The Hindu : Rly. Budget to focus on financial management

Online edition of India's National Newspaper
Wednesday, Feb 20, 2002

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Rly. Budget to focus on financial management
By Our Special Correspondent

NEW DELHI, FEB. 19. The Railway Minister, Nitish Kumar, today said that he was evolving a new ``formula'' for striking regional balance and equitable distribution of railway projects in different parts of the country.

Hoping that his formula could be unveiled in the Railway Budget for 2002-03 to be presented before Parliament barely a week from now, Mr. Kumar said stress would be on proper financial management. ``While social obligations are there, we have also to make the Railways commercially viable. The situation has to be retrieved.''

Talking to presspersons after the Railway Ministry and the Jharkhand Government signed a Memorandum of Understanding (MoU) for a time-bound completion of railway projects in the State, Mr. Kumar said the Railways was facing a tough task of mobilising funds for various projects without much budgetary support. He said that last year's budgetary support of Rs. 3,540 crore to his Ministry was ``very small'', adding it was difficult to please everyone in the budget. He said a huge amount of Rs. 1,25,000 crores was needed if the Railways decided to begin work on all projects where preliminary survey had taken place so far. Replying to a query, Mr. Kumar said he was personally against any deferment of payment of dividend to the Government.

He indicated that the Budget would outline broad reform measures and evolve new marketing strategies for boosting freight traffic. The freight loading during the current fiscal may touch 490 million tonnes, slightly falling short of the target of 500 million tonnes. The Minister is understood to have ruled out suggestions of a hefty rise in passenger fares but officials say the increase could be in the range of 5 to 6 per cent.

Describing today's MoU with the Jharkhand Government as a ``milestone'' for getting financial cooperation from the State Government for speedy implementation of rail projects, the Minister said it would cover six projects at an estimated cost of Rs. 2,000 crores in five years. While the State Government will share two-thirds of the final cost, the Railways' share will be one-third.

The MoU was signed by the Chairman, Railway Board, R.N. Malhotra, and the Jharkhand Chief Secretary, V.S. Dube. The Chief Minister, Babulal Marandi, and the Ministers of State for Railways, Digvijay Singh and O. Rajagopal, were also present.

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