Indian Railways will be paying a higher dividend of Rs 5,479 crore during the current fiscal despite over Rs 3,000 crore dip in cash surplus on account of higher wage bill following implementation of the Sixth Pay Commission award.
Unveiling the Rail Budget for 2009-10, Railway Minister Mamata Banerjee said, "The railways paid their full dividend liability of Rs 4,717 crore in 2008-09 and will pay an even higher dividend of Rs 5,479 crore in 2009-10."
The railways will be paying higher dividend despite the adverse "impact of increase in working expenses due to the Sixth Pay Commission and sluggishness in earnings due to the economic slowdown".
The cash surplus of the railways during the current fiscal is expected to dip to Rs 14,201 crore from Rs 17,400 crore in the previous fiscal, mainly on account of higher wage bill during the year.
According to Banerjee, the railways disbursed Rs 13,600 crore during 2008-09 towards implementation of the Sixth Pay Commission recommendations.
For the current fiscal, she said, "After having absorbed the impact of the Sixth Pay Commission, to the extent of Rs 14,600 crore in 2009-10, the cash surplus before dividend of the railways work out to Rs 14,201, net revenue of Rs 8,121 crore and operating ratio of 9.25 per cent."
Banerjee further said that goods earnings target for the current year has been pegged at Rs 58,525 crore, which is Rs 5,092 crore more than the performance recorded during the previous fiscal.
Passenger earnings have been projected at Rs 24,309 crore, she said, adding "a growth of 10.8 per cent has been provided in keeping with long-term trend of growth."
The freight traffic target for the current fiscal has been fixed at 882 million tonnes, representing an increase of 49 million tonnes over 2008-09.
"This ambitious target is being kept in light of the special measures being taken by the government to give an economic stimulus...," she added.
