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For Indian Union Budget 2008-09 .... Click here
For Indian Economic Survey 2007-08 .... Click here

Indian Railway Budget 2008-09
(26th February 2008)

Despite the populist overtones due to compulsions of election, Indian Railway Budget 2008-09 is a good budget. Railway Budget presented by Shri Lalu Prasad Yadav has been welcomed by most of the Industry/Trade associations. One of the associations has gone ahead and called it a `Pragmatic, Progressive & Futuristic’ Budget... Click here

Why everybody is pleased with railway budget? ... Click here


Proposals relating to freight rates and passenger fares


• Reduction in passenger fares.

• One rupee discount per passenger for fares up to Rs. 50 in Non Suburban Second Class (ordinary and mail /express)

• 5% discount across the board for passenger fares beyond Rs. 50 for all Non Suburban Second class (ordinary and mail/express ).

• Increase in discount for travel in new design high capacity reserved coaches • Rationalization of AC class fares completed.

• Relativity index of fares for AC-I class reduced from 1150 to 1000 and from 650 to 600 for AC-II tier. Reduction in fare:

o AC I 7%

o AC II 4%

o For popular trains and during peak period the above reduction will be half as in the previous year


• No across the board increase in freight rates.

• Highest class 210 reduced to 200 concluding rationalization process.

• 5% reduction in freight rates for Petrol and Diesel

• Fly ash- reduction in classification from class 140 to 120; 14 % reduction in freight rate .

• Liberalization of Traditional Empty Flow direction incentive scheme

• 30 % discount on entire traffic in place of incremental traffic booked from goods shed

• Some commodities excluded

• Increase in discount on incremental traffic booked from private sidings from 30% to 40%

• Composite base freight rate to be charged for all unclassified commodities in place of highest class:

Tank Wagons Class 200

Flat Wagons Class 180

Open (including Hopper) Wagons Class 160

Covered Wagons Class 150

• 6% freight concession for traffic booked from other states for stations in North Eastern states.

• Special lump sum rates for Merry-Go-Round (MGR) services for customers who will provide track, OHE and terminals at both ends.

Passenger Services

• 10 new Garib Raths to be introduced.

• New Trains : 53 pairs

• Extension of Trains : 16 pairs

• Increase in Frequency : 11 pairs

• Special train from Anandpur Sahib and Patna Sahib to Gurudwara Sachkhand Sahib during tercentenary function of Shri Guru Granth Sahib Gurta Gaddi.

• Special train between Pune and Delhi for Commonwealth Youth Games being held in Pune from 12th October to 18th October 2008.

• 300 additional services in Mumbai suburban

Initiatives in Passenger Business

Improvements in ticketing

• Termination of queues at ticket counters targeted in two years

• Increase in UTS counters to to 15,000 and ATVM s to 6000 over two years

• Ticket booking on mobile phones.

• Extension of Jansadharan Ticket booking seva

• E-ticket for waitlisted passengers

• Ticket on ‘Go Mumbai Card’ in Mumbai Suburban.

Passenger Amenities

• Provision of on-line coach indication display board; on-line train arrival departure information board; on-line reservation availability information board.

• Provision of discharge-free green toilets in all 36,000 coaches in XI Plan Period at a cost of about Rs 4,000 cr.

• LHB design coaches for all Rajdhani and Shatabadi trains over next few years.

• Provision of LHB coaches with stainless steel bogies in Mail/Express trains.

• Special stress on cleanliness - on-board cleaning in passenger trains.

• Extending the public address system in passenger coaches of select mail/express trains.

• Increase in the height of a number of platforms;

• Provision of platform shelters at all D category stations.

• Provision of foot-over bridges at all high-level platforms.

• Increase in length of 30 more platforms.

• Provision of multi-level parking, lifts and escalators at major stations.


• Senior citizen concession for women enhanced to 50% from existing 30%.

• Free MST to girl students up to graduation level in place of 12th standard and for boys up to 12th standard in place of 10th standard

• Ashok Chakra Awardees also to be provided the facility of traveling in Rajdhani and Shatabadi trains on card passes issued to them.

• AIDS patients traveling to nominated ART centres for treatment to be given 50% concession in second class passenger fares.

Initiatives in Freight Business

• Target for loading kept at 850 Million Tonnes (MT) in 2008-09 – incremental loading of 60 MT or more, consecutively for the fourth year.

• Blue Print prepared for High Density Network: Phased execution of capacity augmentation including dedicated freight corridors, doubling, third and fourth lines, bye passes, flyovers, automatic signaling works etc over next 7 years at cost of about Rs 75,000 cr

• Coal routes: Most routes to be made fit for 25t axle load trains. Focus on throughput enhancement works serving important coal links- many new works proposed.

• Port Traffic – Mission 300 MT: Top priority being given to port rail connectivity projects.

• Steel Udyog – Mission 200 MT: targeted traffic of 200 MT by 2011-12. New and dedicated iron ore routes to be upgraded/constructed for 25-ton to 30-ton axle load trains. Throughput enhancement works of doubling and trebling of lines also being undertaken.

• Cement Industry – Mission 200 MT: targeted traffic of 200 MT by 2011-12. New lines, throughput enhancement through gauge conversion and extension of lines to serve cement clusters in various regions.

• Container Business- Mission 100 MT : Increased investments expected in container rolling stock and ICD s by CONCOR and other operators

• Dedicated Freight Corridor: Work on Eastern freight corridor from Ludhiana to Dankuni (Kolkata) and Western freight corridor from Delhi to JNPT to start in 2008- 09.

• Procurement of Rolling stock: All-time high of 20,000 wagons, 250 diesel and 220 electric locomotives to be manufactured.

• New design wagons of high capacity to be produced. • New Wagon Leasing Policy and new Wagon Investment Scheme formulated to increase availability of wagons in the system.

• Discounts for development of Bulk and non-bulk goods terminals

• Railways to mark presences in Door to Door Logistics services

• Empowered Strategic Business Unit to be set up at the Apex Level- single window system for emerging business opportunities and client support

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