'We have done our bit against inflation'

RAILWAY BUDGET 2007-08

Railway Minister Lalu Prasad may have had to shout in Parliament to deliver his speech on the railway budget, but he feels his ministry's statistics speak for themself.

Terming this budget as one dedicated to the 1.4 million employees of the Indian Railways and to passenger amenities, he gives his take on the annual exercise.

What do you think is your main achievement in this year's budget?

Our main achievement is the fact that we have been able to slap inflation right back on its face by not raising passenger fares and freight rates, despite having adequate reasons for doing so.

Our rates remain the same and despite this we have managed to post a surplus of Rs 20,000 crore, breaking the myth that all vagaries of the market have to be passed on to the consumer.

With such a surplus, shouldn't there have been a concession given for grain haulage?

We have given up to 42 per cent concession for grain packed in boxes, to be ferried in open wagons; likewise, a 30 per cent concession for cement and fertilisers.

In fact, we have repeatedly told the Food Corporation of India (FCI) that they should avail of this facility. We can only take the horse to the water, not make it drink.

This budget sees a number of benefits for railway employees. How come?

When I took over as railway minister, the ministry was in the red. Everyone knows about the Rakesh Mohan Committee Report.

There was only talk of privatisation and retrenchment. I asked the 1.6 million employees to help me turn the railways around and we have seen the results in three years. The 65-day bonus and increase in government contribution to benefits is only a "thank you" to them.

Only if they are happy will they be happy to serve. A famous case study on the turnaround of British Airways showed that good passenger service comes from happy and proud employees. We are trying to implement this in the Indian Railways.

This year's budget steers clear of structural issues unlike the last two times.

This year we saw that we got the results we wanted from the structural improvements we have undertaken. Now was the time to move ahead and improve passenger amenities, to give to those who had faith in us. The AC coaches, the proposal for 2,500 new coaches, high frequency train service are a part of this.

Your speech talks a lot about public-private partnership but stops shy of mentioning the sectors in which you are seeking it.

We are not going to tamper with the soul of the railways passenger traffic will remain with the government. We have already raised Rs 10,000 crore from public-private partnership (in) the container business, and we expect more money in high-speed corridors, development of hotels, world-class railway stations and other real estate projects. Despite the surplus, we need more money, and this is the only way to raise it.