Shares of the companies serving the Indian Railways fell after Railway Minister Pawan Kumar Bansal presented the annual Rail Budget 2013 to the parliament without major announcements.
The rail budget presented to the Lok Sabha on Tuesday mainly focused on financial stability. Many firms are disappointed as they were expecting higher allocations in the budget for their sector. The railway minister did not increase the passenger fare but has separated the fuel component in tariffs so that the fuel adjustment component (FAC) changes as per the changes in the fuel costs.
An allocation of only Rs 44 crore has been made for new orders for wagons, which is disappointing news for wagon procurement companies such as Titagarh Wagons and Texmaco Rail. Texmaco Rail and Engineering fell 2.3 per cent to Rs 53.30, Kalindee Rail Nirman Engineers fell 9.59 per cent to Rs 63.50, Stons India fell 6.53 per cent to Rs 18.60 and BEML fell 1.45 per cent to Rs 238.15.
The railways is planning to take up 22 new lines during the year and it will also introduce 67 new Express trains, 27 new passenger trains and also increase the distance travelled for 58 trains. The railway will establish a new debt service fund to arrange for capital for its projects. There is target to build und balance to Rs. 30,000 crore till the 12th Plan. The budget figures showed that the railways achieved an operating ratio of 88.8 per cent.
Overall, the railways is planning to invest Rs. 63,000 crore during the 2013-14 financial year.