Rail Budget hikes passenger fares across the board
Selective freight fares increased, foodgrains spared
The railways propose to mop up Rs 4.5 billion during the current financial year by increasing the fares of ordinary second class from Rs 5 to Rs 45, higher classes including air-conditioned first class from Rs 20 to Rs 540, and the price of platform tickets.
Presenting the first railway budget of the Bharatiya Janata
Party-led government, Railway Minister Nitish Kumar proposed
no general increase in freight tariffs. However, freight rates for
certain commodities including coal and minerals have been increased.
Foodgrains, edible salt, urea, edible oils, kerosene,and liquid
petroleum gas have been exempted.
While newspapers have been spared, parcel rates for magazines
have been increased by 20 per cent.
Kumar proposed to increase parcel and luggage rates of all
other commodities by five per cent. All the revenue proposals are
proposed to be effective from June 20, 1998.
On the question of security and the safety of passengers, the railway
minister assured the house that investments specifically needed
for ensuring safety would be given overriding priority. The Railway
Protection Force would be made effective with modernisation of
communications, security gadgets, and weaponry. Specific additional
allocation has been provided in the budget.
The railway minister also proposed to provide technical
safeguards to check human failures which is one of the major causes
of rail accidents. The railways is considering the possibility of
installing pilfer-proof auxiliary warning system that can prevent
collisions.
The railways are expecting to complete gauge conversion of 810
km this year, covering nine different sections of the network. These included a 303 km Tambaram-Tiruchchirappali stretch and 162
km conversion on Mudkhed-Adilabad stretch.
It has been envisaged to electrify 500 route km this year with
an investment of Rs 3.4 billion.
The railway budget increases concession to senior citizens from
25 per cent to 30 per cent which is also extended to the upper
classes, including the Rajdhani and Shatabdi Express trains.
Candidates attending interviews for central government jobs would
be given full concession in the second class.
With a view to accommodating more passengers, the number of
coaches attached to the existing popular trains has been increased
to 24 on selected routes.
The railway minister has also proposed extending the facility of
advancement or postponement of date of journey to waiting list/RAC (reservation against cancellation) passengers.
In order to promote rail tourism, two new tourists trains have
been planned in collaboration with the private sector, he said.
Twelve new express trains have been proposed to be introduced in
1998-99, including six daily trains, one tri-weekly, two bi-weekly
and three weekly trains. Frequency of 11 trains are proposed to
be increased, while the run of three another trains extended to
help passengers.
In order to extend computerised reservation facility at smaller
stations, it has been proposed to dilute the provision from 300
reservations per day to 200 reservations per day.
For track renewal, a provision of Rs 14.25 billion has
been kept aside during the current financial year.
Responding to the demands of suburban commuters, the railway
minister made separate provisions for development of suburban
systems in Bombay, Madras, and Calcutta. For Delhi, a
techno-economic study has been proposed to identify inputs required
for commuter traffic. For Bangalore, a study of an inter-modal
transport system has been proposed.
Five new line projects have been included in the budget which are
Ranchi to Koderma, Deoghar to Dumka, Raichur to Gadwal, Rajgir to
Tilaya and restoration of the Fatuah-Islampur railway line.
Kumar informed that the railways had lifted a total freight of
429.30 million tonnes in 1997-98 as against the target of 430
million tonnes, higher by 20 million tonnes than last year.
With the completion of the Konkan Railway, it has been proposed
to divert four trains on this route.
He announced the extention of tatkal (instant reservation)
scheme to all superfast trains during the current financial year.
Defending the increase in fares and freight charges, the railway
minister said the total working expenses of the railways would be
Rs 284.11 billion, leaving a net traffic receipts of Rs 26.11 billion.
A sum of Rs 3.72 billion is estimated by way of net miscellaneous
receipts, and thus net revenue would amount to Rs 29.83 billion.
Besides, a higher provisiion of Rs 17.77 billion as against Rs
17.56 billion in the interim budget, has been made towards the
railways's dividend liability due to the upward revision of capital
from the general exchequer.
He said the "excess" of receipts over expenditure works out to
Rs 12.06 billion. The railways's plan outlay of Rs 95 billion has an
internal resource component of Rs 44 billion. Out of this, Rs 16.56
billion is to be met out of the "excess," which is insufficient to
the extent of Rs 4.5 billion.
Budget '98
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