Union Railways Minister Suresh Prabhu on Thursday presented the Rail Budget 2015. The budget hiked freight rates on cement, coal, food grains and pulses, urea, kerosene and LPG by up to 10 per cent to mop up an additional Rs 4,000 crore a year but spared passengers from any raise in fares while ruling out privatisation. He categorized railways as national asset asserting that India will always own the railways. He did not announce any new railway lines and said this matter was being studied separately. A new department for cleanliness would be created in Railway Ministry to give exposure to Prime Minister’s cleanliness campaign called Swachh Bharat. The cleanliness project includes new toilets covering 650 new stations, bio-toilets, national fashion technology to design bed linen, online disposal of bed rolls.
He also announced a 24/7 railway helpline to be available on real time basis and to cut down the time taken to dispense tickets to five minutes.
In his hour-long speech, Prabhu unveiled the thrust areas for the national carrier to become the prime mover of economy again, resource mobilization for higher investments, decongestion of heavy routes and speeding up of trains, passenger amenities and safety. To drive Indian Railways out of its “troubles”, Union Minister prescribed market borrowings, public-private partnerships and monetizing assets to garner Rs 8.5 lakh crore worth resources over the next five years, even as he ruled out “privatization”. Suresh Prabhu was given the challenging task to transform Indian Railways. We must remember that Indian Railways manages to run 14,300 trains daily in very challenging conditions. Though no new railways would be introduced yet the Minister announced that the speed of nine railway corridors will be increased from the existing 110 and 130 km per hour to 160 and 200 kmph respectively so that inter-metro journeys like Delhi-Kolkata and Delhi-Mumbai can be completed overnight.
It is reliably learnt that the World Bank had made a presentation to Prabhu, outlining the experience of other countries in transforming their railway systems. It recommended that the Indian Railways be reconfigured along separate businesses and do away with the departmental structure. It was, however, constrained in the range of recommendations it put forward, since the Prime Minister had declared no change in ownership can take place. Even as it is a department of the Government, the railways remain a commercial enterprise. The Government can’t escape taking decisions as shareholder and as board of directors. Parliament performs the function of shareholders, approving the budget and laying down what it can and can’t do. As policy matter, Indian railways will monetize its existing assets rather than selling them to raise funds. The Government has raised the planned outlay for the next financial year that begins in April by 52 per cent to 1.1 trillion rupees and will increase investment in its overloaded railway network to 8.5 trillion rupees ($137.32 billion) over the next five years and will modernize existing tracks and introduce faster trains. Prabhu asserted he did not go for hike in passenger fares or using taxpayers’ money for development of projects. He also dismissed apprehensions that freight rate increase would have any major impact on prices of essential items. The minister said fall in diesel prices was one of the major reasons for sparing passengers from any hike. He expressed confidence that institutions like LIC from India and sovereign funds from abroad would provide long-term debt without insisting on early repayment of loan.
Reacting to the rail budget, Prime Minister’s input is significant in understanding his futuristic vision for Indian Railways. Hailing the Rail Budget as “futuristic” and “passenger-centric”, Prime Minister Narendra Modi said it touches all aspects of development and lays out a clear roadmap to make the national transporter the key driver of the country’s economic growth. The budget serves a watershed moment for the railways, marking a paradigm shift from mere announcement of number of trains to a comprehensive railway reform. Thus what is at the base of entire railway budget and implications is reforming the railways to meet all norms of modern developed railway network. He highlighted that without raising the passenger fare, the Government has earmarked Rs 8 lakh crore for development and modernisation of the railways. “Rail Budget 2015 is a forward looking, futuristic & passenger-centric budget, combining a clear vision and a definite plan to achieve it,” Modi said. The other thrust areas include efforts to make Railways the prime mover of economy again, resource mobilisation for higher investments, decongestion of heavy routes and speeding up of trains, passenger amenities and safety. The railway budget is not to be seen only from the prism of new kilometres of rail lines to be laid or the number of new railways to be introduced or the number of coaches to be added. It is a broad vision of introducing technological advancement and logistics to bring about a big change in the very concept of rail journey in India.
The good news for our State is that the Railways Minister has earmarked good amount for carrying out surveys for network of railways in J&K and the Eastern States. Obviously, the Railway Minister has in mind the enormous rail network spread out by China on its border with India in Ladakh and Eastern States. He has a comprehensive plan for Jammu, Kashmir and Ladakh. He has allocated funds for survey of rail link to Ladakh via Himachal-Manali as well as Srinagar-Zoji La and Kargil. At the same time funds have been reserved for survey of rail extension from Baramulla to Kupwara the border town of Kashmir valley and Jammu to Poonch via Rajouri in Jammu Division. It will be recalled that the UPA Government had put the Jammu-Rajouri-Poonch rail proposal in cold store after a feasibility survey had been conducted by the Railways and report submitted. Likewise the Minister would not leave aside the demand of the people of Chenab Valley for rail link of Doda and Kishtwar with the rest of the country. It does not mean that a final decision has been taken to begin the work of laying rail tracks. Actually survey and study takes a long time and unless expert teams recommend, follow up action cannot be taken. What brings solace to the people of the State is that the Railway Minister is seized of the idea of spreading out a network of railways in the State which will go a long way in bringing economic prosperity to the people and eradicating unemployment among the youth. All this is highly satisfying but we expected the Minister to make a special mention of Jammu railway station which has to handle more than 2 crores of people including the pilgrims annually with existing logistics that are only shameful and a slur on the railways. Jammu railway station has the potential to be the most attractive railway station in the country but alas owing to utter negligence of Northern Railway authorities, it has become a cesspool of filth obnoxious to look at or to pass through.
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