2015

## Railways Budget 2015-16: Detailed Analysis

The Minister of Railways, Mr. Suresh Prabhu, presented 
the Railways Budget 2015-16 to Parliament on February 
26, 2015.  In his address, he assessed the performance of 
Railways in 2014-15 and laid out his budget proposals 
for 2015-16.  

This note gives an overview of Railways" finances, and 
the changes from last year"s budget to this year"s 
estimates.  The note also looks at the investment plan 
proposed in the budget speech, issues that have been 
identified with regards to investment in Railways, and 
highlights some of the proposals for this year.  

## Key Highlights And Proposals

 **Revenue**: Total revenue is expected to increase by 
15% to Rs 1,88,557 crore over 2014-15 revised estimates. 
 **Expenditure**: Total expenditure is projected to 
increase by 11% to Rs 1,63,480 crore over 2014-15 revised estimates.  
 **Surplus**: The railways surplus, after dividends, is 
expected to increase by 96% to Rs 14,266 crore. Operating ratio is projected to decrease by 3.3 percentage points to 88.5% in 2015-16.  
 **Traffic**: Freight traffic is expected to grow by 8%.  
Passenger traffic is expected to grow by 6%.  Gross traffic receipts are expected to increase by 15% to Rs 1,83,578  crore. 
 **Plan outlay**: The proposed plan outlay for 2015-16 is 
Rs 1,00,011 crore which is a 53% increase from 2014-15 budget estimates. 
 **Five year investment plan**: The Minister has 
proposed an investment of Rs 8.5 lakh crore over the 
next five years.  
 **Strategy**: Increase investment in Railways to 
improve capacity, decongest the network, and in turn 
improve efficiency of the system.   

## Overview Of Finances Budget V/S Revised Estimate 2014-15 (Details In Appendix I)

In the Budget, the Ministry includes revised estimates for 
expenditure and revenue for the current year.  Some of 
the key deviations in the revised estimates compared to 
the budget estimates in 2014-15 include: 

 Total revenue in 2014-15 undershot budget estimates 
by Rs 924 crore.  
 Total expenditure decreased from estimates by Rs 
2,178 crore. 
 After paying dividend of Rs 39 crore, the net surplus 
increased by Rs 1,215 crore. 

Prachee Mishra 
 
 
prachee@prsindia.org 
3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 
Tel: (011) 2323 4801-02, 4343 4035-36 
www.prsindia.org 

 Appropriations to the Railways Capital Fund was 
higher by Rs 1,006 crore. 
 Operating ratio decreased to 91.8% compared to the 
Budget Estimate of 92.5%.  Operating Ratio is the ratio of Total Working Expenditure to Gross Traffic Receipts; a higher ratio indicates a lower ability to generate a surplus that can be used for capital investments such as laying new lines, deploying more coaches etc.  Therefore, a smaller surplus (higher 
ratio) affects the railway"s capability to make such 
investments.  

## Budget Estimates 2015-16 (Details In Appendix)

In 2015-16, the railways surplus is expected to increase by 96% to Rs 14,266 crore thereby decreasing the operating ratio to 88.5%.  

Gross traffic receipts are expected to increase by 15% to 
Rs 1,83,578 crore in 2015-16 on account of the hike in 
freight rates and falling fuel prices.  Total expenditure is 
projected to increase by 11% to Rs 1,63,480 crore.   

The operating ratio is expected to be 88.5%.  The 
operating ratio has been above 90% in the last 6 years 
indicating lower surplus amounts. 

 
Sources: Railways Budget documents; Railways Annual Report; PRS 
Key issues and budget proposals 

As a part of its medium term strategy, the Ministry of 
Railways released a White Paper on Indian Railways on 
February 26, 2015.1  The Paper highlights some of the 
challenges faced by the organisation.  The Economic 
Survey 2014-15 also made some observations and 
recommendations on public investment in Railways.2  In 
the past, several committees have looked at the issues 
surrounding Indian Railways and have come up with 
recommendations.  The National Transport Development 
Policy Committee (NTDPC) report of 2014 (Chair: Mr. 
Rakesh Mohan) has looked at restructuring the entire 

railways sector.3  The High Level Safety Review Committee in 2012 (Chair: Dr. Anil Kakodkar) has looked at the aspect of safety in Indian Railways and made certain recommendations.   
Key issues and recommendations that have been addressed in the above reports and related proposals in the Budget 2015-16 are provided below:  

## Plan Outlay And Investment In Railways

With respect to financing and investments in the Railways, the following observations and recommendations have been made:  

 Indian Railways is primarily financed through Gross 

Budgetary Support from the union budget, its own 
internal resources (freight and passenger revenue, 
leasing of railway land, etc.) and Extra Budgetary 
Resources (market borrowings, institutional 
financing, etc.).  The share of internal resources in 
Railways financing has been declining. This has 
translated into increasing reliance on borrowings as 
well as Gross Budgetary Support, which adversely 
impacts the expenditure.  Railways also bears a social 
service obligation of around Rs 25,000 crore every 
year by carrying passenger services below cost.  
Recommendations to improve finances include 
looking at alternate means of resources for funding of 
bankable projects.1 

 The absence of regulatory mechanisms, no control 
over network and tariff, uncertainty of traffic materialization and delay in processes has hindered private sector participation in Railways operations.  It has been recommended that Railways should lay down benchmarks for appraisal, which would be acceptable to the market, to enable the financing of 
relevant projects.1  
 In the long term, railways must be commercially 
viable and public sector support should be restricted 
to (i) equity support for investment and (ii) for funding its universal service obligations.  In the interim, support should be provided through public sector including assistance via the general budget. Public sector support should be linked to serious reform of the structure of Railways, its commercial practices, rationalisation of tariff and improvements 
in technology.2 
 One of the major issues with Railways revenue has 

been the cross-subsidization of passenger fares by 
freight.3  Freight traffic is more price sensitive than 
passenger traffic.  Within passenger traffic, upper 
class passengers are less price sensitive than other 
passenger classes.  Upper class passengers do not 
easily switch to airlines as a response to hikes in 
railway prices.  In freight categories, petroleum 
products are more price sensitive than iron ore.2   

## 

With regards to investment in Railways, the Minister has made the following proposals in his speech: 

 In his budget speech, the Minister has proposed a 
plan investment of Rs 1,00,011 crore in 2015-16.  
Compared to the estimate for 2014-15, this is a 53% 
increase.  Table 3 in the annexure shows the details of the plan investment for 2015-16.     
 Plan heads for which investments are proposed to be 
increased include doubling of tracks (355%), traffic facilities such as yard modelling (148%), passenger amenities (67%), and electrification (54%). Investments in public undertakings have been increased by 378% and in non-government undertakings have been increased by 68%. Investments for road safety works including level crossings and road over and under bridges (ROB/RUB) have been decreased by 34%.   
 The Minister has also proposed to bring in more 
investments through extra budgetary resources (EBR).  Works under doubling, gauge conversion, new lines and electrification are proposed to be financed under EBR (Institutional Finance).  The details of EBR (Institutional Finance) are yet to be worked out, but according to the budget documents it will be targeted at tapping resources available with institutions, banks and funding agencies.  It will aim to accelerate completion of capital intensive railway projects with long gestation periods and also for capacity augmentation.   
 In 2014-15, EBR was primarily used to fund rolling 
stock (Rs 11,500 crore), non-government undertakings including joint ventures and special purpose vehicles (Rs 2,108 crore), and construction of new lines (Rs 1,395 crore).  This year, the Minister has proposed to extend EBR to doubling of tracks (Rs 11,307 crore), gauge conversion (Rs 2,144 crore) and traffic facilities including yard modelling (Rs 
1,099 crore) as well. Table 4 in the annexure shows the details of investments through EBR.  
 With regards to freight, rates for some commodities 

have been increased.  The highest increase has been 
for urea and grains and pulses at 10% each, followed 
by a 6% increase for coal.  Other commodities whose 
rates have increased include cement (3%), scrap and 
pig iron (3%), and groundnut oil (2%).  Freight rates 
were last increased in June 2014 by 6.5% to help the 
Railways meet its annual expenditure.  The distance 
slabs beyond 1,500 kms are proposed to be reduced 
from 250 km to 125 km.  These adjustments will be 
effective from April 1, 2015.   

Table 1 on the next page shows the proposed investment 
plan over the next five years.   

## 

Item 
Investment 
(in Rs crore) 
Network decongestion 
1,99,320 
Network expansion 
1,93,000 
National projects 
39,000 
Safety 
1,27,000 
Information technology/ Research 
5,000 
Rolling stock 
1,02,000 
Passenger amenities 
12,500 
High speed rail and elevated corridor 
65,000 
Station redevelopment and logistics parks 
1,00,000 
Others 
13,200 
Total 
8,56,020 

Source: Railways budget documents 2015-16 
The following sections highlight some of the issues and proposals made under key items in the investment plan. 

## Network Decongestion And Expansion

With regard to network decongestion and expansion, various committees have made the following observations and recommendations: 

 Due to underinvestment in Indian Railways, capacity 
expansion has suffered.  Track expansion in Railways has lagged behind capacity expansion in the roads sector.  This has resulted in railways losing a significant share of passenger and freight traffic to 
the road sector.2  Underinvestment has also led to 
congestion and stretching of capacity.  Lack of capacity addition has led to increasing load on 
railway infrastructure and lower speeds. 2   
 Congestion on High Density Networks and feeder 
routes requires network decongestion and expansion.  
At current levels of funding, all works related to such expansion will be completed in the next seven to 10 
years.1 
In order to decongest the railways network and add capacity, the Minister made the following proposals in his speech: 

 Fast track the sanctioned works on 7,000 kms of 
double/third/fourth lines and commission 1200 km in 2015-16 at an investment of Rs. 8,686 crore.   
 Commissioning 800 km of gauge conversion. 
 77 projects covering 9,400 km of 
doubling/tripling/quadrupling works along with their electrification will be sanctioned at a total cost of Rs. 96,182 crore.  This is around 2700% higher than the amount sanctioned in 2013- 14, since 2014-15 was a Plan holiday (no new projects).  
 The speed of nine railway corridors will be increased 
from the existing 110 and 130 kmph to 160 and 200 kmph respectively so that inter-metro journeys like 
Delhi- Kolkata and Delhi-Mumbai can be completed overnight. 

 Speed will be improved by up-gradation of tracks 
including rolling stock to higher standards as well as 
the adoption of improved methods of track recording, 
monitoring and maintenance. 
 A policy of attaining speeds of 100 kmph for empty 
freight trains and 75 kmph for loaded trains is being put in place.  
 To maximize loading in every train, the loading 
density on all major freight bearing routes of Indian Railways will be upgraded to 22.82 tonne axle loads.  
 The Transport Logistics Corporation of India will be 
created as a PSU to develop common user facilities. It will provide end-to-end logistics solutions at select railway terminals through PPPs. 
 Upgrade 10 existing goods sheds of Indian Railways 
and develop 30 small multimodal logistic parks where Indian Railways has surplus land. 
 Review the Wagon Leasing Scheme, Special Freight 
Train Operator Scheme, Private Freight Terminal Scheme and Liberalised Wagon Investment Scheme in the next three months.  Make them more liberal, broad-based and attractive to the private sector. 
 To reduce empty flows of wagons, an Automatic 
Freight Rebate Scheme for traffic loaded in Traditional Empty Flow Direction was launched in October 2014 as a pilot project on Northern Frontier Railway and Southern Railway. 
 Railways target to award 750 km of civil contracts 
and 1,300 km of system contracts in 2015-16 for the Eastern and Western Dedicated Freight Corridor (DFC).  Preliminary Engineering cum Traffic Survey for four other DFCs is in progress and will be completed this year. 

## Safety

Observations and recommendations on the issue of safety in Railways include: 

 The highest numbers of fatalities in Railways occur 
due to accidents at unmanned level crossings.1  All 
level crossings (both manned and unmanned) should 
be eliminated over a period of five years.4   
 A Railways Safety Authority should be established 
with powers to have a safety oversight on the 
Railways" operations.4 
 Advanced Signalling System (similar to the European 
Train Control System) should be adopted for the 
entire trunk route length.4 
The Minister made the following announcements on improving safety in Indian Railways: 

 Preparation of a five-year corporate safety plan by 
June 2015, which would indicate annual quantifiable targets. 
 All pending recommendations made by High Level 
Safety Review Committee headed by Dr. Kakodkar 
will be examined by April 2015. 
 Development of devices to provide audio visual 
warning to road users at unmanned railway crossings. This would be done in collaboration with RDSO, ISRO and IIT Kanpur. 
 To facilitate the construction of ROB/RUB, a web 
based application has been commissioned with userfriendly measures for online submission and approval of drawings within 60 days.  An MOU has also been signed with the Ministry of Road Transport and Highways in this regard.   
 970 ROB/RUBs and other safety-related works to 
eliminate 3,438 level crossings at a total expense of Rs. 6,581 crore have been sanctioned for 2015-16.   

## Passenger Amenities

Indian Railways carries about 13 million passengers every day.  The major issues with passenger satisfaction include long transit times, lack of cleanliness at stations, and poor reservation facilities.1  
With respect to passenger amenities, the following proposals were made in the budget: 

 The funding towards passenger amenities has been 
increased by 67%. 
 A new department will be created for keeping 
stations and trains clean.  
 17,000 bio toilets will be constructed to replace 
existing toilets.  So far 17,388 bio toilets exist.    
 Designs for bed linen and railway coach interiors will 
be improved.  Catering services will be improved by linking it with the IRCTC website. 
 Leveraging technology by issuing unreserved tickets 
on smart phone, providing hand-held terminals to Travelling Ticket Examiners, introducing a railway display network at 2,000 stations,  
 So far, 1052 stations have been identified for 
upgradation of Passenger Amenities at Station under Adarsh station scheme.  An additional 200 stations will be included under this scheme. 
 Wi-Fi services will be provided at all A1, A and B 
category stations.   
 Capacity in identified trains will be augmented from 
the existing 24 coaches to 26 coaches.  

## Rolling Stock

Indian Railways has a total capacity of 10,749 
locomotives, with 5,749 diesel ones and 5,000 electric 
ones.  These are maintained across 71 sheds. Indian 
Railways has 63,511 broad gauge coaches of which 
9,319 are AC coaches.   

Indian Railways has taken up a few initiatives to 
improve their rolling stock capacity.1  These include:  

 Development of wagons with higher pay to tare ratio, 
light wagons and special purpose wagons for specific 
commodities.  
 A proposal has also been made to set up new 
generation Diesel & Electric Loco Factories in Bihar 
under JV/PPP Route.  

In his budget speech, the Minister announced developing 
partnerships with the private sector to improve last mile 
connectivity, expand the fleet of rolling stock, and 
modernize station infrastructure. 

## Station Redevelopment And Logistics Parks

With regards to station redevelopment, the Minister made the following announcements: 

 Revamp the station redevelopment policy completely 
and simplify processes for faster redevelopment by inviting open bids from interested parties.  
 The present stations will be available for 
development on "as is where is" basis, to exploit the 
space and air rights on concession basis.  However, land will not be sold for such projects.  Anyone can participate by providing the operational requirements of Railways for running trains at these stations. 
 Satellite Railway terminals will be developed in 
major cities with the twin purpose of decongesting 
the city as well as providing service to passengers 
residing in suburbs.  
 A Foreign Rail Technology Cooperation scheme will 
be launched to provide technical assistance to railway authorities on station redevelopment. 
2 "Putting Public Investment on Track: The Rail Route to Higher Growth", Economic Survey 2014-15, Ministry of Finance, February 25, 2015, http://indiabudget.nic.in/es2014-15/echapvol1-06.pdf.  
3 "Railways", Sector Reports, Chapter 1, National Transport Development Policy Committee, February 2014. 

4 "Report of High Level Safety Review Committee", Ministry of Railways, February 2012.  

## Appendix I: Railways Budget 2015-16 Summary

|                                            |                       | % Change    | % Change    |
|--------------------------------------------|-----------------------|-------------|-------------|
| Actual                                     | Budget                | RE/BE       | Budget      |
| (2013-14)                                  | (2014-15)             |             |             |
| Revised                                    |                       |             |             |
| (2014-15)                                  | (2014-15)             | (2015-16)   |             |
| (2015-16 BE/                               |                       |             |             |
| 2014-15 RE)                                |                       |             |             |
|                                            |                       |             |             |
| Receipts                                   |                       |             |             |
|                                            |                       |             |             |
| Passenger - Upper Class                    | 10,820         13,330 | 12,737      | -4%         |
| Passenger - Second Class                   | 25,712                | 31,315      | 30,265      |
| Other Coaching                             | 3,679                 | 4,200       | 4,028       |
| Freight                                    | 93,906                | 1,05,770    | 1,06,927    |
| Sundry                                     | 5,721                 | 5,500       | 5,241       |
| Suspense                                   | -280                  | 50          | 50          |
| Gross Traffic Receipts                     | 1,39,558              | 1,60,165    | 1,59,248    |
| Miscellaneous                              | 3,656                 | 4,209       | 4,202       |
| Total Revenue                              | 1,43,214              | 1,64,374    | 1,63,450    |
| Expenditure                                |                       |             |             |
|                                            |                       |             |             |
| Ordinary Working Expenses                  | 97,571                | 1,12,649    | 1,08,970    |
| Appropriation to Depreciation Reserve Fund | 7,900                 | 6,850       | 7,775       |
| Appropriation to Pension Fund              | 24,850                | 28,550      | 29,225      |
| Total Working Expenditure                  | 1,30,321              | 1,48,049    | 1,45,970    |
| Miscellaneous                              | 1,144                 | 1,127       | 1,028       |
| Total Expenditure                          | 1,31,465              | 1,49,176    | 1,46,998    |
| Dividend payable to General Revenues       | 8,009                 | 9,135       | 9,174       |
| Net Surplus after payment of Dividend      | 3,740                 | 6,064       | 7,278       |
| Operating Ratio                            | 93.6%                 | 92.5%       | 91.8%       |
|                                            |                       |             |             |
|                                            |                       |             |             |
| Appropriation to Railway Development Fund  | 3,075                 | 300         | 1,306       |
| Appropriation to Capital Fund              | 500                   | 5,663       | 5,919       |
| Appropriation to Debt Service Fund         | 165                   | 101         | 54          |

Source: Budget of Railways Revenue and Expenditure of the Central Government for 2015-16  

## 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 
8. 
Development Fund - Finances expenditure on Passenger and Other Railway Users" Amenities Works, Staff Welfare Works, Unremunerative operating improvements etc. 
9. 
Capital Fund - Used for capital augmentation. Appropriations to this fund are made only after making necessary appropriations to other funds. 

## Table 3: Investment By Plan Heads (In Rs Crore)

% Change BE 
2015-16/ RE 
Plan Head  
Actuals 
2013-14 
BE 2014-15 
RE 2014-15 
BE 2015-16 
2014-15 
Transfer to National Investment Fund 
     17,634  
      30,100  
      30,100  
       40,000  
33% 
New Lines (Construction) 
      5,809  
        8,569  
       8,964  
       12,830  
43% 
Gauge Conversion 
      3,103  
        2,540  
       3,429  
         5,555  
62% 
Doubling 
      2,978  
        3,675  
       4,046  
       18,420  
355% 
Traffic Facilities - Yard remodelling and others 
         659  
           900  
          959  
         2,374  
148% 
Computerisation 
         154  
           339  
          317  
           393  
24% 
Railway research 
           25  
            25  
            25  
             40  
62% 
Rolling stock 
     17,498  
      15,322  
      17,377  
       19,343  
11% 
Leased assets - Payment of capital component 
      4,971  
        5,462  
       5,452  
         6,293  
15% 
Road safety works - level crossings 
         504  
           413  
          460  
           306  
-34% 
Road safety works - road over/under bridges 
      1,482  
        2,287  
       2,017  
         1,340  
-34% 
Track renewals 
      4,985  
        4,800  
       5,047  
         6,035  
20% 
Bridge works 
         390  
           403  
          465  
           560  
20% 
Signalling and telecommunication works 
         905  
           966  
       1,033  
         1,115  
8% 
Electrification projects 
      1,265  
        1,206  
       1,400  
         2,163  
54% 
Other electrical works excl TRD 
         122  
           123  
          132  
           189  
43% 
Traction distribution works 
         194  
           205  
          222  
           249  
12% 
Machinery & plant 
         450  
           310  
          463  
           475  
3% 
Workshops including production units 
      1,823  
        2,780  
       2,722  
         2,624  
-4% 
Staff quarters 
         229  
           301  
          308  
           400  
30% 
Amenities for staff 
         283  
           351  
          343  
           399  
17% 
Passengers amenities 
         862  
        1,038  
       1,050  
         1,753  
67% 
Inv. In govt comm under public undertaking 
         642  
        1,495  
          572  
         2,733  
378% 
Inv. In non-govt und. Including JVs/ SPVs 
      4,088  
      10,006  
       7,812  
       13,091  
68% 
Other specified works 
         323  
           399  
          449  
           444  
-1% 
Stores suspense 
           57  
           -91  
         -208  
            -13  
-94% 
Manufacture suspense 
         308  
            46  
            16  
               8  
-50% 
Miscellaneous advances 
          -66  
            13  
           -15  
            -28  
86% 
Total credits (gross excluding metro) 
     -1,816  
       -1,796  
      -2,156  
        -2,577  
20% 
Metropolitan transport projects 
         905  
        1,859  
       1,781  
         2,000  
12% 
New Lines (Construction)- dividend free projects 
         804  
        1,500  
       1,300  
         1,500  
15% 
MTP (Excluding suspense) credits or recoveries 
           -2  
            -2  
              -2  
1% 
 
Total 
     53,989  
      65,445  
      65,798  
    1,00,011  
52% 

Sources: Explanatory Memorandum to Railways Budget 2015-16; PRS 

## Table 4: Investments Through Extra Budgetary Resources

% Change BE 2015-16/ 
Plan Head  
Actual 2013-14 
Budget 2014-15 
Revised 2014-15 
Budget 2015-16 
RE 2014-15 
New Lines (Construction) 
           -    
        1,395         1,436  
         4,086  
185% 
Gauge Conversion 
           -    
           108            100  
         2,144  
2044% 
Doubling 
           -    
           237            166  
       11,307  
6708% 
Traffic Facilities - Yard remodelling and others 
           -    
           100              99  
         1,099  
1015% 
Rolling stock 
     14,785        11,500        11,773         17,276  
47% 
Road safety works - road over/under bridges 
           -    
           500            277  
             -    
-100% 
Electrification projects 
           -    
             -    
            -    
           560  
- 
Workshops including production units 
           -    
        1,000            988  
           430  
-56% 
Passengers amenities 
           -    
            13  
             4  
               4  
0% 
Inv. In non-govt und. Including JVs/ SPVs 
         440  
        2,108         2,091  
         2,832  
35% 
Metropolitan transport projects 
           -    
           835            835  
           835  
0% 

Sources: Explanatory Memorandum to Railways Budget 2015-16; PRS 
 

| 2013-14                                         | 2013-14     |
|-------------------------------------------------|-------------|
| Target                                          | Achievement |
| 2014-15                                         |             |
| Target                                          |             |
| 2015-16                                         |             |
| Target                                          |             |
|                                                 |             |
| 1. Electrification (Route Kms.)                 | 1350        |
| 2. Track Renewals (Track Kms.)                  | 2100        |
| 3. Construction of New Lines (Route Kms.)       | 450         |
| 4. Gauge Conversion (Route Kms.)                | 404         |
| 5. Rolling Stock                                |             |
|                                                 |             |
|                                                 |             |
|                                                 |             |
|                                                 |             |
| (a) Locos                                       |             |
|                                                 |             |
|                                                 |             |
|                                                 |             |
|                                                 |             |
| (i) Diesel                                      | 375         |
| (ii) Electric                                   | 300         |
| (b) Coaches including  EMU/MEMU/DMUs/Metro/etc. | 4085        |
| (c) Wagons (in terms of vehicle units)          | 15666       |

Source: Explanatory Memorandum to Railways Budget 2015-16 
 

## Table 6: Freight Traffic Details

 
Revised Estimates 2014-15 
Budget Estimates 2015-16 
% Change BE 2015-16/ RE 2014-15 
Net 
Earnings 
Net Tonne 
Earnings 
Net Tonne 
Earnings 
Tonne 
Kms. 
Kms. 
Kms. 
Commodity 
Tonnage 
Originating 
(Millions) 
(Millions) 
(Rs in 
crores) 
Tonnage 
Originating 
(Millions) 
(Millions) 
(Rs in 
crores) 
Tonnage 
Originating 
(Millions) 
(Millions) 
(Rs in 
crores) 
Coal 


Steel Plants 
54.22 
22993 
3262.36 
55.3 
23447 
3696.44 
2% 
2% 
13% 
Washeries 
1.4 
350 
62.91 
1.7 
425 
70.82 
21% 
21% 
13% 
Thermal Power Houses 
366.52 
206717 
30969.03 
394 
222610 
35082.67 
7% 
8% 
13% 
Other public users 
120.86 
66471 
10191.98 
134 
73700 
11548.66 
11% 
11% 
13% 
Raw Material for Steel Plants 
19.26 
11711 
1753.81 
21 
12789 
1982.98 
9% 
9% 
13% 
Pig Iron & finished steel 


from Steel Plants 
29.07 
29799 
5251.64 
31.5 
32319 
5868.23 
8% 
8% 
12% 
from other points 
11.44 
6007 
1109.04 
12 
6300 
1240.18 
5% 
5% 
12% 
Iron Ore 


for export 
2.24 
1207 
1355.38 
2 
1080 
1507.69 
-11% 
-11% 
11% 
for Steel Plants 
67.19 
18478 
3627.69 
71 
19525 
4050.14 
6% 
6% 
12% 
for other users 
46.98 
18322 
3754.91 
52 
20280 
4209.4 
11% 
11% 
12% 
Cement 
113.21 
60570 
9668.42 
120.5 
64828 
10813.56 
6% 
7% 
12% 
Food grains 
57.25 
73856 
9088.9 
62 
79980 
10158.58 
8% 
8% 
12% 
Fertilisers 
46.11 
38270 
4697.21 
49.5 
41333 
5317.35 
7% 
8% 
13% 
Petroleum & Lubricants 
42.31 
27499 
6073.21 
43.25 
28329 
6787.69 
2% 
3% 
12% 
Container Service 
50.61 
53632 
4591 
54.5 
57767 
5849 
8% 
8% 
27% 
Other Goods 
72.58 
52618 
8919.52 
82 
57979 
10339.61 
13% 
10% 
16% 
Misc Earnings (Goods) 
2550 
2900 
14% 


Total 
1101.25 
688500 
106927 
1186.25 
742691 
121423 
8% 
8% 
14% 

Source: Explanatory Memorandum to Railways Budget 2015-16 

| REVISED 2014-15    | BUDGET 2015-16    | % Change BE 2015-16/ RE 2014-15    |
|--------------------|-------------------|------------------------------------|
|                    |                   |                                    |
| Number of          |                   |                                    |
| passengers         |                   |                                    |
| (millions)         |                   |                                    |
| Passenger          |                   |                                    |
| Kms (in            |                   |                                    |
| millions)          |                   |                                    |
| Earnings           |                   |                                    |
| (Rs in             |                   |                                    |
| crores)            |                   |                                    |
| Number of          |                   |                                    |
| passengers         |                   |                                    |
| (millions)         |                   |                                    |
| Passenger          |                   |                                    |
| Kms (in            |                   |                                    |
| millions)          |                   |                                    |
| Earnings           |                   |                                    |
| (Rs in             |                   |                                    |
| crores)            |                   |                                    |
| Number of          |                   |                                    |
| passengers         |                   |                                    |
| (millions)         |                   |                                    |
| Passenger          |                   |                                    |
| Kms (in            |                   |                                    |
| millions)          |                   |                                    |
| Earnings           |                   |                                    |
| (Rs in             |                   |                                    |
| crores)            |                   |                                    |
|                    |                   |                                    |
| Suburban           |                   |                                    |
|                    |                   |                                    |
| First Class        | 264               | 9,115                              |
| Second Class       |                   |                                    |
| (Ordinary)         | 4,268             | 1,53,462                           |
| Total              |                   |                                    |
| Suburban           | 4,532             | 1,62,577                           |
|                    |                   |                                    |
| Non                |                   |                                    |
| Suburban           |                   |                                    |
|                    |                   |                                    |
| AC First class     | 2                 | 1,571                              |
| AC Sleeper         | 23                | 18,080                             |
| First Class        |                   |                                    |
| (M&E)              | 1                 | 192                                |
| First Class        |                   |                                    |
| (ordinary)         | 6                 | 597                                |
| AC 3 Tier          | 68                | 56,115                             |
| Sleeper            |                   |                                    |
| Class (M&E)        | 296               | 2,41,689                           |
| Second Class       |                   |                                    |
| (M&E)              | 990               | 3,45,511                           |
| Sleeper            |                   |                                    |
| Class              |                   |                                    |
| (ordinary)         | 11                | 3,433                              |
| Second Class       |                   |                                    |
| (Ordinary)         | 2,396             | 2,76,270                           |
| AC Chair Car       | 24                | 9,018                              |
| Executive          |                   |                                    |
| Class              | 1                 | 366                                |
| Total Non-         |                   |                                    |
| Suburban           | 3,818             | 9,54,842                           |
|                    |                   |                                    |
| Total              |                   |                                    |
| Passenger          |                   |                                    |
|                    |                   |                                    |
| AC First class     | 2                 | 1,571                              |
| AC Sleeper         | 23                | 18,080                             |
| First Class        |                   |                                    |
| (M&E)              | 1                 | 192                                |
| First Class        |                   |                                    |
| (ordinary)         | 270               | 9,712                              |
| AC 3 Tier          | 68                | 56,115                             |
| Sleeper            |                   |                                    |
| Class (M&E)        | 296               | 2,41,689                           |
| Second Class       |                   |                                    |
| (M&E)              | 990               | 3,45,511                           |
| Sleeper            |                   |                                    |
| Class              |                   |                                    |
| (ordinary)         | 11                | 3,433                              |
| Second Class       |                   |                                    |
| (Ordinary)         | 6,664             | 4,31,732                           |
| AC Chair Car       | 24                | 9,018                              |
| Executive          |                   |                                    |
| Class              | 1                 | 366                                |
| Total              | 8,350             | 11,17,419                          |

Source: Explanatory Memorandum to Railways Budget 2015-16 

| 2014-15                                   | 2015-16          |
|-------------------------------------------|------------------|
|                                           |                  |
| Percent of Total                          | Percent of Total |
| Plan                                      | Plan             |
| % Change BE                               |                  |
| 2015-16/ BE                               |                  |
| Railway                                   | Expenditure      |
| Central Railways                          | 265,83,985       |
| Eastern Railways                          | 193,28,373       |
| Northern Railways                         | 1758,99,273      |
| Northeast Railways                        | 85,49,459        |
| Northeast Frontier Railways               | 659,49,847       |
| Southern Railways                         | 176,14,854       |
| South Central Railways                    | 255,17,850       |
| South Eastern Railways                    | 138,36,320       |
| Western Railways                          | 215,91,908       |
| East Central Railways                     | 225,50,140       |
| East Coast Railways                       | 161,74,053       |
| North Central Railways                    | 132,99,033       |
| North Western Railways                    | 131,77,161       |
| South East Central Railways               | 121,24,890       |
| South Western Railways                    | 144,43,908       |
| West coast Railways                       | 143,88,723       |
| Metro Railway- Kolkata                    | 60,35,588        |
| Chittaranjan Locomotive Works             | 7,09,621         |
| Diesel Locomotive Works                   | 13,64,310        |
| Integral Coach Factory                    | 12,79,903        |
| Rail Wheel Factory                        | 1,84,214         |
| Diesel Loco Modn Works                    | 2,94,157         |
| Rail coach factory                        | 8,79,228         |
| Railway Electrification                   | 120,29,900       |
| Research Designs & Standards Org          | 2,50,000         |
| Metropolitan Transport Projects - Chennai | 1,10,000         |
| Railway Board (Rolling Stock)             | 1502,83,302      |
| TOTAL                                     | 6544,50,000      |

Sources: Explanatory Memorandum to Railways Budget 2015-16; PRS 

| 2014-15                       | 2015-16     |
|-------------------------------|-------------|
|                               |             |
| % Change BE 2015-16/          |             |
| Railway                       | Expenditure |
| Percent of Total              |             |
| Plan Expenditure              | Expenditure |
| Percent of Total              |             |
| Plan Expenditure              | BE 2014-15  |
| Central Railways              | 35,28,239   |
| Eastern Railways              | 36,66,346   |
| Northern Railways             | 55,06,441   |
| Northeast Railways            | 17,68,920   |
| Northeast Frontier Railways   | 31,82,610   |
| Southern Railways             | 41,20,283   |
| South Central Railways        | 43,14,070   |
| South Eastern Railways        | 33,03,216   |
| Western Railways              | 37,62,162   |
| East Central Railways         | 24,64,631   |
| East Coast Railways           | 15,92,810   |
| North Central Railways        | 22,97,689   |
| North Western Railways        | 19,25,614   |
| South east Central Railways   | 16,71,333   |
| South Western Railways        | 14,49,914   |
| West coast Railways           | 16,14,915   |
| Metro Railway- Kolkata        | 2,33,112    |
| Chittaranjan Locomotive Works | 33,578      |
| Diesel Locomotive Works       | 46,792      |
| Integral Coach Factory        | 92,586      |
| Rail Wheel Factory            | 61,331      |
| Diesel Loco Modn Works        | 17,746      |
| Rail coach factory            | 44,013      |
| TOTAL                         | 466,98,351  |

Sources: Explanatory Memorandum to Railways Budget 2015-16; PRS 

| 2014-15                     | 2015-16     |
|-----------------------------|-------------|
|                             |             |
| % Change BE 2015-16/        |             |
| BE 2014-15                  |             |
| Percent of Total            |             |
| Plan Expenditure            | Expenditure |
| Percent of Total            |             |
| Plan Expenditure            |             |
| Central Railways            | 7,82,799    |
| Eastern Railways            | 9,52,118    |
| Northern Railways           | 15,36,202   |
| Northeast Railways          | 4,40,708    |
| Northeast Frontier Railways | 5,46,745    |
| Southern Railways           | 7,00,935    |
| South Central Railways      | 9,37,912    |
| South Eastern Railways      | 6,74,915    |
| Western Railways            | 6,81,818    |
| East Central Railways       | 6,93,624    |
| East Coast Railways         | 5,53,027    |
| North Central Railways      | 9,61,152    |
| North Western Railways      | 3,53,917    |
| South east Central Railways | 4,85,874    |
| South Western Railways      | 3,91,831    |
| West coast Railways         | 4,97,852    |
| Metro Railway- Kolkata      | 1,55,133    |
| TOTAL                       | 113,46,562  |

Sources: Explanatory Memorandum to Railways Budget 2015-16; PRS 


2015