India Insight

Railway Budget 2014: Highlights at a glance

In his maiden budget, Railway Minister Sadananda Gowda said the bulk of future railway projects will be financed through public-private partnerships and his ministry would seek cabinet approval for allowing foreign direct investment in the state-owned network, excluding passenger services.

India’s railway, the world’s fourth-largest, has suffered from years of low investment and populist policies to subsidise fares. This has turned a once-mighty system into a slow and congested network that crimps economic growth.

The Narendra Modi government pushed through a steep hike in rail passenger and freight fares last month, and expectations were high there would be bold proposals to improve the railways – a lifeline for 23 million Indians every day.

On Tuesday, Gowda proposed the introduction of bullet trains between Mumbai and Ahmedabad; the revamp of e-ticketing services; the deployment of women police on ladies’ coaches; and setting up a railway university.

Here are some of the key announcements:

- New trains: five Jansadharan, five premium and six air-conditioned trains; 27 express trains, eight passenger, five DEMU and two MEMU services; 11 train extensions.

Railway Budget 2014: Highlights at a glance

Railways Minister Mallikarjun Kharge left train fares and freight rates unchanged on Wednesday, in an interim rail budget ahead of a national election due by May.

It wasn’t really a surprise. In 2012, Dinesh Trivedi was forced to resign as railways minister after his decision to raise passenger fares for the first time in eight years prompted a furious response from his own party — the Trinamool Congress — that was part of the Congress-led coalition government at the time.

The government did raise fares last year, this time with a Congressman at the helm of affairs, as a cash-strapped railways ministry tried to raise money to pay its employees.

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