Populism, Pay derail rail finances:
The Railway Budget this year was a populist one. There was no hike in passenger fares and no increase in freight rates despite the poor financial condition of the Railways. The railway’s finances were in bad shape due to the burden of the Sixth Pay Commission.
Mamata Budget chugs to polls:
Modernisation of rail on anvil, factories to be set up:
The Railway Budget this year was a populist one. There was no hike in passenger fares and no increase in freight rates despite the poor financial condition of the Railways. The railway’s finances were in bad shape due to the burden of the Sixth Pay Commission.
The passenger fares remained untouched for the eighth consecutive year in a row. The populist budget had to be ensured because the Union railway minister Mr Mamata Banerjee will be contesting for the Assembly polls in her home state West Bengal this year.
Ms Banerjee said that the railways financial position was “safe and sound” despite the burden of the Pay Commission. She announced the launch of the Pradhan Mantri Rail Vikas Yojna for “socially desirable projects” in anticipation that the railways will get the funding for it in the yet to be launched 12th Five Year Plan.
A combative Ms Banerjee even said shortly after she had presented the Budget in the Lok Sabha, “Till yesterday, everyone was shouting that I will not be able to pay the dividend. Today, you see the magic. Our financial performance is strong. We are suffering only on account of the Sixth Pay Commission.”
Ms Banerjee said that the railways financial position was “safe and sound” despite the burden of the Pay Commission. She announced the launch of the Pradhan Mantri Rail Vikas Yojna for “socially desirable projects” in anticipation that the railways will get the funding for it in the yet to be launched 12th Five Year Plan.
A combative Ms Banerjee even said shortly after she had presented the Budget in the Lok Sabha, “Till yesterday, everyone was shouting that I will not be able to pay the dividend. Today, you see the magic. Our financial performance is strong. We are suffering only on account of the Sixth Pay Commission.”
This year the gross traffic receipts have been estimated as Rs 1,06,239 crore which will exceed the Rs 1 lakh crore-mark for the first time. A provision of Rs 6,735 crore has been made for payment of dividend while the excess for the new fiscal has been projected ar Rs 5,258 crore. This budget has also proposed the highest ever plan outlay of Rs 57,360 and freight loading of 993 million.
Mamata Budget chugs to polls:
The Indian Railways may not be riding the gravy train given its own precarious financial position, but the people of West Bengal certainly were as Ms Mamata Banerjee presented her third and perhaps last Railway Budget in Parliament on Friday.
In an exercise clearly driven by a populist agenda, just months away from what promises to be a landmark Assembly election in West Bengal, Ms Mamata Banerjee doled out a substantial share of goodies for her home state for the second year running, in the process provoking the ire of several MPs from Bihar belonging to the RJD and JD(U).
The middle class across the country too had reason to be happy: Ms Banerjee once again did not effect any increase in either passenger fares or freight rates.
In fact, she effected some minor cuts in reservation and booking charges.
Three other states also due to go to the polls this summer — Tamil Nadu, Kerala and Assam — got some goodies as well though Ms Banerjee was not as munificent with them as she was with West Bengal. Tamil Nadu was promised that a second unit would soon be functioning at the Integral Coach Factory, Perambur, while two more wagon units will be set up in Kerala. Assam will get a Rail Industrial Park in New Bongaigaon.
Mrs Sonia Gandhi’s Rae Bareli constituency is expected to see the first rail coach rolling out in the next three months from the new coach factory set up there.
In a decision that will find resonance in West Bengal, Ms Banerjee announced the introduction of two new train services, each named after a famous personality from the state.
In an exercise clearly driven by a populist agenda, just months away from what promises to be a landmark Assembly election in West Bengal, Ms Mamata Banerjee doled out a substantial share of goodies for her home state for the second year running, in the process provoking the ire of several MPs from Bihar belonging to the RJD and JD(U).
The middle class across the country too had reason to be happy: Ms Banerjee once again did not effect any increase in either passenger fares or freight rates.
In fact, she effected some minor cuts in reservation and booking charges.
Three other states also due to go to the polls this summer — Tamil Nadu, Kerala and Assam — got some goodies as well though Ms Banerjee was not as munificent with them as she was with West Bengal. Tamil Nadu was promised that a second unit would soon be functioning at the Integral Coach Factory, Perambur, while two more wagon units will be set up in Kerala. Assam will get a Rail Industrial Park in New Bongaigaon.
Mrs Sonia Gandhi’s Rae Bareli constituency is expected to see the first rail coach rolling out in the next three months from the new coach factory set up there.
In a decision that will find resonance in West Bengal, Ms Banerjee announced the introduction of two new train services, each named after a famous personality from the state.
Modernisation of rail on anvil, factories to be set up:
Railway minister Mamata Banerjee would like to modernise the railways. She would also like to improve the availability of rolling stock. So on Friday, she announced that the railways would be setting up “rail-based industries” in the country.
Of course, money will have to be found for these capital-intensive projects. While Ms Banerjee has often been speaking about PPP with regard to rail projects, the response has been lukewarm so far from the private sector given the long gestation period of such projects, the uncertainty about returns and of course the railways own policies.
Ms Banerjee told the Lok Sabha, “Rail infrastructure requires meticulous planning. Rising demand for coaches, locos and wagons cannot be met immediately because their manufacture requires components whose production has to be planned well in advance.”
Following speculation about the fate of projects announced in previous years in Madhepura, Marhowra, Kanchrapara and Dankuni, Ms Banerjee said in her speech, “All these projects are progressing and a core group of officers is working on these PPP/JV industries to take them forward.”
The minister also outlined the various steps taken by the railways so far in order to have “business-oriented policies”. She said the policies had drawn an encouraging response and 85 proposals have been received so far. To take these forward, a single window system has been set up under the secretary Railway Board, she added.
Of course, money will have to be found for these capital-intensive projects. While Ms Banerjee has often been speaking about PPP with regard to rail projects, the response has been lukewarm so far from the private sector given the long gestation period of such projects, the uncertainty about returns and of course the railways own policies.
Ms Banerjee told the Lok Sabha, “Rail infrastructure requires meticulous planning. Rising demand for coaches, locos and wagons cannot be met immediately because their manufacture requires components whose production has to be planned well in advance.”
Following speculation about the fate of projects announced in previous years in Madhepura, Marhowra, Kanchrapara and Dankuni, Ms Banerjee said in her speech, “All these projects are progressing and a core group of officers is working on these PPP/JV industries to take them forward.”
The minister also outlined the various steps taken by the railways so far in order to have “business-oriented policies”. She said the policies had drawn an encouraging response and 85 proposals have been received so far. To take these forward, a single window system has been set up under the secretary Railway Board, she added.
