2016-17 OUTCOME and PERFORMANCE BUDGET of RAILWAYS for 2016-17 Ministry of Railways (Railway Board) 25 /February, 2016 GOVERNMENT OF INDIA 2016-17 OUTCOME and PERFORMANCE BUDGET of RAILWAYS for 2016-17 Ministry of Railways (Railway Board) 25 /February, 2016 CONTENTS Page No. †¬μÖÖμÖ/Chapter - I Introduction 1 - 3 †¬μÖÖμÖ/Chapter - II ×­Ö¯ÖÖ¤ü­Ö/Financial and 4 - 9 Physical Performance †¬μÖÖμÖ/Chapter - III μÖÖê•Ö­ÖÖ/XII Five Year Plan 2012- 10 - 13 2017 †¬μÖÖμÖ/Chapter - IV /A Few Salient 14 - 46 Outcomes of Rail Operations †¬μÖÖμÖ/Chapter - V ×¾ÖßÖÖ¸/üNetwork Expansion 47 – 49 †¬μÖÖμÖ/Chapter - VI Safety 50 – 51 †¬μÖÖμÖ/Chapter - VII †Ö¸ü.›üß.‹ÃÖ.†Öê./Production 52 – 67 Units & R.D.S.O 68 ANNEXURE – A Sale of Scrap & Afforestation 2015 69 – 76 ANNEXURE – B Train Services in 2015 C 1 – C 104 ANNEXURE – C Performance of Projects costing more than Rs. 5 crore each ANNEXURE – D Physical & Financial Targets and Progress of S.R.S.F works CHAPTER I INTRODUCTION The Indian Railways is a departmental commercial undertaking of the Government of India. The formation of policy and overall control of the railways is vested in Railway Board comprising the Chairman, who is an ex-officio Principal Secretary to Government of India, Financial Commissioner and other functional Members for Traffic, Engineering, Mechanical, Electrical and Staff matters, all ex- officio Secretaries to Government of India. The Indian Railway system is managed through 17 zones and 68 operating divisions. Apart from the zonal Railways representing the operational part of the system, there are eight production units engaged in manufacture of rolling stock and other related items. Research, Designs and Standards Organization (RDSO) is the sole research and development wing of Indian Railways, functioning as the technical adviser and consultant to the Ministry, Zonal Railways and Production Units with the status of a Zonal Railway. The Indian Railway has several Public Sector Undertakings/ affiliated organizations working under the overall control of the Ministry of Railways. Box – 1 Indian Railways: A historical legacy One hundred sixty one years ago, one April afternoon, history was made at Bori Bunder in Mumbai when to the booming sound of a 21 gun salute, the first train on Indian soil started its maiden journey of 21 miles (34 km) to Thane. The steam engine and metal track had become a reality in India. Since then the ubiquitous rail track has traveled the length and breadth of the subcontinent, weaving an iron link among the diverse people of India. The Railway finances have been separated from the General finances as per the Separation Convention, 1924. This convention has been carried forward by the Railway Convention Committee of the Parliament, which determines the financial relation of the Railways and the General finances. The Railway Convention Committee also determines the rate of dividend which the Railways are required to pay to the General Revenues on the amount invested in former by the latter. The Railway Budget is normally presented to the Parliament ahead of the General Budget. Though the Railway Budget is separately presented to the Parliament, the figures relating to the receipt and expenditure of the Railways are also shown in the General Budget, since the receipt and expenditure of the Railways are a part and parcel of the total receipts and expenditure of the Government of India. 1 The Indian Railway is the world’s largest government railway. The Railway functions as a vertically integrated organization providing Passenger and Freight services. It is a single system which consists of 66,030 route km of track that criss-cross the country, on which more than 22,300 number of trains ply, carrying about 23 million passengers and hauling nearly 3.02 million tonnes of freight every day, thereby contributing to the economic growth of the country and at the same time promoting national integration. As compared to road transport, the railway has a number of intrinsic advantages as it is five to six times more energy efficient, four times more efficient in land use and significantly superior from the standpoint of environment impact and safety. Indian Railways, therefore, rightly occupies pride of place in the growth and development of the nation. The railway service is rendered through a nation wide rail infrastructure covering track, stations, sidings, freight terminals, locomotives, coaches and wagons and a myriad of infrastructure inputs like signaling, telecom, electrical installations, maintenance workshops etc. The output and outcomes achieved by the Railways in terms of Passengers and Freight carried results from the interwoven activities of the various infrastructure inputs comprising the Railway Infrastructure. While a direct one to one correlation in terms of inputs and outcomes of each activity is not easy to render in a transport sector like the Railways, the Performance cum Outcome Budget attempts to give a better insight in to the multifarious activities of the railways that, when combined, generate the outcome of transportation services. Box – 2 Rail Infrastructure as on 31.03.2015 Route Kms: 66,030 o Broad Gauge (58,825); o Metre Gauge (4,908) & o Narrow Gauge (2,297); Running Track Kms: 90,803; o Broad Gauge (83,266); o Metre Gauge (5,240) & o Narrow Gauge (2,297); Electrified Route Kms: 22,224 Rolling Stock: o Wagons: 2,45,350 wagon units o Locomotives: 10,773 nos. o Coaches: 63,045 nos. This performance cum outcome budget seeks to report on the Outcomes of the Rail services in terms of through put, financial results, addition to capacity, and outcomes for the traveling public and rail users. The Performance Budget of Railways has been prepared in pursuance of the recommendations of the Standing Committee contained in their VI Report (1993-94) on Demands for Grants (Railways), 1994-95. This document inter alia indicates the comparative performance of Indian Railways in respect of Revenue and Expenditure vis-à-vis the targets. The performance in respect of works costing Rs. 5 crore and above, including transfer of funds from one work to other; target dates of completion of the projects are also indicated. It also gives a summary appraisal of the Railway’s performance including shortfalls, if any, in respect of revenue earnings, expenditure, works performance as provided in the ongoing Five Year Plan and Annual Plan. 2 The Outcome Budget for Railways has been introduced from 2006-07 keeping in view the guidelines of the Government for converting financial outlays into physical outcomes. The Railway has a mechanism to measure the development outcomes of all major programmes giving importance to converting financial outlays into physical outcomes, with quarterly measurable and monitorable targets, to improve the quality of implementation of the projects. The Outcome Budget 2016-17 tries to bring out the achievements/highlights that the Railway has tried to deliver upto 2014-15 for the benefit of the people of the country. This Railway budget document provides an insight not only to the outlays provided under various plan heads, but also the targets set vis-a-vis the progress achieved in measurable terms, a feature unique to this Ministry’s budget documents. Some of the information relating to Outcome Budget is also available in other budget documents, like, Explanatory Memorandum where Traffic Plan for goods and passengers as also efficiency indices, like, Plan Targets and achievements are given. The quantifiable performance units of expenditure relating to non-plan expenditure for Demand No. 4 to 12 are included in the respective Demands for Grants (Part II). ***** 3 CHAPTER II FINANCIAL AND PHYSICAL PERFORMANCE TABLE I (Rupees in crore) Key Financial Indicators Financial Perform ance Actuals Budge t Re vise d Growth over 2014-15 2015-16 2015-16 2014-15 Particulars Receipts (a) Passenger Earnings 42190 50175 45126 6.96% (b) Other Coaching 3998 4612 4325 8.19% (b) G oods 105791 121423 111853 5.73% (c) Sundry other Earnings 5093 7318 5580 9.56% Total Traffic Earnings 157072 183528 166884 6.25% Clearance from Traffic Outstandings -361 50 50 -113.85% Gross Traffic Receipts 156711 183578 166934 6.52% M iscellaneous Receipts 4307 4979 3971 -7.80% Total Re ceipts 161017 188557 170905 6.14% Expenditure Ordinary W orking Expenses 105996 119410 110690 4.43% Appropriation to Pension Fund 29225 34900 34500 18.05% Appropriation to Depreciation Reserve Fund 7775 7900 5500 -29.3% Total W orking Expenditure 142996 162210 150690 5.38% M iscellaneous Expenditure 1183 1270 1217 2.90% Total Ex penditure 144179 163480 151907 5.36% Dividend payable to General Revenues 9174 10811 8495 -7.4% Ne t S urplus a fte r pa ym e nt of Divide nd 7665 14266 10502 37.0% Operating Ratio 91.3% 88.5% 90.5% x Gross Earnings placed at Rs1,66,884 cr in RE 2015-16 are less than the Budget Estimates by Rs 16,644 cr. While freight earnings are expected to grow at 5.73% over 2014-15, Passenger revenues reflect a growth of 6.96%. x The budgeted Ordinary Working Expenses of Rs. 1,19,410 crore have been reduced in the Revised Estimates 2015-16 mainly on account of savings under Staff cost, Fuel, Lease and Miscellaneous expenditure. TABLE II Key Performance Indicators Actuals Budget Revised Particulars 2014-15 2015-16 2015-16 Ratio of Net Revenue to Capital 7.0 8.8 6.8 Operating Ratio 91.3% 88.5% 90.5% 4 TABLE III Passenger and Freight Performance Actuals Revised Actual to Actual to 2014-15 Estimates, end of end of 2015-16 December, December, 2014 2015 No. of Passengers Originating (in millions) 8224.12 8101 6252.91 6135.57 Passenger Earnings (Rs. in crores) 42189.61 45126.15 31406.93 33105.08 Freight Loading ( in million tonnes) 1095.26 1107 806.38 814.70 Freight Earnings (Rs.