Transcript
RAILWAY BUDGET 2009 - 10
Team Members
• S.Sivakumar,MBA
• B.Velmurugan,MBA
• M.Palanikumar,MBA
Introduction about indian govt (UPA)• In keeping with this mandate, the Congress and
its pre-poll allies that include the DMK,NCP,TC,JMM,NC,have come together to form a United Progressive Alliance (UPA).
Election Results' impact on Stock Markets• The Left is out of the Government and UPA is emerging
as the majority coalition without the regional parties. These two points are major positives for the markets.
ELECTION RESULT
CABINET MINISTERS
Budget
A plan for income and expenditure over a future period which is supposed to achieve stated objectives - in a government's case raising taxes and other revenue and spending to provide services such as defence, education or social security.
INDIAN BUDGET PROCESS
STAGE 1: Estimates. Part A - Expenditure
STAGE 1: Estimates. Part B - Revenue.
STAGE 2: First estimates of deficit.
STAGE 3: Narrowing of the deficit.
STAGE 4: The Budget
Introduction to railway budget
Railway Minister
Introduction
• “Inclusive growth” and expansion of rail network to reach development to every corner of the country is core to developmental approach.
• Economically unviable projects need to be viewed with social perspective being
• economic necessity for backward areas and under privileged. Expert committee to advise on innovative financing and implementation of such projects.
Budget Estimates 2009-10
• Freight loading targeted at 882 MT – an increment of 49 MT; number of passengers likely to grow by around 6%.
• Gross Traffic Receipts (GTR) estimated at Rs 88,419 cr. Rs 8,557 cr more than 2008-09.
• The dividend payable to General Revenues kept at Rs 5,479 cr.
• Budgeted Operating Ratio 92.5%.
New Train Services
• 57 new train services to be introduced.
• Extension of 27 trains also envisaged.
• Frequency of 13 trains to be increased
Annual Plan 2009-10
• Plan outlay is Rs 40,745 cr. Increase of Rs 2,840 cr on Interim Budget.
• New lines outlay - Rs. 2,921 cr ; increase of 166% on interim budget
• Gauge conversion - Rs 1,750 cr. – increase of 24% on interim budget
• Passenger amenities - Rs 1,102 cr - 119% increase on interim budget excluding
• PPP provision, which is unlikely to materialize• Staff Quarters - Rs 335 cr - increase of 49% on
interim budget• Staff Amenities - Rs 424 cr- increase of 79% on
interim budget
• Acquisition of 18,000 wagons in 2009-10 against 11,000 in 2008-09.
• Additional budgetary support of Rs. 1,949 cr. sought for 11 national projects.
• Proposals for better integration of passengers’ movement in Kolkata suburban area.
• Railways to set up a 1000 MW power plant.
• Special fund for the development of north east railway.
• Railways to develop cold storages for farmers to store vegetables and fruits.
• Railway Budget 2009-10: 50 railway stations to be of world standard
• Tatkal bookings charges from Rs 150 to Rs 100
New scheme
• Izzat
• EMU trains
• Yuva trains
• Duronto
• 5,000 post offices
Impact of Railway Budget
Palanikumar. M
Railway Budget pulls sensex by 255 points
• The Sensex spurted 254.56 points, or 1.74 per
cent, to close at 14,913.05. The CNX Nifty closed
at 4,424, up 1.73 per cent.
• The Sensex spurted 254.56 points, or 1.74 per
cent, to close at 14,913.05. The CNX Nifty closed
at 4,424, up 1.73 per cent.
Gainers
• HDFC - 7.74%
• Tata Steel - 4.32%
• M & M - 3.59%
• Rel infra - 3.17%
• ICICI Bank - 3.05%
• JP Associate - 3.03%
losers
• Hero Honda - -1.08%
• Hindalco - -0.95%
• Sterlite - -0.74%
• Rel Comm. - -0.24%
• ITC - -0.03%
TAKING STOCK
Company Share price on
BSE in Rs%
ChangeJuly 2 July 3
Titagarh Wagons 439.30 417.35 -5.00
Kalindee Rail Nirman 223.55 212.40 -4.99
Texmaco 120.45 114.45 -4.98
BEML 1081.75 1033.00 -4.51
BHEL 2149.90 2182.05 1.50
Container Corp 971.45 1010.35 4.00
Stone India 44.95 47.15 4.89
Sectoral Indices
• Bankex - 2.19%
• Capital Goods - 1.90%
• Power - 1.84%
• Health care - 1.80%
• Reality - 1.18%
FII’s and DII’s Inflow
• FII - Rs. 210.82 crore
• DII - Rs. 298.58 crore
Sum gains for five rail companies
• Indian Railway Finance Corporation
• Rail Vikas Nigam Ltd
• Dedicated Freight Corridor Corporation of India
(DFCC)
• Bhartiya Rail Bijlee Company Ltd
• Bharat Wagon and Engineering Ltd.
Opportunities
• With the construction of multifunction complexes
on railway land, enhanced security at railway
stations or air conditioned double-decker inter
city trains across the country—the goodies for
industry from Mamata's bag just did not seem to
stop.
For the work to be undertaken at the stations,
companies like IVRCL, Gammon and L&T stand to gain.
Companies like Titagarh Wagons, Texmaco and BEML can
expect a healthier orderbook with the double-decker coaches
that are planned and the dedicated freight corridor could be
an opportunity for companies like Mahindra Logistics,
Transport Corporation, Gati and Adani Logistics. NTPC has
already been named as a partner for the 1000 MW captive
power plant
Challenges
• Delay in implementing
• Oppositions from opposite parties
• Political and Legal influences and etc..