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May 29, 1998

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Rail Budget hikes passenger fares across the board

Selective freight fares increased, foodgrains spared

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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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