'Timid approach will not work'

RAILWAY BUDGET 2006-07/ EXPERT VIEWS: Ashok Bhatnagar

The railways' performance during 2005-06 will astound even the most optimistic. Against the original Budget estimate of 635 million tonnes of freight for 2005-06, the railways are expected to achieve around 668 million tonnes.

That will be an increase of around 66 million tonnes or 10 per cent over the previous year. Considering the elasticity of the rail transport demand, such a growth rate almost conforms to about 8 per cent growth of the GDP.

The Railway Budget during the last few years showed signs of timidity of approach. Freight targets were under-targeted, leading to under-estimation of revenue and expenditure.

Even annual Plan sizes were tailored down. Why should they have been so uncertain and diffident about their capabilities and abilities?

The reason can basically be traced to gross under-investments and serious lack of attention to capacity generation programmes like "line and rolling stock capacities and allied manufacturing and maintenance facilities".

The need for massive investment in capacity generation programmes is best illustrated by rapid growth in the freight traffic potential.

It is, however, heartening that the Budget estimate for 2006-07 has a positive indication and the minister has committed that "line and throughput" capacity works shall not only be given the top-most priority but also full funding.

Even then the freight target for 2006-07 has been kept low at 726 million tonnes. With even a 10 per cent growth target, the figure should have been 730-740 million tonnes.