The Railway Board has told the committee of secretaries that it may be forced to review the freight target for 1998-99 if user ministries did not pitch in with additional freight support. The railways has also offered to carry freight of central public sector undertakings (PSUs) on a credit basis to improve its freight loading position. The Board feels it is justified in considering a reduction in freight target in view of the downturn in the economy, which is the main reason for lower loadings.
The railways is considering revising the freight loading target for 1998-99 from 450 million tonnes (mt) to 440 mt. The railways just about met the target of 430 mt in 1997-98. Freight loading in the first five months (April-August) of 1998-99 has been 4.17 mt lower than the figure in the corresponding period of 1997-98 and 11.92 million tonnes lower than the targeted amount. This has resulted in a shortfall of Rs 604 crore in freight earnings.
Passenger earnings during the reference period are, however, Rs 55 crore above the target figure. The railways has also managed to keep its operating expenses at Rs 182 crore below the targeted figure. Thus, the actual shortfall works out to Rs 367 crore. Gross earnings in April-August, including sundry earnings, are short of the budgeted level of Rs 12,479 crore by Rs 542 crore.
According to the Board, power and steel PSUs can either build up their stocks of coal and other materials or divert it from the road transport to the railways. The railways will also extend to PSUs availing credit for two weeks the 10 per cent discount on freight rates, which is currently available to customers making advance payment, to compensate them for some of the additional costs they may have to incur to build up inventories.
The Railway Board feels there is a need to offer incentives to PSUs on this count because they are currently trying to keep inventories to a minimum.
The Board has promised the government to launch an aggressive marketing drive to target mini-cement and mini-steel plants, which have hitherto been neglected. These plants mostly use road transport.
