Email
Print
Share50. Madam, despite the economic slowdown in the last financial year, the Railways loaded 833 MT of freight cargo which is a 5% growth over the previous year. Traffic Receipts grew by 11.4% to reach Rs 79862 cr. A saving of Rs 676 cr was achieved in expenditure, through stringent economy measures. Even after having disbursed Rs. 13,600 cr. towards implementation of 6th Pay Commission recommendations the Railways were successful in generating a cash surplus before dividend of Rs. 17,400 cr. and after fulfilling their full dividend liability of Rs 4,717 cr were able to maintain internal generation for investment at Rs. 12,681 cr. The plan expenditure for 2008-09 was about Rs. 36,336 cr as against the revised target of Rs. 36,773 cr.
Budget Estimates 2009-10
51. Madam, I shall now deal with the Budget Estimates for 2009-10.
52. Madam, I am presenting the Budget Estimates for 2009-10 in the back drop of the shortfall in performance of the Railways in 2008-09. Freight loading fell short of the target of 850 MT by 17 MT. Similarly, revenues expected from commercial utilization of surplus Railway lands also did not materialize. The primary cause for these shortfalls appears to have been the economic slowdown.
53. This has forced me to review the targets set for 2009-10 in the interim budget. Based on the review, it is very clear that the unrealistically high targets set in the interim budget are not sustainable and warrant a mid course correction. I have now set more realistic targets for 2009-10 in the main budget based on the continuing trend of recession in the manufacturing sector and exports. However, I am confident that with the combined determination of the 14 lakh strong railway family we will come back to the house with an even better performance.
54. The freight traffic target for year 2009-10 has been fixed at 880 MT. This will give an incremental loading of 47 MT over 2008-09, whereas incremental loading in 2008-09 was only 39 MT. This ambitious target is being kept in light of the special measures being taken by a government to give an economic stimulus as a counter recession measure and keeping in view the special efforts that the Railways will make to attract more bulk traffic and new traffic streams. Efforts are also on to capture long lead traffic.
55. With all these measures, goods earnings are projected at Rs 58,525 cr, which is Rs 5,092 cr more than performance of 2008-09. Passenger earnings are projected at Rs 24,309 cr. A growth of 10.8% has been provided in keeping with the long term trend of growth.
56. The target for other coaching earnings is being kept at Rs. 2,750 cr which would imply a growth of 40% of the performance in 2008-09. I am of the firm view that proper marketing of our SLRs and running of premium parcel services will certainly help us realize this difficult target.
57. Madam, the Railways has a vast potential for revenue generation from non-traditional sources. In my previous tenure as Railway Minister, I had initiated several measures in this regard. Enough efforts have not been made to realize this potential. I will now develop new innovative ideas for land and air space utilization for commercial purposes through PPP mode. Such business plans would be monitored closely to achieve substantial revenues over the next three years. The target for sundry earnings is being pegged at Rs 2,760 cr, but once these initiatives take shape I am confident that not only will we improve on this but will be able to do wonders.
58. Clearance from traffic suspense has been kept at Rs 75 cr as against the performance of Rs 25 cr achieved in 2008-09. Based on the forgoing projections, Gross Traffic Receipts have been projected at Rs 88,419 cr reflecting an increase of Rs 8,557 cr on the actuals of 2008-09.
59. I propose to retain the Ordinary Working Expenses at Rs 62,900 cr, to ensure that adequate provision is made for disbursement of 60 percent arrears in salary, due in 2009-10 on account of implementation of the 6th Pay Commission and for maintenance expenditure. However, I am simultaneously pursuing stringent economy measures to target a substantial saving in working expenses. Total Working Expenses are projected at Rs 81,665 cr, which include Rs 5,325 cr as appropriation to Depreciation Reserve Fund (DRF) and Rs 13,440 cr as appropriation to Pension Fund.
60. Even after having absorbed the impact of 6th Pay Commission, to the extent of about Rs 14,600 cr in 2009-10, the cash surplus before dividend of the Railways works out to Rs 14,201 cr, Net Revenue Rs 8,121 cr. and Operating Ratio 92.5%.
61. Madam I am proud that despite the combined impact of increase in Working Expenses due to the 6th Pay Commission and sluggishness in earnings due to the economic slowdown in the economy, Railways paid their full dividend liability of Rs 4,717 cr in 2008-09 and will pay an even higher Dividend of Rs 5,479 cr in 2009-10.
62. Based on above projections the Excess of the Railways for 2009-10 will be Rs 2,642 cr, which will be appropriated to Railways Funds.
Concessions
