The lok Sabha on Thursday passed the Rail Budget with Railway Minister Suresh Prabhu making a strong pitch for a massive hike in investment for the Railways. Allaying apprehensions of several Opposition MPs that Railways would be privatised, Prabhu said the Railways is a national asset and its ownership will continue to remain with the people of India, notwithstanding projects to seek private participation.
Announcing schemes to make Railways stronger technologically, financially and commercially, the Railway Minister said a strong push would be given to achieve a massive hike in the investment for Railways, warning that if this was not done, the national transporter will “sink further and further”.
He also announced setting up of high-level new body, Kaya Kalp Council, to be headed by a distinguished person to turn Railways into a vibrant organisation commercially with the participation of private sector.Prabhu also sought to take the States on board declaring they would be partners in progress of the Railways by executing several projects.
Detailing the massive increase in the allocation for the States, the Minister gave comparative figures of the last few years to drive home the point that each and every state has got more from the first Rail Budget presented by him. He said several projects announced by his predecessors have been pending for long for want of funds, adding that raising money from outside including PSUs and multi-lateral agencies like World Bank, ADB and IFC was an option.
Citing the deal with lIC, he said plans were afoot to partner with other PSUs like Coal India to boost railway infrastructure. Prabhu agreed with the concerns of several members that Railways cannot just be a commercial enterprise but added that it can serve the poor only if it was strong and commercially viable.
Rejecting criticism of the freight rate hike proposal, he said it was in fact rationalisation of freight rate as it had gone down in some routes. Citing a CRISIl report, he said the freight rate hike will have virtually no impact on inflation.
Earlier, participating in the debate, Opposition MPs protested on not slashing the fares, citing sharp fall in the oil prices. Congress MP MK Raghavan said the Budget does not provide detailed explanation of the source of the proposed Rs8 lakh crore investment envisaged over five year period. “It is just fudging of numbers and selling of dreams without any roadmap. The Budget is disappointing... It is not a Budget for common man. The Government has failed to present a roadmap,” he said.
Attacking BJP-led Government for raising ticket prices in May last year on the plea of rising oil prices, Tariq Anwar (NCP) wondered if Railway Minister Suresh Prabhu would reduce passenger fares now when these prices have declined sharply. He also sought concrete action from the Government to ensure that passengers get confirmed reservation.
Countering the Opposition’s attack, BJP MP and actress Hema Malini dubbed the Bugdet as practical and pragmatic and said “it looks like Modi express has steamed off in right direction”.