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Railways Minister Speech
Sir, Hon'ble Members are aware that the year 1999-2000 was an extremely difficult year, as the Railways had to face the impact of recession on earnings coupled with soaring increase in the working expenses as a result of implementation of the Fifth Central Pay Commission. But, Sir, we have together fought this adverse situation with all the courage at our disposal.
I am happy to inform the House that due to concerted hard work of railway family members, we achieved an all-time record of incremental freight loading of 35 million tonnes, surpassing the target of 450 million tonnes by 6.42 million tonnes in the year 1999-2000. This was, indeed, a remarkable achievement despite the background of severe setback in the year before that. Even the passenger earnings registered an impressive growth of 12%, and surpassed the budgeted target by Rs. 132 cr.
As a post budgetary development, Railways finances came under stress due to upward revision of price of diesel oil as well as levy of an additional cess and revision of tariff by some of the State Electricity Boards. This coupled with damage caused to Railway property by Orissa cyclones put an additional burden of around Rs 900 cr on the system. Sir, we consciously chose not to shift this burden on to rail users. I am happy that we were able to absorb the entire burden ourselves.
Despite all these difficulties, gross earnings increased from Rs 33,021 cr in Revised Estimates to Rs. 33,125 cr in the actuals. Total Working Expenses which stood at Rs 30,909 cr in the Revised Estimates were also contained at Rs 30,844 cr. Pensionary liabilities, budgeted at Rs. 4,094 cr in the Revised Estimates finally came down to Rs. 4,022 cr. The plan expenditure stood at Rs. 9,057 cr as against Rs. 8,965 cr in the Revised Estimates. The market borrowings however, were reduced from Rs 3,000 cr in the Revised Estimates to Rs 2,919 cr.
Review of financial performance during the current year
Sir, the House will recall that a target of 475 million tonnes was fixed for loading of revenue earning freight traffic for the year 2000-01. Indian Railways have already loaded about 390 million tonnes of revenue earning freight traffic during the period from April, 2000 to January, 2001 which is 18.48 million tonnes more than the loading achieved in the corresponding period of last year. Keeping the trend in view, the freight-loading target of 475 million tonnes would definitely be achieved. In the current year, positive growth has been witnessed in loading of coal, iron ore for export, POL, iron and steel, cement and 'other goods'.
I am happy to inform the House that there has been a historically high growth in passenger earnings, which reached about Rs 8,552 cr by end of January 2001. This marks an increase of Rs 740 cr over previous year's earnings during the corresponding period. Other Coaching and Sundry earnings also have been quite encouraging compared to previous year's performance.
Non-traditional sources of earnings
Sir, the House would recall that the Railways had, for the first time, set for themselves the task of mobilising the resources from non-traditional sources such as leasing of 'right of way' for laying Optic Fibre Cables, commercial utilisation of land and air space and commercial publicity on rolling stock and station buildings. A target of Rs 750 cr was kept for 2000-01.
I am happy to inform the House that RailTel Corporation of India has already started functioning to build a nation-wide broad band and multimedia network by laying Optical Fibre Cable along 62,800 route kms of railway track by utilising Railways' 'right of way'. The business plan of this Corporation as developed by professional consultants is now awaiting final approval of the Government. The Corporation will soon start its core activities after the business plan is finally approved by the Government. In the circumstances, although we had projected an income of Rs 500 cr from this Corporation in the current year, it is now expected that significant revenue flows will commence only during 2001-02. In view of the positive response and encouraging offers already received by RailTel Corporation both from within the country and outside, Railways propose to initiate other such ventures. For example, a separate IT company is contemplated to avail of the opportunities offered by e-commerce.
Commercial utilisation of Railway land / airspace has been identified as one of the valuable non-tariff options for raising additional resources. In my last budget speech, I had set a target of Rs. 150 cr to be realised through railway land. I am happy to inform the House that 53 sites identified for this purpose are being developed through RITES and IRCON, which have been appointed as nodal agencies for executing these schemes. A sum of Rs. 81 cr has already been realised by end of December 2000 on this account. We hope to achieve our target by the end of the financial year.
A sum exceeding Rs. 30 cr has been generated by way of commercial publicity and advertisements on stations and rolling stocks. This innovative measure was introduced for the first time by way of a non-traditional means of raising resources. Although the target of Rs. 100 cr for the year may not be achieved, the breakthrough made in the very first year has inspired us to exploit this resource more and more with the help of professionals. In the next year, empowered groups both at national and zonal levels will enhance these activities taking professional help. A comprehensive and transparent policy package would be drawn up within a period of three months.
Safety
Sir, I fully share the concern of the House and the public about critical need for improvements on safety front.
The House is already aware that Justice Khanna Committee had concluded that for rehabilitation of railway assets for safety, there was a need for a grant of Rs. 15,000 cr to be made available to Railways over a period of 5 to 7 years. As resources of this magnitude cannot be expected to be internally generated by the Railways, I was very much hopeful that a way would be found to meet this recommendation of the Committee. This has, however, not materialised. Sir, on this issue, I am sorry, my speech would be silver but my silence would be golden.
Sir, I would like to assure the House that within our limited means, Railways are committed to accord highest priority to safety. Despite the financial constraints being faced by the Indian Railways, we are trying to ensure that the level of outlay on safety related works is maintained. Track renewal works must receive priority. I, therefore, propose to enhance the outlay for this crucial activity taking it to Rs 2,050 cr, marking an increase of almost 26% over the revised outlay for the current year. Induction of modern technology into our signalling and telecommunication system is equally important. This has the added benefit of progressively reducing dependence on human intervention, thus leading, to an improved safety environment. That is why, Sir, I have decided to enhance the outlay on signalling and telecom in the next financial year by as much as 25% over the revised outlay in the current financial year. Sir, with these enhanced outlays, I am happy to inform the House that we are, indeed, making provision of amount exceeding Rs. 3,000 cr on safety heads. However, this allocation will only help us meet the current arisings and not the arrears for which additional funds would be required.
Sir, in order to ensure that safety requirements are strictly followed at all levels, I have already made the Chairman, Railway Board in charge of safety on Indian railways. This would facilitate better co-ordination on all safety related activities at the highest official level.
Security
Sir, the general perception is that the Railways are responsible for providing security to passengers and their belongings. But the fact remains that policing on the Railways is the responsibility of the State Governments. Unfortunately, the law and order situation in certain States has not been conducive to smooth working of rail operations.
Railways have now commenced a process of streamlining the functioning of RPF to make it more effective. The measures taken include modernisation of communications, security gadgets and weaponry, provision of adequate transportation, computerisation, upgrading of training facilities etc.
Sir, the House is aware that I had setup a High Level Task Force on security on Indian Railways. The Task Force has recently submitted their report, which is under examination. Sir, the solution lies in either the State Governments becoming proactive in improving policing on railway systems. Alternatively, Sir, I seek the guidance of this House on how to grant more powers within the framework of the Constitution to RPF to provide adequate security cover to rail users.
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Rail Budget Speech Part II
