Economic Survey 2012-13 of India
Union
Finance Minister P. Chidambaram on 27 February presented the Economic Survey
2012-13 in the Lok Sabha of the Parliament.
India's Economic Survey for 2012-13 pegs the country's growth at 6.1-6.7% and inflation at 6.2-6.6% for the next fiscal 2013-14 and made a strong call for cutting subsidies.
India's Economic Survey for 2012-13 pegs the country's growth at 6.1-6.7% and inflation at 6.2-6.6% for the next fiscal 2013-14 and made a strong call for cutting subsidies.
Economic
Survey is presented every year, just before the Union Budget. It is a flagship
annual document of the Ministry of Finance, Government of India. Economic
Survey reviews the developments in the Indian economy over the previous 12
months. It summarizes the performance on major development programmes, and
highlights the policy initiatives of the government and the prospects of the
economy in the short to medium term.
The economic survey 2012-13 was prepared by a team of economists led by Chief Economic Advisor Raghuram Rajan, and pitches for speeding up economic reforms to activate a sluggish economy. It serves as an indicator of what is likely to be contained in the General Budget proposals.
The economic survey 2012-13 was prepared by a team of economists led by Chief Economic Advisor Raghuram Rajan, and pitches for speeding up economic reforms to activate a sluggish economy. It serves as an indicator of what is likely to be contained in the General Budget proposals.
Following
are the major Highlights of the Economic Survey 2012-13
•
GDP growth seen at 6.1-6.7 percent in 2013/14
• Government target for fiscal deficit is 4.8 pct of GDP in 2013/14
• Government target for fiscal deficit is 3 pct of GDP in 2016/17
• Headline WPI inflation may decline to 6.2-6.6 pct by March2013
• Focus on curbing imports, making oil prices more market determined to reign in current account deficit
• Foreign Institutional Investors (FIIs) flows need to be targeted towards long-term rupee instruments
• Prioritization of expenditure seen as key ingredient of credible medium-term fiscal consolidation plan
• Raising tax to GDP ratio to more than 11 percent seen as critical for sustaining fiscal consolidation
• Room for accommodative monetary policy with expected fiscal consolidation
• India likely to meet fiscal deficit target of 5.3 pct of GDP in 2012/13, despite significant shortfall in revenues
• Recommends curbing gold imports to reign in current account deficit
• Room to increase exports in the short run limited
• Industrial output seen growing around 3 pct in 2012/13
• Govt priority to fight inflation by reducing fiscal impetus to demand as well as by focusing on incentivizing food production.
• More jobs in low productivity construction sector
• Balance of Payments under pressure with net exports decline
• Service sector has shown more resilience despite global slowdown
• Pitches for hike in price of diesel and LPG to cut subsidy burden
• Railway freight grows by 5.1 per cent in 2012-13
• Foreign Exchange reserves remains steady at USD 295.6 Billion at December 2012 end.
• Government target for fiscal deficit is 4.8 pct of GDP in 2013/14
• Government target for fiscal deficit is 3 pct of GDP in 2016/17
• Headline WPI inflation may decline to 6.2-6.6 pct by March2013
• Focus on curbing imports, making oil prices more market determined to reign in current account deficit
• Foreign Institutional Investors (FIIs) flows need to be targeted towards long-term rupee instruments
• Prioritization of expenditure seen as key ingredient of credible medium-term fiscal consolidation plan
• Raising tax to GDP ratio to more than 11 percent seen as critical for sustaining fiscal consolidation
• Room for accommodative monetary policy with expected fiscal consolidation
• India likely to meet fiscal deficit target of 5.3 pct of GDP in 2012/13, despite significant shortfall in revenues
• Recommends curbing gold imports to reign in current account deficit
• Room to increase exports in the short run limited
• Industrial output seen growing around 3 pct in 2012/13
• Govt priority to fight inflation by reducing fiscal impetus to demand as well as by focusing on incentivizing food production.
• More jobs in low productivity construction sector
• Balance of Payments under pressure with net exports decline
• Service sector has shown more resilience despite global slowdown
• Pitches for hike in price of diesel and LPG to cut subsidy burden
• Railway freight grows by 5.1 per cent in 2012-13
• Foreign Exchange reserves remains steady at USD 295.6 Billion at December 2012 end.
SUMMARIZED REPORT OF ECONOMIC SURVEY
2012-13
- Economy to grow
at 6.7 per cent in 2012/13
- Farm sector GDP
projected to grow at 0.5 per cent in 2012/13 due to the impact of weak
monsoon on agriculture and the current reservoir storage position in
2012/13.
- Manufacturing
sector projected to grow at 4.5 per cent. Electricity, automotive, steel
and cement sector have shown improvement in the period of April-June.
Because of the benefits of the low base, manufacturing sector will show
improved performance in the second half of this year.
- Mining sector
for the year as a whole expected to grow at 4.4 per cent due to growth in
the coal and lignite sector, and some recovery in iron ore.
- Electricity
generation expected to continue to grow at an average pace of around 8 per
cent.
- Construction
expected to show some improvement compared to last year as evidenced by
the recent increase in the output of steel and cement.
- In Services
sector, some improvement expected particularly in the large transport,
trade and communications sector.
Global
Situation:
There is a dark mood in the advanced economies; especially in Europe. The
slower growth in the US and in the EU will have an adverse impact on the
expansion of these markets for India’s exports, both of goods and services.
Structural
Factors:
- Gross Domestic
Fixed Capital Formation as a proportion of GDP has fallen from its highest
level of 32.9% in 2007/08 to 30.4 % in 2010/11 and to 29.5 per cent in
2011/12. Projected to be 30.0% in 2012/13.
- Domestic saving
rate has declined from 32.0% in 2010/11 to 30.4% in 2011/12 and projected
to be at 31.7% in 2012/13.
External
Sector:
- Current Account
Deficit was $78.2 billion (4.2% of GDP) in 2011/12 and projected at 67.1
billion (3.6% of GDP) in 2012/13.
- The merchandise
trade deficitwas$189.8 billion (10.2 per cent of GDP) in 2011/12 and
projected at $181.1 billion (9.7 per cent of GDP) in 2012/13.
- Overall the net
balance on invisibles was $111.6 billion (6.0% of GDP) in 2011/12 is
expected to grow at $114 billion (6.1% of GDP) in 2012/13.
- Capital flows
were $67.8 billion (3.7% of GDP) in 2011/12 and projected at $73.2 billion
(3.9% of GDP) in 2012/13. This would be adequate to service the projected
CAD of $67 billion for the year as a whole.
- Accretion to
reserves projected at $4 billion in 2012/13
Inflation:
- Deficient SW
monsoon likely to have an adverse impact on the prices of primary food
items, especially on those where the ability of government stocks to play
a moderating role is not there. Inflation rate expected to be within the
range of 6.5 to 7.0 per cent at the end of 2012-13.
- Expanding fiscal
imbalance continues to be a major area of policy concern.
- The fiscal
deficit for the Centre was 5.89% of GDP in RE 2011/12 and is estimated at
5.06% in BE 2012/13.
- In some contrast
to the Centre’s finances, the fiscal health of the States is better.
- The consolidated
fiscal deficit of the Centre and the State governments for 2011/12 (RE)
was 8.2 per cent of GDP. The consolidate deficit based on Budget Estimates
for 2012/13 is estimated to be 7.2 per cent.
- The containment
of the fiscal imbalance at the Centre rests on our management of the
subsidy bill, especially that on refined petroleum products and by
increasing the Tax-GDP ratio.
- Introduction of
the General Sales Tax on Goods & Services (GST) would be a very
important milestone in the path of tax reform. It requires considerable
negotiations, bargaining and preparatory work in relation to both the
structure and operation of the tax.
Reforms
in Agriculture sector:
- Reforms in
Agriculture sector need focused attention on liberalizing tenancy
arrangements, reforming domestic markets for agricultural produce and,
reducing input subsidies.
- Measures to
accelerate the Economic growth:
- Integrated decision-making
on high-impact infrastructure projects
- For Projects
costing in excess of a minimum threshold, say Rs 5,000 crore, a Cabinet
Committee comprising of ministers in charge of concerned departments
should take an integrated view. The Cabinet Committee on Infrastructure
could be recast as the Cabinet Committee for Sustainable Development of
Infrastructure for this purpose, and its composition as well as powers
under the rules of business modified accordingly.
Permitting
FDI in multi-brand retail
- For channeling
transfer of capital and technology, FDI in multi-brand retail up to 49 per
cent may be allowed to attract investment in this sector. Such of the
states as are receptive to the idea may implement this.
FDI
and other reforms in the Aviation sector
- FDI in civil
aviation may now be allowed to the existing extent of 49 per cent for
foreign airlines as well.
- Containing
petroleum products subsidies
- Given the huge
subsidy projection for the current financial year, priority consideration
may be given to (i) a suitable increase in the price of diesel in one or
more steps, and (ii) a cap on the level of consumption of subsidized
domestic LPG close to what is currently being consumed by poorer
households, i.e., 4 cylinders.
We
need to focus further on the following issues:
- Policy
predictability: There is need to specifically focus and address the
apprehensions that have been occasioned by perceptions of arbitrary
actions on tax and other fronts.
- Clearing
payments: Outstanding payments for infrastructure projects need to be
cleared on time.
- Promoting
savings: Given the declining trend in domestic saving rate, we need to
make financial products more attractive.
Containing
inflation:
- Taming inflation
is critical for sustained growth. Need to take steps to contain high
inflation in primary food which is mostly linked to the antiquated system
of marketing and absence of modern handling and storage facilities for
perishable products.
Improving
the CAD:
- Some
amelioration through price reform in case of diesel could serve to contain
demand.
- To contain the
import of gold, improvements in the return as well as the regulatory
regime in which mutual funds and life insurance products are sold are of
utmost importance.
- Significant
improvement required in the approach of government to a number of issues
to make IT-related export business much more competitive.
Budget 2013-2014 (Key Features)
Union Finance Minister P Chidambaram on 28 February
2013 tabled the Union budget in the Parliament for the financial year 2013-14.
P. Chidambaram was presenting his 8th Union Budget. The union Budget of 2013-14 emphasized fast track economic growth with due importance on infrastructure development, skill development, employment generation and funding for social schemes.
Three factors of Economic Concern discussed in the Union Budget 2013-14 were high fiscal deficit, slow growth and high inflation.
Expressing his confidence on India returning back to the higher growth path Chidambaram advocated for support from all quarters to navigate through economic crisis. The Union Budget of year 2013-14 stressed on achieving a growth of 8 per cent on an immediate effect.
The finance minister expressed his worry on Current Account deficit (CAD). CAD which required 75 billion Dollars to finance was high because of high import in Oil, coal and gold imports.
P. Chidambaram was presenting his 8th Union Budget. The union Budget of 2013-14 emphasized fast track economic growth with due importance on infrastructure development, skill development, employment generation and funding for social schemes.
Three factors of Economic Concern discussed in the Union Budget 2013-14 were high fiscal deficit, slow growth and high inflation.
Expressing his confidence on India returning back to the higher growth path Chidambaram advocated for support from all quarters to navigate through economic crisis. The Union Budget of year 2013-14 stressed on achieving a growth of 8 per cent on an immediate effect.
The finance minister expressed his worry on Current Account deficit (CAD). CAD which required 75 billion Dollars to finance was high because of high import in Oil, coal and gold imports.
THE ECONOMY AND THE CHALLENGES
Ø
Getting back to potential
growth rate of 8 percent
is the challenge facing the country.
|
Ø Slowdown in Indian economy has to be seen in the context of slowing global
economic growth from 3.9 per cent in 2011 to 3.2 per cent in 2012.
Ø However, no reason for gloom or pessimism. Of the large
countries of the world
only China and Indonesia growing
faster than India in 2012-13.
In 2013-14, only China projected to grow faster than India.
Ø
Between 2004 and 2008 and again in 2009-10
and 2010-11 the growth rate was over
8 per cent and crossed
9 per cent in four of those
six years.
Ø
11th Plan period had average growth rate of 8 percent, highest during any Plan period, entirely under the UPA Government.
Ø
High growth
rate can again
be achieved through
cooperation.
Ø
‘Higher growth leading to inclusive and sustainable development’ to be the
mool mantra.
Ø
Government believes in inclusive development with emphasis on improving
human development indicators especially of women, the scheduled castes,
the scheduled tribes, the minorities and some backward
classes. This Budget
to be a testimony to that commitment.
Fiscal
Deficit, Current Account Deficit and Inflation
Ø
The purpose of Budget to create economic space and find resources to achieve
the objective of inclusive development.
Ø
Dr Vijay Kelkar Committee
made its recommendations to Government
in September 2012. A new fiscal consolidation path with fiscal deficit at
5.3 per cent of GDP this year and 4.8 per cent of GDP in 2013-14
announced by the Government.
Ø
Foreign investment
in an imperative in view of the high current account deficit (CAD). FII, FDI and ECB three main source of CAD Financing. Foreign investment that is consistent with our economic
objectives to be encouraged.
Ø
Development must be economically and ecologically sustainable and democratically legitimate.
Ø
Battle against
inflation must be fought on all fronts. Efforts in the past few months
have brought down headline WPI inflation to about 7 per cent and core inflation
to about 4.2 percent. Food inflation
is worrying but all possible steps to be taken to augment the supply
side to meet the growing
demand for food items.
Ø
Government expenditure has both good and bad consequences and trick is to
find the correct level of Government expenditure.
Ø
Faced with huge fiscal deficit, Government expenditure rationalized in 2012-13.Some economic
space retrieved. Space to be used to further Government’s socio- economic objectives.
|
Estimates (BE) due to slowdown and austerity measures.
Ø
Revised Estimates (RE) of the expenditure in 2012-13 at 96 per cent of the Budget
Ø
During 2013-14,
BE of total expenditure of ` 16, 65,297
crore and of Plan
Expenditure at ` 5, 55,322 crore.
Ø
Plan Expenditure in 2013-14 to grow at 29.4 per cent over Revised Estimates for the current year.
Ø
All flagship programmes fully and adequately funded and sufficient funds provided to each Ministry
or Department consistent with their capacity
to spend funds.
Ø
Budget for 2013-14 to have one overarching goal of creating opportunities for our youth to acquire education and
skills that will get them decent jobs or self- employment.
|
SC, ST, Women and Children
Ø
Allocations for Scheduled
Caste Sub Plan and Tribal Sub Plan increased substantially over the
allocations of the current year.
Funds allocated to these Sub Plans cannot
be diverted.
Ø
97,134 crore allocated
for programmes relating
to women and ` 77,236 crore
allocated for programmes relating to children.
Ø
Ministry of Women and Child
Development to design
schemes that will address
the
concerns of women belonging to the most vulnerable groups, including single
women and widows. An additional
sum of ` 200 crore proposed
to be provided to the Ministry
to begin work.
|
Minorities
Ø
An increase
of 12 per cent over the BE and 60 per cent over the RE of 2012-13 to
Ministry
of Minority Affairs.
Ø
Allocation of ` 160 crore to the corpus of Maulana Azad Education Foundation to raise its corpus
to ` 1,500 crore
during 12th Plan period.
Disabled
Persons
Ø
A sum of ` 110 crore to the Department of Disability Affairs for ADIP scheme in 2013-14 against RE 2012-13
of ` 75 crore.
Health and Education
Ø
Health for all and education to all remains
priority.
|
Ø
37,330 crore
allocated to the Ministry of Health &
Family Welfare.
Ø
New National
Health Mission will get an allocation of ` 21,239 crore.
Ø
4,727 crore
for medical education, training and research.
Ø
150 crore provided
for National Programme
for the Health Care of Elderly.
Ø
Ayurveda, Unani, Siddha and Homoeopathy are being mainstreamed. Allocation of ` 1,069 Crore
to Department of AYUSH.
Ø
1,650 crore allocated
for six AIIMS-like institutions.
Ø
Allocation of ` 65,867 crore to the
Ministry of Human Resource Development, an increase of 17 perent over the RE of the current
year.
|
Ø
27,258 crore provided for Sarva Shiksha
Abhiyaan (SSA).
Ø An increase
of 25.6 per cent over RE of the current
year for investments in
Ø Rashtriya Madhyamik Shiksha Abhiyan (RMSA).
Ø 5,284 crore allocated to Ministries/Departments in 2013-14 for scholarships to students belonging to SC, ST, OBC, Minorities and girl children.
Ø
Mid Day Meal Scheme (MDM) to be provided
` 13,215 crore.
|
Ø Government committed to the creation
of Nalanda University as a centre
of educational excellence.
ICDS
Ø 17,700 crore allocated for ICDS in 2013-14 representing an increase of
11.7 per cent over 2012-13.
Ø Allocation of ` 300 crore in 2013-14 for a multi-sectoral programme
aimed at overcoming maternal and child malnutrition. Programme
to be implemented in 100 districts
during 2013-14 to be scaled to cover 200 districts
the year after.
|
Ø 15,260 crore allocated to Ministry of Drinking Water and Sanitation.
Ø 1,400 crore
provided for setting-up of water purification plants in 2000 arsenic
and 12000 fluoride-affected rural
habitations.
Rural Development
Ø
Allocation of ` 80,194 crore in 2013-14 for Ministry of Rural Development
marking an increase
of 46% over RE 2012-13.
Ø
Proposal to carve out PMGSY-II and allocate
a portion of the funds to the new
programme that will benefit States
such as Andhra
Pradesh, Haryana, Karnataka, Maharashtra, Punjab and Rajasthan.
JNNURM
Ø
14,873 crore for JNNURM in BE 13-14 as against RE of ` 7,383 crore. Out of
this, a significant portion will be used to support the purchase of up to
10,000 buses, especially by the hill States.
|
AGRICULTURE
Ø
Average annual growth rate of agriculture and allied sector was 3.6% during XI Plan
against 2.5% and 2.4% in IX and X plans respectively.
Ø
In 2012-13, total food-grain production will be over 250 million tones. Minimum
support price for every agricultural produce has increased significantly under the UPA Government.
Ø
27,049 crore allocated to Ministry of Agriculture, an increase of 22 per cent
over the RE of current
year.
Ø
Agricultural research
provided ` 3,415 crore.
Agricultural Credit
Ø
For 2013-14,
target of agricultural credit kept at ` 7 lakh crore.
Ø
Interest subvention scheme for short-term crop loans to be continued scheme extended for crop loans borrowed from private sector
scheduled commercial banks.
|
Green Revolution
Ø
Bringing green revolution to eastern India a remarkable
success. ` 1,000 crore allocated in 2013-14.
Ø
500 crore allocated
to start a programme of crop diversification that would promote technological
innovation and encourage farmers to
choose crop alternatives.
Ø
Rashtriya Krishi
Vikas Yojana and National Food Security Mission
provided ` 9,954 crore and ` 2,250 crore respectively.
Ø
Allocation for integrated watershed
programme increased from ` 3,050 crore in 2012-13 (BE) to ` 5,387 crore.
Ø
Allocation made for pilots programme on Nutri-Farms for introducing new crop
varieties that are rich in micro-nutrients.
Ø
National Institute
of Biotic Stress Management for addressing plant protection
issues will be established at Raipur, Chhattisgarh.
|
Ø
The Indian Institute of Agricultural Bio-technology will be established at Ranchi,
Jharkhand.
Ø
Pilot scheme to replant
and rejuvenate coconut
gardens implemented in some
districts of Kerala and the Andaman &
Nicobar extended to entire State of Kerala.
Farmer Producer Organizations
Ø
Matching equity
grants to register
Farmer Producer Organization (FPO)
up to a maximum of ` 10 lakhs per FPO to enable them to leverage working capital
from financial institutions.
Ø
Credit Guarantee
Fund to be created in the Small Farmers’Agri Business
Corporation with an initial corpus
of ` 100 crore.
National Livestock
Mission
Ø
National Livestock Mission
to be set up.
Ø
A provision
of ` 307 crore made for the Mission.
Food Security
Ø
Additional provision
of Rs. 10,000 crore for National Food Security Act.
|
INVESTMENT, INFRASTRUCTURE AND INDUSTRY
Ø Communication with investors to be improved to remove any apprehension or distrust, including fears about undue regulatory burden.
Ø Need of new and innovative instruments to mobilize funds
for investment in infrastructure sector. Measures
such as:
·
Infrastructure Debt Funds (IDF)
to be encouraged,
·
0IIFCL to offer credit enhancement.
·
Infrastructure tax-free
bond of ` 50,000 crore
in 2013-14,
Build roads in North eastern
states and connect them to Myanmar with assistance from WB & ADB,
|
·
Raising corpus of Rural Infrastructure Development Fund (RIDF) to ` 20,000 crore and
·
5,000 crore
to NABARD to finance construction for warehousing. Window to
Panchayats to finance
construction of godowns.
Road Construction
Ø
A regulatory authority for road sector.
Ø
3000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six
months of 2013-14.
Cabinet Committee
on Investment
Ø The Cabinet Committee on Investment (CCI) has been set up. Decisions have been
taken in respect
of a number of gas, power and coal projects.
New
Investment
Ø Companies investing
` 100 crore
or more in plant and machinery during
the period 1.4.2013 to 31.3.2015 will be entitled
to deduct an investment allowance of 15 per cent of the investment.
Ø Incentives to semiconductor wafer fab manufacturing facilities, including zero customs duty for plant
and machinery.
Savings
Ø Need to incentivize greater
savings by household
sector in financial
instruments.
Following
measures proposed:
Ø Rajiv Gandhi Equity Savings
Scheme to be liberalised.
Ø Additional deduction
of interest upto 1 lakh for a person taking first
home loan upto ` 25 lakh during
period 1.4.2013 to 31.3.2014
Ø In consultation with RBI, instruments protecting savings from inflation
to be introduced.
Industrial Corridors
Ø
Plans for seven new cities have been finalised
and work on two new smart industrial
cities at Dholera, Gujarat and Shendra Bidkin, Maharashtra will start duing 2013-14
Ø
Delhi Mumbai Industrial
Corridor (DMIC) to be provided additional funds during
2013-14 within the share of the Government of India in the overall
outlay, if required.
Ø
Chennai Bengaluru Industrial Corridor to be developed.
Ø
Preparatory work has started
for Bengaluru Mumbai Industrial Corridor.
|
Ø
Government to construct a transmission system
from Srinagar to Leh at a cost of
1,840 crore.
Ports
Ø
Two new major ports will be established in Sagar, West Bengal and in Andhra Pradesh to add 100 million tonnes of capacity.
Ø
A new outer harbour to be developed in the VOC port at Thoothukkudi,
Tamil Nadu through PPP at an estimated cost of ` 7,500 crore.
National Waterways
Ø
A bill to declare
the Lakhipur-Bhanga
stretch of river Barak in Assam as the
sixth national waterway
to be moved in Parliament.
Ø
Preparatory work underway
to build a grid connecting waterways, roads and ports.
Oil and Gas
Ø
A policy
to encourage exploration and production of shale gas will be announced.
Ø
The 5 MMTPA LNG terminals in Dabhol, Maharashtra will be fully operational
in 2013-14.
|
Ø
In the medium to long term need to reduce our dependence on imported coal.
One way forward is to devise a PPP policy
framework with Coal India Limited as one of the partners.
Ø
Ministry of Coal to announce Government’s policies in due course.
Power
Ø
Guidelines regarding
financial restructuring of DISCOMS have been announced. State Government urged to prepare
the financial restructuring plan, quickly sign MoU
and take advantage of the scheme.
Micro, Small and Medium Enterprises
Benefits or preferences enjoyed
by MSME to continue upto three years after they grow
out of this category.
Ø
Refinancing capacity
of SIDBI raised
to 10,000 crore.
Ø
Another sum of ` 100 crore provided
to India Microfinance Equity Fund.
Ø
A corpus of ` 500 crore to SIDBI to set up a Credit
Guarantee Fund for factoring.
Ø
A sum of ` 2,200 crore during the 12th Plan period to set up 15 additional Tool Rooms and Technology Development Centers with World Bank assistance.
Ø
Ministry of Corporate
Affairs to notify that funds provided to technology incubators located within academic
Institutions and approved
by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure.
|
Ø
Technology Up gradation Fund Scheme (TUFS) to continue
in 12th Plan with an investment target of 1,
51,000 crore.
Ø
Allocation
of ` 50 crore to Ministry
of Textile to incentivize setting up Apparel Parks within the SITPs
to house apparel
manufacturing units.
Ø
A new scheme called the Integrated
Processing Development Scheme will be implemented in the 12th Plan to address the environmental concerns of the textile
industry.
Ø
Working capital
and term loans at a concessional interest of 6 per cent to handloom sector.
Ø
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) extended
to 800 clusters during the 12th Plan.
Foreign Trade
Ø
Support
to measures to be taken to boost exports of goods and services.
FINANCIAL SECTOR
Ø
A standing
Council of Experts
to be constituted in the Ministry of Finance to analyze the international competitiveness of the Indian
financial sector.
|
Banking
Ø
Compliance of public sector
banks with Basel
III regulations to be ensured. ` 14,000 crore provided
in BE 2013-14 for infusing
capital.
Ø
All branches
of public sector
banks to have ATM by 31.3.2014.
Ø
Proposal to set up India’s first Women’s Bank as a public
sector bank. Provision of ` 1,000 crore as initial
capital.
Ø
6,000 crore to Rural Housing
Fund in 2013-14.
Ø
National Housing Bank to set up Urban Housing Fund. ` 2,000 crore to be provided to the fund in 2013-14.
Insurance
Ø
A multi-pronged approach to increase
the penetration of insurance, both life and general, in the country.
Ø
Number of proposals finalized, in consultation with IRDA such as empowering insurance companies
to open branches in Tier-II cities and below without prior
approval of IRDA, KYC of banks to be sufficient to acquire insurance
policies, banks to be permitted to act as insurance brokers, banking correspondent allowed
to sell micro-insurance products and achieving the goal of having an office of LIC and an office of at least one public sector
general insurance company in towns with population of 10,000 or more.
Ø
Rashtriya Swasthya
Bima Yojana to be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers,
sanitation workers, rag pickers and mine workers.
Ø
A comprehensive social security package
to be evolved for unorganized sector by
facilitating convergence
among different schemes.
Capital Market
Ø
Proposal to amend the SEBI Act, to strengthen the regulator, under consideration.
Ø
Number of proposal finalized
in consultation with SEBI.
|
Ø
Designated depository participants, authorized by SEBI, may register
different classes of portfolio investors, subject to compliance with KYC
guidelines.
Ø
SEBI will simplify the procedures and prescribe uniform
registration and other norms
for entry for foreign portfolio investors.
Ø
Rule that, where an investor has a stake of 10 per cent or less in a company, it will be treated as FII and, where an investor has a stake of more than
10 per cent, and it will be treated
as FDI will be laid.
Ø
FIIs will be permitted to participate in the exchange traded currency
derivative segment to the extent of their Indian rupee exposure in India.
Ø
FIIs will also be permitted to use their
investment in corporate bonds and Government securities as collateral to meet their
margin requirements.
Ø
SEBI to prescribed requirement for angel investor
pools by which they
can be recognized as Category
I AIF venture capital funds.
Ø
Small and medium
enterprises, to be permitted to list on the SME exchange
without being required
to make an initial public offer (IPO).
Ø
Stock exchanges
to be allowed to introduce
a dedicated debt segment on the
exchange.
|
Ø
Support to municipalities that will implement
waste-to-energy projects.
Ø
Government to provide
low interest bearing fund from the National Clean Energy
Fund (NCEF) to IREDA to on-lend to viable renewable energy projects.
Ø
Generation-based incentive’
reintroduced for wind energy projects and ` 800 crore allocated
for this purpose.
OTHER PROPOSALS Backward Regions Grant Fund
Ø New criteria for determining backwardness to be evolved and reflect them in
future planning and devolution of funds.
|
Ø Target of skilling 50 million people in the 12th Plan period, including
9 million in 2013-14.
Defence
Ø Allocation for Defence increased
to 2, 03,672 crore including
86,741
crore
for capital expenditure.
Ø Constraints not to come in the way of providing any addition requirement for the security of nation.
Science
and Technology
Ø
Despite constraints substantial enhancements given to Science
and Technology, Space and Atomic Energy.
Ø
200 crore to be set apart to fund organizations that will scale up S&T innovations
and make these
products available to the people.
Institutions of Excellence
Ø
A grant of 100 crore each made to 4 institution of excellence.
|
Ø
National Institute
of Sports Coaching to be set up at Patiala at a cost of ` 250 crore over a period
of three years.
Broadcasting
Ø
All cities
having a population of more than 1,
00,000 will be covered by private
FM radio services.
Panchayati Raj
Ø
Augmentation in the Budget
allocation of Rajiv Gandhi Panchayat Sashaktikaran
Abhiyan (RGPSA) to ` 455 crore in 2013-14. An additional ` 200 crore proposed
to be provided.
Post
Offices
Ø
An ambitious
IT driven project
to modernize the postal network
at a cost of Rs. 4,909
crore. Post offices to become part
of the core banking solution and offer real time banking services.
Ghadar Memorial
Ø
Government to fund the conversion of the Ghadar Memorial in San Francisco into a museum and library.
Central Schemes
Ø
Centrally Sponsored
Schemes (CSS) and Additional Central Assistance (ACA) Schemes to be restructured into 70 schemes.
Central fund for the schemes
to be given to the States as part of central plan assistance.
Three promises
Ø
Promises made to woman,
youth and poor.
Ø
We stand
in solidarity with our girl children and women. And we pledge to do everything possible to
empower them and to keep them safe and secure. A fund - “Nirbhaya
Fund” - to be setup with Government contribution of ` 1,000 crore.
Ø
Youth to be motivated to voluntarily join skill development programmes.
|
Ø
National Skill Development Corporation to set the
curriculum and standards for training in different skills. ` 1000 crore set apart for this scheme.
Ø
To the poor of India direct benefit transfer
scheme will be rolled out throughout the country during the term of the UPA Government with the
motive “Äapka paisa aapke haath”.
Budget Estimates
Ø
Plan expenditure is placed at ` 5, 55,322 crore.
Ø
Non
Plan Expenditure is estimated at ` 11, 09,975 crore.
Ø
Fiscal deficit
for the current
year contained at 5.2 per cent and for the year 2013-
Ø
14 at 4.8 per cent.
Ø
Revenue deficit
for the current year at 3.9 per cent and for the year 2013-14
at 3.3 per cent.
Ø
By 2016-17
fiscal deficit to be brought
down to 3 per cent, revenue deficit
to 1.5 per cent and effective revenue
deficit to zero per cent.
PART B — TAX PROPOSALS
Ø
Clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair
mechanism for dispute resolution and
independent judiciary for greater assurance is underlying theme of tax proposals.
Ø
Tax Administration Reforms Commission to be set up.
Ø
In short
term need to reclaim peak of 11.9 per cent of tax GDP ratio achieved
in 2007-08.
DIRECT TAXES
Ø
Little room to give away tax revenues or raise tax rates in a constrained economy.
|
Ø
No case to revise either the slabs or the rates of Personal Income Tax. Even a
moderate increase in the threshold
exemption will put hundreds of thousands of Tax Payers outside Tax Net.
Ø
However, relief for Tax Payers in the first
bracket of `2 lakhs
to ` 5 lakhs.
A tax credit of ` 2000 to every person
with total income
upto `5 lakhs.
Ø
Surcharge of 10 percent on persons (other than companies) whose taxable income exceed ` 1 crore to augment revenues.
Ø
Increase
surcharge from 5 to 10 percent on domestic companies whose taxable
income exceed ` 10 crore.
|
Ø
In case of foreign
companies who pay a higher
rate of corporate tax, surcharge to
increase from 2 to 5 percent, if the taxable
income exceeds ` 10 crore.
Ø
In all other cases such as dividend distribution tax or tax on distributed income, current surcharge increased
from 5 to 10 percent.
Ø
Additional surcharges to be in force for only one year.
Ø
Education cess to continue
at 3 percent.
Ø
Permissible premium rate increased
from 10 percent to 15 percent of the sum assured by relaxing eligibility
conditions of life insurance policies for persons suffering from disability and certain ailments.
Ø
Contributions made to schemes
of Central and State Governments similar to Central Government Health Scheme, eligible
for section 80D of the Income tax Act.
|
Ø
Donations made to National
Children Fund eligible
for 100 percent
deduction.
Ø
Investment allowance at the rate of 15 percent to manufacturing companies that invest more than ` 100 crore
in plant and machinery during
the period 1.4.2013 to 31.3.2015.
|
Ø
‘Eligible date’
for projects in the power
sector to avail
benefit under Section
80- IA extended from 31.3.2013 to 31.3.2014.
Ø
Concessional rate of tax of 15 percent on dividend
received by an Indian company
from its foreign
subsidiary proposed to continue for one more year.
Ø
Securitization Trust to be exempted from Income Tax. Tax to be levied at specified
rates only at the time of distribution of income for companies, individual or HUF etc. No further tax on income
received by investors from the Trust.
Ø
Investor Protection Fund of depositories exempt from Income-tax in some cases.
Ø
Parity in taxation between
IDF-Mutual Fund and IDF-NBFC.
Ø
A Category
I AIF set up as Venture capital
fund allowed pass through status under Income-tax Act.
Ø
TDS at the rate of 1 percent on the value of the transfer of immovable properties where consideration exceeds ` 50 lakhs. Agricultural land to be exempted.
Ø
A final
withholding tax at the rate of 20 percent on profits distributed by unlisted
companies to shareholders through buyback
of shares.
Ø
Proposal to increase the rate of tax on payments by way of royalty and fees for technical services to non-residents from 10 percent
to 25 percent.
Ø
Reductions made in rates
of Securities Transaction Tax in respect of certain
transaction.
Ø
Proposal to introduce
Commodity Transaction
Tax (CTT) in a limited way.
Ø
Agricultural
commodities will be exempted.
Ø
Modified
provisions of GAAR will come into effect
from 1.4.2016.
Ø
Rules on Safe Harbour
will be issued after examing the reports of the Rangachary
Committee appointed to look into tax matters
relating to Development Centres & IT Sector and Safe Harbor rules for a number of sectors.
Ø
Fifth large tax payer unit to open at Kolkata
shortly.
Ø
A number
of administrative measures
such as extension of refund banker
system to refund more than ` 50,000, technology based processing, extension of e-payment through
more banks and expansion in the scope of annual information
returns by Income-tax Department.
|
Indirect Taxes
Ø No change
in the normal rates of 12 percent
for excise duty and service
tax.
Ø No change in the peak rate of basic customs duty of 10 perent for non-agricultural
products.
Customs
Ø
Period
of concession available for specified part of electric and hybrid vehicles
extended upto 31 March 2015.
Ø
Duty on specified machinery for manufacture of leather and leather goods including footwear
reduced from 7.5 to 5 percent.
|
Ø
Duty on pre-forms precious and semi-precious stones reduced from 10 to 2 percent.
Ø
Export duty on de-oiled
rice bran oil cake withdrawn.
Ø
Duty of 10 percent
on export of unprocessed ilmenite
and 5 percent on export
on ungraded ilmenite.
Ø
Concessions to air craft maintenance, repair and overhaul
(MRO) industry.
Ø
Duty on Set Top Boxes increased from 5 to10 percent.
Ø
Duty on raw silk increased from 5 to 15 percent.
Ø
Duties on Steam Coal and Bituminous Coal equalised and 2 percent
custom duty and 2 percent CVD
levied on both kinds coal.
Ø
Duty on imported luxury goods such as high end motor vehicles, motor cycles,
yachts and similar vessels increased.
|
Ø
Duty free gold limit increased to ` 50,000 in case of male passenger and `1, 00,000 in case of a female
passenger subject to conditions.
Excise duty
Ø
Relief to readymade garment
industry. In case of cotton, zero excise duty at fibre stage also. In case of spun yarn made of manmade fibre,
duty of 12 percent at the
fibre stage.
Ø
Handmade carpets and textile floor coverings
of coir and jute totally exempted
from excise duty.
Ø
To provide
relief to ship building industry, ships
and vessels exempted
from excise duty. No CVD on
imported ships and vessels.
|
Ø
Specific excise duty on cigarettes
increased by about 18 percent. Similar increase
on cigars, cheroots
and cigarillos.
Ø
Excise duty on SUVs increased from 27 to 30 percent.
Not applicable for SUVs
registered as taxies.
Ø
Excise duty on marble increased from `30 per square meter to ` 60 per square meter.
Ø
Proposals to levy 4 percent excise duty on silver manufactured from smelting zinc or lead.
Ø
Duty on mobile
phones priced at more than `2000 raised
to 6 percent.
|
Ø
MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine to
reduce valuation disputes.
Service Tax
Ø
Maintain stability
in tax regime.
Ø
Vocational courses
offered by institutes affiliated to the State Council
of Vocational Training and testing
activities in relation
to agricultural produce
also included in the
negative list for service tax.
Ø
Exemption of Service Tax on copyright on cinematography limited to films exhibited
in cinema halls.
|
Ø
Proposals to levy Service
Tax on all air conditioned restaurant.
Ø
For homes and flats with a carpet
area of 2,000 sq.ft. or more or of a value of `1 crore or
more, which are high-end constructions, where
the component of services
is greater, rate of abatement
reduced from 75 to 70 percent.
Ø
Out of nearly 17 lakh registered assesses under Service
Tax only 7 lakhs
file returns regularly. Need
to motivate them to file returns and pay tax dues. A onetime scheme called ‘Voluntary Compliance
Encouragement Scheme’ proposed to be introduced. Defaulter may avail
of the scheme on condition that he files truthful
declaration of Service
Tax dues since 1st October 2007.
Ø
Tax proposals
on Direct Taxes side estimated to yield to `13,300 crore and on the Indirect Tax side `4,700 crore.
Good
and Services Tax
Ø
A sum of ` 9,000 crore towards the first installment of the balance of CST
compensation provided in the budget.
Ø
Work on draft GST Constitutional amendment bill and GST law expected
to be taken forward.
RAILWAY BUDGET
2013-14
The Railway Budget for 2013-14 on 26
February spared passengers from any further hike in fares but raised various
other charges on tickets along with freight tariff of less than 5 percent.
The first Congress minister to present a Railway Budget in 17 years, Bansal adopted Fuel Adjustment Component introduced by former Trinamool Minister Dinesh Trivedi which will be dynamic in nature and change in either direction with revision in fuel cost twice a year.
He said this may result in an upward revision of freight tariff, effective from April 1, this year, by less than 5 percent. In his 75-minute speech which was drowned in opposition slogan-shouting towards the end, Bansal said there are a number of supplementary charges which have not been revised for last several years.
The first Congress minister to present a Railway Budget in 17 years, Bansal adopted Fuel Adjustment Component introduced by former Trinamool Minister Dinesh Trivedi which will be dynamic in nature and change in either direction with revision in fuel cost twice a year.
He said this may result in an upward revision of freight tariff, effective from April 1, this year, by less than 5 percent. In his 75-minute speech which was drowned in opposition slogan-shouting towards the end, Bansal said there are a number of supplementary charges which have not been revised for last several years.
HIGHLIGHTS OF THE RAILWAY BUDGET - 2013-14
Thrust
- Safety; 2. Consolidation; 3.
Passenger Amenities; 4. Fiscal Discipline.
Some Achievements/Initiatives
IR
enters the one billion tonne Select Club joining Chinese, Russian and US
Railways;
IR
also joins Select Club running freight trains of more than 10000 tonne load;
‘Fuel
Adjustment Component’ concept to be implemented linking tariffs with movement
of fuel prices;
Target
of Rs 1000 crore each fixed for Rail Land Development Authority and IR Station
Development Corporation to be raised through PPP in 2013-14;
New
fund – Debt Service Fund – to be set up to meet committed liabilities of debt
servicing for WB and JICA loans for DFC and other future liabilities.
Measures for improving Safety & Security
Making
a Corporate Safety Plan for a ten year period (2014-2024).
Elimination
of 10797 level crossings during the 12th Plan and no addition of new LCs to the
IR system henceforth.
Introduction
of Train Protection Warning System on Automatic Signaling Systems.
Rigorous
trials of the indigenously developed Train Collision Avoidance System.
Using
60 kg rails, 260 meter long welded rail panels and improved flash butt welding
technology.
Introduction
of 160/200 kmph Self Propelled Accident Relief Trains.
Induction
of crash worthy LHB coaches with anti-climb feature.
Rehabilitation
of identified 17 distressed bridges over next one year.
Provision
of comprehensive fire and smoke detection systems.
Provision
of portable fire extinguishers in Guard-cum-Brake Vans, AC Coaches and Pantry
Cars in all trains.
Use
of fire retardant furnishing materials in coaches.
Measures
initiated to deal with elephant related accidents.
Four
companies of women RPF personnel set up and another 8 to be set up to
strengthen the security of rail passengers, especially women 2 passengers.
Recruitment
to RPF with 10% vacancies reserved for women.
Rail Based Industries
New factories/workshops to be set up:
A
new Forged Wheel Factory at Rae Bareli in collaboration with Rashtriya Ispat
Nigam Limited.
A
Greenfield Mainline Electrical Multiple Units (MEMU) manufacturing facility at
Bhilwara (Rajasthan) in collaboration with State Government and BHEL.
A
Coach Manufacturing Unit in Sonepat District (Haryana) in Collaboration with
State overnment.
A
Midlife Rehabilitation Workshop at Kurnool (Andhra Pradesh) in collaboration
with the State Government.
Bikaner
and Pratapgarh workshops to undertake POH of BG wagons.
A
workshop for repair and rehabilitation of motorized bogies at Misrod (Madhya
Pradesh).
A
new wagon maintenance workshop in Kalahandi (Odisha).
A
modern signaling equipment facility at Chandigarh through PPP route.
Green Initiatives
setting
up of Railway Energy Management Company (REMC) to harness potential of solar
and wind energy.
Setting
up of 75 MW capacity windmill plants and energizing 1000 level crossings with
solar power.
Deployment
of new generation energy efficient electric locomotives and EMUs.
More
usage of agro-based and recycled paper and ban use of plastic in catering.
Passenger/Rail Users’ Amenities
Identification
of 104 important stations for immediate attention to all aspects related to
cleanliness.
Progressive
extension of bio-toilets on trains.
Provision
of concrete aprons on platforms with mechanized cleaning 3 facilities.
Extension
of On Board Housekeeping Scheme and Clean Train Stations to more stations and
trains.
Extension
of Unreserved Ticketing System (UTS), Automatic Ticket Vending Machines
(ATVMs), Coin-operated Ticket Vending Machines (CO-TVMs) and schme of
Jan-Sadharan Ticket Booking Sevaks (JTBSs).
Setting
up of six more Rail Neer bottling plants at Vijayawada, Nagpur, Lalitpur,
Bilaspur, Jaipur and Ahmedabad.
Pilot
project on select trains to facilitate passengers to contact on board staff
through SMS/phone call/e-mail for coach cleanliness and real time feedback.
8-10
more mechanized laundries for quality washing of linen.
Provision
of announcement facility and electronic display boards in trains.
Providing
free Wi-Fi facilities on several trains.
Upgrading
another 60 stations as Adarsh Stations in addition to 980 already selected.
Associate
voluntary organizations for providing first aid services at railway stations.
Introduction
of an ‘Anubhuti’ coach in select trains to provide excellent ambience and
latest facilities and services.
179
escalators and 400 lifts at A-1 and other major stations to be installed facilitating
elderly and differently abled.
Affixing
Braille stickers with layout of coaches including toilets, provision of wheel
chairs and battery operated vehicles at more stations and making coaches
wheel-chair friendly.
Some
JTBS to be reserved for disabled people.
Curbing
malpractices in reserved tickets including tatkal scheme.
Third
party audit and tie up with food testing laboratories for food quality control;
ISO certified state-of-the-art base kitchens to be set up in railway premises.
Centralized
Catering Services Monitoring Cell set up with a toll free number (1800 111 321)
Rail Tourism
Launching
multi-modal travel package in cooperation with Jammu & Kashmir state
government.
Issuing
‘Yatra Parchis’ to pilgrims travelling by rail to Mata Vaishno Devi Shrine at
the time of railway ticket booking.
Introduction
of an educational tourist train with concessional fares - ‘Azadi Express’ – to
connect places associated with freedom movement.
Introduction
of executive lounge at 7 more stations, namely, Bilaspur, Visakhapatnam, Patna,
Nagpur, Agra, Jaipur and Bengaluru.
IT Initiatives
‘Aadhar’
to be used for various passenger and
staff related services.
Internet
ticketing from 0030 hours to 2330 hours.
e-ticketing
through mobile phones.
Project
of SMS alerts to passengers providing updates on reservation status.
Covering
larger number of trains under Real Time Information System.
Next-Gen
e-ticketing system to be rolled out capable of handling 7200 tickets per minute
against 2000 now & 1.20 lakh users simultaneously against 40,000 now.
Financial Performance 2012-13
Loading
target revised to 1007 MT against 1025 MT in BE.
Gross
Traffic Receipts fixed at `1,25,680 cr in RE, short by `6,872 cr over Budget Estimates.
Ordinary
Working Expenses retained at BE level of `84,400 cr; pension payments increased by `1,500 cr to `20,000 cr.
Dividend
liability to government to be fully discharged.
‘Excess’
of `10,409
cr as against the budget amount of `15,557 cr.
Loan
of `3,000
cr taken in 2011-12 fully repaid along with interest.
Operating
Ratio of 88.8% as compared to 94.9% in 2011-12.
Budget Estimates 2013-14
Freight
loading of 1047 MT, 40 MT more than 2012-13.
Passenger
growth - 5.2%.
Gross
Traffic Receipts - `1,43,742
cr i.e. an increase of 18,062 cr over RE, 2012-13.
Ordinary
Working Expenses - `96,500
cr.
Appropriation
to DRF at `7,500
cr and to Pension Fund at `22,000 cr.
Dividend
payment estimated at `6,249
cr.
Operating
Ratio to be 87.8%.
Fund
Balances to exceed `12,000
cr.
Annual Plan 2013-14
- Highest
ever plan outlay of `63363
cr.
- Gross Budgetary Support - `26,000 cr
- Railway Safety Fund - `2,000 cr
- Internal Resources - `14,260 cr.
- EBR - Market Borrowing - `15,103 cr;
- EBR - PPP - `6,000 cr.
500
km new lines, 750 km doubling, 450 km gauge conversion targeted in 2013-14.
Fiscal Discipline
No
supplementary Demands for Grants introduced in Monsoon Session or Winter
Session of Parliament;
Loan
of `3,000
cr repaid fully;
347
projects prioritized with assured funding;
Operationally
important projects and also last mile projects to receive liberal funding;
A
new fund – Debt Service Fund – set up to meet committed liabilities;
Stringent
targets for efficiencies in maintenance of rolling stock and fuel consumption;
Target
to create fund balance of `30,000 cr in the terminal year of the 12th Plan.
Staff Welfare
Fund
allocation for staff quarters enhanced to Rs 300 cr.
Provision
of hostel facilities for single women railway employees at all divisional
headquarters.
Extending
treatment facility in case of medical emergency to RELHS beneficiaries to all
cities in hospitals empanelled with CGHS and Railways.
Condition
of barracks to be improved for RPF personnel.
Provision
of water closets and air conditioners in the locomotive cabs to avoid stress
being faced by loco pilots.
Training and Recruitment
1.52
lakh vacancies being filled up this year out of which 47000 vacancies have been
earmarked for weaker sections and physically challenged.
Imparting
skills to the youth in railway related trades in 25 locations.
Setting
up of a multi-disciplinary training institute at Nagpur for training in rail
related electronics technologies.
Setting
up of a centralized training institute at Secunderabad – Indian Railways
Institute of Financial Management (IRIFM).
Five
fellowships in national universities to be instituted to motivate students to
study and ndertake research on IR related issues at M.Phil and Ph.D. levels.
Setting
up of a chair at TERI promoting railway related research to reduce carbon
footprint.
Sports
Railway
Teams won 9 National Championships in 2012.
Railway
Sports Promotion Board awarded the ‘Rashtriya Khel Protsahan Puraskar – 2012’.
Concessions
Complimentary
card passes to recipients of Rajiv Gandhi Khel Ratna & Dhyan Chand Awards
to be valid for travel by 1st Class/2nd AC.
Complimentary
card passes to Olympic Medalists and Dronacharya Awardees for travel in
Rajdhani/Shatabadi Trains.
Travel
by Duronto Trains permitted on all card passes issued to sportpersons having
facility of travel by Rajdhani/Shatabadi Trains.
Facility
of complimentary card passes valid in 1st class/2nd AC extended to parents of
posthumous unmarried awardees of Mahavir Chakra, Vir Chakra, Kirti Chakra,
Shaurya Chakra, President’s Police Medal for Gallantry and Police Medal for
Gallantry.
Police
Gallantry awardees to be granted one complimentary pass every year for travel
along with one companion in 2nd AC in Rajdhani/Shatabadi Trains.
Passes
for freedom fighters to be renewed once in three years.
Trains
67
new Express trains to be introduced.
26
new passenger services, 8 DEMU services and 5 MEMU services to be introduced.
Run
of 57 trains to be extended.
Frequency
of 24 trains to be increased.
Metropolitan Projects/Sub-urban Services
Introduction
of first AC EMU rake on Mumbai suburban network in 2013-14.
Introduction
of 72 additional services in Mumbai and 18 in Kolkata.
Rake
length increased from 9 cars to 12 cars for 80 services in Kolkata and 30
services in Chennai.
Tariff Proposals
Proposal
for setting up of Railway Tariff Regulatory Authority formulated and at
inter-ministerial consultation stage.
Fuel
Adjustment Component (FAC) linked revision for freight tariff to be implemented
from 1st April 2013.
Supplementary
charges for super fast trains, reservation fee, clerkage charge, cancellation
charge and tatkal charge marginally increased.
Enhanced
reservation fee abolished.
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