announced 58 new trains including 5 new Jansadharans, 5 premium trains, 6 AC express, 27 express trains, 8 passenger trains, 2 MEMU trains and 5 DEMUs, besides extension of 11 trains' route.The Minister proposed the first bullet train between Mumbai and Ahmadabad route. Railways will also launch high-speed trains to connect major cities, he added. The ministry is expected to take Cabinet approval for allowing FDI in network, excluding passenger services."The bulk of our future projects will be through the PPP model," he told, referring to public-private partnerships. The Indian Railways is suffering from low investment and populist policies for decades, which the new government hints to have stopped and the budget showed the government’s resolve to implement reforms in the Railways.
The government’s decision to push private investment and willing to take tough and unpopular
measures to put the economy on the fast track is clearly seen in the Railway Budget. Reform of the railways has long proven politically sensitive. Successive governments have backed away
from modernization, preferring instead to use the system to provide cheap transport for voters, and
jobs for 1.3 million people.
Major Challenges facing the Indian Railways-Vast tracts of hinterland waiting for rail connectivity.
-Railways expected to earn like a commercial enterprise but serve like a welfare organization.
-Surplus revenues declining; Hardly any adequate resources for its development works.
-Share of Railways in freight traffic coming down consistently.
-Rs 5 lakh crore required for ongoing projects alone.
-Most of Gross Traffic Receipts is spent on fuel, salary and pension, track & coach maintenance and on
safety works .
Course Correction and Initiatives
-Works to be re-prioritized with more focus on doubling and tripling to decongest the over-utilized network.
-Recent fare and tariff hike to mop additional revenue of about Rs 8,000 cr.
-Alternate resource mobilization need to be explored as enlisted.
a. Leveraging Railway PSU Resources by bringing in the investible surplus funds in infrastructure projects of Railways. b. Domestic investments and FDI in rail infrastructure. c. Pursuing Public Private
Partnership.
-Prioritizing and setting timelines for completion of the ongoing projects.
-Strategic partnerships and transparency in procurements.
