Rail Ministry To Save Rs 1000 Crore Via Inventory Management

The railway ministry has told the Planning Commission that it expects a savings of nearly Rs 1000 crore this fiscal through better inventory management which should cut down its deficit.

In a meeting to finalise the gross budgetary support (GBS) for the sector for fiscal 2002-03 over the weekend, railway minister Nitish Kumar told deputy chairman of Planning Commission KC Pant that the freight loading target for fiscal 2001-02 is going to be missed. Nitish said the shortfall could be to the tune of Rs 700 crore. He said, keeping in mind the finance minister's promise to kick-start investment expenditure in the economy, the GBS for railways should be hiked.

However, the meeting attended by members of the Railway Board and senior officials and members of the planning commission was unable to finalise the GBS figure and have decided to meet again. The meeting also discussed alternative plans and investment prospects for the country's largest transport network in the next fiscal. However, sources said the issue of an alternative to the Rakesh Mohan plan for revamping the railways, which was also scheduled to be discussed, could not be taken up in depth due to paucity of time. Nitish, however, emphasised that the railways' social burden cannot be wished off and said this is the reason for cross subsidisation of passenger and freight services.

The railways minister also told Pant that the modalities for the operationalisation of the Indian Railway Catering Service will be completed by the end of March.