Mr Tilak Raj Seth, Head Mobility, Siemens Limited and CII Chairman, Rail Transportation & Equipment Division
Mr Tilak Raj Seth, Head Mobility, Siemens Limited and CII Chairman, Rail Transportation & Equipment Division
“The industry was keen to see the representation the rail sector would get in this combined Budget, the first in independent India. The Finance Minister did a good job focusing on key and strategic measures for the railway sector. The increased Budget allocation to railways, focus on safety through the ‘Rail Sanraksha Kosh’, an enhancement of throughput are very welcome measures. Additional resources will come to the transport sector basis the announced measures of modifying the metro policy, PPP operation of tier two cities and through the ‘Multi Model Transport Approach’.”
Detailed Statement
Indian Railways will contribute to the enduring success of Indian Growth story through its pivotal role in ensuring reliable delivery of goods and services as well as providing a safe and secure environment for businesses and people across India. We are really happy to see adequate representation in the combined Union Budget bringing it in the centre stage of the economic growth. With focus on spending more on infrastructure area, the planned Rs 8.5 lakh crore investments towards Indian Railways modernization initiative are on the right track. Rs. 1.31 lakh crore has been budgeted for Railways for capital expenditure and development in 2017-18. Focus on improving the throughput by further 10% through various infrastructural developments will help railways in a long way.
Provisions in the budget with a focus on Safety, Infrastructure Development and Energy Efficiency through various initiatives are a welcome move. A separate safety fund (Rail Sanraksha Kosh) of Rs 1 lakh crore over the next five years reaffirms the commitment. Railways now should invest in state of the art technologies to enhance Safety e.g. Train Protection Warning System & Train Collision Avoidance System & Automate Signaling & Safety Systems. Phase wise but speedy implementation of these technologies would help elimination of unmanned level crossings by 2020 will enhance the safety in rail transport and needs to be implemented at the earliest. 7,000 solar powered railway stations in the medium term, implementation of degradable waste to energy are some of the moves aimed at improving energy efficiency, apart from the infrastructural development initiatives like increasing speed of electrification.
A multimodal and integrated transport system is critical for any nation. It directly impacts the nation’s environment, quality of life, and economic growth. Considerable capacity addition on a sustained manner across the railway network is essential for sustainable economic growth and development.
Railways is clearly defining this through two major initiatives,
• Integration of end to end transport solutions through partnership with logistics players for front end and back end solutions for select commodities. Moves to rope in higher private participation through logistic parks and warehousing for last mile connectivity would help Indian Railways take a leap towards global league.
• New Metro Policy with innovative implementation and financing options and standardized implementation processes that would help increase the job creations.
Some of the other initiatives proposed in the general interest of the people are,
• Withdrawal of Service Tax on the tickets booked through IRCTC
• Station redevelopment programme
• 500 stations enabled for differently able travellers
• Coaches of Indian Railways to be fitted with bio-toilets
Over the last one year, decisions on key projects have been expedited and concluded with absolute transparency. Indian Railways needs to continue this approach for the other iconic projects of national interest in the future that would give fillip to the Transportation Industry. The initiatives proposed for railways in the budget have taken a pragmatic approach to continue the transformation of the Railways. We are confident that the Public Private Partnership projects will benefit from the operational efficiencies of private sector and domain expertise of the Railways. All these reforming initiatives and thrust on enhancing transparency would impact industry positively. Overall the focus on Railways in the budget 2017-18, is progressive and aims at ushering in the much desired transformation of the Railways at a faster pace. I would rate these provisions in the budget as pragmatic and positive, as it would be beneficial for the industry, and people at large.
