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`Dividend deferment is only an intermediate solution'

Hema Ramakrishnan

P. Manoj

NEW DELHI, Feb. 25

DIVIDEND deferment is only an intermediate solution, according to Mr. Shanti Narain, Member (Traffic), Railway Board. In a short interview with Business Line , he was also optimistic of meeting the freight loading target of 475 million tonnes.

The dividend deferment shows the Indian Railways are in bad shape financially ?

This is an intermediate solution. Ultimately, the Government has to appreciate that we have to be supported for discharging public service obligations like operating on uneconomical routes and subsidised passenger fares. That is the only solution.

But, the Government has stated its intent to prune subsidies ...

Subsidy cannot be treated as a bad word in a developing economy. After all, you are giving Rs. 12,000 crores on fertilisers, Rs. 10,000 crores on food. If you can afford to give this.. the logic is the same in Railways also. We are discharging the social service obligations for the benefit of the common man and poor people.

Why was passenger fares spared from the hike?

The Railway Minister's philosophy is that we have to first give improved services and facilities to the passengers and then raise the fares. That is her social contract with the people. The message is that I am a different Railway Minister... that I will not jack up the passenger fares but first improve the facilities and then raise the fares.

The 5 per cent increase in freight rates is uncalled for. Isn't it?

There is a 5 per cent hike. But on our main commodities like coal, cement, iron ore and iron and steel, the raise is hardly 1-2 per cent. What has gone up are rates on fertilisers and oilseeds which in any case would have been raised.

Is the freight loading target of 475 million tonnes achievable?

It is a bit optimistic. But, considering the fact that the economy is picking up, we would be able to meet the target.