‘Overburdened’, why should Railways pay dividend: Suresh Prabhu

Railway Minister Suresh Prabhu told Lok Sabha that the Railways was overburdened with Rs 60,000 crore worth of public service obligation.

By: Express News Service | New Delhi | Published: July 30, 2016 1:19 am
Suresh Prabhu, railways, railways ministry, railways minister, railways budget, railway debt, indian railways, india news “Why should the Railway pay dividend? This has been a recommendation of the Standing Committee,” said Suresh Prabhu.

RAILWAY MINISTER Suresh Prabhu Friday made a strong pitch for abolishing the age-old practice of the national transporter paying yearly dividend to the general exchequer for the Gross Budgetary Support it gives to the Railways.

Prabhu told Lok Sabha that the Railways was overburdened with Rs 60,000 crore worth of public service obligation.

And with the Pay Commission hiking salaries and allowances, the Railways will have to foot the entire bill from its own coffers, unlike any other ministry.

“I would just like to make a point. This paying dividend to the Finance Ministry is one area which really needs to be looked into. Why should the Railway pay dividend? This has been a recommendation of the Standing Committee.

There have been several unanimous recommendations on this by several Standing Committees that the Railways discharge very useful public functions,” Prabhu told the House during a discussion.

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