RAILWAY BUDGET 2009-10

Union Railway Minister Mamata Banerjee today presented the Railway Budget for
2009-2010. The budget focused clearly on upgrading the existing infrastructure and
providing better services to passengers.
Highlights of Railway Budget:
The major highlights of Railway budget is as follows:

Passenger Fares and freight rates kept unchanged
To set up 1000 MW power plant in alliance with NTPC

To acquire 18, 000 wagons in FY10 against 11,000 FY09. Wagon
manufacturers such as BEML, Titagarh wagons, Texmaco will be gained
from wagon orders.

To develop 50 stations as world class stations with international facility. To be
developed in Public private partnership (PPP) mode.

To develop air-conditioned double decker coaches.

To introduce non-stop train services in select cities.

To set up Cargo centers for perishable commodities.

To set up Expert committee for optic fiber cable networks.

The Railways will also set up a coach unit, with a capacity to produce 500
coaches per year via ppp mode.

Set up panel on financing unviable railway projects.

Plans to expand Kolkata metro.

Non-stop New Trains - fast services from point to point to be introduced.

Tatkal charges to be reduced from Rs 100 to Rs 50, to be percentage of fare.

Tatkal Scheme to be reduced from 5 days to 2days.

Monthly Ticket Of Rs. 25/- For Unorganized Sector/Poor Under ‘Izzat’
Scheme.

Seven nursing colleges to be set up on railway land in places including Delhi,
Kolkata and Mumbai.

Freight traffic target at 882 mt for FY10 vs. at 850mt in FY09.

Plan Outlay Of Rs.40,745 Cr proposed For 2009-2010. Out of this, Rs.2, 921
cr will be spent on new lines, Rs.1,750 cr on gauge conversion and Rs.1,102
cr on passenger amenities.

Government to provide additional budgetary support of Rs 5000 crore to
railways in 2009/10.
Overall the budget was positive for markets. Development of new stations,
improvement of infrastructure facilities and purchase of 18000 new Wagons in FY10
will benefit wagon manufacturers and infrastructure companies.

ECONOMIC SURVEY

The Economic survey presented by the Finance Ministry in parliament today focuses
on containing the fiscal deficit to 3% of GDP and reviving the GDP growth to 7-7.5%
from 6.7% in 2008-09. Some of the policy measures suggested in the survey are as
follows:
Highlights:

Revitalize the disinvestment program and plan to generate at least Rs. 25,000
crore per year.

Selling 5-10% of equity in profitable non-navratnas.

List unlisted public sector undertakings by offloading at least 10% of equity to
the public.

Auction loss-making public service undertakings.

Raise FDI in insurance to 49%

Allow FDI in multi-brand retail

Raise FDI limit in defence industries to 49% from 26%.

Allow 100% FDI in health, weather insurance

Rationalise Dividend Distribution Tax

Remove Commodity Transaction Tax, Securities Transaction Tax, and Fringe
Benefit Tax

Phase out tax surcharge, cess, and transaction tax

Introduce new income tax code

Decontrol sugar and fertiliser industry.

Decontrol petrol and diesel prices.

Cut oil, fertiliser, food subsidy leakages

Auction spectrum and make it freely tradeable.

Separate telecom license from spectrum allocation.

Review customs duty exemptions and move to a uniform duty structure

Drug price control should be limited to essential drugs in which there are less
than five producers. All others should be decontrolled.

Limit LPG subsidies to 6-8 cylinders per year per household.
The economic survey focuses on measures to revive growth and to contain mounting
fiscal deficit. Going forward how the government is going to implement them in the
upcoming budget will determine the direction of the market.