Friday, February 18, 2011

RAILWAY BUDGET 2011: 
I think  you have bought Kernex Micro Systems Ltd earlier, now buy Stone India Ltd (www.stoneindia.co.in), before the railway budget. This time lot of emphasis is expected to be given on laying of new tracks and the safety of railways. Some more prestigious "Duronto Trains" could be introduced, which would give clear advantage to the shareholders of Kernex Micro Systems Ltd (Rs.118.50) , Stone India Ltd (Rs.51.50) and to some extent to Titagarh Wagons Ltd (Rs.440.45)

The 2011-2012 Budget session will begin on February 21. The date for the presentation of the Union Budget is February 28 and the Railway Budget will also be presented soon after that. Usually the railway budget is presented two days before the Union Budget.
The 2011-2012 Budget session will begin with a joint sitting of the two Houses that will be addressed by President Pratibha Patil.
Due to the numerous calamities and mishaps that took place in the year 2010 the railway department is expecting two times the budget allotted in the previous year. 
Currently the railway budget is undergoing a financial crisis and in order to overcome it; the department would require an increase in the budgetary support from the Finance Ministry of India.
The railway department has requested for Rs.39,600 crore as gross budgetary support in 2011 as compared to the Rs.15,875 crore that it received in the 2010 budget. This whooping expectation is not only to repair the damages but also for the ongoing and upcoming railway projects. The railway department also aims at further expanding and modernizing the railway infrastructure of the country.
The 2011 railway budget aims at increasing the production of wagons, coaches and locos, gauge conversion and doubling of tracks and laying of 1000 km of railway tracks. There will also be an increase in the number of trains and freight carriers. All these augurs well for the shareholders of Kernex Micro System, Stone India, Titagarh Wagons Ltd, etc. 
The target of the department is to increase the number of coaches from 3700 in the previous year to 4000 coaches in 2011-12. In the wagon manufacturing segment the department plans to churn out 18,000 wagons and as far as locomotives are concerned they are expected to increase by another 5000.
The 2011 railway budget will also give importance to safety and security issues like improving the signaling system, train protection warning system (TPWS) and installing safety related technology like Anti-collision devices (ACD).  

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