Railway Budget 2015: Fares, fuel & funds in focus
New Delhi, Feb 26: Railway Minister Suresh Prabhu will present the budget for the year 2015-16. Questions are being asked about whether the minister will take the usual route of populism or take tough calls on reforms to allow a revival of the massive state unit. [Follow Live updates of Railway Budget 2015]
Minister of State for Railways Manoj Sinha had earlier said that fares wouldn't be reduced even though diesel prices have fallen but Prabhu is expected to make a balanced call. [Railway Budget 2015: Will Suresh Prabhu give wings to PM Modi's dreams?]
He is likely to reval his plan to decrease the cross-subsidy for passenger service from earnings from freight. The railways, which is the fourth largest in the world, are expected to receive at least a 25 per cent investment to over $9 billion. [5 things to expect from Suresh Prabhu]
Sources in the NDA government said the fall in diesel prices and the hike in freight earnings have created a golden opportunity to increase investments. Will there be an increase in budget allocation to balance the disappointment caused by the lack of private sector interest in investing in the railways.
Here are five important issues related to the railway budget:
-
Passenger
fare:
Trinamool
Congress's
Dinesh
Trivedi
had
proposed
an
across-the-board
hike
in
rail
fares
in
2012-13,
after
a
gap
of
10
years.
But
he
was
forced
to
roll
it
back
in
the
second
and
sleeper-class
categories
and
even
had
to
lose
his
post
by
his
party
leadership.
Train
passenger
fares
have
been
increased
since
then.
In
July
last
year,
the
Modi
government's
first
budget
had
seen
a
hike
in
railway
fares
by
14.2
per
cent
and
freight
by
6.5
per
cent.
-
Falling
fuel
prices:
Power
cost
has
gone
up
by
4
per
cent
even
though
there
has
been
a
dip
in
diesel
prices.
This
has
asked
for
a
balancing
act
for
the
fuel
adjustment
cost-linked
tariff
revision
policy
adopted
by
the
railways
since
2013.
Prabhu,
as
per
official
sources,
has
stressed
savings
from
cheaper
diesel
totalling
between
$1.9
billion
and
$2.4
billion,
beginning
April
1.
-
How
to
raise
funds:
Only
317
projects
out
of
676
could
be
completed
and
the
remaining
need
a
whopping
Rs
1,82,000
crore
for
their
completion.
Prabhu
is
likely
to
lay
out
a
load
map
to
attract
private
investment
in
the
railways.
Sources said the budget will have a comprehensive action plan featuring both short and long-term measures. Prabhu might announce less numbers of new trains and projects in this budget.
"Funds allocation will be made only for those projects, including new lines, which are strategically crucial, doubling and route electrification which are nearing completion," PTI quoted unnamed sources as saying.
The railways have also sought Rs 20,000 crore from the finance ministry to deal with the safety aspect, particularly the unmanned level crossings, although one is doubtful about him receiving that much fund. Prabhu might also go for joint venture mechanism for implementing projects.
Oneindia News
(with agency inputs)