Railway Budget may trim concessions

The fund deficit Railways has been struggling to set the ageing transport on track and it needs huge investments to enhance the present and future facilities. 

Last year, the Railways awarded contracts to General Electric and Alstom for two mega projects of setting diesel and locomotive factories in Marhora and Madhepura in Bihar. This was the first major FDI in the Railways after the government raised the limit in select sectors of the Railways. 

Besides, the Railways is likely to reconsider its concession policies. It is at present providing concessions in more than 50 categories including senior citizens, medal winning players, allopathic doctors and accredited journalists resulting in loss in crores of rupees annually. According to sources, the railway budget is expected to be marked with  curtailment of concessions especially in the senior citizen category by increasing the age and also reconsidering concessions being provided in the AC First Class tickets. 

When it comes to budget, the big question that arises is increase in passenger fares. According to sources, this year there may be some announcements about hike in passenger fares as the national transport is already reeling under severe financial crunch. 

Freight rates in India compared to other countries is quite high, but it is difficult to share the burden with passenger fares due to several reasons. 

The Railway Minister is not likely to make any announcement of new trains. 

The Railways is also exploring options of earning revenue by selling space for advertisement in coaches, wagons and station premises and these may find a mention in the Railway Budget.