 50% to press correspondents with family increased to twice a year.

▪ Concession to Kirti and Shaurya Chakra awardees to be extended to Rajdhani and Shatabdi trains.

▪ Facility of card passes to be extended to the parents of unmarried posthumous Param Vir Chakra & Ashok Chakra gallantry award


▪ Senior citizen concession to be increased from 30% to 40% for men; women to get senior citizen concession from 58 years age.

Wagon Procurement

▪ Record procurement of 16,500 wagons being done in 2010-11.

▪ Target for 2011-12 kept at 18,000 wagons.

Dedicated Freight Corridors

▪ Main loan agreement for Phase I of Western Corridor of DFC signed with JICA.

▪ DFC project will be completed as scheduled.

New Lines / Gauge Conversion / Doubling

▪ 27 sections of New Lines of about 700 km to be completed in 2010-11.

▪ 800 km target for gauge conversion to be met with work being completed on 15 sections.

▪ 700 km target of doubling to be met with completion of 52 sections.

▪ 40 sections of New Lines covering 1,075 km targeted to be completed in 2011-12….


Need PDF Format Click Here : RailBudget-Highlights2011-12


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