Gahlot Institute of Management Studies &

Research

• Subject: Railway Budget 2010-11

• Submitted to: Prof. Shipra Das

• Semester - 2
Our Railway Group
• Varsha Bang 04
• Swapnil Amrutkar 02
• Amit Bhavsar 07
• Manali Ramani 29
• Mandar Mule 37
Railway
Budget
 Controlling Inflation
• Government has reduced freight rates by Rs
100/wagon on food grains and kerosene.
• This also explains the sudden positive
movement of stock prices of food companies
like KRBL, Kohinoor Foods.
• By not increasing the freight rates government
has further given a signal that it is a more
concern about inflation
Addition of 1000 km new lines in one year

• The government has taken more aggressive

steps by setting a target of 25,000 km new
lines over next 10 years.
• This is expected to benefit all the railway
companies in general and Kalindee Rail and
ARSS infrastructure in particular.
 Lack of Government’s intention towards
complete privatization
• Government has announced a few projects in which they
are taking the PPP route.
 To develop multilevel parking complexes through PPP 
 To set up five state‐of‐the‐art wagon factories in JV/PPP
mode which will help Railways meet the transportation
demands of the economy.
•  Setting up 5 factories through JV for wagon
manufacturing
• Negative signal to wagon manufacturers some of the
players like Titagarh Wagons and Texmaco.
 Initiatives taken in Railway Budget Impact
Stocks
Completing 1000 km of new lines Positive Kalindee Rail, ARSS Infra
in one year

Using radio frequency Neutral Batronics, Gemini

identification (RFID) Communications
technol7ogy in freight transport
(already existing)
Increasing safety through Positive Kernex Microsystems
spending on anticollision

Reduction of freight rates by Positive KRBL, Kohinoor Foods

Rs.100/wagon on Food grains
and Kerosense

Neutral Texmaco, Titagarh Wagons,

To acquire 18,000 new wagons BEML, Steel companies
in one year (last year also 18,000
wagons)

Development of Western and Positive Railways related companies

Eastern
Corridor

To construct 93 multi‐functional Positive Construction companies

stations
No change in freight rates Positive All companies in general
 Key Budget Highlights
• Gross Traffic Receipts projected to be Rs. 94,765
Crs for FY 2011 as compared to Rs.88,356 Crs
(revised) for FY 2010
• To acquire 18,000 new wagons in next one year.
There is no year over year increment in this target
•  To start 6 bottling plants for providing clean
drinking water
• To complete 1000 km new lines in next one year
• To construct 93 multi‐functional stations
 Financial Highlights
Particulars FY 2010   FY 2011    
  Budgeted Revised Budgeted Budgeted Revised
Freight earnings 58525 58716 62489
6.34% 6.0%
Passenger earnings 24309 24057 26127
6.96% 7.9%
Other coaching earnings 2750 2526 3171
13.28% 20.3%
Sundry other earnings 2760 2982 2778
0.65% -7.3%
Traffic suspense 75 75 200
62.50% 62.5%
Gross traffic receipts 88419 88356 94765 6.70% 6.8%
Ordinary working expenses 62900 65500 65000
3.23% -0.8%
Depn reserve fund 5325 4500 7600
29.93% 40.8%
Reserve pension fund 13440 13440 14500
7.31% 7.3%
Total working exp 81665 83440 87100 6.24% 4.2%
Net misc income/(exp) ‐1367 1574 ‐2117
   
Net revenues 8121 6490 9782 16.98% 33.7%
Dividend 5479 5539 6609
17.10% 16.2%
Net Surplus 2642 951 3173 16.73% 70.0%
Freight loading target (mt) 882 890 944
6.57% 5.7%
 Vision 2020
• Railways to come out with 10‐year plan 'Vision 2020'
 
• Vision 2020 aims at adding 25,000 route km to the
railway network
 
• Will follow public private partnership (PPP)model in
projects
 
• Special task force will be set up clear business
projects within 100 days
 
 Wagon Industry
• The wagon industry, which is mostly concentrated in West
Bengal to set up a new coach factory at Kanchrapara in West
Bengal evoked mixed response as the industry felt that such
projects were best left to the private sector.
• Proposed EMU coach factory at Kanchrapara to upgradation
of the important stations to international standards, or
developing multi-functional complexes, she had opened a
new vista for using the resources and expertise of the private
sector.
• Jessop, which is into wagon manufacturing, sees a major boon
in the over 60 per cent increment in the wagon procurement
target.
• Setting up a new factory at Majerhat,
Kolkata(West Bengal) (INDIA) for
manufacturing and supplying High Capacity
Freight Bogies to Indian Railways

• Setting up a new factory at Dalmianagar,

Rohtas District, Bihar State (INDIA) for
manufacturing and supplying High Capacity
Freight Bogies to Indian Railways
 Setting up of JVs for manufacturing of
locomotives/coaches
• Diesel Loco Factory at Marowhra, Bihar
• Electric Loco Factory at Madhepura, Bihar.
• Coach Factory at Rae-Bareli, Uttar Pradesh.
Project Cost* (Rs. crore) Capacity/p.a.

Diesel Loco Factory at

2053 150 locomotives
Marowhra, Bihar

Electric Loco Factory at

1294 120 locomotives
Madhepura, Bihar

Coach Factory at Rae-Bareli,

1685 1000 coaches
Uttar Pradesh
• Construction of DFC partly with PPP

• Other areas identified include

• Super-specialty Hospital:
• Agri-retail Chain:
• Multimodal Logistics Parks: