cINTRODUCTION

Union Railway Minister Mamata Banerjee, while presenting her third Rail budget, not only kept
fares and freight rates untouched, but also promised to invest Rs 57,630 crore (USD 12.68
billion) in the network in the financial year 2011/12. As expected, she barely attended to the
mounting deficit of the transportation institution and instead yielded to gimmicks that befits a
politician eyeing the polls²in this case, the West Bengal Assembly.

While announcing her Railway Budget, Ms Banerjee said she was optimistic that financial health
of the Railways will be revived by FY12. "We will see Rs 5,260 crore savings in FY12,". Where,
on one hand, Banerjee left passenger fares untouched and reduced AC booking charges from Rs
20 ro Rs 10. She also announced 85 proposals for PPP and okayed launch of nine new Duranto
and three Shatabdi trains. For Mumbai, she proposed raising capacity to 107 local trains.

It's yet another populist Railway Budget from Mamata Banerjee. The Railway Minister left
passenger fares and freight rates unchanged even as she promised an investment of Rs 57,630
crore into the railways in financial year 2012. This move comes in at a time when the railways
finances are deteriorating.

However, the minister said that the financial health of the railways would be brought back on
track in the next financial year with Rs 5,258 crore of excess funds.

OPPORTUNITIES

•m Rail budget proposals spell big business for wagon manufacturers, engineering
companies, construction firms, specialist IT players and the transport sector. But
railways' poor track record in past years is haunting companies in these businesses.
•m Describing it as a win-win Budget because wagon manufacturers, heavy industries and
common travelers would stand to gain.The railways' emphasis on involving the private
sector in infrastructure projects as part of public private partnerships(PPP), was also
praised by industry organisations.there were concerns about the state of safety and
hygiene at the railway stations, with the industry emphasising that more needed to be
done towards their modernisation.
•m The main areas where the India¶s Rail Budget of 2011-2012 is likely to concentrate
are:

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Since infrastructure has been a major criteria and playing a crucial role in the
development of the Railway sector in India, so it tops the list of areas to be focused on
while sketching out the 2011 Railway Budget for India. Capital goods, Cement, mining,
metals and also oil, power and gas would be concentrated upon.

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Since better services ensure better work on the part of manufacturers and industries, the Railway
Minister is hence expected to keep in mind the sectors such as financial services, Banking,
Insurance, I.T, Media and hotels, Telecoms, Ports, Shipping, Logistics and Retail.

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The growth and development of almost every industry depends to a large extent on its efficient
and good manufacturing unit, and same goes the case with Railways.

Railway Minister Mamata Banerjee said that it is time for private partnership in Indian Railways,
but ruled out any possibility to privatise Indian Railways. In her budget speech, Mamata said that
clearance to private investment will be provided in 100 days to speed up projects. She appealed
to business houses to join hands for building partnership with Railways

•m üision 2020 will address four strategic national goals: - Inclusive development
(geographically and socially), Strengthening national integration;, Large-scale generation
of productive employment, Environmental sustainability.
By pursuing bold and unprecedented, ambitious targets in the much-needed expansion
and modernization of the railway network in India
•m Indian Railways' contribution to the national goal of achieving double-digit GDP growth
rate on a sustainable basis.It will accelerate economic growth, open up new avenues for
employment in the primary, secondary and tertiary sectors and also promote
geographically and socially balanced growth, Mamata Banerjee said that there is no plan
to privatise Indian Railway, while stressing on private-public partnership. The budget is
likely to concentrate on maintaining cleanliness at platforms and trains.
•m The announcement of expansion of PPP in manufacturing, fructification of public sector
undertakings also partnering the railways for completion of projects ...will give a fillip to
and saving resources of the railways
•m The decision of setting up a rail factory in Jammu and Kashmir will create more
infrastructure and jobs in the region
•m This will surely be a priority area to focus on and the Railway Ministry might very well
go for purchasing hi-tech products to ensure the safety of the people.

THREATS

•m Didi's Rail will depart from West Bengal. Mamata Banerjee will once again try to woo
the people of West Bengal through a populist Rail Budget. Mamata is expected to
present West Bengal-oriented Rail Budget to targeting West Bengal assembly poll.
•m West Bengal will go into the assembly polls within a year and Mamata will announce
various new trains and new projects for the state. According to sources, 12 new Duranto
Express trains are likely to be announced, in which five trains will leave from Kolkata.
•m The pending projects include construction of new track lines, doubling of single line
routes and gauge conversion works. It undoubtedly, would be a difficult task for Union
Railway Minister, Mamata Banerjee to complete the piled up projects within restricted
resources.
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