Rail Budget's boost to Make in India: New locomotive factories to be set up with order book of Rs 40,000 crore

NEW DELHI: In a boost to Modi government's 'Make in India' drive, Railway Minister Suresh Prabhu in his rail Budget 2016 speech said, "New locomotive factories will be set up with an order book of Rs 40,000 crore."
Prabhu went on to say that LIC has agreed to invest Rs 1.5 lakh crore to fund railway projects. Stressing on the need for constant innovation, Prabhu said, "We need to re-imagine the conventional ways of solving things. We plan to do this by drawing upon our inherent strengths."

Prabhu laid out his ambitious plans for Railways saying, "We propose to electrify 2000 km next year, have increased electrification budget by 50%." "We are looking to borrow Rs 20,000 crore this fiscal. We are targeting capex of Rs 1.21 lakh cr over FY17," Prabhu said.

"We are looking at ways to boost cost-optimisation this fiscal," Prabhu said. "We have overhauled age-old practices in procurement of equipment," he added.

He went on to say that he expects Railways top record a revenue growth of 10.1% in FY17.

Prabhu said that the institution will aim for an operation ratio of 92% for the financial year 2016-2017.

"A saving of Rs 8,720 crore for budget estimates of last year will be effected this year," Prabhu said.

Prabhu started his second Railway Budget speech by saying that his aim is to fulfill PM Narendra Modi's vision of Railways being a backbone and lifeline for India. "This Budget owes its vision to that of PM Modi. We want to improve quality of customer experience, create jobs," Prabhu said.