Rail realty to be commercialised

RAILWAY BUDGET 2005-06/ NON-TRADITIONAL REVENUE

To modernise and develop the railways, and provide better facilities to travelers, several non-traditional methods for generating revenue have been chalked out. Going full steam on concessions and aiming at a surplus of Rs 1,975 crore in 2005-06, the budget has underlined the importance of exploring newer revenue-generating methods.

The revenue generated from miscellaneous sources is expected to increase by about 8 per cent, from Rs 9.22 crore (budget estimate) in 2004-05 to Rs 10.01 crore (budget estimate) in 2005-06.

Some of the prominent initiatives include commercial utilisation of surplus railway land through construction of modern railway stations under the aegis of a proposed Rail Land Development Authority (RLDA), upgrading parcel services, utilisation of the optical fibre cable network of RailTel, computerisation of train enquiry system, setting up of a wagon investment scheme and private sidings.

The Budget has emphasised the setting up of the RLDA for commercial utilisation of surplus railway land. Authorities will, through public-private participation, develop surplus land adjoining railway stations and goods sheds for constructing warehouses and logistics parks.

The RLDA will also help turn metro stations into world-class modern stations and extend passenger amenities like food plazas and shopping malls on vacant land.

Railway Minister Lalu Prasad has already presented a Railway (Amendment) Bill, 2004 in the Rajya Sabha, for setting up of an RLDA.

The budget also stresses the revenue-earning capability of RailTel, the Railways fibre optic network through public-private partnership, either through leasing or channel partners, and providing various broadband services such as Internet, voice telephony on Internet, cable TV, and national long-distance telephony in urban as well as rural areas.

The network has grown to 26,000 route kilometres (rkms) and is likely to reach 40,000 rkms by 2008. During the current financial year, RailTel has completed connectivity of four metros and four mini metros.

"Once the ongoing process of upgrading the capacity of the network over 23,000 rkms is completed in June 2005, RailTel's revenue earning capability will increase beyond expectations," the budget stated today.

Freight customers will also be encouraged to develop their private sidings in order to popularise rail transportation. The government has proposed to share the cost of a new railway siding if industry gives a long-term commitment of traffic; for 10 years or more.

It has also been proposed to introduce several parcel initiatives, including additional leasing of one of the two compartments in the rear SLR coaches of certain nominated Mail/Express trains, and leasing of vacant guard compartment in the front SLR coach to courier services for carrying small packages.