Indian Rail Budget 2009 Impact on Stock Market

Lalu Prasad Yadav interim railway budget 2009-10

1. One can give full marks to Railway Minister Lalu Prasad Yadav who has been able to get a profit of Rs 90,000 crores in the last five years from  loss making enterprise of the nation i.e Railways and definitely it is a case study in itself.
2. Lalu Prasad Yadav in his Interim railway budget speech stated that the average freight has grown by 3-8% in the last five years and has claimed that the Railway has raised debt of USD 100 million at 4%.
3. A commendable effort is reduction by 2% in all class fares and the introduction of 43 new trains. Moreover he has been able to keep the freight rates unchanged.
4. However the real magic of his achievements is stealing money from the pocket of the customer from the back door and listed are the anomalies:
(a) Number of trains have been upgraded to superfast and is thus charging more money though no change in speed and facilities has been undertaken in these Express trains.
(b) Freight loading capacity of wagons has been dangerously increased without substantially catering for the safety aspects.
(c) Tatkal scheme has stolen seats from ordinary quota and an exhorbitant amount is being each seat under Tatkal quota, though the said quota meant that additional coaches would be attached. Tatkal scheme has been increased from 3 days to 5 days.
(d) Freight loading time has been reduced drastically.
5. Thus at the end of the day an average traveller is paying more at the end of day despite the visibiity that the fares have been reduced. Thus this is the magic of Lalu Prasad Yadav where without antagonising any body; he has been able to earn accolades for himself and for the nation too.