New Delhi, Feb. 22: The railway budget, to be announced on Tuesday, is set to pamper the common man, with either no change in fare or a small cut.

Buoyed by a booming freight business, the railways could also come up with a slew of modernisation and expansion plans as well as proposals for public-private partnerships.

With Lok Sabha polls in 2009, railway minister Lalu Prasad, presenting his fifth budget, is expected to make full use of the opportunity to woo the electorate by announcing big-ticket concessions for farmers, railway workers and students.

New trains, extending existing ones to new destinations and raising the frequency of others are also on the agenda.

Railway workers could also get a pay bonanza for helping to earn an expected cash surplus of Rs 24,000 crore this fiscal.

Officials said there could be more Garib Raths — these trains offer AC travel at concessional rates — and reductions in AC 2-tier and AC 3-tier fares to take on low-cost airlines.

The much awaited resumption of the Calcutta-Dhaka rail service is also likely.

However, the recommendations of the Sixth Pay Commission, which reviews emoluments of government workers and will submit its report this year, may suck about Rs 9,000 crore out of the budget.

Analysts said strong financial health of the railways would help it to cushion the impact of the recommendations.

“The railways face strain whenever the pay commission revision happens. But right now railway finances are better and, therefore, it is in a strong position to absorb the burden,” analysts said.

Rationalisation of the freight structure will continue, and some concessions for select freight categories are likely.

According to S.P. Singh of the Indian Foundation of Transport Research and Training, “Railways are catering to large companies with an annual commitment of high density cargo loads that provides stability to it compared to roadways.”

As in the previous fiscal, observers said, Lalu might not announce a hike in freight charges in the budget. These could be increased through circulars, later.

D.P. Agarwal, vice-chairman and managing director of Transport Corporation of India Limited, said, “The railway minister should expedite the development of the dedicated freight corridor to avoid congestion of the operative lines.

“In addition, to encouraging bulk orders, it should introduce the concept of consolidated freight earning and further provide rebates on the same,” he said.

Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations, said the railways should expeditiously complete the freight corridor which would help in reducing delivery time.

Budget support is also likely to facilitate freight movement in coal, fertilisers, foodgrains and iron ore. Major expenditure is expected in rolling stock such as wheels, rails and tracks.

The railways hopes to generate a major part of its revenues to meet growing expenditure through more public-private partnerships.