New Delhi, February 26
Passenger fares have been spared while freight rates have been hiked marginally across the board, barring some essential commodities, to mop up Rs 500 crore in a Railway Budget that preserves Ms Mamata Banerjee’s image as a minister of the masses.

Barring essential commodities like edible salt, grains and pulses, sugar, fruits and vegetables, urea, edible oils, kerosene and cooking gas, freight rates of all commodities have been raised by 3 per cent. Freight rates for coal (not meant for household consumption) and iron and steel is being increased by only 2 per cent. In order to attract more black oil traffic to rail, the increase in furnace oil is proposed to be restricted to 1 per cent.

The price increase, which would become effective from April 1, however, exempts urea, parcels and luggage, newspapers, magazines and medicines.

Apart from the increase in freight rates, Ms Banerjee has relied on better performance in freight and passenger traffic, realisation of dues and earnings from non-traditional sources.

Target for non-traditional sources of earnings have been kept at Rs 1000 crore — Rs 700 crore by way of leasing of ‘right of way’ of optic fibre cables, Rs 200 crore from commercial exploitation of land and Rs 100 crore through commercial publicity.

Ms Banerjee hopes to realise Rs 750 crore in dues from various companies, of which Rs 500 crore would be from the Badarpur Thermal Power Station.

In what appears to be a compromise formula, the Finance Ministry, unlike the last time where it allowed the minister to defer the entire dividend of Rs 1500 crore, has allowed only Rs 1000 crore to be transferred to Deferred Dividend Liability Account while Rs 1352 crore would be paid to General Revenues.

The minister announced continuing the concessional season tickets for people below the poverty line, and extension of concessions to visually handicapped and to mentally handicapped.

Despite the restraint shown in raising additional resources, the Budget has significantly stepped up the annual Plan outlay for the coming year by 11 per cent to Rs 11,090 crore as against Rs 10,002 crore this year without any increase in budgetary support.

Ms Banerjee announced the introduction of 24 new express trains, including Asansol-Jhajha-Amritsar weekly express, and seven Matribhumi Express trains to be run during peak rush season with only second class and second class sleeper coaches.

The frequency of nine trains has been increased and the extension of an equal number of trains announced.

No fresh new line project has been included in the Budget and investment for the existing projects has been hiked by 45 per cent.

The minister said survey during the next financial year would cover 26 segments, including Ferozepour cantonment to Tarn Taran.

Announcing an increase of 39 per cent outlay over the revised estimate to improve passenger amenities, Ms Banerjee said the steps would include fully computerised ticket refunds on all zonal railways; automated teller machines at various important stations which would be later used for issue of tickets also; information to public through cable tv, Internet and cellular phones; ticket retailing at Internet kiosks, and improved facilities like pay-and-use toilets, drinking water etc at stations. The minister announced that 74 more stations would be upgraded as model stations in addition to the existing 210 stations.

Pointing out that the Justice Khanna Committee had recommended an expenditure of Rs 15,000 crore for the rehabilitation of railway assets for safety, Ms Banerjee regretted that efforts to raise the funds from outside the Railways (Finance Ministry) had not materialised. “I am sorry, my speech would be silver but my silence would be golden (on this)” she added.

Declaring that the Railways would not be privatised, the minister lamented that the capital support from the General Exchequer had been declining over the years. From 75 per cent in the Fifth Five Year Plan, it had come down to 42 per cent in the Seventh Plan and 18 per cent in the last two years of the Eighth Plan. Posing a question to the House she asked: “Are we a commercial enterprise only? Or are we a public utility?”

A possible solution, she said could be funding of socially relevant projects by the state and an alternate multi-source fund for remunerative projects.

Freight traffic target has been fixed at 500 million tonnes for 2001-02, from 475 tonnes in the previous year and growth in passenger traffic has been projected to increase by 9 per cent. Other coaching is expected to grow by 8.8 per cent while Sundry Other Earnings from traditional sources have been estimated to rise by 5.4 per cent.

While the net miscellaneous receipt has been fixed at Rs 928 crore, including Rs 300 crore from general revenues for safety works, net railway revenue has been projected at Rs 1683 crore.

‘Excess’ of receipts over expenditure has been worked out to Rs 331 crore falling short of Plan requirement of internal resources by Rs 500 crore.

Market borrowings have been placed at Rs 4000 crore and the balance Rs 3550 crore would be met through combination of normal internal resources, non-traditional revenues and contribution from general revenues for railway safety works.