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Text of Railway Minister Mamata Banerjee's speech

Budget Speech Part - II

Earlier Part

BUDGET ESTIMATES, 2001-02

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 31^st 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 31^st 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 23^rd 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.

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.

Budget Speech Part I

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