New Delhi: There will be no reduction in passenger and freight fares on Indian Railways, which consumed diesel worth Rs 6,000 crore in 2005-06, even though global oil prices are showing a declining trend.
"We have not not increased fare even when oil (diesel) prices were raised. We purchase diesel worth Rs 6,000 crore and the loss was compensated through other sources", Railway Minister Lalu Prasad said addressing the Economic Editors' Conference.
Crude prices have declined from a high of US $75 per barrel in August this year to around US $58 a barrel now.
The Minister, who is credited with the steering the Railways toward profits without resorting to hike in passenger fares, appeared annoyed with reports that described the turnaround as a media hype.
"While top business schools in India and abroad are studying the 'magical transformation', the so-called intellectuals are worried whether this turnaround would be or not," he said.
"They are also finding it difficult to understand how the Railways could achieve a fund balance of Rs 16,000 crore and an operating ratio of less than 80 per cent without privatisation, retrenchment and raising of passenger fares".
The Indian Railways has earned Rs 13,000 crore surplus during 2005-06 and is expected to earn Rs 20,000 crore this fiscal.
Prasad explained that the turnaround was not merely a consequence of economic boom, but was on account of historical shift in thinking, strategy and style of working.
PAGE_BREAK
"Increased volumes, reduced unit cost, decreased tariff, focus on competitiveness and market share are the underlying mantra of this strategy", Prasad said.
The Railway Minister said that the reforms introduced during the last 30 months have benefited both the common man and the economy. "We have reduced fares across all classes and by earning record profit presented a new model of reform with a human face".
The Minister also announced that the investment made in the 10th Five-Year Plan would increase by at least four times in the 11th plan period.
"We have prepared an ambitious plan for Railway modernisation, construction of Dedicated Freight Corridor, construction of Agri Parks for ferrying the produce of farmers from field to shops and conversion of meter/narrow gauge into broad gauge", he said.
Construction of eastern and western corridors have already been inaugurated by the Prime Minister, Prasad said, adding that the Railway Ministry was not only constructing new lines but would usher in new technology, work culture and perceptions in the Railways.
"It is our vision that this modern corridor would be appropriate for 25-30 tonne axle load and longer double stack container trains. Once these corridors are constructed, goods trains would run at two to three times their present speed and passenger trains run at double the present speed", Prasad said.
He also announced that over the next five years more than Rs 1,00,000 crore would be invested on modernisation of Railway signaling, track and rolling stock so that modern services could be provided to passenger and freight customers at low prices by bringing down the unit cost.
Comments
0 comment