Rail Budget 2001-2002 Highlights,Indian Railway Budget Highlights 01-02,Rail Budget Highlights India 2001

Rail Budget 2001-2001 Highlights

PART - I
INTRODUCTION

Contribution of the Railways in times of natural calamity

Railways - a resurgent industry

Drop in market share despite inherent strengths and advantages

Dichotomy - commerical or utilitarian

Challenges facing the Railways

Inadequate investments due to reduced Capital support from General Excheque leading to dependence on market borrowings

Possible solution being funding of socially relevant projects by the State and an alternate multi-source fund for remunerative projects

Cost-sharing of prioritised projects with state governments worked out with Andhra Pradesh, Tamil nadu, Maharashtra and Karnataka

Austerity and economy drive continues - hike in diesel absorbed within the existing provisions

Non-traditional sources of revenue to be pursued

Advisory Committee under the Chairmanship of Sh. Sam Pitroda set up to suggest ways to bring about major improvement in Railway finances

REVIEW OF FINANCIAL PERFORMANCE DURING 1999-2000

1999-2000 an extremely difficult year for Railways

An all-time record of incremental loading of 35 million tonnes

Passenger earnings - growth of 12%

Additional burden of Rs 900 cr on account of increased fuel bill due to hike in diesel price and electricity tariff, and other post-budgetary increases

Gross earnings increased from Rs 33,021 cr in RE to Rs 33,125 cr in actuals

Working expenses down from Rs 30,909 cr in RE to Rs 30,844 cr in the actuals.

Pensionary liabilities touch Rs 4,022 cr

Year ends with drawdown of Rs 1107 cr from Fund balances.

In view of shortfall in internal resources, plan expenditure restricted to Rs 9057 cr from Budgeted level of Rs 9,700 cr.

Market borrowings restricted to Rs 2,919 cr compared to Rs 3,000 cr in RE

REVIEW OF FINANCIAL PERFORMANCE DURING 2000-01

Railways set to achieve freight loading target of 475 million tonnes.

Freight earnings at Rs 23,486 cr, however, likely to fall short of target by Rs 122 cr due to drop in lead and change in commodity-mix.

Passenger earnings continue to be buoyant and likely to exceed the BE of Rs 10,148 cr by Rs 302 cr.

Position of Traffic outstanding including dues from State Electricity Boards/Power Houses continues to be unsatisfactory, having risen to Rs 3,027 cr to end December 2000; instead of clearance of Rs 500 cr, accretion of Rs 50 cr likely

Gross Traffic Receipts scaled down from Rs 36,529 cr in Budget Estimates to Rs 35,467 cr in Revised Estimates

Despite increased expenditure on account of hike in fuel price and restoration work due to several natural calamities etc; a saving of Rs 300 cr likely to be achieved

Ordinary Working Expenses in Revised Estimates placed at Rs. 27,815 cr.

Pensionary liabilities assessed at Rs 5,167 cr against Budget Estimates of Rs. 5,314 cr.

Internal resource generation reduces and accordingly Plan expenditure re-assessed at Rs 10,002 cr against budgeted outlay of Rs 11,000 cr.

NON-TRADITIONAL SOURCES OF REVENUE

RailTel Corporation of India set up - Optical Fibre Cable to be laid along 62,800 Route Kms of railway track by utilising Railways' 'right of way' to achieve a nation-wide broad band and multimedia network

More such initiatives proposed to be launched - plans to set up an information technology company to place Railway procurement on an e-commerce platform

Business plan awaiting approval of Government

53 sites identified for commercial utilisation of Railway land and air-space - under development through RITES and IRCON

Rs 81 cr realised to end December, 2000

Rs 30 cr generated through commercial publicity and advertisement on station and rolling stock

Highlights

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