Railway Budget 2012

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According to Pawan Kumar Bansal, the Parliamentary Affairs minister, the Union Railway Budget for the 2012-13 fiscal will be tabled on March 14, preceded by the Union Budget on March 12.

Expectations from Railway Budget 2012-13

The Union Railway Minister, Dinesh Trivedi, has stated that as part of the upcoming budget top priority will be given to modernizing the whole set-up. It is also expected that the fare structure could be revised. He has stated, though, that special consideration will be provided for the economically disadvantaged section of passengers.

Railway Budget 2012-13: Highlights

Following are some demands that have been made by various state governments in the context of the upcoming railway budget:

  • The Orissa government has asked for 12 new trains
  • The BJP MPs operating in Gujarat has asked for a bullet train between Mumbai and Ahmedabad
  • Arjun Munda, the Chief Minister of Jharkhand, has requested six new trains. He has also asked that the bi-weekly trains operate five times per week
  • Various other parties have asked for 58 fresh trains to address the requirements of the all India travelers

Railway Budget 2011-12 Highlights

Following are the salient features of the 2011-12 union railway budget presented by the then Union Railway Minister, Mamata Banerjee on February 25, 2011:

  • Fares to stay the same
  • Railway factory in Jammu and Kashmir
  • The Railways Ministry earned in excess of INR 1 lakh crore
  • Metro coach factory at Singur, West Bengal
  • Working expenses estimated at 87 thousand crore rupees
  • Wagon factory to be set up in Orissa
  • The investment of 57,630 crore for the 2011-12 was the highest in the history of railway budgets
  • Railway link to be established with Imphal
  • INR 10,000 crore to be generated through bonds
  • Software center to be set up in Darjeeling
  • Received 85 Public-Private-Partnership proposals – single window systems will be set up for taking these projects forward
  • Fund to be established for social projects
  • Setting up rail-based industries
  • Central Organization for Project Implementation to be set up
  • 16 thousand ex-servicemen provided jobs
  • 442 stations to be upgraded by March 31
  • Anti-collision system that was successful in the North West Frontier Railway was extended to 3 other zonal railways
  • Pilot projects for providing shelter to the homeless, who reside close to the railway tracks
  • 180 kms added in 2011-12
  • Multi purpose smart cards for traveling across the country
  • Security helpline set up on a national level
  • Increase in availability of airport trolleys
  • New Durantos started on Allahabad-Mumbai, Secunderabad-Vishakhapatnam, Pune-Ahmedabad, Madurai-Chennai, and Sealdah-Puri routes
  • Establishment of sports cadre
  • Gujarat linked to Delhi-Mumbai freight corridor
  • Upgradations in AC class
  • Comprehensive suburban networks to be established in cities like Mumbai, Ahmedabad, and Chennai
  • Train showing the very best in Indian culture to be run to Bangladesh
  • Hyderabad suburban rail network to be made stronger
  • Minimum limit for senior citizen’s concession to be brought down from 60 to 58
  • Number of EMU coaches in Mumbai’s suburban system to be improved
  • Special consideration for winners of gallantry awards and the specially abled at Shatabdi and Rajdhani expresses
  • Pradhan Mantri Rail Vikas Yojna introduced
  • Members of the media, traveling with family members, will be provided 50% concession twice a year. Previously this facility was provided only once a year
  • Industrial park to be established at Nandigram, West Bengal

Indian Railways' Future

Experts feel that the railways industry in India has a great future because of several factors such as:

  • Greater demand for new trains
  • Developing infrastructure
  • Increasing population
  • Modernization related initiatives
Following are some companies that are operating directly with this sector and are expected to do well in the upcoming fiscal. These business organizations are also estimated to see substantial profits over a long term period.

Name of companyBook ValueP/E RatioMarket capitalization in INR crores EPSFace Value
BEML Ltd513.6717.212315.632.3210
Kernex Microsystems (India) Ltd101.1619.96112.754.5210
Container Corp. of India Ltd 382.97 14.0211947.1164.6410
Thermax Ltd108.4614.225738.2634.272
Kalindee Rail Nirman Ltd106.8614.27145.648.2310
Titagarh Wagons Ltd271.558.57782.7848.5410

Last Updated on 2/24/2012