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Thursday, 09 Feb 2017
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Indian Railways – Road to recovery


The Indian Railway Budget which used to be presented separately every year, was merged with the Union Budget this year. According to the finance minister, this will help in synergizing the investment in the entire transport infrastructure sector.


A separate budget for the Railways has its genesis in the recommendations of the 10-member Acworth Committee in 1920-21, headed by British railway economist William Acworth. Following his report, the railway finances of India were separated from the general government finances in 1924.


For 2017-18, the total capital and development expenditure of Railways has been pegged at Rs 1,31,000 crore. This includes Rs 55,000 crore provided by the government through budgetary allocation as against Rs 46,155 crore in the previous year.


BREAKUP OF EXPENSES – new lines, electrification, gauge conversion, safety measures, etc.


As per ProjectsToday as of December 2016, a total of 1,010 projects entailing an investment of Rs 13,32,877.33 crore were at various stages of implementation. Of which, 446 projects alone are in execution stage indicating project implementation ratio of 36.18 percent. The ratio stood at 46.29 percent in December 2015.


Project Investment in Railways
  Survey Planning Und Exe Total Share (%) Impl. Ratio (%)  
    (Projects) (Rs crore) (Projects) (Rs crore) (Projects) (Rs crore) Bln.USD In Total    
  Dec-16 564 8,50,625 446 4,82,253 1010 13,32,877 196.30 12.22 36.18  
  Dec-15 394 5,04,475 458 4,34,782 852 9,39,257 143.40 9.93 46.29  
  Dec-14 326 4,23,430 558 3,61,562 884 7,84,992 129.43 9.41 46.06  


In terms of fresh investment, Apr-Dec 2016, saw 220 projects announced garnering at total investment of Rs 16,9055.38 crore. MRVL’s Rs 9,356 crore Virar-Vasai-Panvel Railway Line project, Southern Railway’s Rs 6,000 crore, were some of the mega Railway projects announced during the nine-month period. In 2016, CCEA approved nearly Rs 43,300.68 crore projects as compared to Rs 9,969.32 crore the previous year.


Fresh Investment in Railways
  Quarter (Projects) (Rs Crore)  
  Apr-Dec15 72 88,755  
  Apr-Dec16 220 1,69,055  
  Major Railway Projex proposals mentioned in the Union Budget
  • Commissioning of 3,500 kms of railway lines
  • Redevelopment of 25 railway stations under PPP mode
  • Unmanned railway crossings on broad gauge lines to be eliminated by 2020
  • 2,000 railway stations to be fed with solar power
  • Enactment of a new Metro Rail Act

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