The Hindu : Railway budget as scheduled: Nitish

Online edition of India's National Newspaper
Thursday, Feb 13, 2003

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Railway budget as scheduled: Nitish

By Our Special Correspondent

NEW DELHI FEB. 12 . The Railway budget for 2003-04 would be presented in the Lok Sabha as scheduled on February 24, the Railway Minister, Nitish Kumar, said today.

Brushing aside reports that presentation of the budget could be rescheduled because of the February 26 polling in the elections to the four States, Mr. Kumar said that he was not aware of any such plans.

In an informal chat with the reporters after the Railway Ministry and Indian Oil Corporation signed a memorandum of understanding for a pilot project for production of eco-friendly biodiesel for the Railways, the Minister said that his meetings with the Prime Minister, Finance Minister and the Planning Commission Deputy Chairman had already been held and the annual plan for the Railways fixed.

Asked if the budget would be "soft" or "hard" on passengers, Mr. Kumar quipped: "Wait till February 24 when the budget will be presented." However, the Minister indicated that he was "satisfied" with the financial position and overall performance of the Railways in the current financial year.

Asked about the failure of the Railtel, the optical fibre network along the tracks, to generate revenue along expected lines, Mr. Kumar said there was some delay on account of discussions of a possible equity by companies such as MTNL. But the optical fibre network linking the four metros and four other cities would be ready by June.

Well-placed sources, however, indicated that the Railways' total outlay was likely to be around Rs. 12,530 crores for 2003-04 as against Rs. 12,330 crores in the current fiscal. Indications are also that the Government has cleared market borrowings to the tune of Rs. 6,000 crores. In 2002-03, the budgetary support from the Centre was Rs. 5,840 crores.

Mr. Kumar lauded the joint initiative between his Ministry and Indian Oil, saying it would contribute towards making biofuel available for railways.

The Petroleum and Natural Gas Minister, Ram Naik, said that his Ministry had already initiated the use of 5 per cent ethanol in petrol from January in nine States and four union territories for the first time. "Bio-fuels, both ethanol and bio-diesel, can be produced domestically and can be blended with petrol and diesel for use in existing engines. These fuels offer opportunities for development of agricultural sector and rural economy," Mr. Naik said.

Under the MoU, the Railways will offer 500 hectares of compact land on lease to it for plantation of Jatropha which is likely to yield 500 to 800 tonnes of biodiesel in two to three years. The Railways have already tested the biodiesel on diesel locos hauling Shatabdi Express between New Delhi and Amritsar with a 10 per cent blend of biodiesel.

As of now, the estimated price of biodiesel is Rs. 17 a litre but increased plantation of Jatropha Curcas and commercial production can bring it down to Rs. 10 to 11.

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