Railway Budget 2010-11: Review and Assessment

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ప్రచురించబడిన తేదీ మే 12, 2010

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Railway Budget 2010-11: Review and Assessment

Railway Budget 2010-11: Review and Assessment*

This article presents an overview of the Railway Budget for 2010-11 and reviews the financial performance of the Railways during 2009-10. The Railway Budget 2010-11 has taken various policy initiatives focusing on resumption of more train services, expansion of connectivity, improvement of passenger amenities and revenue augmentation of the Railways. It accorded priority to upgradation of stations, technological upgradation, expansion of wagon capacity, multi-functional complexes, ticketing and reservation, safety and security. The Budget also proposed specific welfare measures for employees of Railways, such as, hospitals, educational institutions and housing. There is also proposal for reduction of service charges for passengers. Railways have initiated an accounting reforms project that would enable it to move over gradually to an accrual based accounting system. The financial performance indicators such as operating ratio, net surplus and return on capital have been estimated to improve during 2010-11.

Overview

The Railway Budget for 2010-11 presented to the Parliament on February 24, 2010 provided estimates for 2010-11 and the revised estimates for 2009-10. Several measures in respect of passenger amenities/ services, upgradation of stations, safety and security, staff welfare and health, reduction of carbon footprints, and dedicated corridors have been announced in the Budget. The Budget has also focused on public-private partnership (PPP) with a plan to raise Rs.10,000 to Rs.20,000 crore through this route during 2010-2011. In this regard, a special task force will be set up to clear proposals for investment in hundred days. Further, six high speed passenger corridors would be identified and executed through PPP mode for which a National High Speed Rail Authority would be set up.

On financial front, the gross traffic receipts are expected to grow by 7.3 per cent during 2010-11, lower than 10.6 per cent in 2009-10(RE). The freight earnings and passenger earnings are budgeted to grow by 6.4 per cent and 8.6 per cent during 2010-11, lower than 9.9 per cent and 9.7 per cent, respectively during 2009-10(RE). However, the working expenses have been budgeted to increase at a substantially lower rate of 4.4 per cent as compared with 16.1 per cent witnessed in 2009-10 (RE) mainly due to overall decline in ordinary net working expenses by 0.8 per cent. Consequently, the financial performance of the Railways is budgeted to show substantial improvement during 2010-11. Net revenue has been estimated to increase sharply by 50.7 per cent during 2010-11 in contrast to a decline of (-) 29.3 per cent in the previous year. Similarly, the net surplus is slated to increase by 233.6 per cent as against a decline of (-) 78.7 per cent in the preceding year. The operating ratio (total working expenses as percentage of total earnings) is also expected to decline to 92.3 per cent during 2010-11 from 94.7 per cent in 2009-10, while the return on capital i.e., ratio of net revenue to Capital-at-Charge and Investment from Capital Fund, will improve to 6.9 per cent from 5.3 per cent. The Annual Plan outlay for 2010-11 has been placed at Rs.41,426 crore about 3 per cent higher than the previous year.

The article is organised into four sections. Section I contains the major policy initiatives announced in the Railway Budget 2010-11. Section II reviews the financial performance in the Revised Estimates for 2009-10. The Budget Estimates for 2010-11 are discussed in Section III. The note concludes with an overall assessment of the Railway Budget 2010-11.

Section I: Major Policy Initiatives

The Railway Budget 2010-11 proposes to continue with the process of improving the quality of passenger services, modernisation, technological upgradation, greater application of information technology and enhancement of safety and security measures. It has also proposed to earn untapped revenue by way of branding/ advertising of railway properties (Box 1).

New Services

The Railway Budget 2010-11 has proposed to introduce: (i) 35 special trains; (ii) 54 new long distance train services; (iii) 28 new short distance passenger train services; (iv) 9 MEMU and 8 DEMU services; (v) Extension of 21 trains; and (vi) increase in frequency of 12 trains. Besides, 6 long route and 4 short distance Duronto train services are to be introduced this year. Further, Suburban services will be augmented in Mumbai, Chennai and Kolkata metropolitan regions.

Modernisation and Wagon Manufacturing Factories

To augment the production capacity of wagons, it is proposed to set up five state of-the-art wagon factories in Joint venture/ public private partnership mode (JV/PPP). The Chittaranjan Locomotive Works (CLW) will be modernized and capacity augmented from its present level of 200 locomotives to 275, besides modernising Integral Coach Factory at Chennai. A Kisan Vision Project has also been proposed by identifying six locations. To give a helping hand to farmers, it is proposed to set up a refrigerated container factory on a PPP mode.

Box: 1: Major Policy Initiatives/Proposed New Projects

Priority has been accorded to the development of passenger amenities including cleanliness and economically priced food in many stations. Other passenger amenities includes: SMS updates of reservation status, punctuality of trains, and movement of wagons to freight customers.
Anti-collision device (ACD) and train protection warning system (TPWS) are extended to more zonal Railways - meant for improving safety and security. Security of women passengers proposed to be strengthened by raising more women RPF personnel termed as Mahila Vahini.
Social security measures announced includes a new scheme of ‘House for All’ that will provide residences to all railway employees in the next ten years, hospitals and diagnostic centres, and Kendriya Vidyalayas.
To give a helping hand to farmers, it has been proposed to set up a refrigerated container factory on a PPP mode. It has also been decided to set up a special task force to clear proposals for investments within 100 days.
Measures undertaken to improve the proportion of freight traffic include: (i) to permit private operators to invest in infrastructure and to run special freight train for commodities, such as, automobiles, vegetable oil, molsasses, etc.; (ii) extend the Roll-On-Roll-Off service to zonal railways in a phased manner, (iii) one rake of road-cumrailer vehicle will be introduced on trial basis, and (iv) premium tatkal service for parcel and freight movement is under consideration.
To conserve, protect and promote Railways wetlands and forest areas, Rail Eco-parks would be set up.
The untapped revenue potential from branding/advertising of railway properties will be harnessed to significantly increase earnings.

Dedicated Corridors

A Project on Dedicated Freight Corridor will be revamped to ensure timely implementation of the project. DFC is now declared as the “Diamond Rail Corridor” project of the Indian Railways. Indian Railways propose to develop high speed corridors of 250 to 350 kmph speed and already six corridors have been identified. These projects will be executed through PPP mode. A National High Speed Rail Authority for planning, standard setting, implementing and monitoring high speed passenger rail corridors would be set up.

Public Private Partnership

The Budget has decided to set up a special task force to clear proposals for investments within 100 days.

Improving Passenger Amenities and Customer Satisfaction

For improving passenger amenities and customer satisfaction, it has been decided to take initiatives like SMS updates of reservation status and punctuality of trains to passengers, SMS updates on the movement of wagons to freight customers, Double-decker train-sets matching the best in global standards, and RFID technology for tracking of wagons carrying coal and iron ore. Railways propose to introduce modern trolleys at all important stations. The Budget has also proposed to induct e-ticket based mobile vans for issuing reservation tickets in important places.

Upgradation of Station and Safety & Security

It has been proposed to develop 10 more stations to be converted to World Class Stations and 94 Stations have been declared as Adarsh Stations. Security of women passengers will be improved by raising 12 companies of women RPF personnel to be named as Mahila Vahini.

Hospitals, Educational Institutions and Training

With the cooperation of Ministry of Health and Ministry of Human Resource Development, about 400 hospitals and diagnostic centres, 50 Kendriya Vidyalayas etc. would be set up. A State-of-the art advanced loco pilot training centre is also proposed to be set up at Kharagpur. Further, a centre for Railway Research is proposed to be set up in Indian Institute of Technology, Kharagpur to give thrust to indigenisation. It has also been decided to open training institutions for the benefit of railway personnel from South and South-east Asian countries.

Staff Welfare & Health

The Budget proposed a new scheme of “House for All” that will provide residences to all railway employees in the next ten years.

Concessions on Passenger and Freight Fares

A reduction of Rs.100 per wagon in freight charges for food-grains for domestic use and kerosene to reduce the hardship being faced by the common people due to the high inflationary trend has been affected. Further, the technicians of regional film industry when travelling for film production related work will be eligible for 75 per cent concession in second class sleeper, and 50 per cent concession in higher classes in all trains. Concession to cancer patients has been increased from 75 per cent to 100 per cent in 3 AC and Sleeper Class.

Service Charge on e-ticket

Maximum service charge on e-tickets, which is Rs.15 for Sleeper Class and Rs.40 for AC Class, has been reduced to Rs.10 for Sleeper Class and Rs.20 for AC Class.

Freight Business

Several measures have been proposed to improve the proportion of freight traffic moving on Railways. Some of them are: (i) a modified wagon investment scheme for high capacity general purpose and special purpose wagons, (ii) a policy to permit private operators to invest in infrastructure on the lines of container train operators, and run special freight train for commodities such as automobiles, vegetable oil, molsasses etc., (iii) taking further the concept of mega-logistics hubs with setting up automobile and ancillary hubs at 10 locations, (iv) extending the Roll-On-Roll-Off service to zonal railways in a phased manner, (v) introducing one rake of road-cum-railer vehicle on trial basis to provide door-to-door service to railways freight customers, and (vi) a premium tatkal service for parcel and freight movement.

Carbon foot-print

It is proposed to introduce at least ten rakes with green toilets and install on diesel locomotives a GPS-based optimised driver guidance system which has shown 8-10 per cent saving in fuel consumption. Further, a Rail Eco-park to conserve, protect and promote Railways wetlands and forest areas would be set up.

Progress on Accounting Reforms

Railways have already initiated an accounting reforms project that would enable it to move over gradually to an accrual based accounting system.

Earnings from non-core business

The untapped revenue potential from branding/advertising of railway properties will be harnessed to significantly augment the railways earnings, which will support the planned investment of Railways.

National Projects

A Master Plan for the development of rail infrastructure in the North-East region would be drawn. In the North-East, ten projects have been declared as National Projects and adequate funds are being provided. The Government is giving priority in providing rail connections to the neighbouring countries and surveys for the five new lines have been conducted for rail connectivity with Nepal.

Gauge Conversion and Doubling

Target of 800 km has been fixed for Gauge Conversion in 2010-11, while gauge doubling of 700 km has been planned during the year.

Railway Electrification

Indian Railways would be completing about 2,300 kms. of electrification in the first three years of the XI Plan against the target of 3,500 kms. for the five year period. Another 2,000 kms. are planned in the remaining two years.

Section II: Revised Estimates 2009-10¹

The Revised Estimates (RE) for 2009-10 showed an increase of 0.3 per cent in the freight earnings but decline of 1.0 per cent in the passenger earnings from the budget estimates to Rs.58,716 crore and Rs.24,057 crore, respectively. Thus, the gross traffic receipts in 2009-10 (RE) at Rs.88,356 crore were marginally lower by 0.1 per cent compared to the Budget Estimates (BE). On the other hand, the total working expenses increased to Rs.83,440 crore, mainly due to higher ordinary working expenses by 4.1 per cent to Rs.65,500 crore. Consequently, the net revenue and the surplus of the Railways declined substantially to Rs.6,490 crore and Rs.951 crore in the Revised Estimates from Rs.8,121crore and Rs.2,642 crore in the BE. As a result, both the operating ratio and the net return on capital investment deteriorated to 94.7 per cent and 5.3 per cent, respectively, from 92.5 per cent and 6.6 per cent in BE (Statement 1).

Section III: Budget Estimates: 2010-11²

Gross Traffic Receipts

The growth in gross traffic receipts for 2010-11, budgeted at Rs.94,756 crore, would moderate to 7.3 per cent from 10.6 per cent in 2009-10 (RE), with all the components contributing to the moderation. Freight earnings at Rs.62,489 crore will grow by 6.4 per cent during 2010-11 lower than 9.9 per cent in the previous year. The passenger earnings at Rs.26,126 crore would increase by 8.6 per cent as compared with 9.7 per cent in the preceding year (Statement 1).

Working Expenses

Total working expenses for 2010-11 budgeted at Rs.87,100 crore are expected to increase at a much lower rate of 4.4 per cent than 16.1 per cent in 2009-10, primarily due to decline in ordinary net working expenses by 0.8 per cent. All components of net ordinary working expenses, except fuel, are expected to decline during 2010-11 (Statement 2 and Chart 1).

Net Financial Results

The net revenue (total receipt minus total expenditure) of the railways is budgeted to increase to Rs.9,781 crore during 2010-11 from Rs.6,490 crore in 2009- 10. Both the total dividend payment and net surplus i.e., net revenue less total dividend payable, would increase to Rs.6,608 crore and Rs.3,173 crore, respectively. The operating ratio (total working expenses to total earnings ratio) is projected to improve, albeit marginally during 2010-11 on account of better expenditure management reflected in significant moderation in the increase of working expenses. Similarly, the return on capital i.e., ratio of net revenue to Capitalat- Charge and Investment from Capital Fund, would improve to 6.9 per cent from 5.3 per cent (Table 1).

Table 1: Major Financial Ratios-Indian Railways
(Per cent)
Year	Operating Ratio	Net Railway Revenue as percentage of Capital-at-Charge
1	2	3
2003-04	92.1	8.0
2004-05	91.0	8.9
2005-06	83.2	15.4
2006-07	78.7	19.0
2007-08	75.9	20.7
2008-09	90.5	8.8
2009-10 (RE)	94.7	5.3
2010-11 (BE)	92.3	6.9
Note: Due to changed accounting of lease charges, from 2005-06 onwards only the interest portion has been charged to Ordinary Working Expenses and the Principal portion to Plan Expenditure.

Plan Outlay

The Annual Plan outlay for 2010-11 has been placed at Rs.41,426 crore, showing an increase of 2.8 per cent over the previous year’s plan. Financing pattern of the plan outlay would be through internal resources (35.1 per cent), extra budgetary resources including market borrowings (24.5 per cent), gross budgetary support (38.3 per cent), and diesel cess (2.1 per cent).

Section IV: Overall Assessment

The financial performance of the Railways deteriorated further in the revised estimates for 2009-10. The budget estimates for 2010-11, however, indicate reversal of this trend with both the operating ratio and the return on capital slated to improve. It may be pointed out that the budgeted improvement in the financial indicators during 2010-11 has been largely expenditure - led with sharp moderation in working expenses. However, the realization of this budgeted improvement in the financial position of Railways would also hinge upon the envisaged increase in the freight business and passenger earnings, which may not be difficult with sustained economic recovery and turn around in international trade. Railways have initiated accounting reforms project that would enable it to shift gradually to an accrual - based accounting system. Among others, the Budget has emphasised on mobilising resources for investment through PPP. Several measures have been proposed for enhancing safety and security, modernisation and development of infrastructure, improvement in the welfare of railway employees and increasing the carrying capacity of railways. The reduction in freight charge for foodgrain for domestic use and kerosene would help in keeping price level of these commodities under control.

Statement 1: Financial Results of Railways
(Rs. crore)
Items		2008-09 (Actuals)	2009-10 (Budget Estimates)	2009-10 (Revised Estimates)	2010-11 (Budget Estimates)
1		2	3	4	5
1.	Gross Traffic Receipts (a to e)	79,862	88,419	88,356	94,765
	(a) Passenger Earnings	21,931	24,309	24,057	26,126
	(b) Freight (Goods) Earnings	53,433	58,525	58,716	62,489
	(c) Sundry Other Earnings	2,501	2,760	2,982	3,171
	(d) Other Coaching	1,972	2,750	2,526	2,778
	(e) Suspense	25	75	75	200
2.	Total Miscellaneous Receipts (a to d)	1,797	2,207	2,357	2,956
	a) Interest on Fund Balances	0	0	0	0
	b) Receipts from Safety Surcharge on Passengers Fares	0	0	0	0
	c) Subsidy from General Revenues towards dividend relief & other concessions	1,701	2,086	2,243	2830
	d) Other Miscellaneous Receipts	96	121	114	126
3.	Total Receipts (1+2)	81,659	90,626	90,713	97,721
4.	Net Ordinary Working Expenses	54,349	62,900	65,500	65,000
5.	Appropriation to Pension Fund	10,490	13,440	13,440	14,500
6.	Appropriation to Depreciation Reserve Fund	7,000	5,325	4,500	7,600
7.	Total Working Expenses {4+5+6}	71,839	81,665	83,440	87,100
8.	Total Miscellaneous Expenditure	645	840	783	840
	a) Appropriation to Special Railway Safety Fund	0	0	0	0
	b) O.L.W.R. (Open Line Works Revenue)	48	60	57	60
	c) Other Miscellaneous Expenditure	597	780	726	780
9.	Total Expenditure (7+ 8)	72,484	82,505	84,223	87,940
10.	Net Revenue (3- 9)	9,175	8,121	6,490	9,781
11.	a) Dividend Payable to General Revenue	4,718	5,479	5,539	6,608
	b) Payment of Deferred Dividend	0	0	0	0
	c) Total Dividend Payment (a+b)	4,718	5,479	5,539	6,608
12.	Surplus [10-11(c)]	4,457	2,642	951	3,173
13.	Appropriation to Development Fund	1,391	2,000	951	2,800
14.	Appropriation to Capital Fund	3,066	642	0	373
15.	Appropriation to Railway Safety Fund	0	0	0	0
16.	Appropriation to Special Railway Safety Fund	0	0	0	0
17.	Operating Ratio	90.5	92.5	94.7	92.3
18.	Ratio of Net Revenue to Capital-at-Charge and Investment from Capital Fund	8.8	6.6	5.3	6.9
Source : Explanatory Memorandum on the Railway Budget, 2010-11.

Statement 1: Financial Results of Railways (Concld.)
(Rs. crore)
Items		Variations
		Col.4 over Col. 3		Col.4 over Col. 2		Col.5 over Col. 4
		Amount	Per cent	Amount	Per cent	Amount	Per cent
1		6	7	8	9	10	11
1.	Gross Traffic Receipts (a to e)	-63	-0.1	8,494	10.6	6,409	7.3
	(a) Passenger Earnings	-252	-1.0	2,126	9.7	2,069	8.6
	(b) Freight (Goods) Earnings	191	0.3	5,283	9.9	3,773	6.4
	(c) Sundry Other Earnings	222	8.0	481	19.2	189	6.3
	(d) Other Coaching	-224	-8.1	554	28.1	252	10.0
	(e) Suspense	0	—	50	200.0	125	166.7
2.	Total Miscellaneous Receipts (a to d)	150	6.8	560	31.2	599	25.4
	a) Interest on Fund Balances	0	—	0	—	0	—
	b) Receipts from Safety Surcharge on Passengers Fares	0	—	0	—	0	—
	c) Subsidy from General Revenues towards dividend relief & other concessions	157	7.5	542	31.9	587	26.2
	d) Other Miscellaneous Receipts	-7	-5.8	18	18.8	12	10.5
3.	Total Receipts (1+2)	87	0.1	9,054	11.1	7,008	7.7
4.	Net Ordinary Working Expenses	2,600	4.1	11,151	20.5	-500	-0.8
5.	Appropriation to Pension Fund	0	—	2,950	28.1	1,060	7.9
6.	Appropriation to Depreciation Reserve Fund	-825	-15.5	-2,500	-35.7	3,100	68.9
7.	Total Working Expenses {4+5+6}	1,775	2.2	11,601	16.1	3,660	4.4
8.	Total Miscellaneous Expenditure	-57	-6.8	138	21.4	57	7.3
	a) Appropriation to Special Railway Safety Fund	0	—	0	—	0	—
	b) O.L.W.R. (Open Line Works Revenue)	-3	-5.0	9	18.8	3	5.3
	c) Other Miscellaneous Expenditure	-54	-6.9	129	21.6	54	7.4
9.	Total Expenditure (7+8)	1,718	2.1	11,739	16.2	3,717	4.4
10.	Net Revenue (3-9)	-1,631	-20.1	-2,685	-29.3	3,291	50.7
11.	a) Dividend Payable to General Revenue	60	1.1	821	17.4	1,069	19.3
	b) Payment of Deferred Dividend	0	—	0	—	0	—
	c) Total Dividend Payment (a+b)	60	1.1	821	17.4	1,069	19.3
12.	Surplus [10-11(c)]	-1,691	-64.0	-3,506	-78.7	2,222	233.6
13.	Appropriation to Development Fund	-1,049	-52.5	-440	-31.6	1,849	194.4
14.	Appropriation to Capital Fund	-642	-100.0	-3,066	-100.0	373	—
15.	Appropriation to Railway Safety Fund	0	—	0	—	0	—
16.	Appropriation to Special Railway Safety Fund	0	—	0	—	0	—
17.	Operating Ratio	2	2.4	4	4.6	-2	-2.5
18.	Ratio of Net Revenue to Capital-at-Charge and Investment from Capital Fund	-1	-19.7	-4	-39.8	2	30.2

Statement 2: Ordinary Working Expenses of Railways
(Rs. crore)
Items	2008-09 (Actuals)	2009-10 (Budget Esti- mates)	2009-10 (Revised Esti- mates)	2010-11 (Budget Esti- mates)	Variations
					col.4 over col.3		col.4 over col.2		col.5 over col.4
					Amount	Per cent	Amount	Per cent	Amount	Per cent
1	2	3	4	5	6	7	8	9	10	11
Net Ordinary Working Expenses	54,349	62,900	65,500	65,000	2,600	4.1	11,151	20.5	-500	-0.8
(a to h)	(100.0)	(100.0)	(100.0)	(100.0)
a) General Superintendence	3,543	4,372	4,503	4,151	131	3.0	960	27.1	-352	-7.8
and Services	(6.5)	(7.0)	(6.9)	(6.4)
b) Repairs and Maintenance	18,306	21,420	22,380	21,831	960	4.5	4,074	22.3	-549	-2.5
	(33.7)	(34.1)	(34.2)	(33.6)
c) Operating Expenses (Traffic)	9,397	10,994	11,600	11,303	606	5.5	2,203	23.4	-297	-2.6
	(17.3)	(17.5)	(17.7)	(17.4)
d) Operating Expenses (Fuel)	13,888	14,656	14,828	15,721	172	1.2	940	6.8	893	6.0
	(25.6)	(23.3)	(22.6)	(24.2)
e) Operating Expenses	4,566	5,141	5,731	5,462	590	11.5	1,165	25.5	-269	-4.7
(Rolling Stock and Equipment)	(8.4)	(8.2)	(8.7)	(8.4)
f) Staff Welfare and Amenities	2,582	3,178	3,325	3,313	147	4.6	743	28.8	-12	-0.4
	(4.8)	(5.1)	(5.1)	(5.1)
g) Suspense	-383.0	-93.0	-180.0	-156.0	-87	93.5	203	-53.0	24	-13.3
	(-0.7)	(-0.1)	(-0.3)	(-0.2)
h) Others*	2,450	3,232	3,313	3,375	81	2.5	863	35.2	62	1.9
	(4.5)	(5.1)	(5.1)	(5.2)
* : Includes miscellaneous working expenses, Provident Fund, Pension and Other Retirement Benefits. Note : Figures in brackets represent percentage to total. Source : Explanatory Memorandum on the Railway Budget, 2010-11.

Statement 3: Developmental Expenditure of Railways
(Rs. crore)
Items		2008-09 (Actuals)	2009-10 (Budget Esti- mates)	2009-10 (Revised Esti- mates)	2010-11 (Budget Esti- mates)	Variations
						col.4 over col.3		col.4 over col.2		col.5 over col.4
						Amount	Per cent	Amount	Per cent	Amount	Per cent
1		2	3	4	5	6	7	8	9	10	11
	Total @	36,336	40,745	40,284	41,426	-461	-1.1	3,948	10.9	1,142	2.8
	of which
a)	Track Renewals	5,249	5,135	4,293	5000	-842	-16.4	-956	-18.2	707	16.5
		(14.4)	(12.6)	(10.7)	(12.1)
b)	Rolling Stock	11,077	12,393	13,352	13140	959	7.7	2275	20.5	-212	-1.6
		(30.5)	(30.4)	(33.1)	(31.7)
c)	Electrification Projects	785	744	815	601	71	9.5	30	3.8	-214	-26.3
		(2.2)	(1.8)	(2.0)	(1.5)
d)	Workshop including	1,022	1,797	1,338	1479	-459	-25.5	316	30.9	141	10.5
	Production Units	(2.8)	(4.4)	(3.3)	(3.6)
e)	New Lines	3,157	2,922	3,340	4362	418	14.3	183	5.8	1022	30.6
		(8.7)	(7.2)	(8.3)	(10.5)
f)	Lines Doubling	1,846	1,906	2,016	1834	110	5.8	170	9.2	-182	-9.0
		(5.1)	(4.7)	(5.0)	(4.4)
g)	Traffic Facilities	1,180	1,291	1,069	1240	-222	-17.2	-111	-9.4	171	16.0
		(3.2)	(3.2)	(2.7)	(3.0)
h)	Signalling and	1,382	1,061	1,004	1124	-57	-5.4	-378	-27.4	120	12.0
	Telecommunication works	(3.8)	(2.6)	(2.5)	(2.7)
@ : Grand total excludes Rs. 6990.84 cr. (Actuals 2008-09), Rs.9000 cr. (Budget Estimates 2009-10), Rs.9150 cr. (Revised Estimates 2009-10) and Rs.8842 cr. (Budget Estimates 2010-11) to be raised through borrowings by IRFC for financing railway plan. Rs.293 cr. (Actuals 2008-09) Rs.170 cr. (Budget Estimates 2009-10), Rs.370 cr. (Revised Estimates 2009-10), Rs.278 cr. (Budget Estimates 2010-11), to be raised by Rail Vikas Nigam Limited for investment in various Railway Projects; Rs.180 cr. (Revised Estimates 2009-10), Rs.173 cr. (Budget Estimates 2010-11), as investment through “Wagon Investment Scheme” (WIS) and Rs.100 cr. (Budget Estimates 2009-10) and Rs.100 cr. (Revised Estimates 2009-10) and Rs.858 cr.(Budget Estimates 2010-11) as investment through “Public Private Partnership”, it also includes Rs.251.5 cr. (Actuals 2008-09), Rs.296 cr. (Budget Estimates 2009-10) Rs.297 cr. (Revised Estimates 2009-10), and Rs.308.15 cr.(Budget Estimates 2010-11) as loan given to Konkan Railway Corporation (KRC). Also includes Rs.1299.5 cr. (Actuals 2008-09) and Rs. 1900 cr. (Revised Estimates 2009-10) as additional grant under capital for new lines and Gauge Conversion for financing projects identified as National Projects. Note : Figures in brackets represent percentages to total. Source : Explanatory Memorandum on the Railway Budget, 2010-11 and Part I of Railway Minister’s Budget Speech.

Statement 4: Freight and Passenger Traffic of Railways
(Rs. crore)
Items	2008-09 (Actuals)	2009-10 (Budget Esti- mates)	2009-10 (Revised Esti- mates)	2010-11 (Budget Esti- mates)	Variations
					col.4 over col.3		col.4 over col.2		col.5 over col.4
					Amount	Per cent	Amount	Per cent	Amount	Per cent
1	2	3	4	5	6	7	8	9	10	11
I. Freight Traffic (Million Tonnes)
1. Coal	370	404	399	426	-5	-1.2	29	7.8	27	6.8
	(44.4)	(45.8)	(44.8)	(45.1)
2. Raw Materials to	11	11	11	12	0	-	0	-	1	9.1
Steel Plants	(1.3)	(1.2)	(1.2)	(1.3)
3. Pig Iron and Finished	29	29	31	33	2	6.9	2	6.9	2	6.5
Steel for Steel Plants	(3.5)	(3.3)	(3.5)	(3.5)
4. Iron ore for Exports	131	131	135	143	4	3.1	4	3.1	8	5.9
	(15.7)	(14.9)	(15.2)	(15.1)
5. Cement	86	92	93	99	1	1.1	7	8.1	6	6.5
	(10.3)	(10.4)	(10.4)	(10.5)
6. Food Grains	36	33	35	34	2	6.1	-1	-2.8	-1	-2.9
	(4.3)	(3.7)	(3.9)	(3.6)
7. Fertilizers	41	43	45	48	2	4.7	4	9.8	3	6.7
	(4.9)	(4.9)	(5.1)	(5.1)
8. Others	129	139	141	149	2	1.4	12	9.3	8	5.7
	(15.5)	(15.8)	(15.8)	(15.8)
Total ( 1 to 8)	833	882	890	944	8	0.9	57	6.8	54	6.1
II. No. of Passengers (in Millions)
1. Suburban *	3,929	3,930	3,980	4050	50	1.3	51	1.3	70	1.8
	(55.8)	(53.2)	(53.9)	(52.1)
2. Non-Suburban	3,118	3,454	3,400	3723	-54	-1.6	282	9.0	323	9.5
	(44.2)	(46.8)	(46.1)	(47.9)
Total (1 + 2)	7,047	7,384	7,380	7,773	-4	-0.1	333	4.7	393	5.3
* : Includes passengers on Metro Railway, Kolkata Note : Figures in brackets represent percentages to total. Source : Explanatory Memorandum on the Railway Budget, 2010-11.

Statement 5: Indian Railways - Selected Performance Indicators (A Statistical Profile)
Items		Unit	1990-91	1997-98	1998-99	1999-2000	2000-01	2001-02	2002-03
		2	3	4	5	6	7	8	9
1.	Capital-at Charge & investment from Capital Fund*	Rs. Crore	16,126	33,846	36,829	39,772	43,052	47,147	51,099
2.	Route Kilometres-Total	Kilometres	62,367	62,495	62,809	62,759	63,028	63,140	63,122
	of which:
	Electrified	Kilometres	9,968	13,490	13,765	14,261	14,856	15,994	16,272
3.	Number of Stations		7,100	6,929	6,896	6,867	6,843	6,856	6,906
4.	Employees (As on 31 March)	Thousands	1,652	1,579	1,578	1,577	1,545	1,511	1,472
5.	Wage Bill	Rs. Crore	5,166	14,141	15,611	16,289	18,841	19,037	19,915
6.	Number of Passengers Originating	Millions	3,858	4,348	4,411	4,585	4,833	5,093	4,971
7.	Passengers Kilometres	Millions	2,95,644	3,79,897	4,03,884	4,30,666	4,57,022	4,93,488	5,15,044
8.	Average Lead of Passenger Traffic	Kilometres	77	87	92	94	95	97	104
9.	Average Rate per Passenger Kilometre	Paise	11	20	21	22	23	23	24
10.	Originating Revenue- Earning	Million	318	429	421	456	474	493	519
	Freight Traffic	Tonnes
11.	Revenue-Earning Freight Traffic-Net Tonne Kilometres	Millions	2,35,785	2,84,249	2,81,513	3,05,201	3,12,371	3,33,228	3,53,194
12.	Average Lead of Revenue-Earning Freight Traffic	Kilometres	711	644	644	644	626	644	656
13.	Average Rate Per Tonne Kilometre	Paise	35	69	70	71	74	74	74
14.	Revenue-Gross Receipts**	Rs. Crore	12,452	29,134	30,234	33,856	36,011	39,358	42,741
15.	Operating Ratio	Per cent	92.0	90.9	93.3	93.3	98.3	96.0	92.3
16.	Surplus(+)/Deficit(-)	Rs. Crore	176	1,535	399	846	764	1,000	1,115
* : Capital-at-charge excludes Capital Outlay on Metropolitan Transport Projects and Circular Railway(Eastern Railway) and disinvestmemts ** : Includes Total Miscellaneous Receipts. Note : 1. Capital-at-charge means capital contributed by General Revenues for investment in Railways. 2. Operating Ratio means ratio of total working expenses to gross traffic receipts. Source : 1. Indian Railways Year Books. 2. Indian Railways Annual Report and Accounts.

Statement 5: Indian Railways - Selected Performance Indicators (Concld.) (A Statistical Profile)
Items		Unit	2003-04	2004-05	2005-06	2006-07	2007-08	2008-09
1		2	10	11	12	13	14	15
1.	Capital-at Charge & investment from Capital Fund *	Rs. Crore	56,062	59,347	65,878	76,031	88,521	1,04,301
2.	Route Kilometres-Total	Kilometres	63,221	63,465	63,332	63,327	63,273	64,015
	of which:
	Electrified	Kilometres	16,776	17,495	17,907	17,786	18,274	18,559
3.	Number of Stations		7,031	7,146	6,974	6,909	7,025	7,030
4.	Employees (As on 31 March)	Thousands	1,442	1,424	1,412	1,398	1,395	1,386
5.	Wage Bill	Rs. Crore	20,929	22,553	23,920	24,159	25,892	39,941
6.	Number of Passengers Originating	Millions	5,112	5,378	5,725	6,219	6,524	6,920
7.	Passengers Kilometres	Millions	5,41,208	5,75,702	6,15,614	6,94,764	7,69,956	8,38,032
8.	Average Lead of Passenger Traffic	Kilometres	106	107	108	112	118	121
9.	Average Rate per Passenger Kilometre	Paise	25	24	25	25	26	26
10.	Originating Revenue-Earning	Million	557	602	667	728	794	833
	Freight Traffic	Tonnes
11.	Revenue-Earning Freight Traffic-Net Tonne Kilometres	Millions	3,81,241	4,07,398	4,39,596	4,80,993	5,21,371	5,51,448
12.	Average Lead of Revenue-Earning Freight Traffic	Kilometres	661	657	647	649	651	660
13.	Average Rate Per Tonne Kilometre	Paise	72	75	81	85	89	94
14.	Revenue-Gross Receipts**	Rs. Crore	44,911	49,047	56,316	64,786	73,277	81,659
15.	Operating Ratio	Per cent	92.1	91.0	83.7	78.7	75.9	90.5
16.	Surplus(+)/Deficit(-)	Rs. Crore	1,091	2,074	4,338	10,206	13,431	4,457

* Prepared in the Division of Central Finances of the Department of Economic Analysis and Policy. This article is based on the Railway Budget 2010-11 presented to the Parliament on February 24, 2010.

¹ In this section, all comparisons are with respect to the budget estimates for 2009-10 unless stated otherwise.

² In this Section, all references to the fiscal 2010-11 relate to budget estimates and all comparisons are with respect to the revised estimates for 2009-10, unless stated otherwise.