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Railways Minister Speech Part II
Part - II
Sir, I shall now deal with the Budget Estimates for 2001-02.
A general recession has been observed in the economy since 1998-99, as we all know. Consequently, the infrastructure sector has also shown a downward trend in recent years. Despite this, Indian Railways have shown remarkable resilience and performed quite well for last two years in terms of freight loading etc. In 2001-02 Indian Railways showed a moderate and somewhat subdued growth in freight traffic mainly due to slowing down of economy. It would be recollected that Railways had performed very well and had achieved a growth of 8.43 per cent in freight traffic in 1999-2000. In the current year, mainly due to improved supply of coal to powerhouses, the goods traffic to end January 2001, at 389.40 million is 4.98% higher than the level achieved in the corresponding period of last year.
The Freight traffic target for the budget year 2001-02 has been fixed at 500 million tonnes, an increment of 25 million tonnes over the current year's target of 475 million tonnes. This ambitious target has been kept in view of the special marketing efforts being made by the Railways and on an anticipation of an expected faster growth of the economy. In this context, I am happy to announce that to facilitate adequate availability of rolling stock for freight movement, for the second year in succession, wagon procurement target has been projected at the level of 23,000 for the next year. This will give further fillip to the wagon industry in general. For passenger traffic, 9% increase has been provided in keeping with the long-term growth in passenger traffic. With these projections, the goods earnings are assessed at Rs 24,735 cr. and passenger earnings at Rs 11,387 cr.
In view of the initiatives taken in the parcel segment, a growth of 8.8% has been projected and consistent with this 'Other Coaching' earnings are placed at Rs 850 cr. Recognizing the imperatives of identifying and tapping the potential of non-traditional revenue, the initiative taken while presenting the Railway Budget last year is proposed to be continued. It is the expectation that with the groundwork done during the current year, there will be a distinctly improved achievement during 2001-02. Accordingly, Sundry Other Earnings, for 2001-02 have been placed at Rs 1,717 cr, which include Rs 700 cr by way of leasing of 'right of way' for optic fibre cables, Rs 200 cr from commercial exploitation of land and air space; and another Rs 100 cr through commercial publicity on Railway premises and rolling stock, apart from a normal growth of 5.4%.
Sir, the bulk of the outstanding dues in Traffic Suspense relate to Power Houses especially Badarpur Thermal Power Station. The House would agree that no organisation can sustain dues of the order of Rs 1,662 cr which has outstanding as on 31st March, 2000. We had kept a clearance target of
Rs 500 cr from Badarpur Thermal Power Station during 2000-01 relying on an assurance given by the Ministry of Power. However, the outstanding continues to mount and, as on 31st December, 2000, these stand at Rs 3,027 cr. Sir, Railways are always a good paymaster. But Sir, we do not receive our dues especially from Power sector. Even then, we continue to carry coal for powerhouses.
In anticipation of a positive development in this regard, a target of Rs 750 cr of clearance from Traffic Suspense has been kept, expecting a sizeable clearance of these dues. Gross Traffic Receipts are accordingly estimated at Rs 39,439 cr.
Ordinary Working Expenses at Rs 30,190 cr provide for a minimal increase over the current year, resulting in a total variation of 8.53% over the Revised Estimates, for 2000-01. Appropriation to Pension Fund is placed at Rs 5,790 cr and Depreciation Reserve Fund has been provided at Rs 2,704 cr based upon the actual requirement for plan resources.
The total Working Expenses will, thus, amount to Rs 38,684 cr leading to Net Traffic Receipts of Rs 755 cr. Net Miscellaneous Receipts are estimated at Rs 928 cr. This also takes into account Rs 300 cr proposed to be received from General Revenues for Railway Safety Works. Thus, the Net Revenue works out to Rs 1,683 cr.
Dividend to General Revenues has been worked out at 7% of the Capital-at-charge as recommended by the Railway Convention Committee. The Memorandum for the year 2001-02 has been submitted to the Committee and their Report has been laid in the House on 23rd February, 2001. The dividend projected in the Budget Estimate 2001-02 is Rs 2,352 cr. However, in view of a shortfall in internal resources for plan needs and based on details worked out in consultation with the Finance Ministry, it is proposed to pay to General Revenues only Rs 1,352 cr and transfer the balance Rs 1,000 cr to the Deferred Dividend Liability Account.
Based on the above projections, the "Excess" of receipts over expenditure in 2001-02 comes to Rs 331 cr, which falls short of the requirements of plan expenditure by Rs. 500 cr. In view of the limited internal resources, appropriation to be made to the Capital Fund would be limited to the quantum of interest payable on the loan taken from the General Exchequer in 2000-01. All projects hitherto charged to Capital Fund would now be funded from Capital. This leaves an uncovered gap of Rs 500 cr which is required to be mobilised additionally.
