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Budget at a glanceBudget 1998-99
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Speech of Shri Nitish Kumar
Introducing the Railway Budget, 1999-2000
on 25th February 1999 - Part I(a)
Mr. Speaker Sir,
I rise to present the Budget Estimates for 1999-2000 for the Indian
Railways.
Introduction
 | This government is about to complete one year in office. During this
period, a "Status Paper" and "White Paper", have been placed before
the Parliament, to help appreciate the financial position, shortage of resources and the
various challenges and difficulties faced by Indian Railways. I am happy to report that on
some of these issues, we have taken concrete steps as I shall presently explain in the
speech. |
| The year 1998-99 has been a difficult one, not only for the Railways, but
perhaps for the whole country. Our industrial and financial growth have been affected by
the global financial crisis and various other difficulties, impacting the Railway system
also. Freight loading has not been as per our expectations. On the other hand, expenditure
has gone up considerably as a result of the Fifth Central Pay Commission's
recommendations. Mr. Speaker, Sir, such circumstances would have discouraged any other
organisation but I am happy to say that without being disheartened by such adverse
situations, we succeeded in achieving many of our objectives. Notwithstanding the
constraint of resources, we have enhanced passenger carrying capacity of trains by
attaching two or more coaches in 100 popular trains. Thus, by adding 440 additional
coaches, we generated carrying capacity of more than 29,000 passengers per day. Apart from
this, 124 new trains were introduced, the run of 32 trains was extended and the frequency
of 32 trains increased. I am happy to state that all announcements made regarding
passenger trains in 1998-99 with the exception of one, have been fulfilled. |
"1999-2000 - Passenger Year"
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Sir, the progress made in passenger services during this
year has not made us complacent. I propose to declare the year 1999-2000 as the
"Passenger Year" and take still greater strides in this direction. It will be
our earnest effort to not only provide reliable and better services but it will also be
our endeavour that our staff behave more courteously and the passengers get reservation
easily. We will make efforts to make at least one station in each Division as model
station where higher level of passenger facilities will be provided and to upgrade some
selected passenger terminals. I would like that improved amenities are provided on all
passenger trains but, in the first phase, special emphasis will be given to the
maintenance of 30 Mail and Express trains, apart from Rajdhani and Shatabdi trains, so as
to ensure that there are no complaints in this respect. Sir,
during the "Passenger Year", our efforts to control the activities of the touts
will be greatly intensified. To begin with, in the first phase, our effort will be to make
Calcutta, Mumbai, Delhi and Chennai free of touts. We are aware that this is a very
difficult task but all necessary steps will be taken to achieve this.
Passenger Amenities
| One of our most important goals has been to continuously improve
passenger amenities. In the current year also, we have taken a number of steps which I
would like to mention :-
 | A "Customer Care Institute" is shortly being opened in Delhi
with a view to improve politeness and courtesy in the behaviour of the staff like ticket
collectors, booking clerks etc., who come in direct contact with the public. |
| Delhi, Secunderabad, Calcutta and Mumbai Passenger Reservation Systems
(PRS) have been linked with the network, and Chennai will also get connected to this
network by 31.3.99. With this, facility will now be available to get reservation by any
train from any of the PRS terminals in the country. |
| In the last Budget, the norm for setting up a PRS centre was reduced from
300 to 200 reservations per day. As a result, 75 additional PRS centres have been set up,
raising the total number of centres to more than 400. |
| With the establishment of "Rail Net" and the computers provided
at 150 stations, it will be possible to monitor passenger complaints at
the Divisional, Zonal and Railway Board's levels. This will enable expeditious disposal of
complaints. |
| Interactive Voice Response System (IVRS) has been extended to 44 stations
to provide real-time information to the public regarding availability of reservations and
arrival/departure of important trains. |
| Passengers are always keen to learn about the factual position of the
running of trains. For this, a successful trial has been carried out on Western and
Northern Railway and based on the experience gained a "National Train Enquiry
System" is expected to be established next year to provide real-time information
regarding running of any train from any location. |
| A pilot project for providing "Tele Booking" reservation
facility at New Delhi Reservation Complex has been launched. |
| Indian Railways has launched its 'Web Page' on the Internet which will
permit access from anywhere in the world, to information regarding train schedules and
connections, including tourist trains. |
| 'Tatkal Scheme' has been introduced successfully for more than 100
important long distance trains. This has enabled passengers to get
reservation at short notice. This facility will be further extended. |
| It was announced in 1998-99, that in eight trains pantry cars will be
introduced. This work has almost been completed. We plan to introduce pantry car services
in eight more trains in 1999-2000. |
| We plan to introduce a 'Rail Yatri Magazine' during the year. This will
be available in the trains for reading by the passengers. Apart from providing information
about railways, this will also provide information about tourist spots, special tourist
programmes, articles on health and interesting topics for the entertainment and knowledge
of the passengers. |
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Safety
| Sir, whenever we talk about passenger services on Indian Railways, the
safety of passengers is our foremost concern. The disastrous and unprecedented accident at
Khanna is still deeply etched in my mind and continues to move and unnerve me. This
tragedy has raised questions regarding several aspects of railway safety. It is imperative
that we find early solutions to them. This matter has been given serious thought by the
Railway Ministry and a plan has been drawn up for improving safety. I would also like to
inform this august House that a one-man Commission of enquiry under the chairmanship of a
sitting judge of Punjab and Haryana High Court, Justice G.C.Garg, is being constituted to
enquire into the Khanna accident. |
| There is no doubt that, inspite of a significant increase in passenger
and goods traffic in the last 50 years, statistically the number of accidents have come
down. However, we cannot afford to be complacent, and in view of the increasing pressure
on existing assets, we are taking special steps. I would now like to mention some of the
important ones.
| This year, the drivers and guards of trains running on all "A"
and "B" routes have been given 'walkie talkie' sets for making emergency
contacts. Since this effort has proved to be very successful and useful, it has been
decided that this facility will be made available in all passenger trains by 31st March
1999. It will be provided in the goods trains in the second phase, next year. |
| To prevent accidents due to human failure, track circuiting is being
provided carried out every year in a planned manner, and almost 600 stations are getting
covered every year. Track circuiting will be completed from 'Fouling Mark' to 'Fouling
Mark' on 'A', 'B' & 'C' routes by 31st March, 1999. |
| To prevent overshooting of signal by the driver by mistake, a pilot
project of a Radio-based Automatic Train Control System in Delhi-Mathura section has been
included in the Budget. After a successful trial, this will be further extended. |
| Several accidents have occurred due to rail fractures and weld failures.
In order to reduce this, intensive checking is being done with the help of Ultra Sonic
Flaw Detectors (USFD). It has also been decided to purchase two high speed Self-propelled
Ultrasonic Rail Testing (SPURT) cars. Further, pressure is being exerted on the rail
manufacturers to ensure quality in steel and correct manufacturing procces and to suggest
ways for making them more effective. |
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Accidents at Level Crossings
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| In the last decade, there has been no significant reduction in the number
of accidents taking place at level crossings. Most of these accidents are due to the
carelessness of the road users. This problem can be solved only by providing road
overbridges/underbridges. However, the situation can also be improved if unmanned level
crossings are converted into manned level crossings. Out of a total of 40,517 level
crossings, 24,359 are unmanned. Rs. 2,200 cr are required to convert all these level
crossings to manned level crossings. Although it is essential to have road overbridges/
underbridges at busy level crossings, this would involve enormous resources, as generally
Rs. 8 cr to Rs. 10 cr are required for constructing one road overbridge and more than
1,000 such bridges would be required as per the norms. State Governments are also required
to share the cost of these works. However, resources of this magnitude are neither
available with the Indian Railways nor with the State Governments. Hon'ble Members will
surely appreciate the enormity of the problem. Railway Ministry have decided to create a
Fund for converting unmanned level crossings to manned level crossings and for
construction of road overbridges/underbridges at busy level crossings. A separate Plan
Head will also be created in order to focus attention on the funding for such works and
monitoring their progress. Adequate funds will be contributed so that maximum number of
level crossings can be converted in a planned manner in future. |
| To strengthen safety in this area, I also seek the assistance of Hon'ble
Members. They can now recommend conversion of unmanned level crossings to manned level
crossings under "Member of Parliament Local Area Development Scheme". This has
been approved by the Ministry of Programme Implementation. Railways have decided that they
will convert as many unmanned level crossings to manned level crossings as are done
through funds provided by the Hon'ble Members in their constituencies. |
Railway Recruitment Board
| Action has already been taken on all the announcements made regarding
Railway Recruitment Boards in the last Budget. The recruitment process has been made
transparent and the possibility of corrupt practices has been eliminated. Experience shows
that in the selection procedure, there was possibility of favouritism during interviews.
In order to eliminate even the slightest possibility of favouritism, I have decided that
for most of the categories, the system of interviews after the written examination will be
done away with. Based on the results of this change, we will continue with our endeavour
to further improve the process of selection so that selection of meritorious candidates
for the Indian Railways is ensured. |
Group 'D' Recruitment in Railways
| After the success of our efforts made in the selection procedure of Group
'C', we will now endeavour to improve the Group 'D' selection procedure. Presently, the
direct recruitment of Group 'D' staff in Railways is done only through interviews. To
streamline the recruitment procedure and make it more transparent, I have decided that
selection of Group 'D' (unskilled) category should be through an objective written test of
appropriate standard. In this procedure there will be no interviews and selection will be
done on the basis of marks obtained in the written examination, subject to candidates
being physically fit. It has also been decided that this recruitment will be done by a
unit of the Railway Recruitment Board, which will be headed by a senior railway official.
I am confident that with this modified procedure, direct recruitment of Group 'D' will
become fully impartial and provide suitable and capable employees to the railways. |
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Upgradation of Technology
| It has been the endeavour of Indian Railways to constantly upgrade its
technology. Recently a state-of-the-art 3-phase 6000 HP electric
locomotive has been manufactured at Chittranjan Locomotive Works, which is an
unprecedented achievement amongst the developing countries. |
Contribution to improvement in Environment
| Railways are alive to environmental issues and to show our commitment in
this direction, it has been decided that the sale of cigarettes/bidis in railway platforms
and passenger trains will be banned from 5th June, 1999, the "Environment Day". |
| Afforestation drive on railway land will be started with zeal. This will
ensure proper utilisation of available land and also prevent encroachment. It will apart
from meeting the need of wooden sleepers, also benefit Railways financially in future. |
Commercial utilisation of Land
| Mumbai Rail Vikas Corporation has got the necessary approvals for
commercial utilisation of land and air space for mobilising resources. We are hopeful that
through such efforts we will be able to mop up sufficient resources for developmental
works in other parts of the country. |
Operating and Financial Performance in 1997-98
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| Now I would like to briefly describe the operating performance of Indian
Railways in the last financial year, 1997-98. The Railways have moved 429.30 million
tonnes of originating revenue earning traffic which is almost equal to the target of 430
million tonnes. In 1997-98, Railways financial performance was also satisfactory. Gross
Traffic Receipts of the Railways recorded a growth of 17.6%, from Rs. 24,319 cr in 1996-97
to Rs. 28,589 cr in 1997-98. Total Working Expenses increased from Rs. 21,001 cr to Rs.
25,876 cr, mainly due to the implementation of the recommendations of the Fifth Central
Pay Commission. After accounting for some reliefs relating to the previous years, based on
the recommendation of the Railway Convention Committee, Railways paid a dividend of Rs.
1,489 cr to the General Revenues. Railway's Operating Ratio also improved from the revised
estimate target of 91% to 90.9%. Fund balances of the Railways increased by Rs. 194.67 cr
and became Rs. 3,565 cr. Along with market borrowings, Plan outlay was Rs. 8,239 cr, which
was marginally short of the Revised Estimate of Rs. 8,403 cr. |
Revised Estimates, 1998-99
| Sir, unlike 1997-98, the current financial year has not been very
favourable. While the loading of Petroleum products, Fertilisers and "Other
Goods" is higher than the budgetary target as well as the actuals of last year for
the first nine months, the reduced demand of core sector commodities such as Coal,
Food-grains, Iron & Steel, Cement and Iron Ore etc. has affected the railways' freight
traffic. Against the budgetary forecast of 450 million tonnes, it is expected that
Railways will achieve a loading of around 424 million tonnes. However, our efforts to
increase loading in the remaining part of the year will continue. With the drop in freight
traffic, it is expected that there will be a shortfall of Rs. 1,056 cr in the earnings as
compared to the target for the year, despite increase in Passenger, Other Coaching and
Sundry earnings. The budgeted target of clearing Rs. 260 cr from Traffic Suspense has been
maintained in the Revised Estimates. Gross Traffic Receipts have been scaled down from the
Budget Estimates of Rs. 31,472 cr to Rs. 30,416 cr. |
| At the same time, as a result of the recommendations of the Fifth Central
Pay Commission, an increase of Rs. 1,530 cr is expected in the payment of pensionary dues,
which has now increased to Rs. 3,830 cr from Rs. 2,300 cr. To meet the shortfall in
earnings, a saving of Rs. 345 cr has been effected in non-plan expenditure. Plan
expenditure has also been re-assessed and kept at Rs. 8,755 cr as against the budgeted
outlay of Rs. 9,500 cr. It is proposed to withdraw Rs. 1,313 cr from the Railway Fund
balances to meet the additional pensionary liabilities. With this, the Fund balances are
estimated to be Rs. 2,252 cr. A provision of Rs. 1,752 cr has been made for payment of
dividend. |
| I would like to assure the Hon'ble Members that the Plan expenditure has
been regulated in such a manner as to ensure that the
progress of safety and other targeted works is not allowed to suffer. However, to achieve
this, additional market borrowing of Rs.180 cr by the Indian Railway Finance Corporation
would be necessary. With this the total market borrowings will increase from Rs. 2,900 cr
to Rs. 3,080 cr. |
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