Highlights of Interim Railway Budget 2009-10

Posted on    14 February 2009

Highlights of Interim Railway Budget 2009-10 INTERIM RAILWAY BUDGET 2009-10 Review of Financial Performance during the year 2008-09

  • Freight loading target retained at 850 mt; number of passengers likely to grow by around 7% over previous year.
  • Implementation of recommendations of VI Central Pay Commission (CPC) likely to cost the Railways Rs 9,000 cr more on staff costs and Rs 4,500 cr more on pensionary charges as compared with previous year.
  • Hence, Ordinary Working Expenses (OWE) increased to Rs 55,000 cr in the R.E and the appropriation to Pension Fund to Rs 10,500 cr.
  • Appropriation to DRF retained at Rs 7,000 cr.
  • Dividend payable to General Revenues kept at Rs 4,711 cr.
  • Cash surplus before dividend projected at Rs 19,320 cr and the Operating Ratio at 88.3% despite implementation of the VI CPC.
  • Revised plan outlay kept at Rs 36,773 cr.

Performance Review

  • The number of consequential accidents came down to 194 in 2007-08.
  • Agartala, the capital of the Tripura, connected by railway line. First train service in Kashmir valley commenced between Anantnag and Rajwansher. To be followed by Baramulla and Qazigund.
  • Successful trials completed for running electric locomotives with OHE at a height of about 7.5 mts in preparation for running double stack containers on electrified Western Dedicated Freight Corridor
  • Work on Eastern Dedicated Freight Corridor commenced near Dehri-onSon on 10th February,2009. Work on Western DFC to commence this month.

​​​​​​​Budget Estimates 2009-10

  • Freight loading targeted at 910 mt an increment of 60 mt on 2008-09; number of passengers likely to grow by around 7%.
  • Gross Traffic Receipts estimated at Rs 93,159 cr i.e. Rs 10,766 cr more than RE 2008-09.
  • Ordinary Working Expenses budgeted at Rs 62,900 cr to cover the full year impact of VI CPC and the payment of 60% arrears due in 2009-10.
  • Dividend payable to General Revenues kept at Rs 5,304 cr at the current applicable rates.
  • Budgeted Operating Ratio 89.9%.
  • Plan outlay kept at Rs 37,905 cr.

​​​​​​​Passenger Services

  • 43 new train services to be started in 2009-10, extension of 14 trains envisaged and frequency of 14 trains to be increased.


  • With a view to facilitate improved train operations, it has been decided to set up two new railway divisions at Bhagalpur and Thawe.
  • 25 surveys proposed comprising 14 for new lines, 3 for gauge conversion and 28 for doubling projects.
  • Pre-feasibility study for running high speed bullet trains being pursued.
  • Construction of Rail Wheel Factory, Chapra on in full swing; Work on diesel and electric locomotive factories at Marhoura and Madhepura targeted for early start.
  • ​​​​​​​Bharat Wagon Limited, Mokama & Muzaffarpur transferred to Ministry of Railways; transfer of wagon units of Burn Standard at Burnpur and Howrah also under consideration on the same lines.    
  • Reduction in Tariffs
  • Reduction in passenger fares of ordinary passenger trains by one rupee for fares costing up to Rupees fifty per passenger for journey above ten kms.
  • Second class and sleeper class fares of all Mail/Express and ordinary passenger trains to be reduced by 2 per cent for tickets costing Rupees fifty and more per passenger.
  • Fares of AC First Class, AC II tier, AC III tier and AC Chair Car also to be reduced by two per cent.

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