Describing the railway budget 2015-16 as being a "historic step in trying to find resources outside of the budget", Railway Minister Suresh Prabhu Thursday sought to hike goods rates on a host of items to garner additional revenue on this count.
"We're taking debts, taking it (financing of investment) on our balance sheet," Prabhu told a select group of interlocutors on Lok Sabha television after presenting his maiden budget.
"Pension funds, sovereign wealth funds give loans over a 20-30-year period, that also suits the Indian Railways," he added when asked about plans to address the pressing issue of finances for the network.
Even as he left passenger fares untouched, Prabhu sought to hike goods rates on a host of items between 2.1 percent and 10 percent to garner 13.5 percent additional revenue on this count.
The railways incur a loss of Rs.26,000 crore on passenger fares, which is cross-subsidized by freight fares that are already among the highest in the world.
He also proposed an operating ratio below 90 per cent to increase revenues for the system.
"I have proposed an operating ratio at 88.5 percent as against the targeted ratio of 92.5 percent for 2014-15, which has improved to 91.8 percent. This operating ratio will be the best in nine years," he told the Lok Sabha.
The operating ratio, mapping revenue earned from money spent on operations, for Indian Railways declined to an unsustainable level of over 90 percent in 2010-11 from around 80 percent in the 1950s. Globally, a figure of 75-80 percent or lower is what is seen as a healthy benchmark, but India ranks among the worst networks on this count.
"Budgetary support, also means borrowing from the market," Prabhu told his television audience, referring to his limited expectations from the union budget coming up on Saturday.
The railways expect to get around Rs.50,000 crore as budgetary support from the government, while the rest has to come from external sources of funding and public-private participation.
"We'll tap other sources. Multilateral development banks and pension funds have shown keen interest in investing in the Indian Railways," Prabhu said.
He had earlier rejected the idea of a reduction in passenger fares consequent to the lowering of diesel prices following the steep decline in international crude oil rates.
Falling oil prices have saved billions of dollars in subsidy spending, but Finance Minister Arun Jaitley is under pressure to prevent the fiscal deficit from crossing the target of 3.6 percent of the gross domestic product (GDP).
Prabhu earlier Thursday told the Lok Sabha that the proportion of rail revenue available for investments would rise to 11.5 percent in the next fiscal--up from 8.2 percent in the current fiscal, while the network envisages an investment of Rs.850,000 crore over the next five years.
