Railway Minister Suresh Prabhu on 25 February 2016 presented the Railway Budget 2016-17 in the Lok Sabha. In his second Rail Budget, Prabhu outlined a capital plan of 121000 crore rupees in 2016-17.
A saving of 8720 crore rupees for Budget estimates of 2015-16 will be effected in 2016.
Theme of the Budget is Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways: ‘Chalo, Milkar Kuch Naya Karen’.
Railway Budget of 2016-17 is based on three pillars and they are Nav Arjan (New Revenues), Nav Manak (New Norms) and New Sanrachna (New Structures).
Nav Arjan (New Revenues) It exploits new sources of revenue so that every asset, tangible or non-tangible gets optimally monetized.
New Manak (New Norms) A Zero Budgeting approach to the financials of the ensuring year, improvement in efficiency yardsticks and procurement practices to bring them in line with international best practices
Nav Sanrachna (New Structures) Need to re-imagine the conventional ways of solving issues like co-operation, collaboration and communication, creativity and communication to the hallmark of decision-making and actions.
Major Highlights • Wants to double investment in Railways • Delay in running of 95% trains will be ended by 2020 • Rail tickets will be available at all places by 2020 • Aimed at increasing speed of passenger train by 80km/hr • LIC has agreed to invest 1.5 lakh crore rupees over 5 years on extremely favourable terms • Dedicated freight corridor project gaining momentum. New freight corridors announced: Delhi-Chennai, Kharagpur-Mumbai, Kharagpur-Vijayawada. • Poised to commission broad gauge lines at the rate of 7 km per day against 4.5 km over last five years • Plan to generate 9 crore man-days employment by 2017-18 and 14 crore man-days by 2018-19 • Institutional financing will be introduced for funding projects • Action of 139 Budget announcements on 2015-16 has been initiated • Aimed at eliminating unmanned level crossings by 2020 • Aimed at generating revenues of order of 184820 crore rupees in 2016, which is 10.1 percent higher than revised target of 2015 • North-East India, especially Mizoram and Manipur, to be connected through broad gauge soon • To commission 2800 km of new tracks in 2016-17 • Bids for setting up 2 locomotive factories was finalised and the new factories will be set up with an order book of 40000 crore rupees.