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May 8, 2001
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Money > Business Headlines > Report May 8, 2001 |
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Railways may slash plan sizeOur Bureaus The Railways are reviewing their plan size of Rs 110.9 billion in view of an economic slowdown and an effort to counter the unrealistic revenue projections made by former minister Mamata Banerjee in the Budget for the current year. While the decision on the quantum of reduction in the plan size has not been taken, the Railway zones were today asked to "tighten their belts" and make all out efforts to increase revenues while cutting down expenditure where ever possible at a meeting of general managers here. The Railway Board is pressing for a drastic cut in the plan to about Rs 90 billion. Simultaneously, it is also asking for a hike in passenger fares, which were left untouched by Banerjee due to political considerations despite pressing economic logic to do so, a senior official told Business Standard after the conference. "The board is identifying specific heads of expenditure where the cut can be affected," he said. Railways minister Nitish Kumar, when contacted, denied any decision on the cut in plan size had been taken, but admitted that the revenue projections made by Banerjee are "unrealistic" and that "some corrections would have to be made". But for the time being, the minister stressed, the effort is to explore all sources of revenues and go in for an aggressive drive to recover Railways' dues, most of which (over Rs 30 billion) are on account of non-payment of freight charges by thermal power stations for transporting their coal. Because of the economic slowdown, the Railways realised that the revenue target of Rs 399.39 billion would not be met. While the board is against changes in the freight loading and revenue targets, it would seek to mop up an additional Rs 10 billion from a passenger fare hike to bridge the gap in its projected earnings and revenues. Powered by YOU MAY ALSO WANT TO READ:
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