But from a logical angle it appears possible that the socially-oriented schemes announced by minister can be implemented with success, provided sincerity is there. The profit making Indian Railways is one of the largest asset holder in the country and can afford to take up projects for public good. The underlying message is that the so-called economically unviable projects need to be viewed with social perspective and as an economic necessity for backward areas and the under privileged.
Some critics allege that the minister announced a populist Budget and has not effected any increase in passenger fares or in freight rates keeping in view the upcoming Assembly polls in her home state West Bengal . Whatever the compelling situation may be for the railway minister, the common man has reasons to laud the budgetary announcements. There are some areas which did not get equal attention in this year 2009-10 Railway Budget. But as the minister has emphasized that the bottom line is to foster “inclusive growthâ€, one can be hopeful that in the subsequent years that the fruits railway's network would reach other parts of the country as well.
“I have therefore decided to set up an expert committee to advised me on innovative financing and implementation of the so-called economically unviable but socially desired projects. We will identify those parts that are detached from all infrastructure development and facilities and within a short time I will prepare a blue print of how many such schemes can be implemented in the coming five years,†the minister said in her Budget speech.
In her earlier tenure as the railway minister she had announced in 2001-02 laying of optic fibre cable network along railway for commercial utilization - a project which would generate revenue and fulfill social obligation of taking information technology to the door step in the remote areas. However, as this project made very little progress, it has been proposed to set up an expert panel headed by Sam Pitroda, the key person behind telecom revolution in the country, to suggest further innovations so that the optic fibre cable network of the railways can be put to better use.
RailTel has set up an OFC network of 34,932 RKMs, of which 25,130 RKMs is of high bandwidth capacity. A PAN India MPLS network for providing connectivity to data and voice circuits have also been set up. Till date, 220 important and about 3,150 other stations have been put on OFC network. With this, the Indian Railways is now in a position to lease the surplus capacity on commercial use.
Similarly, revenues expected from commercial utilization of surplus railway lands did not mateialise. The primary cause for the shortfall appears to be the economic slowdown. Therefore, innovative ideas are proposed to be developed for land and air space utilization for commercial use through public-private partnership mode. Such business plans would be monitored closely to achieve substantial revenue over the next three years. The target for such sundry earnings is pegged at Rs 2,760 crore.
The proposal to upgrade 50 select railway stations to the level of world class stations with international level facilities and to develop 375 other railway stations (309 identified so far) as Adarsh (ideal) railway stations will be a revenue generating factor as well with a number of avenues for commercial uses.
Another novel project proposed for revenue generation is setting up of multi-functional complexes (MFCs) at 50 railway stations located near pilgrim and tourist spots The MFCs will provide users facilities like shopping, food stalls and restaurants, book stalls, PCO/STD/ISD/Fax booths, medicine and variety stores, budget hotels and underground parking space.
The railways would also introduce high capacity air conditioned double-decker coaches for intercity travel. A premium parcel service called Faster Parcel Services would be introduced on a pilot basis on three routes, namely Tughalakabad ( Delhi ) to Royapuram (Chennai), Tughalakabad ( Delhi ) to Vapi (near Mumbai), Tughalakabad ( Delhi ) to Howrah . In freight business permission to access private sidings will be given to containers which will help in attracting piecemeal traffic presently not being carried by railways. A new policy would be unveiled to allow construction and operation of private freight terminals and multi-modal logistic parks. Railway freights have surcharges in the peak season and concessions in the lean season.
Apart from the existing western and eastern corridors, were logistic hubs are proposed, proposals are there for introducing north-south, east-west, east-south and southern (Chennai-Goa) corridors based on feasibility studies. Delhi-Mumbai Industrial Corridor is being developed in the area of influence of the Western Dedicated Freight Corridor comprising industrial hubs, rail port connectivity, logistic parks and mega power plants which will be executed in public-private partnership. It is proposed to develop an Eastern Industrial Corridor. These corridors will ultimately be a revenue generating factor.
A new factory at Kanchrapara-Halisahar Railway Complex with annual capacity of 500 EMU/MENU and Metro coaches in joint venture. It is also proposed to take over the wagon unit of Burn Standard and Braithwaite after waiving off accumulated liabilities. Plans are afoot to upgrade major printing press of railways and to take over the heritage institution, Basumati Sahitya Mandir in West Bengal.
Railways will encourage creation of facilities for setting up cold storages and temperature controlled perishable cargo centres and its transportation through public-private partnership mode. Special trains will carry perishables products like fruits and vegetables, fish from identified production clusters to consumer centres. On similar lines railways will facilitate movement of village handicrafts, cottage industry and textile products from production clusters like Tirupur, Dhanekhali, Shantipur to consumption centres.
All these proposed revenue generating schemes of the railways look promising. Hopes are there for success in future as the railways, despite the impact of global slowdown has in 2008-09 generated a cash surplus before dividend of Rs 17,400 crore after disbursing Rs 13,600 crore towards implementation of the 6th Pay Commission. Railways paid full dividend liability of Rs 4,717 crore to the government. It generated an investible surplus of Rs 12,681 crore. Freight loading increased by 5% to be at 833 million tonne and trafiic receipts increased by 11.4% to be at Rs 79,862 crore. In 2008-09 the annual expenditure was Rs 36,336 crore against the revised target of Rs 36,773 crore. The public sector undertakings (PSUs) under the department of railways also posted profits.
The revenue generating railways can definitely take up different socially-oriented programmes announced by the minister. It should, therefore improve the quality of services to passengers like cleanliness, catering, safety and security and punctuality. An integrated security scheme has been drawn up for 140 vulnerable and sensitive railway stations. Janata Khana (people's food) will be served alongwith national and regional cuisines. On Board House Keeping Scheme will cover 200 additional pairs of trains and also take up improved linen management with modern mechanised automated laundries.
There will be on board availability of doctors in long distance trains and ambulance services will be provided at Chennai, Bangalore, Delhi, Hyderabad, Mumbai, Kolkata and Bhubaneswar to start with.On board infotainment services will be provided in long distance inter-city trains. Toilet facilities will be provided in DEMU/MEMU trains with journey time more than two hours. New 1000 passenger reservation system centres will be opened and unreserved ticketing terminals will be expanded from 5000 to 8000. Automated ticket vending machines will be installed in 200 large and medium sized stations and 50 mobile ticketing vans would be introduced in the current year in both urban and rural areas.
The Railway Budget has sought to introduce 57 new train services, envisaged extension of 27 trains and increase the frequency of 13 trains. Twelve Duronto Trains - for the first time non-stop, point to point trains services - will be introduced. Northeast Rail Development Fund will be set up. Poor in the unorganised sector with monthly income up to Rs 1,5000 can travel up to 100 km with a monthly concession ticket of Rs 25 under the new scheme - Izzat. .EMU trains for ladies will start operating in Delhi, Chennai Kolkata sub-urban during office rush hours. New low-cost, air-conditioned, seated accommodation Yuva Trains specially for young generation and low-income groups will be introduced on weekly pilot basis between Mumbai to Delhi and between Delhi to Kolkata. Fares will range from Rs 299 up to 1500 km to Rs 399 up to 2500 km.
Inclusive growth is the mantra
Indian Railways can take up socially-oriented schemes
Innovative approach needed to make schemes viable
ASHOK B SHARMA - 06-07-2009 09:50 GMT-0000
Much doubts have been raised about the viability of socially-oriented projects announced by the Indian railways minister, Mamata Banerjee in her annual Budget speech last Friday. One of the reasons which gave an opportunity to her critics is that the minister did not spell out in details in her Budget speech.