BUDGET - BMR Advisors

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RAILWAYSThe Indian Railways is the world’s second largest network in theworld and has been contributing to the industrial and economicdevelopment of the country for decades. Freight and passengertraffic are the two major segments of the Railways. Within thefreight, bulk traffic accounts for nearly 84 percent of the revenueearning freight traffic, of which 43 percent is coal.Developments during the yearThe year 2007 has been significant for the Indian Railways inachieving goals and targets. During FY 2007-08 (April-November), Indian Railways carried 501.46 MMT of revenueearning freight. The freight carried shows an increase of 37.07MMT over the freight traffic of 464.39 MMT carried during thecorresponding period last year, registering an increase of 7.98percent.Policy developmentsIn order to develop the wagon leasing market, a new wagonleasing policy has been prepared under which, rail customersand container operators will be able to take wagons on lease.For getting registered under the scheme, wagon leasingcompanies should have minimum net worth of Rs 2.5 billion andwill have a deposit Rs. 50 million as registration fee. Registrationwill be valid for 20 years and will be renewable for another 10years on rendering satisfactory services. Leasing companieshave been give full rights to choose or change their lessees.These companies will lease out special purpose wagons, highcapacity wagons and container wagons.OutlookProjected investments in the Railway sector duringthe 11th PlanDuring the 10th Plan, the total investment outlay in the Railwayssector was to the tune of Rs 1,196 billion (Approximately USD 29billion). During the 11th Plan, a huge impetus has given toinvestments in Railways sector.In a bid to make Indian Railways the world’s number one railwayindia<strong>BUDGET</strong>200837
network, significant investments has been proposed during the11th Plan in areas including construction of dedicated freightcorridors, new railways lines, modernization andredevelopment, world class railway stations, introduction ofprivate entities in container trains, etc. The total investmentoutlay in this sector is projected to scale up to Rs 3,035 billion(USD 74 billion)PROJECTED INVESTMENTS IN THE RAILWAYS SECTOR(IN USD BILLION)Source: Planning Commission, GoI dataSEGMENT WISE PROJECTED INVESTMENTS IN THERAILWAYS SECTOR (IN USD BILLION)Source: Planning Commission, GoI dataWindow of opportunityDedicated freight corridors• The construction work of Eastern freight corridor fromLudhiana to Dankuni situated near Kolkata and Westerncorridor from Delhi to JNPT will commence in 2008-09 a an38india<strong>BUDGET</strong>2008
Page 1 and 2: indiaThought LeadershipBUDGET2008Im
Page 4 and 5: C O N T E N T SFOREWORDECONOMIC IND
Page 6 and 7: FOREWORDInfrastructure is the backb
Page 8 and 9: ECONOMIC INDICATORS AT A GLANCEIndi
Page 10 and 11: period of the previous year, regist
Page 12 and 13: GROWTH IN CRUDE PETROLEUM PRODUCTIO
Page 14 and 15: GROWTH IN STEEL PRODUCTION (IN PERC
Page 16 and 17: FY 2007-08 to 139 billion in FY 201
Page 18 and 19: Renewable energy sources which incl
Page 20 and 21: TransmissionDuring the period FY 20
Page 22 and 23: Policy developmentsElectricity (Ame
Page 24 and 25: PROJECTED INVESTMENT IN THE POWER S
Page 26 and 27: AVIATION INFRASTRUCTUREAs India’s
Page 28 and 29: necessary to carry out amendments t
Page 30 and 31: The ACP is designed to provide a fo
Page 32 and 33: estimated cost of Rs 18.08 billion,
Page 34 and 35: is projected to scale up to Rs 869
Page 36 and 37: ROADS AND BRIDGESIndia has one of t
Page 38 and 39: Carriers’ Act, 1865 and would cat
Page 42 and 43: estimated cost of Rs 280 billion•
Page 44 and 45: BUDGET EXPECTATIONS - POWERThe majo
Page 46 and 47: Customs and Excise duty rationaliza
Page 48 and 49: significant cost efficiencies (both
Page 50 and 51: Central sales taxDeclared goods sta
Page 52 and 53: during initial tax holiday years, s
Page 54 and 55: Reduction of customs duty on cold s
Page 56 and 57: Reduction of CST from 3 percent to
Page 58 and 59: Name of the Scheme FY 2007-08 FY 20
Page 60 and 61: • The amendment to take effect fr
Page 62 and 63: from customs duty. However, within
Page 64 and 65: legal right of possession and effec
Page 66 and 67: • Reduction of peak rate of excis
Page 68 and 69: • Supply of tangible goods where
Page 70 and 71: Thus, import of goods for airport d
Page 72 and 73: GLOSSARYAAIACDACPAERAATFATMBCDBIALB
Page 74: www.bmradvisors.comOUR CONTACTSNew

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