The Plan support for the railways for the financial year 2003-04 is likely to be pegged at about Rs 13,000 crore (Rs 130 billion) which represents practically no increase over the current financial year.
The ministry has already held a couple of round of meetings with Yojana Bhawan to finalise the package, but senior officials in the ministry said Wednesday's secretary level meetings could not be held.
The sum is just above the plan support of Rs 12, 330 crore (Rs 123.3 billion) for the current financial year. According to sources the sum includes the allocation for the Special Railway Safety Fund.
In the current financial year the ministry got Rs 10,120 crore (Rs 101.2 billion) as plan support while Rs 2,210 crore (Rs 22.1 billion) was meant for the SRSF. The funds meant for SRSF are not fungible.
They said the plan size is unlikely to increase further as both the finance ministry and the planning commission have laid stress on raising of internal resources and extra budgetary resources by Rail Bhawan.
While this would indicate a hike in passenger fares, sources however said the contours are still being worked out.
In the plan for 2002-03 the railways proposed to raise Rs 2,630 crore (Rs 26.3 billion) from internal generation by raising passenger fares and some categories of freight rates.
Planning commission too is hamstrung about giving additional support as the finance ministry has already indicated that it will be difficult to meet its overall expected gross budgetary support of Rs 1,34,000 crore (Rs 1340 billion).
According to sources since the finance ministry has agreed to allow the railways to convert a part of its debt burden due to Konkan Railway Corp into equity, the plan size would not have to account for it.
In the current financial year the railways was expected to provide for Rs 530 crore (Rs 5.3 billion) for the same. But it has now been reduced to Rs 250 crore (Rs 2.5 billion).
