Shares in SpiceJet and InterGlobe Aviation-owned IndiGo have soared 55% and 31% respectively this year, as the companies raced to fill in prime airport slots vacated by Jet Airways.
If railways continues to see revenue shortfall, despite the removal of dividend payment, it is a matter of concern.
It is no surprise that the latest audit of the Railways by the Comptroller and Auditor General (C&AG) for FY16 has also made similar remarks on stopping this long-held practice of using freight earnings to subsidise passenger fares
It remains to be seen whether the railways will be able to meet the targeted Rs 500 crore revenue from this much-resented system
Railway minister also admitted that a slowing economy is the reason railways missed its passenger and freight earnings' target for FY16
An analyst with a Mumbai-based brokerage points out that the Railways has fallen short of its revenue target which was set at about Rs 1,80,000 crore in FY16
On the whole Prabhu’s 2016-17 Railway budget is a please-all budget, which indeed shows promise of taking ahead the process of overhauling Indian railways through several small reform-steps rather than making big-bang announcements
Thankfully, Suresh Prabhu’s Rail budget 2015 is not an election manifesto. By not using the budget for cheap populist stunts, Prabhu has ensured that his maiden speech would remain non-controversial and will, thus, allow him the peace and luxury of implementing it away from the glare of the critics.
Brokerage Motilal Oswal expects railways to report an improvement in finances, bolstered by freight revenue, announce new innovative sources of funding and make some headway in taking the PPP schemes forward.
The basic issue is not that profits of the railways need to be derived from passenger fares but how can freight be made more profitable
The minister will present the railway budget on February 26
Here's the latest about Rail Budget and how it could impact Indian rail travellers.
The good news about the Railway Budget speech of Mallikarjun Kharge was that it was cut short by the anti-Telangana shouting brigade in the Lok Sabha. The net result is that we were spared a long-winded election-eve interim budget speeches that railway ministers are prone to give.
The ticket rates of Rajdhani, Shatabdi and Duronto trains will go up further by about Rs 25 to Rs 27 with an upward revision in food tariff, a senior Railway Ministry official said.<br /><br />
Rail Budget 2013 is clearly not populist, but it is not good enough to put the railways back on the track to sustainable growth
On one hand he has has to drive revenue growth and on the other he has make sure pockets are not pinched too much given that general elections are due in 2014.