- Prologue
- [Act 1] Railways: GK & Static Theory
- [Act 2] Railways: Current / Contemporary topics
- [Act 3] Railways: Clean energy- sanitation measures
- [Act 4] Rail Budget 2014
- [Act 5] Economic Survey Fodder
- Appendix: Stupid statistics
Prologue
Economic Survey Ch11. Energy, Infrastructure and Communications. Total three subparts
- Energy
- Infrastructure: highways, shipping, aviation
- Railways infrastructure (you’re here, first two parts coming soon).
[Act 1] Railways: GK & Static Theory
| 1853 |
|
| 1854 | Calcutta to Raniganj |
| 1856 | Madras to Arkonam |
| 1924-25 | Rail budget separated from general budget (Acworth). Acworth gave report in 1921. But they separated in 1924. |
| 2010 | Kolkata metro declared the 17th Rail zone |
| 2013 | fuel linked tariff policy |
| 2014 |
|
Railway budget vs General Budget
- 1924-25: The British started separate rail budget on Acworth Committee recommendations
- Indian constitution does not provide for separate railway budget or budget in parts.
- But Parliament rules of procedure of Parliament permit it.
- Although rail budget’s receipt and expenditure are also shown in General budget. Observe following:
| receipt (incoming) | Expenditure (outgoing) | |
| tax | non tax | |
| dividend from railways counted here. | Grants given to railways counted here | |
| receipt (incoming money) | Expenditure (outgoing) |
|
loans given to railways |
Parliamentary convention committee reviews the railways’ contribution to general budget.
| Gauge | size |
|---|---|
| Broad |
|
| Meter | 1,000 mm (~3ft3″) |
| Narrow | 762 mm; 610mm (lift gauge) |
- Ranking track length in India: broad > meter > narrow
- Project uni-gauge: to convert selected routes into broad gauge.
Railways: Train types
| DEMU Trains |
|
| Duranto |
|
| Express Trains | speed ~160 kmph |
| Garib-rath | AC trains for poor people- at cheaper cost. But seat space narrow, no food/bedding given. |
| Jansadharan |
|
| MEMU Trains |
|
| Premium Trains/Jai Hind express |
|
| Rajdhani | Connects Delhi with state capitals. Started in ‘69 |
| Red ribbon | to spread AIDS awareness |
| Shatabdi |
|
[Act 2] Railways: Current / Contemporary topics
C1: Pir Panjal Tunnel, Qazigund Banihal
| Qazigund Banihal section | Pir Panjal |
|---|---|
| IRCON ltd built it | Hindustan Construction company |
| ~18km long rail section |
|
| Joins Qazigund (Kashmir) with Banihal (Jammu) | Pir Panjal: is name of the tunnel on that section. (Technical name T-80 tunnel) |
| next project: connecting Udhampur Banihal (2017) |
|
Before moving to Rail Tarrif authority, we need to learn two definitions:
C2: What is Cross subsidization in Railways?
- To keep rail travel cheap for the poor people, Railways keeps the passenger tickets lower than its input cost. = obviously loss making. (23 paise per passenger per kilometer in 2013. In 2001, it was 10 paise.)
- To compensate this loss, Railway keeps freight (goods transport) prices higher. This is called “Cross subsidization”.
C3: What is Operating Ratio of Railways?
- Railway’s Operating Ratio is 94%.
- Meaning they spend 94 paise out of every rupee earned. Only 6 paisa left in surplus. (This is Rail minister’s explanation in his budget speech 2014)
C4: Fuel Linked Tariff policy
- Fuel (diesel and electricity)= ~17% of the Railways’ total operation cost.
- So, if railways wants to improve its “operating ratio”, it must keep changing fares depending on fuel cost.
- Therefore, (UPA-II) Rail budget 2013 announced “Fuel adjustment component” (FAC)
| High Speed Diesel (HSD) | 7.3% |
| Electricity | 15.5%. |
- FAC is Dynamic in nature- fares can be reduced if fuel becomes cheaper.
- To be Revised every 6 months.
- Last time fares revised in October 2013.
- So next revision should have been done in April/May 2014. But Congress Government didn’t do it (for vote bank / model code of conduct).
- June 2014: (Modi) Government raised passenger ticket price by ~14%, and freight charges by 6.5%. Because of the same Fuel-linked pricing policy.
- This will improve railways’ income by 8000 crore Rs. But even this much money insufficient to finish past projects. (we need 50,000 crores every year for next ten years.)
C5: Rail Tariff Authority
- Railway makes 23 paisa loss per passenger, per kilometre. Therefore, need to raise prices.
- 2014: interim budget announced setting up the Rail Tariff Authority (RTA).
- Chairman + 4 members.
- To advise the government on prices for both passenger trains and good trains.
- Depending on input cost and volatile market conditions.
- Will improve fare : freight ratio
- Will reduce the cross subsidization between freight and passenger train operations.
- But, under the Railway Act, only the Railway Board can decide on the prices of rail services.
- So, RTA has been established through an executive order. Just like UIDAI.
- However, Modi’s rail budget is silent on this issue.
[Act 3] Railways: Clean energy- sanitation measures
four topics: Biodiesel, Biotoilets, Green curtain, Clean energy company.
CE1: 5% Biodiesel in Railways
What is Biodiesel?
- Biodiesel is a fuel manufactured from animal or vegetable fats
- It has physical properties very similar to the diesel obtained from crude oil
- Reaction
- (Animal or plant) fat + Alcohol (Methanol or Ethanol) + Catalyst + high temp + high pressure=> Glycerin + Biodiesel.
- Chemically, Biodiesel is Methyl Ester (if methanol used) OR Ethyl Ester (if Ethanol used)
- Glycerin is separated and used in soap-cosmetic industry. If Glycerin is not removed from biodiesel, then it’ll block the fuel filters.
What’re the Benefits of Biodiesel?
- Simple to use, biodegradable, nontoxic, rich in oxygen.
- Free of sulfur and aromatics. Thus reduces GHG emission, air pollution and public health risk.
- Biodiesel can be blended at any level with (real) diesel.
- Thus biodiesel will reduce our dependence on imported fossil fuel => less current account deficit.
- Railways need ~2 billion litres of diesel every year. We can manufacture ~500 tonnes of biodiesel from Jatropha and Karanjia alone. These plants are non-edible and can be grow on wasteland.
- offers new energy-related markets to farmers.
- 2002: 5% blended Biodiesel used on a Shatabdi engine. Trial was successful.
- 2003: Railways signed an MoU with Indian Oil Corporation ahd gave ~500 land for Jatropha cultivation. IOC in return promised to supply Biodisel for 15 years.
- 2014: Modi’s railway budget permitted 5% blending of biodiesel with (real) diesel.
Jatropha plant: Basics
- Originally from South America and Africa
- Family Euphorbiaceae.
- Greek: Jatros = Doctor, Jatropha = nutrition.
- Hindi: Bagh Eranda, Jangli Eranda, Safed Eranda
- Gujarati | Punjab = Jamal Gota.
- Purgative and toxic.No animals eat it.
- Can grow in wasteland, arid areas. Can withstand frost and drought.
- Jatropha seed=> oil => Plant fat =>Biodiesel.
CE2: Bio-toilets
- 1994: DRDO sets up first biotoilet in Ladakh. Later tied up with Indian railways.
- 2012: Rural Development ministry tied up with DRDO to install bio-toilets under Total sanitation mission /Nirmal Bharat Abhiyan.
- There is a bio-digester tank in every toilet, contains 4 type of anaerobic bacteria.
- They digest the human excreta, via four steps: hydrolysis, acidogenesis, acetogenesis and methanogenesis.
- No bad smell, don’t need large space, no human excreta in toilets or tracks – hygiene and cleanliness
- converts human excreta in to water (irrigation) and methane gas (cooking)
CE3: Green curtain (interim budget)
- Railways will construct boundary wall round the station.
- Then watchmen will patrol the area.
- Anyone caught urinating/defecating/littering in this area, will be punished.
- Landscaping and plantation near the stations.
- Pilot project @Agra and Jaipur. If project success= then Railways implement it in all stations, and outsource this “chowkidaari” to private companies.
- Companies act 2013 mandates certain companies to spend 2% of their profit on CSR (corporate social responsibility) activities. This chowkidaari will be counted as one of the CSR activity.
- Modi budget: CCTV cameras to monitor cleanliness
CE4: Clean energy Company
- Railways has setup Railway Energy Management Company (REMC)
- This company sets up windmill plants, solar power plants on railway buildings. Gets 40% subsidy from Ministry of New & Renewable Energy.
[Act 4] Rail Budget 2014
Combining all announcements from rail budget and general budget. MCQ worthiness low, but can serve as mains fodder here and there.
E-governance /ICT initiatives
Announced in Modi railbudget 2014
- Paperless offices in Indian Railways in 5 years
- E-procurement mandatory for projects worth Rs.25 lakhs and above.
- Next Generation Ticket Reservation System
- Wi-fi Services in all selected stations and trains
- Mobile based Wakeup Call System, Destination Arrival Alerts for passengers.
- Computerized Station Navigation Information System;
- Computerized Parcel Management System
[Act 5] Economic Survey Fodder
F1: Challenges of Indian Railways
- Indian Railways carry only 31% of the total freight carried in the country by all modes. If more goods transported by railways- it’d reduce fuel consumption of Indian economy.
- Railway is expected to earn like a commercial enterprise and serve like a welfare organization. These two objectives never meet, because of poor operating ratio (94%).
- As a result, railways to compromise with efficiency, cleanliness and safety.
- In the name of social responsibility – past government setup lot of populist projects (like opening museums and hospitals). But they hardly bring any revenue to the Railways.
- Proliferation of “projects” in past decades. To finish them, all we need 50,000 crore every year for next ten years.
- Additionally, we need >9 Lakh crore to complete the Golden Quadrilateral Network and ~60,000 crore for introducing one bullet train alone.
- Indian Railways is a business that has a monopoly that has nearly 125 crore customer base that has 100% sale on advance payment; but still starved of funds.
- Too many rail stoppages = trains slowed down, long distance travel time increased. Most of our “express” trains have become slow like “passenger” trains. (Reform: Modi railbudget has set deadline- 30th September 2014. After that all such stoppages will be reviewed and closed down if unnecessary.)
F2: FDI in Indian Railways
- Rail ministry wants FDI in all sectors except Rail operations. Because they have hardly any surplus money to finance all the projects. Even PPP gathered ~3000 cr. in last two years. We need 50,000 crore investment every year.
- Survey suggestion: While FDI and privatization can be big ticket reforms for railways. BUT Rail privatization proposal should be examined carefully. Because it succeeded in Japan but failed in UK.
| Before Aug | After Aug 2014 cabinet clearance |
|---|---|
| FDI was permitted only in mass rapid transit system. | 100% in following areas:
FDI prohibited in: Train operations and safety. |
F3: PPP/Infra/FDI (Rail budget 2014)
From Modi Rail budget 2014
- 100% FDI in railway infrastructure, high speed rail system and dedicated freight corridor (FDI under automatic route)
- Private investment permitted in station modernization, ware houses etc.
- PPP under BOT (build-operate transfer route).
- Will speed up construction of critical coal connectivity lines. This will help in faster movement of coal from mines to thermal power plants.
- Will connect ports to hinterland via PPP. (especially minor ports on Western coast)
F4: Rail reforms in 2013
- Indian railways entered the one billion tonne club, joining the Chinese, Russian, and United States railways.
- Braille stickers in coaches to facilitate visually impaired passengers.
- FinMin=>Nirbhaya Fund=> Railmin=> alert system in trains for women safety
- Varansi’s Diesel Locomotive Works developed world’s first prototype 5500 HP diesel locomotive (WDG5). It can achieve 100 kmph speed.
- Established Joint venture Railway Energy Management Company (REMC)- for green energy initiatives. Windmills, solarplants to reduce energy bill of Railways.
- Established subsidiary company High Speed Rail Corporation of India (HSRC) to run passenger trains at speeds up to 350 km per hour. Studying Mumbai-Ahmedabad corridor feasibility with help of Japan.
- Focused on environment-friendly and economically efficient transport movement.
- Jammu Kashmir connectivity: (see following table)
Appendix: Stupid statistics
| 1.16 | Lakh kilometers of track length |
| 2.4 | Lakh wagons |
| 13.1 | Lakh employees |
| 23 | Million passengers carried every day- same as moving entire Australia |
| 7172 | No. of railway stations |
| 11563 | Unmanned rail crossing |
| 12617 | No. of trains owned by Railways |
| 30348 | Total rail crossings |
| 63870 | Coaches |
| 23 | paisa loss per passenger per kilometer (2013) |
67 Comments on “[Infrastructure] Rail-Budget 2014, Tariff Authority, Biodiesel, Biotoilets, FDI & more”
Thx mrunal sir.
Sir,
After finishing economic survey Kindly write the summary of arc report? Plz plz
Superb
Mrunal Sir, Your Economic survey Videos/Articles “Helped us a lot”…Thanks a ton..
Mrunal Sir,
Your work on Economic survey is trulu very nice, Sir ….. Do you have any plans regarding proving MCQ’s for practicing GS I Paper.
If so we will be thanking in advance. If you already flooded with much work regarding Eco Survey and other articles for upcoming Mains its ok fine.
not possible chester. plate full with this survey.
mrunal ji would request you to cover indian coal in great detail while coving energy as invariably there is a question on problems of indian coal. thanks in advance
Please continue with your current affairs articles which you had left after May week two sir. They were really helpful.
yes Ankur I’ll after doing CSAT-answerkey.
Thanks a lot for this’s sir…..if possible can u please upload some mcq under ariticle
thank……..ssss
Mrunal Bhai Please resume the current affairs series – it will be of immense help after prelims. I think that was the better way to keep in touch with things since you limited content to 200 words for most topics.
Some of these articles related to budget etc. have so much content that it is hard to keep reading after a point of time and I end up leaving the article mid way without gaining much. I think a better way to organize this article was to have questions like What are issues Indian Railway is facing/What are safety concerns like crossings, fires etc. /Initiatives taken in budget with answers for each question limited to 200 words.
Moreover, I don’t think anyone is going to ask about new construction lines/Parcel Biz etc. etc. so there is lot of redundancy. I request you to revert to the format you had in current affair series – it was a far more superior way of organizing things. I think most of the students here share my sentiments.
There are many ways to make this Economic survey summary better, but then it’d take another 1-2 months to finish it- to dig all the background topics in 200 words.
So, given the constrains of limited time (before Qatal ki subah) and human resources available with me, I’ve tried to cover whatever I could. Some of the GK portion may look redundant but it has its utilities in non-UPSC exams and interviews so- “Spray and pray”. Prime example being this year’s RBI grade “B” prelim GK portion.
Mrunal jee, even mentioning the important topics from the budget and economic survey goes a long way………..so don’t feel sorry if these are not more detailed………. moreover people should use this site as an assistance and not substitution for their studies……………….
PS – It was really wise of you to close the comments on a certain page recently………………………….sometimes such disciplinary measures become imperative ………….
nice sir
sir please post articles on Indian art and culture
sir pls post some artical for rbi assistant
Sir,such a wonderful job…thnx a tonn…without your guidance we feel very empty space in our preparation
Thanks sir.
Thank you is a cliche for you… But we readers have our limitations… So, thanks a lot Mrunal bhai
Thanks for the article. ..Plz share some mock test for csat for practice …
Its very brain washing and brief coverage for CSAT
Sir, hats off to your hard work.
please resume current affairs series after economic survey articles.
Sir, can we expect your coverage for any of the topics for main exam like you covered Land reforms, food processing?
When ever I read Pir Panjal anywhere I wonder mein yaha kaise?! Interview k liye bhi prepare kara tha meine Pir Panjal, kahi pooch na le your name rhymes with Panjal, ab sab kuch batao uss k bare mein. Kitne aadmi baithe they waha ki choti pe, kaun sa nadi,nala,pul(bridge) , kya kya hai waha and it’s strategic importance.
Sir ji, as I said, Pub Ad se tou wayda kiya hai tou nibhana padega. Now I understood ppr 1 mein kam marks kyun aaye, I saw last year’s ppr, 1 line bhi nahi samajh mein aayi ki kaha se chori kar k likhi hai ya kya matbal hai uss ka. Will order Prasad ka prasad on 25th after reaching Mahesana, synergy k notes padh k kuch na hone wala. Socha tha mba ka tou yaad hai hi saare authors, dhoka ho gaya
thanks very helpfully article
MrUnal $ir when will u restart PIB article$
THANKS.
Sir kindly clear one doubt.
At the end of 5 year term of lok sabha
1.It automatically stands dissolved
2. It’s dissolved only when the pm tenders his resignation to prez
3.entire com has to tender resignation
4.prez holds the lok sabha to be dissolved as an initiation on his own
This yr Manmohan gave his resignation, before expiry of his term I think
Pir Panjal
at the end of 5 years, lok sabha automatically dissolves….what happens if the ministers did not give resignation? LS automatically dissolves
Well yes, this is what article 83(b) says
Then what was the purpose of his resignation? Is this a normal practice that com tenders resignation before expiry of term?
yes it is a normal practice…Article 83 (b)…nice
thanks sir
What if they don’t resign? Are they automatically considered as deemed to have resigned?
Do they prove they have confidence & may continue in lok sabha even when ppl voted for some other party?
sir, golden quadrilateral or diamond quadrilateral ?
anish: golden quadrilateral via roads (Vajpayee) and Diamond for metros (Modi).
[Act 5] Economic Survey Fodder
F1: Challenges of Indian Railways
Additionally, we need >9 Lakh crore to complete the Golden Quadrilateral Network and ~60,000 crore for introducing one bullet train alone.
ओ आसमान वाले ज़मीन पे उतर के देख , होती है क्या पढाई (UPSC ki ) तू भी कभी कर के देख !!!
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Bio Digester technology | the Environmentally friendly way to treat waste
Bio Digester technology | the Environmentally friendly way to treat waste
The activities of the MRC will soon going to install biodigester (bio-toilet) in various regions of the country. It achieves this through the application of anaerobic digestion technology.
Anaerobic digestion technology is the process of treating wastewater without using oxygen. Many countries in Europe and Latin America utilize this technology, which treats wastewater in an environmentally friendly manner, facilitating its use for irrigation or its return to water bodies without polluting them. The process also generates organic fertilizer and bio gas (a form of fuel) by allowing naturally occurring bacteria to break down solid waste. The Biodigester System operates on the principles of anaerobic technology, and is used to treat organic farm waste. Another variant, the Biodigester Septic Tank (BST) is an on-site sanitation unit that utilizes anaerobic technology for the disposal of toilet (black) wastewater as well as of kitchen and bathroom (grey) water, in a closed system. The MRC currently applies this technology instead of septic tanks and absorption pits on several farms, housing complexes and single households to treat animal waste and domestic sewage.
Many communities, farms, organizations and institutions have benefited from Scientific and Technological solutions as the MRC works with them to develop environmentally friendly waste management systems. The MRC has assisted with the development and implementation of a Biodigester System in railways. The system treats solid human wastage to generate bio gas and organic fertilizer. The organic fertilizer (treated solid waste) will be utilized by the various areas and/or sold to small farmers as soil conditioners.
There are many benefits to be derived from the use of anaerobic digestion technology. The Method is simple in construction and operation, and consequently inexpensive. Biogas Projects should aid in the reduction of fuel cost, as it is more cost effective to use biogas than Liquid Petroleum Gas (LPG) as fuel.
The Need for Biodigester?
The discharge of untreated wastewater on economically important natural resources such as rivers and seas, and their ecosystems leads to their destruction.
The inadequate handling and disposal of sewage lead to health problems.
Household sewage generated is causing serious pollution of surface and ground waters.
The present on-site systems of sewage disposal do not provide much in the way of treatment.
The extremely high cost of high tech systems (activated sludge, oxidation ditches etc.)
The use of the generated biogas which can be used in place of LPG and firewood.
The need for alternative energy sources.
sir i just want to ask that whether we can be a member of mrunal.org or there is only one option of subscribing only ?