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To strengthen revenue next financial year, the railways ministry is pinning its hopes on higher traffic volumes in both the passenger and freight segments. There was no proposal for rationalisation in fares, the ministry announced at a media interaction after the announcement of the 2014-15 Railway Budget on Wednesday.
“No extra passenger fares or freight rates will be charged. We seek to raise money through more passenger bookings and higher loading, as the economy picks up,” Railway Board Chairman Arunendra Kumar said, adding the ministry’s approach in the Budget was “more optimistic, but realistic”.
He said despite the marginal decline in the average lead for goods traffic, by the end of this financial year, the railways would record five million tonnes (mt) of extra freight loading, compared with the Budget target of 1,047 mt. (The railway rupee for 2014-15)
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Earlier, Railways Minister Mallikarjun Kharge had informed Parliament his ministry would exceed this year’s budgeted freight earnings target of Rs 93,554 crore and end the year with Rs 94,000 crore from this segment. For the next financial year, the railways estimates total earnings of Rs 1,64,000 crore and overall expenditure of Rs 1,45,000 crore.
Kumar said though the ministry had refrained from announcing new projects, it would launch several new premium trains, with dynamic pricing of fares. Such trains would be run on 17 identified route, and consumers charged over the base price of ‘Tatkal’ charges.
Financial Commissioner R Kashyap, present at the interaction, said at the end of this financial year, the railways would have a shortfall of Rs 2,350 crore in passenger earnings but an overall fund balance of Rs 8,000 crore. The railways graduated from a fund deficit of Rs 385 crore in 2011-12 to a surplus of Rs 2,391 crore in 2012-13. “The surplus is likely to rise to Rs 12,000 crore at the end of the next financial year,” he said.
He added next year, the railways planned to raise Rs 19,800 crore from the market. This includes Rs 13,800 crore of market borrowings through its funding arm, Indian Railways Finance Corporation (IRFC). The IRFC borrowings would be channelised into remunerative areas, including acquisition of rolling stock.
Kumar informed the Rail tariff Authority, that will advice the government on fares, will be set up in a year and the feasibility study for Mumbai-Ahmedabad High-Speed Corridor would be completed in 18 months. Also, the ministry is planning to award civil construction contracts to cover 1,000 Kilometer under the Dedicated Freight Corridor (DFCC) project in 2014-15.
