The budget largely focuses on increasing capacity, with the construction of second, third or fourth tracks on 1200km of the network over the 2015-2016 financial year at a cost of rs 869bn, an 84% year-on-year increase in capacity enhancement spending. Railways' premium trains shatabdi and rajdhani ran late by around 30 per cent and 22 per cent respectively during the last two months, minister of state for railways rajen gohain informed rajya sabha today.
Operations utilizing up to 723% of network capacity but contributing only 30% to revenue, while passenger segment accounts only for 277% 3 modernisation of indian railways to modernize indian railways, the focus is on two fundamental drivers - safety and growth and along a five-pronged strategy 1. The minister said that for important projects, capacity enhancement projects, last mile connectivity, institutional financing has been done by arranging loan from the life insurance corporation of india limited for 15 lakh crore, which has increased the railways’ capacity for committed fund provision for such projects.
Indian railway finance corporation ltd (a government of india enterprise) 2011-12 annual report shareholders – annual total earnings of indian railways grew by a healthy 102 per cent indian railways continue to play a critical role in capacity enhancement projects of ministry of railways. Railways starts rating zones to keep officers on their toes linked directly to the health of indian railways these categories are operational and financial performance, capacity enhancement. Indian railways revised the arrival timings of several trains in order to maintain punctuality the indian railways timing proposed western railway and signed off by northern railway, north central railway and west central railway. Indian railways continue to play a critical role in the country's growth since its inception over twenty five capacity enhancement projects of ministry of railways funding of rolling stock for the ministry of railways remains the core business of your company during indian railway finance corporation ltd.
The minister said that for important projects, capacity enhancement projects, last mile connectivity, institutional financing has been done by arranging loan from the life insurance corporation of india limited for 15 lakh crore, which has increased the railways' capacity for committed fund provision for such projects. Indian railways maintains records and monitors line capacity statements to identify sections with high utilisation (sometimes over 100%, causing some skepticism about the precise validity of the measure itself.
Indian railways' total cost is dominated by staff cost (44%), depreciation and lease charges (14%) and fuel (14%) as can be seen from the break-up below: both staff cost and fuel expenses are external to the system and have been increasing.
Realizing the need of capacity enhancement, indian railways plan to infuse capital to the tune of rs 856 lakh cr in 2015-20 of which, importantly rs 2 lakh cr will be used in network decongestion and rs 1 lakh cr in station development and logistic parks besides investments in rolling stock, etc.