Railway Budget in ‘reverse gears’ will take India back to last Century

Published By : Admin | March 14, 2012 | 13:48 IST

“Centre kept nation in dark about Railways’ pitiable condition for 7 years”

“Railway Budget in ‘reverse gears’ will take India back to last Century, closing ‘all gates of development’ for a progressive state like Gujarat” – Narendra Modi

Gandhinagar, Wednesday: Gujarat Chief Minister Narendra Modi said that the Railway Budget for 2012-13 appears to be in the reverse gears, which would take the country backwards to the last Century.

Commenting presented by the Congress-led Union Government in Parliament today, he described the budget as absolutely disappointing for a fast developing state like Gujarat. It seems to have closed all gates of development for the state, there being hardly noteworthy announcement for the state.

The Railway Ministers’ announcement about setting up a coach factory in Kutch is in fact eyewash. What the Railways plan is setting up a diesel engine spare parts unit there. Such units in the private sector are already in existence in plenty in and around Rajkot, he said.

Mr. Modi said that it is for the first time the UPA government has admitted that the Railways’ is in a miserably pitiable economic condition, as it continuously kept India in the dark about the deep mess that the network is in, for at least the last seven long years. The Railways is unlikely to complete 487 pending projects, let alone the proposed ones. The government does not seem to have any vision either, for future.

The Chief Minister said that by increasing the freight rates by 20 per cent even before the Budget would put an additional burden of Rs.300-crore annually on the people of Gujarat.

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Cabinet approves equity support to Small Industries Development Bank of India
January 21, 2026
Flow of credit to MSMEs will increase as SIDBI will be able to generate additional resources at competitive rates
Approximately 25.74 lakh new MSME beneficiaries will be added

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the equity support of Rs.5,000 crore to Small Industries Development Bank of India (SIDBI).

The equity capital of Rs.5000 crore shall be infused into SIDBI by the Department of Financial Services (DFS) in three tranches of Rs.3,000 crore in Financial year 2025-26 at the book value of Rs.568.65/- as on 31.03.2025 and Rs.1,000 crore each in Financial Year 2026-27 and Financial year 2027-28 at the book value as on 31st March of the respective previous financial year.

Impact:

Post equity capital infusion of Rs.5000 crore, number of MSMEs to be provided financial assistance is expected to increase from 76.26 lakh at the end of Financial Year 2025 to 102 lakhs (approximately 25.74 lakh new MSME beneficiaries will be added) by the end of Financial Year 2028. As per latest data (as on 30.09.2025) available from official website of M/o MSME, 30.16 crore employment is generated by 6.90 crore MSMEs (i.e. employment generation of 4.37 persons per MSME). Considering this average, employment generation is estimated to be 1.12 crore with the expected addition of 25.74 lakh new MSME beneficiaries by the end of Financial Year 2027-28.

Background:

With a focus on directed credit and anticipated growth in that portfolio over the next five years, the risk-weighted assets on SIDBI’s balance sheet are expected to rise significantly. This increase will necessitate higher capital to sustain the same level of Capital to Risk-weighted Assets Ratio (CRAR). The digital and digitally-enabled collateral-free credit products being developed by SIDBI, aimed at boosting credit flow, along with the venture debt being offered to start-ups, will further escalate the risk-weighted assets, requiring even more capital to meet healthy CRAR.

A healthy CRAR, well above the mandated level, is a key to protect credit rating. SIDBI will benefit from an infusion of additional share capital by maintaining a healthy CRAR. This infusion of additional capital would enable SIDBI to generate resources at fair interest rates, thereby increasing the flow of credit to Micro, Small & Medium Enterprises (MSMEs) at competitive cost. The proposed equity infusion in staggered or phased manner will enable SIDBI to maintain CRAR above 10.50% under high stress scenario and above 14.50% under Pillar 1 and Pillar 2 over next three years.