The Railway budget reflected the results orientation of a Private sector with a public service imperative and a intent to make it future ready



  • A mothballed Railways – India’s largest infrastructure sector finally into Formula 1 Drive
  • The Short & medium term milestones in revenue generation, capital creation and improving efficiencies will create significant employment and ancillary business activity.
  • Initiatives like 3 new DFCs, new coach factories & rail hub in Chennai, logistics & warehouse hubs, faster commissioning of broad gauge lines, electrification and port connectivity etc. will create economic activity multipliers.
  • Enhancement of plan capital expenditure to Rs 1.21 lakh cr from budgeted Rs 1 lakh cr in FY16 would help to build on the momentum of capex that was embarked in the rail budget last year
  • Planned projects in Mumbai, Delhi, Bangalore etc. keen to alleviate urban transport issues
  • Rail site logistics park & warehouses along with expansion of freight basket and rationalization of freight rates would help to reverse the trend of declining market share in freight business
  • Innovative forms of funding through monetization of surplus rail land or horticulture, solar plants along with monetization of soft assets like data would help to unlock unconventional sources of funds
  • Reorganization of the Railway Boards will improve governance, and create better accountability and transparency.
  • The budget has attempted to make the Railways future ready by deploying innovative measures like redevelopment of 400 stations through PPP, tapping rupee bond market for financing, creation of mezz debt market and credit enhancement structures with LIC’s support, and making projects bankable.

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