Highlights of Indian Railways Budget 2011-12

Posted: 23/03/2011 in Budget 2011-12



Budget attempts to combine a strong economic focus with equal emphasis on social inclusion with a human face.

Policy Initiatives:

Railways have developed several business-oriented policies for the first time.

  • Railways’ Infrastructure for Industry Initiative (R3i)
  • Private Freight Terminal (PFT)
  • Special Freight Train Operators (SFTO)
  • Automobile Freight Train Operators (AFTO)
  • Automobile and Ancillary Hubs
  • Kisan Vision (Cold Chains)
  • New Catering Policy
  • Rail Connectivity to Coal and Iron Ore mines (R2CI)

85 proposals received; Single Window System set up to take forward these proposals.

Rail Based Industries:

  • Setting up of rail-based industries for meeting demand for rolling stock.
  • The works at New Jalpaiguri, Adra, Jellingham and Kulti taken up in collaboration with different PSUs.
  • First coach from Rae Bareli coach factory to be rolled out in next three months.
  • Projects for supply of locomotives, coaches & critical loco components being taken forward in many locations.
  • Group of Officers working on PPP/JV project models.
  • Work initiated at Budge Budge, Dankuni, Naopara, Anara, Tindharia, New Cooch Behar, Kharagpur, Haldia, Guwahati and Kazipet.
  • Wagon factory in Orissa to taken up, once land identified.
  • ICF Perambur’s second unit to come up.
  • Setting up of Palakkad coach factory.
  • Burn Standard Company Limited and Braithwaite Company Limited brought under Ministry of Railways.
  • Setting up of a Bridge Factory in J&K and an Institute for Tunnel & Bridge Engineering at Jammu.
  • Setting up of Metro Coach Factory in Singur.
  • Setting up of a diesel locomotive centre in Manipur.
  • Setting up of a Centre of Excellence in software at Darjeeling.
  • Setting up of two wagon factories under JV/PPP mode at Kolar & Alappuzha and one at Buniadpur.
  • Setting up of a factory for manufacturing on-track machines and a new track machine POH facility at Uluberia.
  • Setting up of Rail Industrial Parks at Jellingham and New Bongaigaon.
  • A unit to manufacture car steel bogies and couplers through JV between Burn Standard Co. Ltd and SAIL already initiated in Jellingham Park.
  • Setting up of 700 MW gas-based power plant at Thakurli in Maharashtra.
  • Setting up of additional mechanized laundry cleaning units at Nagpur, Chandigarh & Bhopal. In 23 locations laundries are under installation.

Expansion of Rail Infrastructure:

  • 700 km of new lines being completed in 2010-11
  • 800 km gauge conversion, 700 km doubling and 1,000 km electrification targetted for completion in 2010-11.
  • Survey of 94 out of 114 socially desirable new lines completed.
  • A new scheme ‘Pradhan Mantri Rail Vikas Yojana’ to start to fund socially desirable projects.
  • Construction of 4 new lines to connect unserved and underserved regions.
  • Increase in allocation of 19 projects in under-developed and underserved areas to Rs 771 cr.
  • Non-lapsable fund for railway projects in North East region created.
  • All state capitals in the North East except Sikkim to be connected in next 7 years.

Dignity to the Poor:

Provision of small shelter through Sukhi Griha Scheme to track side dwellers. 10,000 dwelling units to be provided in Mumbai, Sealdah, Siliguri, Tiruchirapalli etc on pilot basis.

Annual Plan 2011-12:

  • Highest ever plan outlay of Rs 57,630 cr.
  • Gross Budgetary Support Rs 20,000 cr
  • Diesel Cess Rs 1,041 cr
  • Internal Resources Rs 14,219 cr.
  • Market Borrowing Rs 20,594 cr; PPP/WIS Rs 1,776 cr.
  • 1,300 km new lines, 867 km doubling, 1017 km gauge conversion targetted in 2011-12.
  • Rs 9,583 cr provided for new lines, Rs 5,406 cr for doubling, Rs 2,470 cr for gauge conversion and Rs 13,820 cr for acquisition of rolling stock.

Safety and Security:

  • Anti Collision Device (ACD) sanctioned to cover 8 zonal railways.
  • All unmanned level crossings of TVU upto 3000 to be eliminated.
  • Construction of 200 ROBs & 325 RUBs/subways.
  • Deployment of GPS-based ‘Fog Safe’ device.
  • Two new trains and two projects as a special package to states which ensure trouble free running of trains.
  • All India Security Help line on a single number set up.

Green Initiatives:

  • 2011-12 to be ‘Year of Green Energy’.
  • Regenerative braking in Mumbai EMUs.
  • Production of locos with ‘hotel load converters’
  • Use of solar energy at LC gates and stations, windmill at ICF Chennai.
  • Use of bio-diesel, CNG and LNG in locos and workshops.
  • Free supply of 14 lakh CFLs to railway households.

Passenger/Rail Users’ Amenities:

  • 442 more stations upgraded as Adarsh Stations.
  • 236 more stations included in the list of Adarsh Stations
  • More MFCs and Budget Hotels to be set up at 45 locations.
  • Introduction of pan-India multi-purpose ‘Go India’ smart card.
  • Two new passenger terminals in Kerala and one each in Uttar Pradesh & West Bengal.
  • Better accessibility for physically challenged customers; extension of Rail Yatri Sevaks to six more stations.
  • New portal for e-ticketing.
  • Internet access on Howrah- Rajdhani Express on pilot basis.
  • Extension of Train Management System to five stations.
  • Introduction of advance booking of Retiring Rooms.
  • Introduction of new super AC class of travel.
  • Feasibility study with the help of Japan to raise speed of passenger trains to 160-200 kmph.

Staff Welfare:

  • Expanding the scope of Liberalized Active Retirement Scheme for Guaranteed Employment for safety category staff.
  • Extending medical facilities to both dependent father & mother.
  • Increasing the scholarship for girl child of group-D employees to Rs.1,200 pm.
  • Setting up of Railway Vidyalaya Prabandhan Board.
  • Provision of 20 Road Medical Vans.
  • 20 additional hostels for children of railway employees to be set up.

Training and Recruitment:

  • Recruitment for 1.75 lakh vacancies of group C & D initiated, including backlog of SC/ST quota.
  • Mega recruitment drive on; 16,000 ex-servicemen to be inducted by end of March 2011.
  • Training Center to be set up at Kharagpur.
  • Three multi-disciplinary training centres to be set up with an exclusive international centre at Agra.
  • New basic training centre at Kurseong.
  • Five polytechnics to be set up.


  • Railway sportsperson won 25 medals in the Commonwealth Games 2010 and 7 out of 14 golds won by India in the Asian Games.
  • A separate sports cadre to be created.

Cultural Activities:

  • A special ‘Sanskriti Express’ exhibition train being run to commemorate the 150th Birth Anniversary of Gurudev Rabindranath Tagore is being run which will also go to Bangladesh.
  • Running of Vivekananda Express to be extended for two more years.

Financial Performance 2010-11:

  • Disruption of train movement resulted in loss of Rs 1,500 cr and Rs 2,000 cr due to ban on export of iron ore.
  • Loading target reduced by 20 MT to 924 MT.
  • Gross Traffic Receipts fixed at Rs 94,840 cr, higher by Rs 75 cr over Budget Estimates.
  • Ordinary Working Expenses fixed at Rs 67,000 cr, an increase of Rs 2,000 cr over Budget Estimate.
  • Current dividend liability to be fully discharged.
  • Excess of Rs 4,105 cr.
  • Operating Ratio of 92.1% as compared to 92.3% in Budget Estimates.
  • Revised Plan Outlay of Rs 40,315 cr.

Budget Estimates 2011-12:

  • Freight loading of 993 MT and passenger growth of 6.4%.
  • Gross Traffic Receipts at Rs 1,06,239 cr to exceed one lakh crore mark for the first time.
  • Ordinary Working Expenses assessed at Rs 73,650 cr.
  • Appropriation to DRF at Rs 7000 cr.
  • Provision of Rs 6,735 cr made for dividend payment.
  • Excess at Rs 5,258 cr and Operating Ratio of 91.1%.

Metropolitan Projects:

  • Entire section from Mahanayak Uttam Kumar to Kavi Subhash commissioned in Kolkata.
  • 34 new services to be introduced in Kolkata Metro.
  • Core committee set up to closely monitor progress of on-going works at four sections of Metro Railway Kolkata.
  • Seven new surveys for new connectivity of Kolkata Metro Railway to be taken up.
  • 20-car MEMU trains introduced on Northern Railway.
  • Development of Integrated Suburban Railway Network in large cities.
  • Setting up of Kolkata Rail Vikas Corporation for upgrading entire suburban system of Kolkata.

Production Units:

Capacity of DLW to be augmented to 300 locos.


  • Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.
  • Concession of 50% to press correspondents with family increased to twice a year.
  • Concession to Kirti and Shaurya Chakra awardees to be extended to Rajdhani and Shatabdi trains.
  • Facility of card passes to be extended to the parents of unmarried posthumous Param Vir Chakra & Ashok Chakra gallantry award winners.
  • Senior citizen concession to be increased from 30% to 40% for men; women to get senior citizen concession from 58 years age.

Wagon Procurement:

  • Record procurement of 16,500 wagons being done in 2010-11.
  • Target for 2011-12 kept at 18,000 wagons.

Dedicated Freight Corridors:

  • Main loan agreement for Phase I of Western Corridor of DFC signed with JICA.
  • DFC project will be completed as scheduled.

New Lines / Gauge Conversion / Doubling:

  • 27 sections of New Lines of about 700 km to be completed in 2010-11.
  • 800 km target for gauge conversion to be met with work being completed on 15 sections.
  • 700 km target of doubling to be met with completion of 52 sections.
  • 40 sections of New Lines covering 1,075 km targeted to be completed in 2011-12.
  • A target of 1,017 km under Gauge conversion covering 20 sections has been fixed for 2011-12.
  • Doubling of 35 sections covering 867 km to be done in 2011-12.
  • 190 surveys out of 251 surveys announced in 2009-10 and 2010-11 to be completed by March 2011.

Rail Tourism:

In partnership with Ministry of Tourism, station improvement is planned on 50:50 cost sharing basis at 24 stations.

Suburban Services:

  • 47 additional services to be started for Mumbai suburban.
  • 107 suburban services in Mumbai area to be augmented from 9-car to 12-car rakes.
  • 9 additional services to be run in Chennai area.
  • 50 new suburban services to be introduced in Kolkata area.
  • Introduction of peak-time local to BBD Bagh from Bongaon/Krishnanagar.
  • Two non-stop trains between Bardhman & Howrah to be introduced.
  • 10 additional services to be run in Secunderabad area and 83 suburban services to be augmented from 6-car to 9-car services.
  • 2 additional services to be run on Delhi-Ghaziabad section.


  • 9 new Duronto trains to be introduced.
  • AC double decker services to be introduced on Jaipur-Delhi and Ahmedabad-Mumbai routes.
  • 3 new Shatabdis to be introduced.
  • Frequency of 5 Durontos to be increased.
  • 4 Vivek Express trains to be introduced, to commemorate Swami Vivekananda.
  • 4 Kavi Guru Express trains to be introduced, on the occasion of 150th birth anniversary of Rabindra Nath Tagore.
  • 10 Rajya Rani Express trains connecting state capitals with important cities in respective states.
  • To promote tourism, special tourist trains called ‘Janam Bhoomi Gaurav’ to be introduced on four routes.
  • 56 new express trains to be introduced.
  • 13 new passenger services, 22 DEMU services and 8 MEMU services are to be introduced.
  • The run of 33 trains to be extended.
  • Frequency of 17 trains to be increased.
  • Special trains to be run to meet spikes in the demand for passenger traffic during vacations, festivals, melas etc.

Projects in 2011-12:

  • 25 new line, 6 gauge conversion and 28 doubling projects are proposed to be taken up.
  • A Central Organization for Project Implementation (COPI) with offices at Delhi, Kolkata, Mumbai and Bangalore proposed to be set up.
  • 107 new line surveys, 4 gauge conversion surveys and 16 doubling surveys are proposed to be taken up in 2011-12.
  • In 2011-12, 1000 km route to be electrified.

Download the Budget Highlights and Budget Speech in pdf format by clicking the links given below:

Budget Highlights, English in PDF Format

Budget Speech, English in PDF Format

Budget Speech, Hindi in PDF Format

Source: Ministry of Railways.


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