Fresh Hike In Railway Fare, Freight Rates Imminent
A rise in passenger fare and freight rates, levy of uniform transport charges on foodgrain meant for the public distribution system and open market, a sizeable shortfall in resource mobilisation during the current financial year, and many new schemes for the backward and remote areas are among the highlights of the 1997-98 railway budget, which will be presented by railway minister Ram Vilas Paswan in Parliament tomorrow.
The shortfall in the internal resource mobilisation is due largely to a shortfall in income from freight movement. The freight movement in terms of tonnage appears set to hit the target of 410 million tonnes for the current year, an increase of 20 million tonnes over the 1995-96 level.
However, the income generated from movement of goods presents a different picture. The railways had targeted to raise Rs 16,975 crore by moving 410 million tonnes of goods in the current year. But this may be difficult to achieve. The railways has lost revenue worth Rs 278 crore as on December 10, 1996. The losses may rise by the end of the year.
This situation has arisen because the railways moved more of the low-rate commodities. There was a steep fall in movement of high-rate core sector goods largely because of the slow-down of the economy.
Although the passenger earning has gone up and there has been some reduction in ordinary expenses, the shortfall in total resource mobilisation is likely to touch Rs 400 crore. As a result of the shortfall, some ongoing and new projects may be moved over to the next budget.
The 1997-98 plan size is not large about Rs 8,300 crore. But the budgetary support has not been forthcoming.
The railway minister says the subsidy given by the railways on movement of foodgrain meant for the public distribution scheme is misused by Food Corporation of India which sells the surplus to traders in the market.
Since last month, the railways has started charging identical freight rates on movement of foodgrain meant for the public distribution system and open market.
The hike in freight rates in tomorrows budget will be the second in seven months.
To further strengthen the resource base, Paswan is expected to come down heavily on the upper class passengers; upper class fares too are slated to rise for the second time in seven months. The second class passengers will not be spared either.
Rail Bhavan talk suggests that upper class fares would rise by at least 12 per cent, but, for the second class, the hike will be limited to the minimum possible.
Backward states, such as Bihar and Karnataka, and far flung areas, like the North-East and Jammu & Kashmir, are expected to be the beneficiaries of railway ministers largesse.