Railways needs Rs 2 lakh cr to tide over fiscal mess

Reeling under acute financial stress, railways will have to generate around Rs 2 lakh crore from borrowing and internal resources which include earnings from passenger fare, freight tariff and investment from private sector during the 12th Five Year plan (2012-17). Considering transporter’s performance during the 11th plan, the target seems to be quite steep. To make matters worse, the passenger fare has not been revised for close to a decade.

Railways was supposed to raise Rs 90,000 crore from its internal resource, but fell short by Rs 18,168 crore. The increase in salaries and allowances of employees and pension payments following the implementation of the sixth pay commission was cited as the main reason behind its failure.

“The expected investment through internal resources and PPP did not materialize resulting in lesser investment,” an official said, adding that this resulted in greater reliance on support from the general exchequer and market borrowings during the 11th Plan.

The transporter is expected to get a moderate 155.64% hike in plan allocation that will be increased to Rs 194,221 crore during 12th Plan from Rs 75,976 crore in the 11th Plan. The meeting of Planning Commission scheduled on September 15 s expected to finalize total outlay for railway at Rs 404,811 crore.

http://timesofindia.indiatimes.com/india/Railways-needs-Rs-2-lakh-cr-to-tide-over-fiscal-mess/articleshow/16305076.cms

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Published in: on September 8, 2012 at 3:58 pm  Comments (1)  

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One CommentLeave a comment

  1. increase the season thicket fare by one rupee every month that is rs 12 per year this will not have any feeling on the st holder and that earnings will be sufficient to meet the loss.

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