| Riding on robust performance in the current financial year, Indian Railways are set to create a new record with a cash surplus-before-dividend of Rs 25,065 crore in 2007-08. |
| While cash surplus of the railways stood at Rs 9,000 crore in 2004-05, it rose to Rs 14,000 crore in 2005-06 and Rs 20,000 crore in 2006-07. |
| "We take pride in the fact that our achievement, on the benchmark of net surplus before dividend, makes us better than most of the Fortune 500 companies in the world," claimed Railway Minister Lalu Prasad after presenting the Railway Budget for 2008-09. |
| However, Prasad has budgeted that cash surplus before dividend will decline to Rs 24,783 crore in 2008-09, Rs 282 crore less than the revised estimate for 2007-08. |
| "This is because the expenses will substantially go up next year due to the Sixth Pay Commission recommendations. However, this is a commendable Budget as return on investment has gone up by around 20 per cent, far more than anticipated," said S N Mathur, director (finance), Asian Institute of Transport Development. |
| In view of the anticipated recommendation of the Sixth Pay Commission, Prasad has made an ad-hoc provision of nearly Rs 5,000 crore. |
| Thus, total working expenses are estimated at Rs 66,590 crore during 2008-09, up by Rs 11,169 crore. |
| The railways will also finance a record 79 per cent of its largest-ever annual plan of Rs 37,500 crore for 2008-09 through internal resources. Last year, it had budgeted to finance 56 per cent of annual plan through internal resources. |
| During 2008-09, the railway ministry has allocated Rs 947 crore for appropriation to Development Fund, against Rs 2,359 crore during 2007-08. The appropriation for Capital Fund has been estimated at Rs 10,840 crore, against Rs 11,175 crore during 2007-08. |
| Maintaining an overall double digit growth, gross traffic earnings have been projected at Rs 81,801 crore for 2008-09, reflecting an increase of Rs 9,146 crore over the revised estimates for the current year. |
| While the total passenger earnings are expected to grow 8 per cent in 2008-09, earnings from goods traffic is budgeted to grow more than 10 per cent. |
| During 2008-09, the ministry has proposed to raise Rs 6,907 crore through borrowing by Indian Railway Finance Corporation, Rs 293 crore by Rail Vikas Nigam Ltd for investment in various Railway projects, Rs 500 crore under Wagon Investment Scheme and Rs 800 crore as funding through public-private partnership (PPP). |
| The railways are also planning to attract an investment of nearly Rs 15,000 crore for developing railway stations in New Delhi, Mumbai, Patna and Secunderabad through global competitive bidding under the PPP route, with the partners being selected for setting up diesel locomotive, electric locomotive and a rail-coach factory at an estimated cost of Rs 4,000 crore. |
| Container trains, container depot and multi-modal logistics park are also expected to attract investment worth Rs 2,000 crore. |
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