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Part - II

BUDGET ESTIMATES, 2001-02

Sir, last year I had not increased the freight rates for essential commodities. This year also, I do not propose to increase the freight rates of essential commodities like Edible Salt, Grains & Pulses, Sugar, Fruits & Vegetables, Urea, Edible Oils, Kerosene and LPG. These commodities are used by every one and constitute a significant part of the housewives' budget. I have no intention to upset the domestic budget and therefore I am exempting these commodities from any hike.

Sir, I am aware that an increase in freight rates has some direct or indirect effect on the economy. It must, however, be recognized that Railways are also being subjected to similar inflationary pressure. As was done in the previous year, the Railways will continue to absorb some part of the increase in the cost of inputs, but the circumstances demand that freight rates have to be adjusted by a small margin. As such I propose a nominal three percent (3%) increase in rates of all commodities except those essential commodities mentioned before or those proposed to be charged differently as under. Keeping in view the request made by major industries, I have decided that freight rates for Coal (not meant for household consumption) and Iron & Steel (Division A, B, and C) is also proposed to be increased by only two percent (2%). Further, in order to attract more Black Oil traffic to rail, the increase for Furnace Oil is proposed to be restricted to one percent (1%).

Certain sections of the Railway network have become saturated, yet the demand on these sections is still growing. As is normal in the pricing policy in various transport sectors, I propose to charge a premium for carriage of traffic over these sections. The distance of charge would be suitably inflated for freight traffic on a few congested sections experimentally during this year.

In view of the increase of seven percent (7%) in Parcel rate made in last budget, I propose to exempt Parcel & Luggage rates from any increase next year. This exemption will also be applicable to Newspaper, Magazines and Medicines etc.

Sir, I am happy to announce that concessional MST (Monthly Season Ticket) scheme meant for the people below the poverty line which was approved last year will continue.

Sir, in the concessions granted to various categories of handicapped persons, there has been certain grievance from those who are visually handicapped or mentally handicapped. Sir, in order to ensure uniformity in availing the concessional facilities by all categories of handicapped persons, I am happy to announce that the visually handicapped and mentally handicapped persons shall also be entitled to the same benefits which are otherwise available to orthopaedically handicapped and paraplegic persons.

Sir, our vision is to make the Indian Railways an example of commitment. Our vision is to make the railway journey a matter of joy for every passenger. Our vision is to give travel opportunity to every Indian at affordable cost. Our vision is to unlock the hidden wealth of the railways and make it a strong self-sustained organisation, devoted to the cause of national development.

Sir, I am committed to make each of my dreams come true. And I will do this with all 16 lakh family members of Indian Railways.

Sir, you will recall that I did not increase the passenger fares in the last budget. There have been many criticisms on this account. But I draw strength from the famous quote of Tagore :-

"Give me the strength, never to disown the

poor or bend my knees before insolent might."

I would like to bring to your notice Sir, that despite there being no increase in passenger fares, the earnings from passenger traffic are poised to exceed the budgeted level. Till December, 2000 there has been an increase of ten percent (10%) compared to the same period last year. I attribute this to various efforts being made by the Railways to augment passenger traffic and the general improvement in the services and amenities offered to the travelling public. I am hopeful that this buoyancy would continue in the coming year as well. I do not, therefore, propose to increase the passenger fares of any class or category of trains.

Conclusion

In the end, I wish to express my gratitude to the respected Prime Minister for his encouragement and support. My sincere thanks are also due to all the railwaymen for their hard work and dedication to duty, which has helped the Railways in achieving their task successfully. I am also thankful to the rail users whose cooperation we have been getting always.

Sir, with these words I commend the Railway Budget 2001-02 to the House.

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Rail Budget Speech Part I