Professional Documents
Culture Documents
By
Manoj Bharadwaj
Fortress Financial Services ltd.
Mumbai
Railways 10th 5YP:
Financial Review of Tenth Plan
27,600
Gross Budgetary Support
38,163
60,600
Total
84,708
Original Outlay (in Rs. Crore) Outlay achieved (in Rs. Crore)
Freight Traffic
• Estimation of the freight traffic during 10th five year plan was
624 Million Tonnes of originating traffic and 396 Billion Tonne
Km of transportation output.
Freight Performance during Tenth Plan
Year Originating Annual Growth Freight Output Annual Growth
loading Rate (Billion Rate
(Million Ton) NTKM)
OL (Million Ton)
800
FO (Billion NTKM)
700 600
600 500
500 400
400
300
300
200
200
100 100
0 0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Traffic Growth of Different Commodities Cargo Handled (in million
tonnes)
800
700 2001-02 492.5
600
500 2006-07 726
400
Incremental 233.5
300
2001-02 loading
200
2006-07
100 CAGR 8.07%
0
2001-02 2006-07
Iron & Steel ,
14.5 Others ,
Fertilizers , 27.2 53.56 Iron & Steel , 19 Others , 103
Fertilizers , 36
Foodgrains ,
32.82 Coal , 229.69 Coal , 310
Foodgrains , 46
POL , 35.62
POL , 33
Cement ,
65
Cement , 44.04
Ore - Export Ore to Steel Ore - Export , Ore to Steel
, 15.72 Plants , 39.35 52 Plants , 62
Targets and achievements
Tenth Plan target At the end of Tenth Percentage of
plan completion
New Lines (kms) 1310 945 72.13%
Improvements in commodities:
• Major increases were seen in coal, iron ore for export and
steel plants, cement and other commodities (which include
containers).
Outlook for the Eleventh plan
Plan Outlay
• The total outlay for the 11th five year plan works out to Rs. 251000 crore.
• Nearly 3 times jump in allocation from the previous plan
Financing for the 11th Five Year Plan – Split Up (Rs. Crore)
(c)Extra
(a)Capital
(Rs. Crore)
Budgetary
from General
Resources ,
Exchequer ,
(a) Budgetary 86000
75,000 Support
80,300
Traffic Forecast
1200
1000
800
Assumes GDP growth of
600
8%, Rail Transport
Mtonnes
BTMKs
Elasticity of 0.87
400
200
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Commodity-wise Projection for the Terminal Year
200
0
1 2 3 4 5 6 7 8 9 10 Yield per million ton (YPMT) will be
Revenue NTKMs (in Rupee billion)
at an average of Rs. 62.67 crore
800 from the present level of Rs. 59.8
700 crore. It is assumed that YPMT will
600 increase gradually in the range of
500
2.2% to 3.8% every year.
400 2006-07
300 2011-12
200
100
0
1 2 3 4 5 6 7 8 9 10
Capacity Enhancement – Spread of Funds
Other Measures for Running Of 25 Tones Axle Running Of 23/24 Coach
Enhancing Capacity Load On Iron Ore Routes Length Trains
3% 3% 1%
Metropolitan Projects
6%
New Line Projects
12%
Other Railway Electrification
Traffic 4%
Facility
works Logistic Park
3% 1%
Freight Terminals
2%
Grade
Separators/Flyovers/Bye-
pass lines Gauge Conversion
2% 24%
Doubling
Total Funds allocated:
25% Rs. 77,050 crore
New Policy Initiatives
vWork on Dedicated Freight Corridors on the Eastern and Western routes have
been initiated.
9092.9
Internal and Extra Budgetary Resource
20892
32278.67
Gross Budgetary Support
41232.94
41371.57
Total
62124.94
Physical Achievement:
The Tenth Plan envisaged the top priority in completion of:
Ø GQ
Ø Phase I of NS- EW Corridor
Progress of the National Highways Development Project
The overall progress of NHDP as on February, 2007 is as under:
NHDP Total Completed Under Implementation Balance for
Component Length Four Lane award of civil
Length No. of works
(km) contracts
Number of
kilometers added
12,249 km.
Number of
kilometers added
39,901 km.
Outlook for 11th Five Year Plan
Availability of Funds for 11th Five Year Plan: (Rs. Crore)
Total : Rs. 1,73,501
Cess 36,589
crore
External
Assistance
4,454
Share of
private
sector Borrowings About 4 times jump in fund
87,735 by NHAI allocation from the
41,615
previous plan
Surplus from
the user fee
3,108
• The target for new addition of length in NH network in 11th Five Year Plan would
be about 7000km.
• A road vision 2021 was prepared in the Ministry, which proposes a total National
Highway network of about 80,000 km by the end of the year 2021.
Projects undertaken by NHAI:
• Out of a total length of 6283 kms under implementation, 4/6 laning has been completed for a
partial length of 2130 kms.
Agencies taking up development work:
The development and maintenance of National Highways are implemented
on agency basis.
1. The Government of States / Union Territories (PWDs of State / UTs)
2. The National Highways Authority of India (NHAI)
3. Border Roads Organisation (BRO)
Agency Length of National Highways
under the respective agencies
• These roads also carry medium to heavy traffic. It is assessed that the secondary
system carries about 40 % of the total road traffic, although they constitute only
about 13 % of the total road length.
Deficiencies in the Present System
A total amount of Rs. 8,000 to 10,000 crore per annum is being made available
against the requirement of at least Rs.16,000 crore per annum.
The result is, there are several deficiencies in the existing SHs and MDRs as:
A broad assessment shows that over 50 % of SHs and MDRs network has poor
riding quality.
Losses due to poor condition of these roads would be around Rs. 6000 crore
per annum besides their premature failure resulting in huge rehabilitation and
reconstruction costs implying infusion of avoidable plan funds at accelerated
intervals.
The total replacement cost of the existing SH and MDR network is broadly
assessed to be as under: (in Rs. Crore)
Constraints Faced:
Ø Lack of finances
Ø Spreading resources thinly
Ø Control on pre-construction activities
Ø Weak management by contractors
Formation of Core Network
• It identifies major arterial routes covering national highways and those state
highways/major district roads which are either already experiencing high volumes
of traffic or have such potential in the light of industrial and other growth
strategies by both the public and the private sector.
• The Core network should have a corridor concept and it should be possible to
reach from one end of the State to the other at an average speed of 70-80 km per
hour.
• The objective should be that a commercial vehicle can cover 500 to 600 km on
such a network in one day.
• The core network would include the Expressways, four-laned roads, strengthened
pavements and pavements with good riding quality, bypasses and bridges
2500
2000
Requirement as per norms (in Rs.
1500 Crore)
Amount Provided (in Rs. Crore)
1000
500
0
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
Objective:
• To provide connectivity to all the 85 District Headquarters of the NE Region.
• Covers 7616 kms of National Highways, State Highways and GS (General Staff)
roads
• To connect all State capital with improved/upgraded National Highways.
• To improve connectivity to the neighbouring countries.
500
Average Capacity
400 Utilization is about
300 Traffic Handled (in million
91.65%
tonnes)
200 Capacity (in million tonnes)
100
0 Average Growth in
traffic is 9.33%
400
2001-02 383.97
Major Ports
300 2002-03 421.87
Minor Ports
200 2003-04 465.64
100
2004-05 521.62
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2005-06 574.71
Private Sector Participation in Major Ports:
v Schemes estimated to be about Rs. 11,257 crore were identified
Ø Maritime Policy:
Seeks to combine vision and strategy for the sector through harmonious and coordinated
development of maritime assets like:
a. Ports
b. Shipping
c. Inland water transport system
d. Ship building
e. Ship repair industries
After firming up the revised draft and its clearance by COS, it has been placed before the
cabinet for approval
NMDP (National Maritime Development Programme):
Objective:
• Upgrade and modernize the port infrastructure in India and benchmark its
performance against global standards.
• Total investment for the programme is Rs. 1, 00,339 crore and out of them about
Rs. 34505 crore is expected from the private sector.
Allocation Rs. 55,804 crore for port sector .
Rs. 44,535 crore for shipping and inland water
transport sectors.
Target To be completed in phases within 2011-12.
No. of Projects 276
• Extra
Budgetary
Resource ,
12054.08
Ø Drafted with the expectation that GDP growth rate will be in the range to 8%-9%
during the 11th five year plan.
Projections for 2012: Projected Traffic Projected Capacity
Major ports 800 MT 1001.8 MT
Minor ports 300 MT 345.19 MT