Indian Railways has evolved into a surprise package during the past four years by reporting a spectacular turnaround in its fortunes. The impetus for an all-round growth within the railways remains intact in this year's Interim Budget too.
The welfare of the common man continues to be the top priority. The minister has reduced fares for the fourth successive year.
Indian Railways has been affected by the Sixth Pay Commission recommendations in the years 2008-09 and 2009-10 by as much as Rs 13,500 crore (Rs 135 billion) and Rs 14,500 crore (Rs 145 billion), respectively. However, the excellent performance in the years 2006-07 and 2007-08 helped them tide over the same.
It may be recalled that the fund balance stood at Rs 25,000 crore in 2007-08. Therefore, the projected cash surplus of Rs 19,320 crore (Rs 193.2 billion) for 2008-09 and Rs 18,847 crore (Rs 188.47 billion) for 2009-10 is rather healthy.
Railways continued their good performance in the current financial year as well. During the first six months of 2008-09, they undertook 7.1 per cent more freight loading than the target.
However, the worldwide recession along with a considerable fall in iron ore exports in October and November puts a damper on the growth. But a revival in the transportation of minerals in the past two months has generated the hope of achieving the target of loading 850 MT this fiscal.
Heavy injection of funds for strengthening the rail infrastructure by way of new factories, dedicated freight corridor, high-capacity wagons and high-speed trains, underscores a visionary perspective of the future.
The projection of gross traffic receipts for 2009-10 at Rs 93,159 crore (Rs 931.59 billion), which is Rs 10,766 crore (Rs 107.66 billion) more than the current year, displays a confidence that the railways are capable of getting the better of the slump. Indian Railways has carried on from where they had left it in February 2008.
K C Jena is the former chairman Railway Board
