RailEnquiry

As the Indian Railways is one of the largest rail networks across the world, the inquisitiveness about the upcoming Railway Budget with the budget announcement for 2013-2014 is too understandable. The Railway Budget 2013-14 is considered to be the last full-fledged railway budget of UPA before the general elections in 2014. But one cannot ignore that Indian Railways has been experiencing a roller coaster ride during the last few years. Its operating ratio has deteriorated from 78.7 per cent in 2006-07 to 95 per cent in 2011-12. The period between April 2012-January 2013 has witnessed total earnings growth 20.4 per cent compared to a growth of 27.6 per cent which was projected in the Budget estimates. In the same period, revenue earning freight carried is up by 4.5 per cent, against the target set in the Budget of 5.6 per cent. Losses in the passenger segment, which were Rs.6159 crore in 2004-05, had risen to Rs.19964 crore in 2010-11 (18% per annum) and are expected to increase to Rs.25000 crore in 2012-13.

To curb the mounting losses, the Railway Ministry has recently announced about 21 per cent hike in passenger fares effective from January 22. The hike in fare has helped to mop up additional revenue of Rs 6,600 crore in a year. However, the diesel price hike of Rs 10.8 per litre has put additional burden of Rs 3,300 crore annually.

After raising the railway fares in January, the Railway Ministry is mulling another round of fare hike in the upcoming Rail Budget 2013-14. It is expecting a good chunk as helping hand from the government in this Budget.

In the upcoming Budget, the ministry is likely to announce the launching of Bullet trains and separate budget to lay down high-speed main lines.

Moreover as the general election is approaching, the government will do all to win the confidence of young voters in the country and may launch schemes, which would enhance the employment opportunities

Narendra Modi, Gujarat chief minister, has expressed the seriousness to implement the High-Speed Rail (HSR) with provision to provide an impetus to the ambitious project. If the Government of India takes an initiative, the Gujarat government will join its hands to work together on the projects.

Stocks like Titagarh wagons, Kalindee Rail, Bharat Earth Movers and Texmaco generally get attraction before the announcements of the Rail Budget as these are the companies that generally get benefited by the capital spending of the Railways.