Bullet trains, solar power, major rehaul: What to expect in Gowda's railway budget

Railway minister Sadananda Gowda may give a fresh lease of life to India’s bullet train dream, a project that has remained on paper for last seven years ever since then minister Lalu Prasad Yadav made the proposal. In his first railway budget, Gowda is also reportedly set to announce proposals that change the railways’ energy consumption patterns and its bureaucracy.

According to a Deccan Herald report , Gowda could allocate close to Rs 300 crore as seed money to begin work on the project. The move is in keeping with the promisePrime Minister Narendra Modi had made while on the campaign trail.

According to the report, the train project is likely to be under public-private partnership model. However, the plan will be dependent on the findings of a study being carried out by the Japan International Cooperation Agency (JICA) that is expected to be completed in two months, the report said.

However, previous reports have indicated the private-public partnership may not be feasible in this case and the government may have to rely on a soft loan from the JICA.The agreement between the Indian government and JICA had been signed in 2013 by then prime minister Manmohan Singh.

The report also said the JICA is expected to set up a joint venture company and fund 75 percent of the cost , while the state governments of Maharashtra and Gujarat are also expected to be roped in as partners to participate in a project that will be under the scrutiny of the Prime Minister’s Office.

The bullet train concept has been on the anvil for some time now and the railways had undertaken a pre-feasibility study for the project in 2012 to put up the high speed rail line that will carry trains at speeds upwards of 300 kmph.

While previous studies have said it was unfeasible, the plan acquired a new lease of life with the BJP manifesto promising to check the possibility of creating a network of high speed rail lines across India. Some experts, like columnist TN Ninan, have also warned that the project could bankrupt the railways and instead an upgrade of existing rail lines is more important.

In addition to a high speed network, the new railway minister is also expected to unveil a new green initiative for the railways with the national transport provider leaning more on clean energy through solar power.

According to a Economic Times report , the minister is set to announce the installation of panels on rooftops of railway platforms, colonies and other railway land to generate solar power.

While the move is expected to help make a dent in the Railways fuel bill, that stands at around Rs 28,000 crore, it isn’t clear what the project is expected to cost the transporter.

Gowda is also expected to make an announcement regarding the use of liquefied natural gas and ethanol-blended diesel in locomotives in a bid to reduce fuel costs.

While it still isn’t entirely clear what to expect from the first railway budget of the new government, a Times of India report says that ‘revival plan’ for the state transporter will stretch beyond the presenting of the Budget and a major reshuffle of bureaucrats may be in the offing.

The focus will be on bringing “efficient and honest officials on board” to finalise the plan and officials appointed to senior positions during the UPA tenure would be under close scrutiny, the report said.