Premium
This is an archive article published on February 26, 2011

Railways’ earnings to exceed R1 lakh crore

The operating ratio of the railways would improve marginally to 91.1 per cent in 2011-12.

For the first time,the railways’ earnings are set to exceed the Rs 1 lakh crore mark,at Rs 1.06 lakh crore,according to the Railway Budget estimate for 2011-12 — a 12 per cent increase over the revised budget estimates of 2010-11. The total working expenditure is expected to touch Rs 96,450 crore,a 10.6 per cent increase over 2010-11. With this,the operating ratio of the railways would improve marginally to 91.1 per cent in 2011-12,compared with 92.1 per cent in 2010-11.

Explaining the budgetary estimates for 2011-12,railway minister Mamata Banerjee said,“The freight traffic projection for the year is 993 million tonne,a revenue estimate of Rs 58,501 crore,and passenger growth is expected to be 6.4 per cent over 2010-11 at Rs 26,126 crore. Assuming a clearance of Rs 200 crore from traffic suspense,the gross traffic receipts are estimated at Rs 1,06,239 crore.”

On the expenditure side,ordinary working expenses of Rs 73,650 crore are 9.9 per cent higher than the revised estimates of 2010-11,owing to a higher wage bill that includes annual increments of salaries,DA,higher requirement for fuel and materials for increased level of activity and lease payments. The appropriation to pension fund is pegged at Rs 15,800 crore and to the depreciation reserve fund at Rs 7,000 crore. A provision of Rs 6,735 crore has been made for dividend payment,leaving an ‘excess’ of Rs 5,258 crore to be channelled to the development fund and capital fund.

Story continues below this ad

The annual plan outlay for 2011-12 is the highest ever at Rs 57,630 crore. Of this,Rs 20,000 crore will be supported by the gross budgetary support,Rs 1,041 crore through the diesel cess,Rs 14,219 crore through the railways’ internal resources and Rs 20,594 crore from market borrowings through the Indian Railway Finance Corporation,considering its past excellent performance in the financial markets. Normally,IRFC raises between Rs 9,000 crore and Rs 10,000 crore annually for leasing of rolling stock. Next year,an additional amount of Rs 10,000 crore would be raised through tax-free bonds for financing select capacity enhancement works. Further,external sources of financing through PPP and other initiatives is expected to yield Rs 1,776 crore.

Rs 9,583 crore is being allocated for new lines. Of this,Rs 5,406 crore is for doubling and Rs 2,470 crore for gauge conversion to complete 876 km and 1,017 km,respectively,and Rs 13,820 crore for acquisition of rolling stock to overcome shortages of wagons,coaches and locomotives.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement