Railway Budget speech 2008-09: Full text

ON TRACK: Lalu Prasad presents Railway Budget 2008-09.

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In developed countries, cement, food grains, fertilizers etc. are transported in bulk. There is an increasing trend for bulk movement of such commodities in our country due to reduction in the transportation cost of bulk movement. Therefore, we have made a new policy for development of bulk handing terminals. Under this policy, construction of bulk handling terminals for cement fly ash, food grains and fertilizers will be permissible by the producers of these commodities or by their authorized agencies. These terminals will be equipped with all modern handling facilities with round the clock working.

The terminal developer will also invest in special purpose wagons necessary for bulk movement. Under this scheme, wagons will move in a close circuit for which freight discount at prescribed rates will be granted. Besides this, busy season surcharge and terminal charge will also not be applicable for a prescribed period.

Wharfage and demurrage charges will also not accrue at these terminals. A policy has also been prepared for development of traditional unloading goods terminals for non-bulk finished goods like steel, bagged cement and fertilizer. Under this policy, busy season surcharge and terminal charge s will not be levied. Third party traffic will also be permitted to be booked at these terminals for which only terminal charges and wharfage will be exempted.

Both categories of above terminals will primarily be developed on private land. However, Railways land, wherever available, will be given on lease at prescribed rates under the land licensing policy, through open tendering to the bidder who offers maximum freight revenue. The agencies constructing such terminals on Railways lands will also be required to guarantee at least half a million ton traffic per annum during the first year and at least one million ton traffic per annum from the third year onwards.

Door to Door Logistics Services

The transport market in the Indian economy is undergoing rapid changes. Clients today demand point-to-point solutions in place of separate arrangements for trucks, rail etc. This service is acquiring the shape of an industry. Therefore, Railways is poised to undertake all necessary measures to make its presence felt in this market to provide its customers better pointto- point solutions at competitive prices. Under Public Private Partnership, Railways will provide several value added services including modern handling facilities, warehousing and multi-modal logistic parks.

Vision 2025

The financial turnaround of the Railways has been achieved by thinking beyond the beaten path, taking innovative decisions in commercial, operational and pricing policies and through cross functional cooperation and coordination. For making this magical turnaround durable, we will prepare a Railway Vision 2025 Document within the coming six months which will present new ideas and initiatives in a novel manner. This shall outline our preparedness and strategies for the future.

This document will set forth the target for the coming 17 years in the field of operational performance and quality of service. It will also detail an action plan for achieving the stipulated targets and necessary investment plans thereof. This document will also contain details of customer-centric modern passenger services and various freight schemes to sharpen the competitive edge of Railways. This will have a blue print of an organization that encourages trans-departmental decision making to take the Railways to unprecedented heights. Route wise planning would be done to reduce traffic bottlenecks, expand the network and modernize the Railways. The passenger services will be governed by two words- ‘comfort and convenience’. The buzz word in freight business will be ‘commitment and connectivity’. All these efforts will lay a solid foundation for a resurgent Railway. This document will inspire the Railway management and its employees to do new experiments, and will be like a guiding light for the future generation.

Innovation Promotion Group

During the last four years passion for creativity and risk taking has led to the magical turnaround of the Railways. In the 21st century, the business scenario is changing fast at the speed of light. It is necessary to make coordinated efforts to face the new challenges and to imbibe new technique and thoughts. Therefore, we have decided to set up a multi-departmental innovation promotion group in the Railway Board. All Railway employees and citizens of the country, will be able to send their innovative suggestions to this group. This group will be provided with appropriate facilities and resources for innovation.