"Railways should formulate a viable funding mechanism for development of backward mechanism through routes such as cost sharing by state governments, getting free land from the beneficiary states and also by generating funds internally through scrupulous implementation of financial discipline," Railway Convention Committee has stated in its report tabled in Parliament today.
The committee has also suggested for cutting wasteful expenditure and probing other avenues such as commercial use of railways surplus land rather than solely being depending upon Gross Budgetary Support.
The committee has strongly felt that there had to be an exclusive monitoring mechanism in railways for the projects in backward areas to oversee the progress of the projects.
The committee has emphasised that the basic consideration should be the overall development of backward regions, tribal and hilly areas and other under-development areas.
It has recommended that the Railways should clearly lay down policy for identification of areas to be developed through railways' participation state-wise, identification of projects on socio-economic consideration, develop concrete basis such as economic development indices and demand from public representatives.
The committee emphasized that details of projects should be maintained separately for backward, tribal and underdevelopment areas to facilitate proper monitoring of utilisation of funds and progress.