Asserting that the Railway budget for 2007-08 was aimed at "slapping" inflation through measures to lighten the burden on the common man, Railway Minister Lalu Prasad said several measures including those against hoarding have been taken to contain prices.
"We will not facilitate the products of hoarders and will instead give preference to the procurements of food grain by the Food Corporation of India", he said in an hour long post-budget press conference.
"At a time when there is increase in prices of some commodities, the Rail budget is a slap on the price rise as we have cut freight charges on petrol and diesel", Prasad said.
He said the freight rate for carrying food grains on a return empty trip has been reduced by 42 per cent, besides lowering the overall freight slab for food grains. The Minister said incentives had also been provided for FCI if the commodities are packed instead of sending them loose.
Similarly, there was a 30 per cent concession on goods sent in open wagons. In reply to a query, the Minister said the revenue surplus is estimated to cross Rs 20,000 crore (Rs 200 billion) during the next financial year despite a likely loss of about Rs 4,500 crore (Rs 45 billion) due to cut in passenger fares.
Prasad said the profitability in Railways had debunked the theory that only privatisation can bring in turn-around.
"We will allow public-private partnership, but the controlling stakes would always be with the government", he said. He said private investments worth Rs 10,000 crore (Rs 100 billion) had been cleared in the container service sector.
Prasad said passengers travelling in sleeper class and 3-tier air-conditioned class will start enjoying lower fares when the high capacity bogies begin to replace the existing ones.
He said 2,500 coaches having raised berth capacity of 84 seats from the present 72 will be manufactured every year. On the performance of Railways, the Minister said as against the 666 million tonnes freight target for 2006-07, the Railways would be carrying 726 million tonnes of freight this fiscal.
He said new proposals such as vendor coaches and additional 'Garib Rath' (poor man's chariot) trains were focused on the common man.