Fares may go up if the recommendations of a high-level safety committee suggesting imposition of a safety cess on passengers as a means to raise funds for improving railway safety are accepted. But the final decision will depend on the extent to which the Ministry adopts the recommendations. The Railway Minister, Mr Dinesh Trivedi, said the Ministry will first study the recommendations.
The Indian Railways requires Rs 1-lakh crore over five years to meet safety requirements, says the high-level safety review committee headed by Dr Anil Kakodkar, former Chairman of the Atomic Energy Commission.
The committee, which submitted its report today, had former Delhi Metro Rail Corporation Managing Director, Dr E. Sreedharan, as Adviser.
The break-up
The break-up of Rs 1 lakh crore includes: Rs 20,000 crore for advanced signalling systems on 19,000 km of trunk routes, Rs 50,000 crore for elimination of all level crossings, Rs 10,000 crore for manufacturing coaches with better designs and Rs 20,000 crore for maintenance of safety-related infrastructure and other items.
This is not the first time that a dedicated fund has been proposed to improve safety. The Centre had created a dedicated Special Railway Safety Fund (SRSF) in 2001 to wipe out arrears in renewal of over-aged assets such as tracks, bridges, signalling gear and rolling stock within a fixed time frame of six years. Under the SRSF, the Railways levied a surcharge of between Re 1 and Rs 100 on passenger fares, depending upon the class and total distance travelled.
Pointing out that the financial state of the Indian Railways is on the “brink of collapse”, the committee has called for some strong measures. No new passenger trains should be introduced unless there are infrastructure upgradations, it says. Passenger fares have not been increased in the last 10 years during which many trains were introduced on the existing overloaded infrastructure, it points out.
FUND RAISING
The committee has suggested ways to raise the Rs 20,000 crore of funds every year. It includes Rs 5,000 crore as safety cess, with a matching grant of Rs 5,000 crore from the Central Government, Rs 5,000 crore by not paying dividend, Rs 1,000 crore through road cess and Rs 4,000 crore through rail land development authority earnings. Raising Rs 5,000 crore annually will mean a hike of about Rs 625 per passenger.
Since unmanned level crossings account for the bulk of accidents, the committee has called for elimination of all level crossings by closure, merger, creating limited height subways, road-over-bridges and road-under-bridges. Half the total funds required will be spent on taking this step. “The cost of operating and maintaining all level crossings and loss of line capacity due is equivalent to Rs 7,000 crore every year. The entire cost will be recovered in seven-eight years,” said the committee.
INSTITUTIONAL CHANGES
The committee suggests institutional changes, including strengthening of the Railway Safety Authority (RSA), should be set up as an independent body with a Chairman and outside experts.
It also suggests bringing Commissioners of Railway Safety — which are now under the Civil Aviation Ministry — under the ambit of RSA. Upgrading the current research body and setting up a new research council are some additional recommendations.
The committee says that the Railways safety conditions have been impacted by its “grim financial condition, poor infrastructure and resources, lack of empowerment at the functional levels, and cumbersome processes and procedures.”