In an effort to attract capital for much-needed investment in infrastructure, Railways are taking up certain important projects on cost-sharing basis with state governments, says the Economic Survey.
The Railways have also been looking forward to harness certain non-conventional resources, like commercial use of railway land, commercial publicity on railway assets, venturing into the telecom, catering and tourism sectors through Rail Tel and Indian Railway Catering and Tourism Corporation, the recently floated PSU's.
The Udhampur-Srinagar-Baramulla project, declared a national project, would be funded outside the Railway plan in 2002-03 for which an amount of Rs 400 crore (Rs 4 billion) has been allotted, the survey said adding private participation in railway projects were also being encouraged.
It says the financial position of Railways began to show signs of improvement in 2001-02. This was after the difficult situation faced in the past few years due to disproportionate rise in working expenditure following the implementation of the recommendations of the Fifth Central Pay Commission.
With focused monitoring, the rate of growth of expenditure has been coming down and earnings have also been improving, says the survey, adding the operating ratio also improved during 2001-02.
During 2001-02 Railways concentrated in vital areas including turnaround in finances with emphasis on expenditure monitoring and control and raising earnings.
PTI
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