Journey time: With Rs 1.31 lakh crore capex, Railways aims to gain speed

Despite railways not impressing much with their performance or growth, it got adequate funds from the general Budget exactly as it had sought unlike other transport ministries of civil aviation and roads, which despite registering a significant growth failed to get the expected amount.

Senior officials in railways, however, said that railways cannot be compared to other transport ministries as both aviation and roads get significant private funding unlike railways.

Finance minister Arun Jaitley announced the plan size for the next fiscal for Railways at Rs 1,31,000 crore as against Rs 1.21 lakh crore last year while road and transport got Rs 64,900 crore as against Rs 57,976 crore last year. Sources in the road ministry said that roads had expected much more from the finance ministry than what it got.

Speaking to journalists, railway minister Suresh Prabhu said the proposals suggested by the railways have all, more or less, been included and acted upon by the finance ministry.

Railways, which saw a series of deadly derailments, also got a significant amount from finance ministry for setting up of a special safety fund of Rs 1 lakh crore that will cover upgradation of tracks and signalling besides elimination of unmanned level crossings. Welcoming the creation of the separate safety fund, Prabhu said, We have been writing to the finance ministry for the special safety fund.

Prabhu added the special fund will not only strengthen the safety of rail network, but will also help increase the speed of trains. Prabhu said railways will no longer pay dividends to finance ministry after the merger. Railways is likely to save Rs 9,500 crore by not paying dividends.