Except for the fact that it was after 17 long years that a Congress minister got to present the Railway budget, there was nothing particularly unique about Pawan Kumar Bansal’s maiden essay. Having raised fares a little over a month ago, he was able to spare passengers this time, but he has put in place a dynamic tariff mechanism for freight to take care of future increases in the price of fuel. This is likely to result in a 5 per cent rise in freight rates from April 1, with the promise of a half-yearly fuel price adjustment system to provide for the regular hike in diesel prices announced earlier by the government. The January 22 passenger fare revision was meant to fetch the Indian Railways Rs. 6,600 crore in additional revenue in a full year; but the recent increase in diesel prices could cost the Railways Rs. 3,300 crore in its fuel bill. The logic of dynamic tariffs, even if only for freight, can therefore hardly be faulted. On the passenger fare front, though the basic fare has not increased, the minister has raised the reservation, tatkal, supplementary, cancellation and super fast train charges marginally. With the focus on making the Railways “financially sustainable,” Mr. Bansal is hoping to end 2013-14 with a balance of Rs. 12,506 crore in Railway funds.
A major achievement of the Railways in what has otherwise been a lacklustre year is the significant improvement in its Operating Ratio, i.e. total expenses as a percentage of revenue. Currently at 88.8 per cent, it has now been projected to reach 87.8 per cent in the coming year. Because of the slowdown in the economy last year, the Railways’ annual plan as well as freight loading target had to be scaled down. Against an estimated Rs. 60,100 crore plan for the current year, the Railways pruned it to just over Rs. 52,000 crore. This has been raised to Rs. 63,363 crore for the coming year and the challenge lies in achieving that. The focus of the plan seems to be on doubling of tracks, raising capacity, improving safety and significantly enhancing passenger amenities on trains and at stations. Internet ticket booking hours have been extended to allow customers to make reservations 23 hours a day. Like his predecessors, Mr. Bansal could not resist the temptation of announcing a string of new manufacturing units, 67 new express and 27 new passenger trains, in addition to a host of new lines and surveys. Of course, many if not most of these have gone to select constituencies important to the Congress party, and to electorally important States such as Uttar Pradesh, Haryana, Karnataka, and Andhra Pradesh. With general elections due in 2014, Mr. Bansal has used the budgetary means at his disposal to signal the onset of campaign season.
Keywords: Pawan Kumar Bansal, Railway budget, rail fares, Indian railways, Union budget, Indian railways facilities
The author has mentioned that majority of the announced express and
passenger trains are awarded to UP , Karnataka , Haryana and AP. I
don't know about other states , but AP has nothing to get in it . For
many years South Central Division with Secunderabad as its headquters
has been profitable than any other railway division in India , yet its
share on the allotment of new passenger and express rails hasn't been
paid much attention by successive railway ministers. The rails which
were announced 2 years earlier have not got proper funding till now.
Even now 1 lakh was released in this budget for one of the projects
which costs around 126 crores.
The only reason I'm putting this comment is so that readers of the
Hindu will not get misleaded by the author's statement (which mentions
that AP is the one of the major beneficiary of this budget)
Just like Road Transport Corporations of the states have been split into independent regional entities on profit center basis, why is that UPA or NDA governments do not think of decentralising railways also. What is good for States should be good for Center also. Is n't it?? Ministers do not want to leave their preveleges associated with centralised control on financial and manpower resources for personal benefit.
In case of Railway budget (or financial budget) it is well accepted
that not every one could be satisfied. But, as pointed out in the
edit, the UPA government has wasted many opportunities to set things
right and did almost nothing to put Railways finances on a sound
footing during the last eight years.
Therefore, opposition parties’ criticism of the Railway budget is
valid. But why forget that they too do not have a magic wand to
improve railway finances.
Perhaps time has come to convert the Indian railways into a government
company on the lines of Bharat Sanchar Nigam Ltd. Raising long term
funds for expansion and renovation would become much easier if the
Indian railway becomes The Indian Railway Corporation (IRC). IRC must
be given full autonomy with no political interference so that in can
run the railways network on commercial principles. We can then expect
far better service from IRC.
One Name that stands out from the past 17 is Lalu Yadav. He was Popular. Others were Populist - the worst of them got 'delinked' from the Government, recently - Thank God for that!
If Multi Nationals and Oil Companies can keep increasing the Price to 'survive' what is wrong when Railways do the same to remain on Rails. Yes, they Must improve HYGEINE, Safety and Staff Efficiency and Punctuality.
One thing that comes to my mind is that Railways can ask one of its Minister of States to look into the Bonanza by selling ''All Scraps'' lying all over INDIA under their own feet. Kanyakumari to Kashmir [Ok. Jammu!]
That the Railway Budget had not raised passenger fare is far from truth,
as the exercise had preceded budget. Eyeing on 2014,the UPA could stave
off passengers criticism atleast for a shortwhile. The attack on the
public is more imminent with the centre's obtaining sanction in the
budget for future revision of fare anticipating rise in fuel prices.
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