Licence fees make life on tracks easy

RAILWAY BUDGET 2007-08

Sundry earnings are targeted to grow 18%.

Riding on a near 30 per cent jump in sundry earnings this fiscal, the railways are targeting an 18 per cent increase in such earnings from the revised estimate of Rs 1,695 crore in 2006-07 to Rs 2,000 crore in 2007-08.

The increase in sundry earnings in 2006-07, constituting 3 per cent of total earnings, is being attributed to the licence fee levied on 14 private parties and the Container Corporation of India (Concor) for running container trains.

The railways had raked in approximately Rs 540 crore as licence fees for the container routes.

"Even while retaining the core activity of train operations, we have awarded licences to private parties for running container trains, which is likely to attract investments worth thousands of crores in wagons and construction of terminals, in the next few years. We want to have many more such public-private partnership schemes, where one and one make 11 and not two," Railway Minister Lalu Prasad said.

Another such example is leasing out of catering and parcel services, which has helped in reducing "losses worth more than a thousand crore".

"Our policy of licensing parcel and catering services through open tenders has also borne good results. In 2006-07, there has been an increase of 48 per cent in other coach earnings and it is likely that earnings from catering licence fees will increase to Rs 120 crore," the railway minister said.

While a public-private partnership cell will be constituted to develop a policy framework, options will be explored for modernising metro and mini-metro stations with world-class amenities, besides construction of agro-retail outlets, multi-modal logistic parks, warehouses and budget hotels.

One possible large revenue generator could be the helpline that the railways will run. From June to September, train enquiry call centres will start functioning in all four regions of the country. By dialling 139, passengers will be able to get information about arrival and departure of trains, seat availability etc, at local call rates from any part of the country. In future, services such as SMS alerts, ticketing and hotel bookings will also be provided.

The railways plans to increase the approximate 2,200 computerised unreserved ticketing system counters in the country to 8,000 in the next two years. Revenue will also be generated from the targeted 6,000 automatic ticket vending machines that will be installed in major cities in the next two years.

To expand the reach of reserved railway ticketing to all parts of the country, e-tickets will be issued through e-seva services of state governments, post offices, petrol pumps and ATMs.