Don’t miss the latest developments in business and finance.

Railways say no to Budget proposal

Image
Vishaka Zadoo New Delhi
Last Updated : Feb 06 2013 | 9:09 AM IST
The railways are in a fix because the last Budget had said they would have to bear all transportation costs for carrying commodities during national calamities.
 
With the onset of summer, states like Andhra Pradesh have asked the railway ministry to carry fodder free of cost. The railways, however, have refused to bear the burden saying it was a state-specific problem rather than a national calamity.
 
"The Budget announcement pertained to national calamities and not seasonal shortages faced by states. If the problem was of the proportion of the tsunami disaster or the Gujarat drought a few years ago, the railways would have borne the cost," a senior railway official said today.
 
The official added, "The burden does not fall on end users for cases similar to that put forward by Andhra Pradesh."
 
If there were semi-drought-like conditions or other state-specific emergencies, the charges would be billed to the National Calamity Contingency Fund (NCCF) under the home ministry, " he said.
 
"We have asked Andhra Pradesh to come back with a fresh proposal, with the charges being billed to the home ministry," the official added.
 
In fact, fearing a delay in the monsoon, the railways were already running special water trains to Rajasthan, the freight for which would be reimbursed through NCCF, the official pointed out.
 
While the railways charge Rs 124 for per tonne of fodder carried for an average distance of 700 kilometres, they carry water for about Rs 32 per quintal.
 
As far as severe drought conditions in states are concerned, the country seems better of this year.
 
In 2004, by April, the railways had issued notification for transportation of fodder and water to five states. These states included Maharashtra, Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
 
Railway officials said during drought, water and fodder were the main items that were transported to affected areas. ' In case of foodgrain, emergency stocks could be maintained but cattle feed being perishable had to be transported at the last moment, a ministry official said.
 
Moreover, he added that foodgrains for public distribution were transported as per the directions of the Food Corporation of India and the Ministry of Food and Agriculture.
 
In this respect too, officials said situation was better. ' Last year FCI's demand on an average was 30 rakes per day compared to 25 rakes per day this year.' he said. One rake carries about 2,400 tonnes of food grains.

 
 

Also Read

First Published: Jun 21 2005 | 12:00 AM IST

Next Story