X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Railway Budget 2009-10: No major surprises - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 3, 2009

    Railway Budget 2009-10: No major surprises

    The Railway Minister Ms. Mamta Banerjee presented the railway budget today. The budget has left passenger fare and freight rates unchanged. It talks about world class facilities and modernization of few of the railway stations besides safety and security. It remains to be seen whether this gets converted into reality!

    Budget Announcements

    On the industry front:

    • The freight volume target has been fixed at a more realistic 880 m tonnes. Railways is also seeking increase share in new traffic streams like automobiles, fly ash, etc.
    • New policy to be launched for construction and operation of private freight terminals.
    • Railways to develop cold storages for farmers to store vegetables and fruits.
    • Railways to set up Land Banks to be used for industry.
    • The dedicated freight corridor sees extension of Eastern corridor to Dankuni. The logistics parks and mega power plants on the Delhi Mumbai Industrial corridor will be executed in public private partnership mode.
    • To run superfast parcel express trains on select routes to provide premium parcel services with assured transit times.

    On the passenger front:

    • The passenger fare remains unchanged.
    • A 119% increase in fund allocation for passenger amenities (spend increased to Rs 11 bn from Rs 5 bn).
    • Develop 50 stations as world class stations. Also develop 375 adarsh stations during FY10 with basic facilities like drinking water, adequate toilets, catering services, waiting rooms etc.
    • Plans to construct Multi-Functional Complexes (MFCs) in station premises planned to provide travelers facilities like shopping, food stalls and restaurants.
    • To ensure safety and security of passengers, few services like Infotainment services to be provided in major long-distance trains, at least a doctor on long distance trains and the number of women commandoes and women RPF squads will also be enhanced.
    • Apart from expansion of e-ticket services, automatic vending system would be installed at 200 large and medium sized locations. Efforts will also be directed to provide reserved tickets at 5,000 post offices.
    • To accommodate greater number of travelers due to an increase in population, railways plans to develop double decker coaches for intercity travel.
    • The young India who voted for the UPA government is also taken care of. For the youth, Yuva air-conditioned (AC) trains to be introduced whereby one would have to pay Rs 299 for distances upto 1,500 km and Rs 399 for distances upto 2,500 km.
    • The period of advance booking under the Tatkal Scheme will be reduced from 5 days to 2. Further, Tatkal tickets will be made available destination-wise.

    Other initiatives:

    • Plans to augment capacity through adequate allocation for new lines (250 kms), gauge conversion (1,300 kms), doubling, (700 kms) and electricifcation (1,000 kms).
    • Photo-ID cards-cum-credit cards to be given to accredited journalists. Travel concession has been increased from 30% to 50% for them.
    • To continue focus on critical needs for modernization of the rolling stock through induction of high end technology for new design higher capacity wagons, higher horse power locomotives, stainless steel coaches and wagons etc.
    • 18,000 wagons to be acquired during the current year.

    The impact...

    • Tatkal tickets would be made available destination wise instead of from end to end. This will reduce the financial burden on passengers.
    • The freight volume growth target may be taken care of by the manufacturing sector itself. With increase in petrol and diesel prices, road transportation would be all the more expensive. With that a shift in favour of railways is likely to be seen as compared to roadways transportation by railways over long distances is economically viable. The bulk of the cargo carried by railways comprises of commodities iron ore, steel, cement, coal, etc. The benefit of stable freight rates would be felt more by manufacturers and traders of these commodities.
    • Wagon manufacturing companies such as Titagarh Wagons may see surge in orders as railways plans to acquire 18,000 wagons during the year.
    • With railways targeting new transport streams like automobiles, fly ash etc, container train operators like Container Corporation and Gateway Distriparks may stand to benefit from increased traffic
    • Increased automation could provide a boost to IT service providers who specialize in this domain

    The railway minister has outlined massive plans to provide better services and world class facilities to users. But execution is the key. Therefore, whether this budget will benefit the masses remains to be seen!

     

     

    Equitymaster requests your view! Post a comment on "Railway Budget 2009-10: No major surprises". Click here!

      
     

    More Views on News

    Insider Leaks Equitymaster Stock Picks (The 5 Minute Wrapup)

    Jul 25, 2017

    Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?

    Raymond and Other 'For Profit' Companies Who Don't Care about Shareholder Returns (The 5 Minute Wrapup)

    May 27, 2017

    What happens when minority shareholders are short-changed in the normal course of business?

    Why Commission Driven Model In Mutual Funds Should Be Eliminated... (Outside View)

    Feb 15, 2017

    PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.

    This Book Changed How I Looked at the World of Man and Money (Vivek Kaul's Diary)

    Aug 24, 2016

    And here's your chance to claim a free copy of this book...

    The Developed World is Dying because of Demographics, Debt, and Deflation (Vivek Kaul's Diary)

    Aug 12, 2016

    And Why India's demographic dividend could turn out to be a doubtful debt...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    MARKET STATS