Cross-subsidies will be phased out: Nitish Kumar

BS Economy Bureau

After presenting the 2002-03 railway budget to Parliament, railway minister Nitish Kumar addressed a group of journalists. Pradeep Puri reports.

This is the first railway budget in recent years which seeks to mobilise an additional Rs 13.60 billion during the year through changes in freight rates and fares. Will this not affect the common man?

There is no across-the-board hike in freight rates and most of the increases in fares are minimal. The additional resource mobilisation is mainly through rationalisation of fares and the freight structure.

Over a period, distortions had crept into this structure. These have been removed. This rationalisation, while marginally increasing fares and freight rates in some cases, has brought these down in certain others.

Essential commodities have not been spared from the freight hike. Won't this hit the common man?

Certainly not. In the case of essential commodities also, I have tried to remove past anomalies. Though this will increase freight charges for some essential commodities, the common man will not be affected because of the minimal incidence of increase.

For example, in the case of edible salt, the increase in freight rates may increase the expenditure on salt by less than a rupee per month for a family of four.

There has been a lot of cross-subsidisation in the past. Do you propose to continue with this?

I wish to end this. We are working out an arrangement by which no commodity is overcharged to subsidise another.

Do you think this year's estimates are realistic?

Absolutely. The only assumptions are the 21 million tonne increase in freight traffic and the 4 per cent increase in passenger traffic. These are achievable targets. There are no imponderables: no BOLT, no own-your-wagon scheme, no leasing of rail lines for telecom purposes.

Did you factor in a possible increase in the railways' fuel bill after the administered pricing mechanism in the oil sector stands dismantled from April 1?

Yes. That's why we have provided for a 7 per cent increase in the working expenses over the revised estimates for the current year.

However, if the fuel prices come down because of the dismantling of the APM, we will use the spare funds to boost the track renewal drive.

What is the rationale behind introducing 16 Jan Shatabdi Express trains?

These trains will have only second-class coaches and the common man will be able to enjoy the benefits of Rajdhani and Shatabdi trains.

New, modern and safe coaches are being designed for these trains. As in Rajdhanis and Shatabdis, passengers will get good and hygienic food. Another initiative for the common man has been the introduction of a new ticketing system for unreserved passengers. Now, these tickets can also be obtained in advance at railway stations.

How will you compare this budget with the budgets of a few previous years?

I do not wish to compare. We have made an attempt to tone up the railway finances. We have also tried to make the railways more efficient and safe. The decision-making process has been decentralised in the public interest.

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