The Minister of Railways, Mr. Suresh Prabhu, presented the Railways Budget 2016-17 to Parliament on February 
25, 2016.  In his address, he assessed the performance of Railways in 2015-16 and laid out his budget proposals for 2016-17.  This note gives an overview of Railways' finances, and the changes from the 2015-16 Budget to the 2016-17 Budget estimates.   

## Key Highlights And Proposals

 
Plan outlay:  The proposed plan outlay for 2016-17 
is Rs 1,21,000 crore which is a 21% increase from the 2015-16 budget estimates. 
 
Revenue:  Total revenue for 2016-17 is estimated at 
Rs 1,89,271 crore which is a 10% increase from the revised estimates of 2015-16.  Total revenue in 2015-16, undershot budget estimates by Rs 16,752 crore (9%).   
 
Traffic revenue:  Total revenue from traffic for 
2016-17 is estimated at Rs 1,84,820 crore, which is a 10% increase from the revised estimates of 2015- 16.  Revenue from freight and passenger is expected to grow by 5% and 12% respectively.  In 2015-16, revenue from traffic decreased from budget estimates by 9%.   
 
Expenditure:  Total expenditure for 2016-17 is 
projected at Rs 1,71,060 crore which is a 13% increase from the revised estimates of 2015-16.  In 2015-16, total expenditure decreased from budget estimates by Rs 11,573 crore (7%).   
 
Surplus:  The railways surplus (after payment of 
dividend to the central government) in 2016-17 is estimated at Rs 8,479 crore which is a 26% decrease from the revised estimates of 2015-16.  In 2015-16, the net surplus decreased from budget estimates by 
20% to Rs 11,402 crore.   
 
Operating Ratio:  Operating Ratio for 2016-17 is 
projected to increase to 92%.  In 2015-16, the Operating Ratio increased from a budgeted estimate of 88.5% to 90.5%.   
 
Strategy:  The overall strategy of Railways for the 
upcoming year will be based on three pillars: (i) new revenues - revision of freight policy, and explore new sources of revenue; (ii) new norms - reexamine all money that is spent to ensure optimal productivity, and (iii) new structures - revise the structure of decision making and problem solving under Railways.   

## Overview Of Finances

In his 2016-17 Budget speech, the Railways Minister identified the slowdown of the international market, and the impact of the Seventh Pay Commission as major challenges for the Railways finances in 2016-17.  Further the declining share of Indian Railways in the overall transport sector poses an additional challenge, as it leads to declining revenues for Railways.   

## Revenue

Indian Railways is primarily financed through (i) Gross 
Budgetary Support (GBS) from the central government, 
(ii) its own internal resources (freight and passenger 
revenue, leasing of railway land, etc.), and (iii) Extra 
Budgetary Resources (market borrowings, institutional 
financing, etc.).1   

The proposed plan investment for 2016-17 is Rs 
1,21,000 crore.  This is about 43% higher than the 
proposed plan investment for 2015-16.  However, in 
2015-16, planned investment reduced by 15% from the 
budget estimates of Rs 1,00,011 crore Rs 84,853 crore 
(see Table 1 below).   

## Table 1: Plan Outlay (In Rs Crore)

2014-15 
Actuals 
2015-16 
Budget 
2015-16 
Revised 
 
% Change 
(RE/ BE 
2015-16) 
Gross Budgetary Support 
31,624 
40,000  
34,661 
-13% 
Internal Resources 
15,347 
17,793  
16,638 
-6% 
Extra Budgetary Resources 
18,261 
40,572  
30,893 
-24% 
Railway Safety Fund 
2,200 
1,646  
2,661 
62% 
Total 
67,432 
1,00,011  
84,853 
-15% 

Sources:  Railways Outcome Budget 2016-17; PRS.   

In 2015-16, revenue from all three sources, saw a decline 
from the budget estimates (shown in Table 1).  In the last 
few years, the share of GBS has remained constant and 
internal resources have been declining.  However, as per 
revised estimates of 2015-16, while the share of GBS has 
declined, the share of internal resources has increased.   

 
Notes: Numbers for 2015-16 are revised estimates. Sources:  Railways Budget documents 2009-16; PRS.   
Gross Budgetary Support (GBS):  The central government supports Railways in the form of GBS, in order to expand its network.  Railways pays a return on 
 
this investment every year, known as dividend.  In 2015- 16, the gross budgetary support from central government decreased by 13% from a budget estimate of Rs 40,000 crore to revised estimates of Rs 34,661 crore.   
Internal Resources:  Railways earns its internal revenue primarily from freight traffic.  Freight traffic contributed to about 66% of the total revenue for the year 2014-15 (latest actuals available).  After freight, passenger traffic was the next biggest source of revenue at 26%. In 2015-16, freight traffic decreased by 10%, and freight earnings reduced by 5% from the budget estimates (see Table 7 in Appendix III).  Railways generates most of its freight revenue from the transportation of coal (about 44%), followed by cement (8%), iron ore (7%), and foodgrains (7%).  As per the budget estimates of 2016- 17, Railways is expected to generate 46% of its revenue from the transportation of coal, followed by 8% from cement, 7% from foodgrains, and 6% from iron ore.   
In 2015-16, revenue from coal saw an increase of 5% from the budget estimates, despite a 9% decrease in volume.  This could be attributed to a 6% hike in freight rates for coal in 2015-16.  However, earnings from cement, iron ore, and foodgrains saw a decrease of 13%, 32%, and 24% respectively.  Budget 2016-17 estimates a 4% increase in freight volume and 5% increase in freight revenue from the revised estimates of 2015-16. The share of Railways in total freight traffic has declined from 89% to 30% over the last 60 years, with most of the share moving towards roads.  High freight rates could be a reason behind the decline of freight traffic.  In several countries, passenger fares are either higher or almost equal as freight rates.  However, in India, the ratio of passenger fare to freight rate is about 0.3 (see Figure 3).2   

Railways freight traffic is dominated by 10 bulk 
commodities (see Figure 2).  In the 2016-17 Budget, the 
Minister has proposed expanding Railways' freight 
basket to include more commodities, which would help 
increase the revenue base.   

In 2015-16, passenger traffic decreased by 4% and 
passenger revenue decreased by 10% from the budget 
estimates (see Table 8 in Appendix III).  While non-
suburban traffic reduced by 3%, suburban traffic saw a 
decrease of 13% from budget estimates.   

Budget 2016-17 estimates an increase of 12% in 
passenger revenue over revised estimates of 2015-16, 
with a 0.26% increase in passenger traffic.  It is unclear 
how the Ministry will achieve a 12% increase in revenue 
without a corresponding increase in traffic, or without 
any increase in fares (no hikes in passenger fares have 
been announced in Budget 2016-17).   

Extra Budgetary Resources (EBR):  EBR includes 
market borrowings, financing from banks, external 
investments, etc.  External investments in Indian 
Railways could be in the form of public private 
partnerships (PPPs), joint ventures (JVs), or market 
financing by attracting private investors to buy bonds or 
equity shares in Railways.3,4  

In 2015-16, about Rs 40,572 crore was estimated to be 
raised through EBR.  However, the investment decreased 
by 24% to Rs 30,893 crore as per the revised estimates 
of 2015-16.   

Most of Railways EBR comes in the form of market 
borrowings from the Indian Railways Finance 
Corporation (IRFC) (see Table 2 below).  A new 
financing method was announced in 2015-16 called the 
Extra Budgetary Resources (Institutional Financing) 
(EBR(IF)).5 Under EBR(IF), no expenditure can be 
accounted for unless the funds are specifically available 
against the project.  Various committees have noted that 
an increased reliance on borrowings will further 
exacerbate the financial situation of Railways.3,4  Table 2 
shows the break-up of the funds received through EBR. 

## Table 2: Extra Budgetary Resources (In Rs Crore)

Extra Budgetary 
Resources (EBR) 
2015-16 
Budget 
2015-16 
Revised 
% Change 
(RE/ BE 
2015-16) 
% share 
of total 
EBR 
IRFC 
17,276  
11,848  
-31% 
38% 
RVNL 
379  
- 
-100% 
0% 
PPP 
5,781  
9,461  
64% 
31% 
EBRIF 
17,136  
9,584  
-44% 
31% 
Total 
40,572  
30,892  
-24% 
 
Notes:  IRFC - Indian Railways Finance Corporation; RVNL - Rail Vikas Nigam Limited; PPP - Public Private Partnerships; EBRIF - Extra Budgetary Resources (Institutional Financing). Sources:  Railways Outcome Budget 2016-17; PRS.   

## Expenditure

As per the Budget actuals from 2014-15, Indian Railways spent most of its money on staff wages and salaries (30%), followed by expenses on pension fund (20%), and fuel (18%).  In Budget 2016-17, the total expenditure is estimated to increase by 12% over the revised estimates of 2015-16.  As per the Ministry, most of this increase is because of (i) the increase in staff costs and pensionary charges due to the recommendations of the Seventh Pay Commission, and (ii) an increase in the cost of materials and additional maintenance costs.6 In 2016-17, the highest expenditure under planned investment are estimated to be towards rolling stock (23%), doubling of tracks (21%), and the construction of new lines (13%) (see Table 4 in Appendix II).   
Staff wages and pension:  As per the budget estimates of 2016-17, staff costs will increase by about Rs 16,000 crore to meet the impact of the recommendations of the Seventh Pay Commission.  Further, pensionary charges are expected to increase by about Rs 12,600 crore (37%). Further, the appropriation to Pension Fund is estimated to increase by Rs 8,000 crore (23%). Staff costs have increased from 2005-06 to 2014-15 (BE) 
at a an average rate (CAGR) of 13%.3  The Committee on Restructuring Railways had observed that the expenditure on staff is extremely high and unmanageable.  It has also been observed that employee costs (including pensions) is one of the key components that reduces Railways' ability to generate surplus.3  
Fuel:  In 2015-16, the expenditure on fuel decreased by 
11% from the budget estimates.  In 2016-17, the expense on fuel is estimated to decrease by about Rs 3,500 crore (13%).  This may be due to a decrease in fuel prices and low cost of electricity.   
Dividend:  As mentioned earlier, Railways pays a return on the budgetary support it receives from the government (GBS) every year, known as dividend.  The rate of this dividend is determined by the Railways Convention Committee.  In 2015-16, the rate of dividend was about 5%, and the Committee had recommended decreasing it from 5% to 4%.  In 2016-17, the dividend payable to the central government is estimated to increase by 15% from the revised estimates of 2015-16.   
Depreciation Reserve Fund (DRF):  Appropriation to the DRF is made annually based on the recommendation 

of the Railways Convention Committee.  The DRF is 
intended to finance the costs of new assets replacing the 
old ones.  It has been observed that appropriation to the 
DRF is obtained as a residual after payment of the 
dividend and appropriation to the Pension Fund, instead 
of the actual requirement for maintenance of assets.3  

In the last few years, appropriation to the DRF has been 
decreasing.  In 2016-17, appropriation to the DRF has 
been reduced by 42% to Rs 3,200 crore.  This means that 
Railways will spend Rs 3,200 crore on asset maintenance 
in 2016-17, as compared to Rs 7,775 and Rs 5,500 in 
2014-15 and 2015-16 respectively.  Under-provisioning 
for the DRF has been observed as one of the reasons 
behind the decline in track renewals, and procurement of 
wagons and coaches.3  

## Surplus And Operating Ratio

Operating Ratio is the ratio of the working expenditure 
(expenses arising from day-to-day operations of 
Railways) to the revenue earned from traffic.  Therefore, 
a higher ratio indicates a poorer ability to generate 
surplus that can be used for capital investments such as 
laying new lines, deploying more coaches, etc.   

In 2015-16, the Operating Ratio increased from a 
budgeted estimate of 88.5% to 90.5%.  The Operating 
Ratio for 2016-17 is projected to increase to 92%.   

Notes: Numbers for 2015-16 are Budget Estimates vs Revised Sources: Railways Budget documents 2009-2016; PRS.   

## 2016-17 Budget Proposals

Key proposals made by the Railways Minister in Budget 2016-17 include:  

 
Strategy:  Overall strategy of Railways for the 
upcoming year will be based on three pillars: (i) new revenues, (ii) new norms, and (iii) new structures. Under new revenues, the freight policy will be revised and new sources of revenue will be explored.  Under new norms, all money that is spent will be re-examined to ensure optimal productivity. Under new structures, the decision making and problem solving under Railways will be revised.   
 
Improving freight revenue:  The freight basket of 
Railways which is dominated by 10 bulk commodities will be expanded to increase the 
revenue base.  The freight tariff policy will be reviewed to rationalize freight tariffs, and make them more competitive as compared to other modes of transport.   

 
Improving non-tariff revenue:  Over the next five 
years, revenue generated from non-tariff sources will be improved.  This will be done through: (i) redevelopment of stations; (ii) monetisation of land along tracks; (iii) monetisation of soft assets such as PNR enquiry, e-commerce activities on the IRCTC website, etc; (iv) advertising at stations and land adjacent to tracks outside big stations; (v) overhauling the parcel business; and (vi) improving manufacturing activities.   
 
Seven Missions:  Seven activities will be 
undertaken in Mission mode.  Each Mission will be headed by a Mission Director who will report directly to the Chairman of the Railway Board. These include: (i) *Mission 25 Tonne* will aim at introducing 25-tonne axle-load wagons and target movement of 70% freight traffic on these wagons; (ii) *Mission Zero Accident* will aim at elimination of unmanned railway crossings and implementation of train collision avoidance systems; (iii) Mission Procurement and Consumption Efficiency will aim at bringing procurement practices in line with international standards; (iv) *Mission Raftaar* will target doubling average speeds of freight trains and increasing speeds of express trains by 25 kmph; (v) Mission Hundred will aim to complete at least 100 sidings over the next two years; (vi) Mission Beyond Book-Keeping will aim to move from single entry to double entry systems, and from cash based to accrual based accounting systems; and (vii) Mission Capacity Utilisation will prepare a blueprint for using the dedicated freight corridor. 
 
New types of services:  The Minister announced 
five new types of services: two for unreserved passengers, and three for reserved passengers.  (i) The Antyodaya Express will be long-distance, fully unreserved, superfast train; (ii) two to four Deen Dayalu coaches will be provided in long-distance trains for unreserved travel; (iii) Humsafar will be a fully air-conditioned third AC service for reserved passengers; (iv) Tejas trains, for reserved passengers, will operate at speeds of 130 kmph and above, and will offer on-board services such as entertainment and wi-fi; and (v) the Utkrisht Double-Decker Air-conditioned Yatri (UDAY) trains will be overnight double decker trains that will be introduced on the busiest routes.   
 
Suburban trains:  Two elevated suburban corridors 
have been proposed for Mumbai between (i) Churchgate and Virar, and (ii) Chhatrapati Shivaji Terminus and Panvel.  A Ring Railway system (with 21 stations) has been proposed for Delhi.  Suburban 
DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS").  The opinions 
 

lines have been proposed for the cities of 
Ahmedabad, Hyderabad, Chennai, and Bengaluru.  
These will be developed in partnership with the 
respective state governments. 

 
Organisational restructuring:  The Railway Board 
will be organised as per commercial principles and the Chairman of the Board will be empowered accordingly.  Cross-functional directorates will be set up within the Railway Board to focus on areas such as non-fare revenues, speed enhancement, information technology, etc.  The Public Private Partnership (PPP) cell will be strengthened.  All companies owned by Railways will be brought under one holding company to leverage the combined resources.   
 
New organisations:  The Special Railway 
Establishment for Strategic Technology and Holistic Advancement (SRESTHA) will be set up to drive long term research.  A team called the Special Unit for Transportation Research and Analytics (SUTRA) will be established for carrying out data analytics. 
 
Planning:  A Railway Planning and Investment 
Organisation will be set up for drafting medium term (five years) and long term (10 years) corporate plans for the Railways.  The organisation will conduct independent studies and will also propose financing mechanisms for identified projects.  A National Rail Plan (NRP-2030) will be developed in consultation with all stakeholders including the state governments and other relevant ministries.  NRP- 2030 will seek to integrate Railways with other modes of transport and help develop a multi-modal transportation system for the country. 
SRC/FINAL_FILE_Final.pdf. 4 "4th Report: Demands for Grants (2015-16)", Standing Committee on Railways, April 20, 2015, http://164.100.47.134/lsscommittee/Railways/16_Railways_4.pdf. 

5 "Booking of expenditure under Extra Budgetary Resources 
(Institutional Finance) i.e. EBR (IF)", Ministry of Railways, March 24, 
2015, 
http://www.indianRailways.gov.in/railwayboard/uploads/directorate/fin
ance_budget/Budget_2015-16/EBR/EBR_240315.pdf. 

6 Explanatory Memorandum on the Railway Budget for 2016-17, 
Ministry of Railways, February 25, 2016, 
http://www.indianrailways.gov.in/railwayboard/uploads/directorate/fin
ance_budget/Budget_2016-
17/Explanatory_Memorandum_Railway_Budget_2016-17.pdf.  

## Annexure Appendix I: Railways Budget 2016-17 Summary

2014-15 Actuals 
2015-16 Budget 
2015-15 Revised 
% Change (RE/BE 2015-16) 
2016-17 Budget 
% Change (2016-17 BE/ 2015-16 RE) Receipts 
  
  
  
  
  
  
 
1 
Passenger - Upper Class 
13,134  
15,074  
14,667  
-3% 
16,318  
11% 
2 
Passenger - Second Class 
29,056  
35,101  
30,709  
-13% 
34,694  
13% 
3 
Other Coaching 
3,998  
4,612  
4,325  
-6% 
6,185  
43% 
4 
Freight 
1,05,791  
1,21,423  
1,11,853  
-8% 
1,17,933  
5% 
5 
Sundry earnings 
5,093  
7,318  
6,230  
-15% 
9,590  
54% 
6 
Suspense 
-361  
50  
50  
0% 
100  
100% 
7 
Gross Traffic Receipts (Sum 1 to 6) 
1,56,711  
1,83,578  
1,67,834  
-9% 
1,84,820  
10% 
8 
Miscellaneous 
4,307  
4,979  
3,971  
-20% 
4,451  
12% 
9 
Total Revenue (7+8) 
1,61,017  
1,88,557  
1,71,805  
-9% 
1,89,271  
10% 
Expenditure 
  
  
  
  
  
  
 
10 
Ordinary Working Expenses 
1,05,996  
1,19,410  
1,10,690 
-7% 
1,23,560  
12% 
11 
Appropriation to Depreciation Reserve Fund 
7,775  
7,900  
5,500  
-30% 
3,200  
-42% 
12 
Appropriation to Pension Fund 
29,225  
34,900  
34,500  
-1% 
42,500  
23% 
13 
Total Working Expenditure (10+11+12) 
1,42,996  
1,62,210  
1,50,690  
-7% 
1,69,260  
12% 
14 
Miscellaneous 
1,183  
1,270  
1,217  
-4% 
1,800  
48% 
15 
Total Expenditure (13+14) 
1,44,179  
1,63,480  
1,51,907  
-7% 
1,71,060  
13% 
16 
Dividend payable to General Revenues 
9,174  
10,811  
8,495  
-21% 
9,731  
15% 
17 
Net Surplus after payment of Dividend (9-15-16) 
7,665  
14,266  
11,402  
-20% 
8,479  
-26% 
18 
Operating Ratio (13/7) 
91.3% 
88.5% 
90.5% 
  
92% 
  


19 
Appropriation to Railway Development Fund 
1,375  
5,750  
1,324  
-77% 
2,515  
90% 
20 
Appropriation to Capital Fund 
6,233  
7,616  
6,293  
-17% 
5,750  
-9% 
21 
Appropriation to Debt Service Fund 
57  
900  
3,786  
321% 
214  
-94% 

Sources: Budget of Railway Revenue and Expenditure of the Central Government for 2016-17; PRS.  

## Explanatory Notes Other Sources Of Earning

1. 
Coaching earnings include income from parcels and luggage.  
2. 
Sundry earnings represent earnings from lease of railway land, advertisement and publicity etc. 
3. 
Suspense represents unrealized traffic earnings.  

## Performance Parameters

4. 
'Net Surplus after payment of Dividend' represents excess of receipts over expenditure after the Dividend liability (payment for investment in Railway capital) of General Revenues has been paid off.  
5. 
'Operating Ratio' is the ratio of operating expenses to receipts. A lower ratio indicates higher surplus availability for investments. 

## Railway Funds

6. 
Depreciation Reserve Fund - Finances the cost of new assets replacing old assets including the cost of any improved features. Appropriation to this fund are made on the recommendations of the Railway Convention Committee (RCC).  
7. 
Pension Fund - Finances all pension payments to retired Railway staff.  

## Appendix Ii: Investment And Infrastructure Augmentation Table 4: Investment By Plan Heads (In Rs Crore)

% Change 
 
2014-15 
Actuals 
2015-16 
Budget 
2015-15 
Revised 
2016-17 
Budget 
(RE/BE 
2015-16) 
% Change 
(2016-17 BE/ 
2015-16 RE) 
Transfer to Central Road Fund 
 -  
 -  
 -  
- 
10,780  
- 
Transfer to National Investment Fund 
28,185  
40,000  
24,000  
-40% 
 
-100% 
New Lines (Construction) 
7,139  
12,830  
13,484  
5% 
15,586  
16% 
Gauge Conversion 
3,664  
5,555  
4,281  
-23% 
4,342  
1% 
Doubling 
3,881  
18,420  
9,007  
-51% 
25,119  
179% 
Traffic Facilities - Yard remodelling and others 
785  
2,374  
1,213  
-49% 
1,226  
1% 
Computerisation 
204  
393  
294  
-25% 
337  
15% 
Railway research 
19  
40  
24  
-40% 
37  
51% 
Rolling stock 
16,490  
19,343  
19,088  
-1% 
27,278  
43% 
Leased assets - Payment of capital component 
5,449  
6,293  
6,293  
0% 
7,000  
11% 
Road safety works - level crossings 
442  
306  
518  
69% 
555  
7% 
Road safety works - road over/under bridges 
1,792  
1,340  
2,144  
60% 
8,685  
305% 
Track renewals 
5,372  
6,035  
5,426  
-10% 
4,000  
-26% 
Bridge works 
441  
560  
491  
-12% 
589  
20% 
Signalling and telecommunication works 
1,006  
1,115  
853  
-24% 
958  
12% 
Electrification projects 
1,391  
2,163  
2,265  
5% 
3,396  
50% 
Other electrical works excluding traction distribution 
108  
189  
160  
-15% 
681  
324% 
Traction distribution works 
200  
249  
189  
-24% 
276  
46% 
Machinery & plant 
462  
475  
406  
-14% 
512  
26% 
Workshops including production units 
1,681  
2,624  
2,109  
-20% 
3,680  
74% 
Staff quarters 
242  
400  
322  
-19% 
376  
17% 
Amenities for staff 
272  
399  
302  
-24% 
297  
-2% 
Passengers amenities 
859  
1,753  
1,212  
-31% 
1,838  
52% 
Inv. In govt comm under public undertaking 
554  
2,733  
926  
-66% 
2,643  
185% 
Inv. In non-govt und. Including JVs/ SPVs 
4,584  
13,091  
6,056  
-54% 
8,410  
39% 
Other specified works 
341  
444  
385  
-13% 
348  
-10% 
Stores suspense 
1,215  
 -13  
-341  
2434% 
-74  
-78% 
Manufacture suspense 
30  
8  
21  
168% 
52  
143% 
Miscellaneous advances 
-52  
-28  
-40  
45% 
8  
-121% 
Total credits (gross excluding metro) 
2,140  
2,577  
2,004  
-22% 
4,058  
103% 
Metropolitan transport projects 
996  
2,000  
23,412  
1071% 
1,402  
-94% 
New Lines (Construction)- dividend free projects 
1,294  
1,500  
1,500  
0% 
1,500  
0% 
MTP (Excluding suspense) credits or recoveries 
2  
2  
0  
-87% 
2  
677% 
Total 
58,719  
1,00,011  
1,00,000  
-0.01% 
1,17,000  
17% 

Sources: Explanatory Memorandum on the Railways Budget 2016-17; PRS 

## Table 5: Investments Through Extra Budgetary Resources (In Rs Crore)

% Change 
(RE/BE 2015-
2014-15 
Actuals 
2015-16 
Budget 
2015-15 
Revised 
2016-17 
Budget 
 
16) 
% Change (2016-17 BE/ 2015-16 RE) 
New Lines (Construction) 
- 
4,086  
2,061  
-50% 
3,623  
76% 
Gauge Conversion 
- 
2,144  
604  
-72% 
1,066  
77% 
Doubling 
- 
11,307  
7,176  
-37% 
20,336  
183% 
Traffic Facilities - Yard remodelling and others 
- 
1,099  
  131  
-88% 
100  
-24% 
Rolling stock 
10,771  
17,276  
11,592  
-33% 
21,830  
88% 
Road safety works - road over/under bridges 
- 
      -    
       -    
- 
6,242  
- 
Electrification projects 
- 
 560  
2,230  
298% 
3,386  
52% 
Other electrical works excluding traction distribution 
- 
 -    
        -    
- 
400  
- 
Workshops including production units 
- 
430  
     -    
-100% 
1,342  
- 
Passengers amenities 
- 
4  
430  
10650% 
1,000  
133% 
Investment in non-government undertakings Including JVs/ SPVs 
273  
2,832  
      12  
-100% 
 
-100% 
Metropolitan transport projects 
- 
835  
2,217  
166% 
 
-100% 
Total 
11,044  
40,572  
26,453  
-35% 
59,325  
124% 

Sources: Explanatory Memorandum on the Railways Budget 2016-17; PRS Table 6: Targets and achievements: Major developmental activities 

| 2012-13                          | 2013-14     | 2014-15    | 2015-16     | 2016-17    |
|----------------------------------|-------------|------------|-------------|------------|
|                                  |             |            |             |            |
|                                  |             |            |             |            |
| Achievement                      | Achievement | Target     | Achievement | Target     |
| Electrification (Route Kms.)     | 1,317       | 1,350      | 1,300       | 1,375      |
| Track Renewals (Track Kms.)      | 3,296       | 2,885      | 2,100       | 2,424      |
| Construction of New Lines (Route |             |            |             |            |
| Kms.)                            |             |            |             |            |
| 501                              | 450         | 300        | 313         | 300        |
| Gauge Conversion (Route Kms.)    | 605         | 404        | 450         | 527        |
| Rolling Stock                    |             |            |             |            |
|                                  |             |            |             |            |
|                                  |             |            |             |            |
| (a)  Locos                       |             |            |             |            |
|                                  |             |            |             |            |
|                                  |             |            |             |            |
| (i) Diesel                       | 348         | 385        | 375         | 355        |
| (ii) Electric                    | 330         | 302        | 250         | 250        |
| (b)  Coaches including           |             |            |             |            |
| EMU/MEMU/DMUs/Metro/etc.         |             |            |             |            |
| 3,887                            | 3,658       | 3,731      | 3,390       | 3,592      |
| (c)  Wagons (in terms of vehicle |             |            |             |            |
| units)                           |             |            |             |            |
| 16,894                           | 9,326       | 12,857     | 11,151      | 16,800     |

Sources: Explanatory Memorandum on the Railways Budget 2016-17; PRS. 


## Appendix Iii: Details Of Freight And Passenger Traffic Table 7: Freight Traffic Details (Ntkm In Millions; Earnings In Rs Crore)

| 2015-16          | 2015-16           | % Change RE/ BE    | 2016-17          |
|------------------|-------------------|--------------------|------------------|
| Budget Estimates | Revised Estimates | 2015-16            | Budget Estimates |
|                  |                   |                    |                  |
| % Change         |                   |                    |                  |
| BE 2016-17/      |                   |                    |                  |
| RE 2015-16       |                   |                    |                  |
| Commodity        | NTKM              | Earnings           | NTKM             |
| Coal             | 3,32,971          | 52,381             | 3,03,399         |
| Pig Iron &       |                   |                    |                  |
| finished steel   |                   |                    |                  |
| 38,619           | 7,108             | 37,669             | 5,815            |
| Iron Ore         | 40,885            | 9,767              | 33,417           |
| Cement           | 64,828            | 10,814             | 56,894           |
| Foodgrains       | 79,980            | 10,159             | 57,193           |
| Fertilisers      | 41,333            | 5,317              | 47,921           |
| Petroleum &      |                   |                    |                  |
| Lubricants       |                   |                    |                  |
| 28,329           | 6,788             | 28,292             | 5,907            |
| Container        |                   |                    |                  |
| Service          |                   |                    |                  |
| 57,767           | 5,849             | 46,173             | 4,955            |
| Other Goods      | 57,979            | 10,082             | 56,575           |
| Total            | 7,42,691          | 1,18,265           | 6,67,533         |

Notes: NTKM - Net Tonne Kilometre (1 NTKM is the net weight of goods carried for a kilometre). Sources: Explanatory Memorandum on the Railways Budget 2016-17; PRS.   

| 2015-16                  | 2015-16           | 2016-17     |
|--------------------------|-------------------|-------------|
| Budget Estimates         | Revised Estimates |             |
| %Change RE/              |                   |             |
| BE 2015-16               | Budget Estimates  |             |
|                          |                   |             |
| % Change                 |                   |             |
| BE 2016-17/              |                   |             |
| RE 2015-16               |                   |             |
|                          |                   |             |
| PKM                      | Earnings          | PKM         |
| Suburban                 |                   |             |
|                          |                   |             |
|                          |                   |             |
|                          |                   |             |
|                          |                   |             |
| First Class              | 9,661             | 375         |
| Second Class (Ordinary)  | 1,62,670          | 2,528       |
| Total Suburban           | 1,72,331          | 2,903       |
| Non Suburban             |                   |             |
|                          |                   |             |
|                          |                   |             |
|                          |                   |             |
|                          |                   |             |
| AC First class           | 1,665             | 637         |
| AC Sleeper               | 19,165            | 3,680       |
| First Class (M&E)        | 203               | 41          |
| First Class (ordinary)   | 633               | 34          |
| AC 3 Tier                | 59,482            | 8,640       |
| Sleeper Class (M&E)      | 2,56,191          | 13,339      |
| Second Class (M&E)       | 3,66,241          | 12,707      |
| Sleeper Class (ordinary) | 3,639             | 147         |
| Second Class (Ordinary)  | 2,94,966          | 6,380       |
| AC Chair Car             | 9,560             | 1,511       |
| Executive Class          | 389               | 156         |
| Total Non-Suburban       | 10,12,134         | 47,272      |
| Total                    | 11,84,465         | 50,175      |

Notes: PKM - Passenger Kilometre (One PKM is when a passenger is carried for a kilometre). Sources: Explanatory Memorandum on the Railways Budget 2016-17; PRS.   