An increase in passenger fares, a drop in freight charges and adoption of latest construction technology and project management skills are some of the issues that got flagged ahead of the Railway Budget in an Assocham conference.
“The Railway budget has a lot of euphoria mainly because of populism. May be the time is right to ask why we need a separate railway budget? It can be a part of the main budget… As railwaymen, in heart of our hearts we know that times are difficult. Time has come when operating costs are covered for passenger operations. There has to be staff rationalisation by re-skilling the staff. There has to be increased outsourcing and mechanisation,” said KC Jena, former Chairman, Railway Board. Speaking at an Assocham pre-budget conference, Jena said no freight rate hike is possible given the low diesel prices.
Failure of contracts on Indian Railways is almost 30 per cent as foreign firms are unwilling to provide inputs, said RN Malhotra, former Chairman, Railway Board. Work is often started under political pressure without proper geological investigation, as was the case with the Jammu Kashmir project. For connectivity projects such as those to Sikkim, and Rishikesh, a number of tunnels are required which entails increased foreign assistance.
“I do expect an increase in fares and freight tariffs,” said Malhotra, adding that a safety fund needs to be created. SK Vij, former Member-Engineering, Railway Board, called for further freight marketing to increase cargo movement.