14 March 2012

Railway Budget 2012: First fare hike in 10 years:

Railway Minister Dinesh Trivedi "marginally" increased passenger fares while presenting his maiden Railway Budget in the Lok Sabha on Wednesday. Trivedi announced that passenger fares were subsidising freight rates so they need to be rationalised. It is the first time that passenger fares have been increased in the last 10 years.

Trivedi increased the passenger fares by 2 paise per km for suburban and ordinary second class; 3 paise per km for mail/express second class; 5 paise per km for sleeper class; 10 paise per km for AC Chair Car, AC 3 tier and First Class; 15 paise per km for AC 2 tier and 30 paise per km for AC I. Even the price of platform tickets has been raised to Rs 5 from Rs 3.

Trivedi laid a lot of stress on safety and modernisation. Pointing out that he took over as the Railway Minister on a day when there was a train accident, he said that he would work towards making the Railway one of the safest mode of transport in the country.

Trivedi laid a lot of stress on safety and modernisation. Pointing out that he took over as the Railway Minister on a day when there was a train accident, he said that he would work towards making the Railway one of the safest mode of transport in the country.

Announcing the setting up of a Railway Safety Committee, which will be headed by Anil Kakodkar, he said that Indian Railways need to learn from Europe where there have been no major accidents for the past several decades even though trains run at a very speed there. He added that all unmanned level crossings would be abolished in the next five years.

Trivedi announced that signalling system and 19,000 km of track would be modernised through renewal upgradation would be undertake. He said that the track which are proposed to be modernised account for almost 80 per cent of traffic. Trains would be able to run at more than 160 kmph on the upgraded tracks. The tracks would also be able to tackle 25 ton axle load.

The Railway Minister started his speech thanking Prime Minister Manmohan Singh, Congress President and United Progressive Alliance Chairperson Sonia Gandhi, Trinamool Congress chief Mamata Banerjee. Trivedi also took the names of his predecessors in the Railway Ministry in his speech. He lauded their efforts in making the railways India’s lifeline.

Live updates:

All meter gauge, narrow gauge sections to be made broad gauge, except heritage lines, by end of 12th Five Year Plan.

Logistics Corporation will be created for providing logistics solutions for rail users.

Indian Railways Stations Development Corp will redevelop stations and maintain them on pattern of airports.

Plan to modernise 19,000 km of railway tracks, which cater to 80 per cent of traffic.

Annual plan for 2012-13 targeted ar Rs 60,100 crore.

Anil Kakodkar to head High Speed Rail Safety Committee.

Strong case for government to significantly enhance investment in Railways.

National investment needed in Indian Railways.

Want operating ratios at 74 per cent by 2016-17.

Huge sum of Rs 14 lakh crore is required in the next 10 years.

Want to reduce operating ratio from 95 per cent to 84.9 per cent in 2012-13.

825 km of gauge conversion to be completed. 85 new line projects and 114 new line survey to be carried
out.

State governments requested to come forward to share the cost to facilitate early completion of projects.

All the lines for which the Planning Commission has given approval have been included.

Allocation of Rs 6,872 crore has been made under new lines plan.

Most of the projects can't be completed in time bound manner unless supported by government.

Suggests ploughback dividend of Rs 20,000 crore.

Rs 2.5 lakh crore as budgetary support from government in 12th five-year plan.

Will invest Rs 3.5 lakh crore during 12th five year plan in Railways.

Recommendations of Kakodkar committee on safety to be implemented.

Expert committee observed that Indian Railways suffers from implementation bug.

To set up Railway Research and Developmental Council.

To set up independent railway safety authority.

Funding is an issue which needs to be addressed collectively.

Eliminate level crossings.

Target should be zero deaths.

Safety never sleeps. Safety has to be benchmark. Safety has been remarkable in Europe.

Entire emphasis will be on strengthening safety.


Mar 12, 2012

January IIP at 6.8%; cap goods down 1.5% YoY:



Industrial output rose higher-than-expected in January at 6.8% buoyed by an increase in production of non durable goods even as the capital goods and mining sectors continued to decline.

The consumer non-durable goods sector saw a growth of 42.1% versus 5%, year-on-year. However, the capital goods space remained a sore point as the figure dropped to negative 1.5% compared to 5.3% growth same period last year.

According to Upasna Bhardwaj, economist, ING Vysya, the recovery is not broadbased. "Subdued capital goods output continues to increase the call for expediting measures to boost investment activity."

Analysts on average had expected a rise of 2.1%, a CNBC-TV18 poll showed. The January figure compares with December's provisional increase of 1.8%.

Manufacturing output, which constitutes about 76% of industrial production, rose 8.5% from a year earlier, the statistics office said.

During April-January, industrial production expanded 4.0%. Output grew 7.8% in the 2010-11 fiscal year that ended in March, below the 10.5% clocked the year before.

The mining sector of the economy grew at (-) 2.7% in January versus (-) 3.7% in December.

The BSE Sensex pared gains after stronger-than-expected industrial output reduced hopes for a rate cut, which some analysts had previously said could have come as early as this week's RBI policy meeting.
In a surprise move on Friday, the Reserve Bank of India (RBI) cut its cash reserve ratio by 75 bps, which is expected to release Rs 48,000 crore into the system.

Now, the central bank is certainly going to wait for the Budget and the government's borrowing programme for the next year and what is going to be the (fiscal) deficit number, says Ashok Gautam, senior vice president and global head of markets, Axis Bank. "That is why we believe the rate decision will happen in April."