Passenger fares up, freight spared in pro-reforms budget

NEW DELHI, May 29: Making a bold departure from railway budgets in the past, Railway Minister Nitish Kumar today made good the promise to be...

NEW DELHI, May 29: Making a bold departure from railway budgets in the past, Railway Minister Nitish Kumar today made good the promise to begin reducing the massive cross-subsidisation of passenger traffic by over-charging cargo traffic. While raising passenger rates almost across the board, Kumar has left freight rates almost untouched.

By affecting a modest increase in passenger rates, the Railways hope to mop up Rs 450 crore. Care has, however, been taken to ensure that the extra amounts that users will have to pay will be kept to a minimum. Eighty per cent of passengers in the second class ordinary, for example, travel less than 50 km and will have to pay just Re 1 more.

Upper class fares, however, have seen a sharp hike 8212; Rajdhani and Shatabdi fares have gone up by 20 per cent across the board. The mop-up of Rs 450 crore through passenger fares, however, has to be viewed against the fact that the subsidy on such fares is currently Rs 2,800 crore 8212; all this is got by over-charging on freight.Kumar8217;s status paper, presented on May 27, had indicated this.

By keeping freight rates almost constant, the Railways hope to attract around 20 million tonne extra, which will translate into an additional revenue of Rs 1,000 crore. Rates have also been adjusted to make them cheaper for long-haul traffic. In keeping with past tradition, commodities like foodgrain, edible oils and salt have been left untouched.

The budget has put the annual plan size of Railways at Rs 9,500 crore, an increase of Rs 1,200 crore over the previous year8217;s outlay. The budgetary support has been fixed at Rs 2,200 crore, an increase of Rs 369 crore over the previous year8217;s level.

Market borrowing has been slightly enhanced to Rs 2,900 crore in the budget. The chairman of the Railway Board expressed confidence that the Railways would be able to raise this despite the slump in primary markets.

Kumar also proposed a raise in allocations for various plan heads like new lines, doubling of track, traffic facilities, passengeramenities and for progress of track circuiting and other safety works.

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In view of the need to step up progress of metropolitan transport projects in Mumbai, Chennai and Calcutta, the allocation has been placed at Rs 250 crore, an increase of 65 per cent over the previous year.

The Railway Minister proposed a freight-loading target of 450 million tonne for 1998-99 expressing happiness over the fact that the Railways moved 429.30 MTs against a target of 430 MTs during 1997-98. This was 20 MTs higher than previous year8217;s load. Cumulatively, the Railways have achieved a record of over 64 MTs incremental loading during the last three years.

In 1997-98, the passenger traffic registered a growth of about 5 per cent. In financial results, an excess of Rs 1,470 crore of receipts over expenditure was anticipated in the revised estimates.

Later addressing the press, Shanti Narain, Member Traffic of the Railway Board, said while load of existing popular trains would be increased to 24 coaches on selectedroutes, the Railways was also planning to go in for trains with 26 coaches.