Rail Budget to be presented on July 8
Posted on: 07/Jul/2014 11:51:38 AM
Sadananda Gowda, Central Minster for Railways will present the Railway Budget on 8th July. Like other ministers, Sadananda Gowda is also getting detailed instructions from the prime minister on every issue. Rail ministry insiders reveal that prior to the beginning of the budget exercise Gowda chaired meetings involving all the departments and briefed them about Modi�s vision of how the railways should function.
Ministry officials say it is likeliest that the Rail Budget would reflect the Modi government`s overall agenda of speedy development.
The indications are clear that in order to implement the Modi model of development in railways, an increased pace of modernization and more participation from private capital would be required.
High-speed corridors and modernization of stations seem to be areas where sufficient groundwork has been done. There is also a high possibility of high-speed corridors receiving foreign direct investment (FDI) if terms and conditions for such investments become attractive to foreign companies.
While declarations on the high-profile Golden Quadrilateral Rail Network�linking the four metro cities�might be important highlights of the budget, running semi-high-speed trains on select routes should be items of immediate implementation. Measures like EMUs on long routes may also add to the high-speed agenda. Similar is the case of investments in developing world-class stations. Commercial utilisation of station premises and railway lands are major attraction for private investors. The budget may incentivise it. The manufacturing and services sectors are other areas where private investment might be mobilised with the promise of assured return to investors.
Aspects of passenger amenities are likely to be privatized with the assurance that it would improve them. Gowda, who has asserted it more than once, is likely to revive the Rail Safety Fund in a robust way. It is yet to be seen how the ministry manages to mobilize money for it. It is not clear whether it would come from less on passenger travel and freight or the railways will spend from its own resources.
