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Railway Budget 2011: No Hike in Fare and Freight Rates

New Delhi: Union Railway Minister Mamata Banerjee on Friday presented a populist Rail Budget 2011-12, announcing there will be no hike in passenger fares as well as freight rates.

Also, in a move to attract passengers from higher strata of the society, Mamata announced that the Railways will introduce new Super AC class of travel beginning this year.

She further proposed a reduction in e-ticket booking rates by Rs 10 for AC class and Rs 5 for non-AC class.

The Railway Minister told Lok Sabha, while presenting her third Rail Budget, that the age for concession under senior citizen category for women is being reduced from 60 years to 58 years.

Mamata began the speech by telling Parliament that this year’s Rail Budget has a strong economic focus as well as social inclusion with human face. The main focus is on common man, she added.

The minister said the focus this year will also be on passenger safety. She announced anti-collision devices will be installed in more zones this year. Mamata also said the Railways will build 175 ROBs this year.

In an important announcement, Mamata proposed two new projects and two new trains each for states where trains run trouble free.

Rail Budget Highlights

  • Strong economic focus with social inclusion
  • Main focus on common man – urban, small town and rural
  • Two pronged approach
  • Rail services comparable to emergency services
  • 85 proposals received under PPP mode
  • We are aware of acute sense of social responsibility
  • Set up Rail based industries
  • Wagon factory in Orissa
  • Will set up Rail coach factory in Palakkad, Kerala
  • Component factory in Chertala, Kerala
  • Tunnel & bridge engineering institute in Jammu
  • Railways introduced new infrastructure policies
  • Railway to set up Bridge factory in J&K
  • Diesel Locomotive Factory in Manipur
  • Centre of excellence in software in Darjeeling
  • Track-machine industry to be set up in Uluberia, West Bengal
  • Rail industrial park in Jalpaiguri and Nandigram, in West Bengal
  • Rail industrial park in New Bongaigaon, Assam
  • First coach from the new rail factory at Rae Bareli to roll out in next three months
  • Proposal to set up metro coach factory near Singur in West Bengal
  • A 700 MW gas based power plant to be set up at Thakurli, Maharashtra
  • Track-machine industry to be set up in Uluberia, West Bengal
  • Sukhi Ghar Yojna: 10,000 shelters for the poor
  • New rail line capacity to be increased to 700 kms
  • 474 kms for doubling
  • PM Rail Vikas Yojna will include all the rail projects under the 12th Plan
  • Gas based power plant in Thakurli, near Mumbai
  • Focus on safety
  • 1,500 trains cancelled, 3,500 re-scheduled last year due to protests, other reasons
  • Stop rail rook agitations
  • Anti-collision devices to be commissioned in three Railway zones including South and South Central soon
  • 175 ROBs this year
  • Two new projects and two new trains for states where trains run trouble free
  • Real time train operation system developed in association with IIT Kanpur
  • Dedicated eight corridor on track
  • Double decker container trains from Gujarat to inland port in Gurgaon
  • 2011 declared as green year
  • Go India smart card on pilot basis – single window facility for buying tickets for long distance, Metro etc
  • Rail yatri sevak service – trolly service in major metros
  • New Super AC Class of travel to be introduced
  • e-ticket booking rates to be reduced by Rs 10 for AC class and Rs 5 for non-AC class
  • Age for concession under senior citizen category for women reduced from 60 to 58 years
  • Concessions for male senior citizens reduced from 30% to 40%
  • Rail accident rate has declined from 0.29% last year to 0.17% now
  • To meet the demand for coaches, rail based industries to be set up under Vision 2020
  • One core committee to monitor Kolkata Metro project
  • 34 new services for Kolata Metro this year
  • Survey for more lines to expand Metro network
  • Integrated suburban rail network to be developed in Mumbai, Chennai, Hyderabad, Ahmedabad and Kolkata
  • Enthused by the high number of medals in international sports competitions won by Railways
  • A Sports Cadre will be set up in the department
  • Restructuring of all cadres being undertaken in the Railways
  • Six new suburban projects for Hyderabad
  • 47 additional suburban service for Mumbai
  • 50 new suburban trains for Kolkata
  • Trains to be 12 car from present 9 cars
  • New suburban services for Chennai and Kolkata too
  • Peak time local trains: Bardmann to Howrah, Hyderabad-Faluknama, Delhi-Ghaziabad

    New Trains

  • Frequency of 17 trains to be increased
  • To extend run of 33 trains
  • To introduce 56 new Express trains
  • To launch 15 new suburban trains in Kolkata
  • To launch 3 new Shatabdi trains
  • To launch 9 new Duronto trains
  • New Durantos: Allahabad-Mumbai, Pune-Ahmedabad, Sealdah-Puri, Secunderabad-Vishakhapatnam, Madurai-Chennai, Chennai-Trivandrum, Mum-Delhi, Delhi-Ajmer
  • Double decker AC trains: Jaipur to Delhi, Ahmedabad to Mumbai
  • Mumabi-Howrah – four day; Sealdah-Delhi – 5 days; Nagpur-Mumbai – 5days
  • Three new Shatabdi Exps
  • New Express Trains: Rail Bareli-Jaunpur Exp, Sasaram-Delhi Exp, Nagpur-Kolhapur Exp, Pune-Nanded Exp, Vishkhapatnam-Kolhapur Exp, Howrah-Secundrabad Exp, Mumbai-Chandigarh Exp, Bardman-Rampurhat Exp, Hyderabad-Bharbhala Exp, Howrah-Tirupati Exp, Puri-Shalimar Exp, Ranchi-Pune Exp, Howrah-Mysore Exp, Digha-Vishapatnam Exp

    Employees & Recruitment

  • Medical facility for dependent father and mother
  • Child education scholarship of Rs 1200
  • Restructuring of all cadres to ensure promotion opportunities
  • Steps to fill all vacant posts
  • 16000 ex-servicemen to be inducted into Railways Training
  • New training centre in Kolkata, Dharwad and Pune
  • New international training centre in Agra
  • Five new polytechnics, including in Bhilai and Dharwad


  • Facing difficulties due to Sixth Pay Commission expenditure
  • Rs 3700 cr saved by austerity measures
  • Earnings are set to exceed Rs 1 lakh crore mark
  • To borrow Rs 205.9 bn in 2011-12
  • India Railways to issue tax-free bonds of Rs 10,000 cr in 2011-12
  • To spend Rs 576.3 bn in 2011-12
  • Annual gross budgetary support Rs 2 bn
  • Rs 138.24 bn for acquisition of rolling stock
  • Saved Rs 3 bn on rail re-alignment
  • Operating ratio excluding pay panel arrears 84% now
  • Disruptions cost Rs 15 bn loss in FY11
  • Lost Rs 20 bn FY11 on iron ore export curbs
  • Expect railways financial health to revive in FY12
  • FY12 operating ratio pegged at 91.1%
  • To add 1,000 km of new rail lines in FY12
  • FY12 total working expenses seen at Rs 964 bn
  • Set aside Rs 67.35 bn dividend for FY12
  • FY12 gross traffic receipt seen at Rs 1.06 trillion
  • Freight loading aims at 993 million tn in FY12


  • To build 10,000 shelters near suburban railways
  • To build new rail line capacity of 700 km/yr vs 180 km
  • To set up track machine unit in Bengal’s Uluberia
  • Working on 1,000 MW captive power plant in Bihar
  • To set up 1,300 MW thermal power plant in Andhra
  • To set up 700 MW gas-based power plant in Maharashtra
  • To set up rail industrial park in Nandigram, New Bongaigaon
  • Two more wagon units in Kerala
  • To begin Orissa wagon unit work on land identification
  • To set up two more wagon unit under joint venture mode
  • To set up now coach factory at Kolar via JV or PPP
  • Work on Jalpaiguri, Kulti units already taken up
  • Imphal to be connected with rail network soon
  • To set up diesel locomotive centre in Manipur
  • To set up software centre in Darjeeling
  • To set up tunnel and bridge institute in Jammu
  • To set up metro coach factory in Singur
  • To set up coach factory in Palaghat
  • Work on Kanchanpara, Marhura loco units moving well
  • First coach from new Rae Bareli unit in 3 months
  • Set up single window for PPP project OK
  • Got 85 proposals for PPP pans
  • Work on Western freight corridor progressing well
  • Work on Eastern freight corridor progressing well
  • To give 12,000 acres for dedicated freight corridor
  • Setting up metro coach factory at Singur
  • Wagon procurement target 18,000 units FY12
  • To open 2 new passenger coach terminals in Kerala
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