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Saturday, February 14, 2009 (11:42:34) |
| Tags : 14 million passengers, travel, trains, India, Railway Minister, Lalu Prasad, fares, new routes, expenditure, expansion, economic downturn, freight revenues |
Lalu Prasad budgets for fare cuts, 43 new trains |
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New Delhi: The estimated 14 million passengers who travel by trains in India daily had reasons to cheer on Friday, as Railway Minister Lalu Prasad cut fares by 2 percent, introduced 43 new routes and hiked the planned expenditure for expansion, in spite of the economic downturn that saw lower freight revenues last quarter.
Presenting the interim rail budget for 2009-10 in parliament in his inimitable style, punctuated by light-hearted digs at members of the opposition, Lalu Prasad also announced the extension of 14 routes, an increase in the frequency of 14 trains and additional spending on safety.
He also earmarked a higher plan expenditure of Rs.37,905 crore (Rs.379.05 billion/$7.58 billion) towards expansion next fiscal, against revised estimates of Rs.36,773 crore (Rs.367.73 billion/$7.35 billion) for 2008-09, hoping for higher passenger and freight earnings since January.
The minister, who had presented all five previous rail budgets for the United Progressive Alliance (UPA) government and earned worldwide repute for charting the dramatic turnaround of Indian Railways, also reported higher earnings on both passenger and freight segments, despite the economic slowdown.
"I have great pride that, in its journey of service to the nation, the Indian Railways have reached an important milestone," said Lalu Prasad, hardly reflecting the fact that his measures were interim in nature, as convention in an election year demands that the regular budget is left to a new government to present.
"I can proudly say that Indian Railways scaled a new pinnacle every year and now stand at the zenith of success from where, without imposing any burden on the common man, the railways are set to establish the historic landmark of earning a cash surplus before dividend of more than Rs.90,000 crore (Rs.900 billion/$18 billion) in five years."
The Indian Railways are the second largest railroad in the world under a single management, running more than 11,000 trains every day, 7,000 of which are for passengers.
The network comprises 108,706 km and ferries 14 million passengers daily from 6,853 stations across the length and breadth of the country. This is the reason why it is the only ministry that has a separate budget.
Indian industry by and large welcomed the measures announced, especially the decision to enhance the capacity of wagons and the push for dedicated freight corridors across the length and breadth of the country.
"Freight corridors, containers and improved passenger amenities announced in the budget will go a long way in making India's railway network more modern and efficient," said the Confederation of Indian Industry (CII).
The Associated Chambers of Commerce and Industry (Assocham), though, said the budget could have lowered freight rates as well ? an opinion shared by the Federation of Indian Chambers of Commerce and Industry (FICCI).
"The minister has refused to respond to the current slowdown by cutting freight rates and helping Indian industry and economy in the midst of a slowdown," said FICCI president Harsh Pati Singhania.
During Lalu Prasad's budget speech, the best part was undoubtedly reserved for passengers. He said among the 43 new trains, four would be his pet project, the "Garib Raths" - the fully air-conditioned trains aimed at economically weaker sections of society.
He did not disappoint other travellers either, recalling in his budget speech that he had reduced second-class fares of all mail and express trains by 5 percent for tickets costing more than rupees Rs.50 per passenger.
"Respecting the aspiration of long distance passengers, I have decided this year to reduce the second-class and sleeper class fares of all mail, express and ordinary passenger trains by 2 percent for tickets costing more than Rs.50 per passenger," he said, announcing similar cuts in air-conditioned classes.
"Earlier, at the time of the railway budget, people were apprehensive about the possible increase in passenger fares. Now, on the other hand, on the eve of my budget, people appeared not only hopeful but sanguine about the likely reduction in passenger fares."
The minister admitted that 2008 was a mixed year for Indian Railways. The first half showed a 9 percent increase in freight revenues and 14 percent jump in earnings from passengers.
"However, in October and November, the growth in freight loading was adversely impacted by the recession in the international markets," he said, adding: "But we are not only hopeful but confident that the budget targets for passenger and goods earnings set for this fiscal will be surpassed."
The minister, who has been guest lecturer at institutions like Harvard and the Indian Institutes of Management for the dramatic turnaround of the railways, also patted himself on the back for the achievements in the past five years. His eyes were clearly on the ensuing national elections.
He said the transformation of the country's railway system was fundamentally different from the financial turnaround witnessed among private sector firms, that "resort to anti-people measures like increase in prices, retrenchment of employees and lockouts".
"Railways have kept the human aspect as the central focus and achieved an extraordinary feat without putting any extra burden on the common man or the employees," he said, adding that in the process safety of passengers had also not been compromised.
He said the number of accidents had come down to 194 in 2007-08, against 325 in 2003-04.
"This declining trend is continuing in 2008-09 also. The number of consequential train accidents during April to November in the current year decreased to 117 as compared to 138 during the corresponding period of the previous year."
Lalu Prasad, who had recently visited Japan and rode the famous "bullet train", also said that his ministry was examining the feasibility of running such trains on five sectors and commissioned a study for the Delhi-Patna sector.
Related stories:
Interim railway budget disappointing for Madhya Pradesh: Chouhan
Bhopal: The interim railway budget presented on Friday is disappointing for Madhya Pradesh, Chief Minister Shivraj Singh Chouhan said.
"The proposals like plying a daily Habibganj-Kurla train, running daily train between Bhopal and Lucknow, making the Puri-Jaipur Express bi-weekly, extending the Shatabdi to Indore, starting a third Bina-Itarsi line and adding a coach from Bhopal to the Jabalpur Mumbai-Garib Rath have not been implemented," he said in a statement.
Chouhan said all projects Railway Minister Lalu Prasad had announced earlier have remained incomplete. He termed it a populist budget presented with an eye on the ensuing Lok Sabha elections.
Interim rail budget has let down Chhattisgarh: Raman Singh
Raipur: The interim railway budget presented on Friday by Railways Minister Lalu Prasad has let down expectations of Chhattisgarh despite the fact that the state generates high revenue for the railways, Chief minister Raman Singh said here.
"The interim rail budget is disappointing, it has let down expectations of millions of people of Chhattisgarh," said Singh in his reaction to the interim budget.
"Though the South East Central Railway (SECR) ? which has its headquarters in the state's Bilaspur ? generates highest revenue for the railways, Chhattisgarh has been totally ignored," remarked Singh, who heads Bharatiya Janata Party (BJP) government in the state.
Singh was critical of the Rowghat railway line project being ignored in the interim budget. The line is considered the future lifeline for the state-based Bhilai Steel Plant (BSP), the flagship unit of the public sector Steel Authority of India Ltd (SAIL).
He said that surprisingly the interim budget did not have any provision for the long-pending project that would give the BSP access to Rowghat areas in the state's Bastar region to use its vast stocks of iron ore.
Kolkata's businessmen not happy with interim rail budget
Kolkata: The interim railway budget presented by Railways Minister Lalu Prasad in the Lok Sabha on Friday could not match the expectations of the business community here, which is reeling under the impact of global economic slowdown.
"Though there are many positive proposals, there was no reduction in trade rates, which could have helped industry and trade in times of economic recession," Sanjay Budhia, president of Indian Chamber of Commerce and Industry, said.
He also pointed out that there was nothing much in the budget for West Bengal except the initial proposal for a bullet train between Howrah and Haldia and the support for extension of the Calcutta Metro Rail.
"There was nothing exciting about this budget. It's good that he (Lalu Prasad) has done something for the common man by slashing the fares, but he could have done something for the business community by reducing freight rates," said Sandip Sen, president of Bengal National Chamber of Commerce and Industry.
There has been a two percent reduction in passenger fares in the interim rail budget.
Anupam Shah, president of Merchants' Chamber of Commerce, expressed his disappointment at the nonchalance towards industry, which is already reeling under pressure of global melt-down.
"Eastern sector, which is the new steel hub of the country, expected some relief in freight rates on iron ore and coal, the two essential ingredients for making steel, and also the two largest contributors towards railway freight basket," he said in a statement.
Mumbai commuters give thumbs down to railway budget
Mumbai: Mumbai citizens have given a thumbs down to Railways Minister Lalu Prasad's budget presented in parliament on Friday as they feel there is nothing specific for suburban commuters for whom the railways is a lifeline.
"What is being done to reduce the rush in the trains, the congestion outside all the suburban railway stations, women's security and cleanliness?" demanded a student Riddhi Shah.
Passenger associations, while welcoming the fare reduction for long-distance trains, complain of injustice to the Mumbai commuters.
"Although Mumbai contributes more than half of the country's total tax revenues, the same does not get reflected in terms ploughing back (the revenue) to the city and improving it," said Samir Jhaveri of Mumbai Suburban Railway Passengers Association.
Mumbai Yatri Sangh's Subhash Gupta said Mumbaikars have been "completely forgotten" by Lalu Prasad.
"There is no provision for any of the major outstanding projects, including Mumbai Urban Transport Projects-II (MUTP-II)," he said.
Shailendra Kamble of Pravas Adhikar Andolan alleged that the budget was nothing but "a personal election manifesto" of the railways minister.
"It is an election-oriented budget. There is no relief at all for the 70 percent Mumbaikars who travel by railways daily. The budget is also silent about the MUTP phase-II project," he said.
Former railways minister Ram Naik said the security of the commuters and the railways should have been accorded top priority in the wake of Nov 26 terror but has been totally ignored.
"People, especially the seven million suburban commuters, naturally expect a reduction in fares and enhanced services, but security of travel is also a major concern," Naik pointed out.
Orissa neglected in interim railway budget: Patnaik
Bhubaneswar: Orissa has been neglected in interim railway budget presented by Railways Minister Lalu Prasad in Parliament on Friday, Orissa Chief Minister Naveen Patnaik said here.
"I am disappointed as Orissa has been neglected," Patnaik told reporters here, adding that only one new express train was proposed to be introduced in the state in 2009-2010.
"Frequencies of only two trains have been increased, and no new train originating from Orissa has been extended," he said.
Bhubaneswar-Rameswaram Express was announced in the railway budget 2007-2008 but it is yet to be introduced, he added.
The chief minister said the railway ministry was requested to allot Rs.15,020 crore (Rs.150.2 billion) for execution of various projects underway in Orissa.
"As project wise allotment of funds in the interim budget is not available, I will not be able to comment about the total funds allotted for various ongoing railway projects in the state," he said.
"But overall, I am disappointed as Orissa has been neglected in this railway budget," Patnaik said.
The state government had requested for introduction of at least 14 new trains but got only one, Orissa Commerce and Transport Minister Jayanarayan Mishra said in a statement.
"Similarly, we had requested for increase in frequency of at least five trains. However, only two have been done. In the interim budget, 25 surveys have been proposed comprising 14 new rail lines, three gauge conversions and eight doubling projects. But to our disappointment, no new survey has been announced for any project in our state," he said.
Mystery deepens over West Bengal police officer's death
Kolkata: The mystery surrounding the death a police officer, who initially investigated controversial Rizwanur Rehman case, deepened on Friday with a top Eastern Railway official saying since January there was no report of anyone being run over by a train in West Bengal.
The body of Arindam Manna, the second officer of the Government Railway Police (GRP) at Dum Dum, was found near the Mankundu railway station. It bore injury marks on legs, hands and eyes.
"We are yet to receive a report that says a person has been run over by a train under our territory since Jan 1," Eastern Railway chief safety officer Gunanand Jha said.
But when asked, if that hinted Manna did not commit suicide by jumping in front of a train, but was murdered, Jha refused to comment.
Meanwhile, police sleuths on Friday recovered a SIM card beside the rail tracks of Mankundu station.
"We have recovered a SIM card from Mankundu rail tracks. But whether it belonged to Manna or someone else, we won't be able to tell now. It has been sent to the forensic laboratory for examination," Additional Director General of Criminal Investigation Department (CID) Bhupinder Singh said.
Following allegations from the relatives of Manna that he was murdered, the state government handed over the case to the CID.
Rizwanur, a 30-year-old graphic designer working with a multimedia firm, was found dead Sep 21, 2007, near the railway tracks at Kolkata's Patipukur suburb, barely a month after his marriage with Hindu girl Priyanka, daughter of local industrialist Ashok Todi, who was firmly opposed to the match.
As a Hindu-Muslim love story gone horribly wrong, Rizwanur's death had shocked the entire nation.
Todi, his brother Pradeep, brother-in-law Anil Saraogi and four city police officers ? former Kolkata police deputy commissioner Ajoy Kumar, former assistant commissioner of police Sukanti Chakraborty, sub-inspector Krishnendu Das ? and Rizwanur's neighbour S.M. Moinuddin alias Pappu were subsequently accused of threatening and pressurising Rizwanur to annul his marriage with Priyanka and stay away from her.
All the seven accused were later arrested but are now out on bail.
Industry body 'disappointed' by railway budget
Lucknow: The Indian Industries Association (IIA) on Friday expressed disappointment over the interim rail budget presented by railways minister Lalu Prasad.
"We are disappointed that no freight cuts have been announced which would have benefited the industrial sector," said IIA president Praveen Sadana.
However, the two percent reduction in fare for AC class travellers, improved connectivity and increased capacity of goods trains are welcome moves, he added.
"Though the minister had already declared on Thursday that there would not be many new projects in his budget, yet we were expecting something more in favour of industry," he said.
"It is good to know that the 11th five year plan has thrice the amount allocated as compared to the 10th plan but it remains to be seen how the commonman and industry gain from it," said D.S. Verma, executive director of IIA.
He said the railways have not been able to gain the confidence of small dealers or manufacturers to use their goods transport facility, mainly due to fear of loss or damage to goods and delays in delivery time.
IIA was expecting the railways minister to come out with some innovative measures to gain this confidence, Verma added.
Industry lauds rail budget, but unhappy with freight rates
New Delhi: India Inc lauded the rail budget tabled in parliament on Friday, but said Railway Minister Lalu Prasad has not responded to the prevailing slowdown in the country's economy that could have been somewhat cushioned by a cut in freight rates.
"The Railway Minister has presented a mixed budget," said Harsh Pati Singhania, president of the Federation of Indian Chambers of Commerce and Industry (FICCI).
"The minister has refused to respond to the current slowdown by not cutting freight rates and helping Indian industry and economy in the midst of a slowdown," he added.
"However, by stepping up spending for financial year 2009-10 to Rs.37,900 crore (Rs.379 billion) and by proposing a massive investment for the 11th Plan period the railways could set the growth trigger for certain sectors like steel, engineering and construction."
With both passenger and freight earnings growing at double-digit rates, the railways will invest Rs.2.3 trillion (Rs.2.3 lakh crore) in the next 11th Five-Year Plan.
The minister has proposed to more than double the wagon production target from 6,000 tonnes to 15,000 tonnes. Also, the capacity of passenger train and goods train will be increased 22 percent and 78 percent respectively.
FICCI said this would be particularly helpful when the economy comes out of the current slowdown and once again hits the high growth trajectory.
Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII), echoed the view that freight corridors, containers and improved passenger amenities that were announced in the budget would go a long way in making India's railway network more modern and efficient.
However, the budget did not announce any public-private-partnership (PPP) projects that the industry was expecting, Banerjee said.
The industry said the "forward-looking" budget would create a win-win situation for all ? the railways, wagon manufacturers, the heavy industry sectors and the people.
Added Sajjan Jindal, president of the Associated Chambers of Commerce and Industry in India (Assocham): "A thumping majority of Yadav's budget are user-friendly as fares have gone down and 43 new trains are proposed to be added in existing railways' fleet, which will provide convenience to railway passengers and its freight users."
The lobby also said freight rates could have been cut.
Rail budget eyes polls, say BJP, Samajwadi Party
New Delhi: The opposition Bharatiya Janata Party (BJP) along with the Samajwadi Party criticised the railway budget on Friday, saying it was presented with an eye to the elections, but the ruling Congress insisted it was a developmental and pro-people package.
The BJP said the budget was unrealistic. "It is far from ground realities and close to the upcoming Lok Sabha elections reality," BJP spokesperson Mukhtar Abbas Naqvi said.
"By reducing fares nominally, Railways Minister Lalu Prasad has tried to lure voters," he added.
The Samajwadi Party, which is an ally of the Congress-led United Progressive Alliance (UPA) government at the centre, struck a similar chord.
Kamal Akhtar, Rajya Sabha member of the Samajwadi Party, said: "This rail budget has been presented with the election in view rather than the long-term welfare of the common man."
The budget was presented by Railways Minister Lalu Prasad, whose Rashtriya Janata Dal (RJD) is an important constituent of the Congress-led UPA government. Not only did he cut fares by two percent, he also introduced 43 new trains.
"We welcome the rail budget. It's a developmental and pro-people rail budget. For this the credit goes to the UPA government," Congress spokesperson Shakeel Ahmad said.
"Never in the past have fares been cut down continuously for five years and the Indian Railways made profits for five years," said Ahmad.
On the decline in freight due to the economic downturn, Ahmad said: "Though there has been a decline, compared to the international scenario the adverse effects of the economic slowdown in India and on our railways has been less. We hope to fight it back soon," Ahmad said.
However, the Left parties were uncharitable.
D. Raja, national secretary of the Communist Party of India (CPI), said: "There is nothing new in it. It is a budget prepared for the Lok Sabha. Every one has to go to the people. Nothing big has been announced except for the bullet train project between Delhi and Patna."
P. Karunakaran, an MP of the Communist Party of India-Marxist (CPI-M) from Kerala, said this budget did not address the problems of many states like Kerala.
"The railways is a very big public sector unit, it is running into profit that is good. But, I feel this rail budget has not been able to do justice and address the problems of many states. Some states like Bihar get more benefits with such budgets, but some states are being neglected and this creates problems," Karunakaran said.
The budget highlighted that the railways will create a record surplus of Rs.900 billion (Rs.90,000 crore) this fiscal and that the sector saw a 14 percent rise in passenger income.
It also pointed out that in the past five years, no burden has been imposed on train passengers and that there has been a drop in train accidents, reflecting enhanced safety measures. (IANS) |
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