Railway Minister Suresh Prabhu on Thursday said Railways will now depend largely on long-term borrowings rather than changes in passenger fares or using taxpayers’ money for its various development projects.
At the post-Budget media interaction, Prabhu said that the Rail Budget has laid a roadmap for the coming five years for an overall revamp of the rail system, which entails an investment of Rs8,56,020 crore. For the current year, the investment figure is Rs1,00,011 crore. He said the Railways had suffered enough because it could not invest adequately in capacity augmentation even as he averred that “that is what we are trying to do”.
Prabhu expressed confidence that institutions like lIC, pension funds and sovereign funds can provide debt and they will not insist on early repayment of loan. On private participation in Railways, Prabhu said that there would be a system to regulate private sector players willing to invest in station development projects. On decentralisation of power to improve efficiency of Railways, he said, “This will happen for the first time that more responsibility will be given to officers. It is not on Railway Minister or Railway Board which will do everything.”
On lesser number of announcements made in his maiden Rail Budget on new trains, lines, feasibility studies, he said: “The Rail Budget should be a policy statement. It should be a document which gives direction. People should be able to know what is happening, what should happen and what would happen.”
About States’ role in development of Railways, he said: “We are working with 20 States to enhance Rail services. It is like creating another 20 new Railways. We are going to work with each and every State Government to create new infrastructure in their State.”
Defending the hike in freight rates that would rake in Rs4,000 crore more, Prabhu said it would have minimal impact on the transportation of commodities and would not affect the prices of essential items like foodgrains, fertilisers and urea.
Railway Board Chairman AK Mital said there would be a marginal 3 per cent increase in freight rates on an average due to freight rationalisation and it would have no effect on the prices of essential commodities. Railway Member (Traffic) Ajay Shukla dismissed talk that the freight rationalisation would lead to an across-the-board hike in rates.