Decks clear for Privatisation of Indian Railways Back Door
Ruling comradors turning Motherland a Killingfields consisted of hundreds of Foreign Territories.
Palash Biswas
Contact: Palash C Biswas, C/O Mrs Arati Roy, Gosto Kanan, Sodepur, Kolkata- 700110, India. Phone: 91-033-25659551
Email: palashbiswaskl@gmail.com
Please read,react,circulate and Write.Just Visit:
Nandigarmunited.blogspot.com
West Bengal Left front Goverment executed Maraichjhanpi Massacre to protect Environment violating International and inland water laws. Just see:
On Line Video Petition against Marichjhanpi Genocide:
http://indiainteracts.com/videos/2008/02/07/Marichjhanpi-genocide/
Just read these documents:
morichjhanpi.blogspot.com
I had posted a Hindi writeup on the opening of American Budget Session of Indian parliament earlier. Last year, I asked, you may remember whose budget was this. The Presidential address ensured the Indo US Nuclear deal as well as Hindu, Zionist, White strategic Regrouping to empower the Post Modern Galaxy Manusmriti Apartheid Order. The so called Indian marxists leading so called antiimperailist anti capitalist Movement worldwide, have opted for Capitalist Development with Bush Buddha Alliance. They have no objection against the War against terrorism or the liquidation of the Indian nation, its freedom, sovereignty, unity and integrity unless and until it goes against the Ruling Brahminical Hegemony in these divided bleeding geopolitics. Marxists never hesitated to betray People`s war against Feudalism, Capitalism and Imperialism. Whether it was Telengana or Srikakulam , Dheemri Block or Naxalbari the Indian Marxists allied with the machinery of Repression , the State Power. The Ruling Marxists in West Bengal never hesitated to open fire against the enslaved majority Indian indigenous people as it was evident with the liberation of Marichjhanpi right in January, 1979. Nandigram genocide has created a History worldwide. Thus, despite the claims of land reforms, the Marxists all over the Indian Nation do betray the peasants and have turned to be the best agents of SEZ, Nuclear Plants, Chemical Hubs and Retail chain. Comrador, US planted Prime minister ably associated by Bengali Elite de facto Prime minister Pranab Mukherjee, World Bank slaves Chidambaram, Ahloowalia, Kamal Nath, WB PCC chief Priya Ranjan Dasmunshi, all kinds of Ruling Hegemony Ideologies and parties left as well as the right and the so called civil society led by pet Intelligentsia, Money, Mafia and Caste Hindu Media plays havoc against the enslaved Indigenous people turning Motherland a Killing fields consisted of hundreds of Foreign Territories.
Railway Budget presented by OBC Icon Lalu Prasad Yadav is an example of classic subversion of common people`s interests. It is , no doubt , looks like an Election budgets full of magnetic elements. But the shrewd politician uprooted from Bihar, has managed to clear the decks for Privatisation in Indian Railway back door. He has implemented railway land Acquisition act to acquire agrarian land indiscriminately. At the same time he has managed to sell out Railway holding to MNCs dodging the Public Eye projecting attractive statics of Revenue generation and profit for railway. The facts may be read through the reactions in the stocks and attitude of industial and trade sector.
Indian Railways is seeking greater role for private players in building rail infrastructure in the country, and this regard proposals have been made in the railway budget unveiled on Tuesday. Railway Minister Lalu Prasad Yadav proposed public-private partnership projects that will cost a trillion rupees in next five years. The projects for port connectivity, freight corridors, container terminals and improved passenger amenities will go a long way towards making rail network modern and efficient.
The budget proposed RS 75000 crore to be invested in seven years on infrastructure, including dedicated freight corridors, additional rail lines, signaling works and flyovers.
Indian industry welcomed proposals seeking greater role for private players in building rail infrastructure in the annual railway budget on Tuesday.
Railway Minister Lalu Prasad Yadav in his budget for 2008/09 proposed public-private partnership projects that will cost a trillion rupees in next five years.
"In the budget, the railway minister has focused on building capacity for future by making the required investments in infrastructure," said Sunil Mittal, president of industry lobby, Confederation of Indian Industry, in statement.
The projects for port connectivity, freight corridors, container terminals and improved passenger amenities will go a long way in making India's rail network modern and efficient, Mittal said.
Another industry body, Federation of Indian Chambers of Commerce and Industry, said in a statement the initiative would generate huge opportunities for India's private sector to participate in the entire experiment.
The rail budget proposals, however, did not please the Communists, who are a major ally in the ruling coalition headed by the Congress party.
"...the railway minister has continued with the disturbing drive towards privatisation of container trains and depots, outsourcing of railway services and privatisation of railway property in the name of public-private partnership," the Communist Party of India (Marxist) said in a statement.
A top railway official said that construction work on the ambitious eastern and western freight corridors, which would cover a combined distance of 2,743 km along the golden quadrangle, would start in the fiscal 2008-09, starting April.
"The cabinet has approved the project. The funding plan is that the eastern corridor will be done along with Internal Generation, GBS and multilateral funding. While the western corridor, will be done along with Internal Generation, GBS, JBSE funds," said K C Jena, Chairman of the Railway Board.
The Federation of Indian Chambers of Commerce and Industry (FICCI) gave thumbs up to Lalu Prasad's fifth Railway Budget in a row, saying that the initiatives would generate huge opportunities for the private sector to participate.
"An effort has been made to bring in a lot of balance in the railway budget this time and also to promote public-private partnership. And the main thing is that, in freight area, which is linked to business, he (Railway Minister) has tried to make provision for double-triple stacking," said Amit Mitra, FICCI Secretary-General.
Lalu Prasad reduced rail freight rates for petrol and diesel by five percent in moves, which could help the government stem rising inflation and woo voters ahead of elections due by May 2009.
Indian Railways, with a network of 63,332 kilometres, is the second largest in the world and moves about 16 million people and 2 million tonnes of cargo each day.
And see the daram enacted by the Marxists as Indian express reported:
Railway Budget 2008-09 has the Left vertically divided. Not only did the division surface between the Left MPs from Kerala and West Bengal but there were also strong differences of opinion between the CPI and the CPI(M) over the Railway Budget.
While Left MPs from West Bengal staged a walkout shouting that the state had been "ignored", many of their counterparts from Kerala refused to join them and sat through the Railway Minister's speech. Kerala MPs were apparently satisfied with the announcement that a locomotive factory would come up in their state. The Kerala MPs also ignored appeals by their Bengali counterparts to join in their protest.
The CPI(M) Politburo welcomed the Railway Budget saying that it has "some positive features", even as it opposed the privatisation measures and demanded that they should not be taken forward. The CPI, on the other hand, totally rejected the Railway Budget with party MP Gurudas Dasgupta wondering whether the exercise was carried out by Lalu Prasad Yadav or Finance Minister P Chidambaram.
Dasgupta said it was a budget for the affluent middle-class and there was no benefit given for travellers in local trains and monthly ticket-holders. "We are totally opposing the budget," he said.
"It is a parochial budget. The new trains are going between Patna and Chennai," said Dasgupta's party colleague Sudhakar Reddy.
The CPI(M), on the other hand, welcomed the reduction in passenger fares saying that in a situation where people were suffering from all-round price rise, the reduction in passenger fares provided "some relief".
Freight rates for petrol and diesel have been reduced by around 5 per cent, which is a "correct step", said the CPI(M). The appointment of licensed porters as gangmen and other Group D posts announced in the Railway Budget is a "positive step", said the Politburo in a statement.
The CPI(M), however, said that some states faced discrimination, especially the Northeast and Jammu & Kashmir, which was bound to give rise to discontent. The outlays and targets set for enhancing safety and security in Railways have not matched the claims made in the Railway Minister's speech, it said.
The enhanced production targets for locos and wagons are "welcome", but purchase orders for these have to be evenly distributed among the public sector wagon and loco manufacturing units based in different States. The Railway Budget for 2008-09 has to be seen the in the light of a creditable rise in the cash surplus of the Indian Railways to Rs 25,000 crore in 2007-08 and an improvement in the operating ratio to 76 per cent, said the CPI(M).
"While the attempts to utilise these opportunities have been half-hearted at best, the Railway Minister has continued with the disturbing drive towards privatisation of container trains and depots, outsourcing of railway services and privatisation of railway property in the name of Private-Public Partnerships (PPP)," said the CPI(M) Politburo.
The Railway Budget envisaged future expansion of container trains and depots mainly in the private sector, with the number of private container trains increasing from 46 to 50-55 and 40 new privately controlled container depots to be built in the coming year. The increase in public investment in container trains and depots is insignificant. Clearly, the approach is to hand over the profitable container business to the private corporate sector, said the CPI(M).
A proposal to hand over major railway stations in New Delhi, Mumbai, Patna and Secunderabad to private players for development has been made in the budget. Private players are also going to be involved in setting up diesel and electric locomotive and coach factories. Outsourcing and privatisation of on-board cleaning in superfast mail and express trains has also been announced. "The CPI (M) is opposed to these privatisation measures," said the Politburo.
Meanwhile, the ruling Congress congratulated the Railway Minister for presenting a "people-friendly, growth-oriented and extremely productive budget". Citing a series of measures announced in the budget, AICC spokesperson Jayanthi Natarajan said that the Railway Budget was oriented to serve the need of aam admi, the central focus of the UPA Government.
'Railways turnaround exemplary & sustainable'
27 Feb 2008, 0926 hrs IST, Lalu Prasad Yadav
We have posted a Rs 25,000-crore profit this year. This is better than the net profit of most of the Fortune 500 companies. Had we listed ourselves, we would have been on the Top 10 list.. The operating ratio at 76.3 is one of the best in the world. All these have been achieved without following the conventional approach. Our commonsensical and counterintuitive approach has been the foremost reason behind the turnaround.
Nano would make cars affordable for two-wheeler owners in India. Similarly, Garib Rath will make air-conditioned travel affordable for lower middle class and poor section of our society, who usually travel by sleeper class due to cost constraints. This time, we have announced 10 more Garib Raths.
Our out-of-box thinking, high-volume game, and boldness in approach have fuelled the turnaround. And, to make this turnaround sustainable, we have multiplied our investment for future by about 4 times, which is exemplary by any given standards, in the last four years.
The railways would invest Rs 25,000 crore over the next five years in capacity augmentation, technology urgrade, doubling of tracks and promotion of world-class services to our customers.
We have set up a strategic business analyst and innovation group comprising railway experts for creative and strategic thinking in railways on a long-term basis. We would come with a 'Vision Document 2025' for the railways and vision 2012 on IT exclusively over the next few months. The annual plan for the current year is Rs 35,000 crore, which is the biggest till date, and 80% funding of the plan would be done through net budgetary resources and internal generation.
The focus over the last three years is not on yield per passenger or yield per train kilometre, rather the yield per train kilometre is the chief concern. We have made money not by increasing tariff, but by increasing length, payload, seating capacity and occupancy levels.
At a macro level, the focus is not on denominator but on the numerator. In other words, we have taken steps to revive and regenerate the competitiveness of railways in the market place. Setting up of a tariff regulator, down-sizing or restructuring cannot sort out the problems of competitiveness of railways in the market place. The battle of the market has to be fought and won in the market place and therefore railway's pricing strategy factor is not totally commercial but customer-centric and market-driven.
We have a dynamic pricing and commercial policy across routes, regions and periods. The investment strategy focus is on low cost, short gestation, rapid pay-back and high return projects for better operating efficiency, more effective utilisation of rolling stock and removal of capacity bottlenecks on the high-density networks (HDN).
Over the medium and long term, the priority areas are throughput enhancement works on the HDN, modernisation and technological upgrade of rolling stock and signalling and telecommunication, wider application of information technology for operational improvements and revenue enhancement and better customer service.
We have shown that social obligation of the public utility can be married with a commercial enterprise. It has been possible for us to become profitable and at the same time win hearts of teeming millions of the country. This happens only when we think creative and act swiftly with the time.
What the country has seen so far is not even the tip of the iceberg. The Railways have huge potential and coming time would see this magic unfold with all its beauty and charm.
Foundation of a mega enterprise has been laid and the identity of the railways as an institution has grown stronger with the morale and pride of employees at an all-time high.
http://budgetwithet.economictimes.indiatimes.com/rlyarticleshow/2817689.cms
Rail Budget gives steam to Simplex, Jindal Stainless, Kernex
26 Feb 2008, 1350 hrs IST,INDIATIMES NEWS NETWORK
http://budgetwithet.economictimes.indiatimes.com/Market_Reactions/Rail_Budget_gives_steam_to_Simplex_Jindal_Stainless_Kernex/rlyarticleshow/2815842.cms
MUMBAI: Railways Minister Lalu Prasad Yadav on Tuesday said the Indian Railways had made a profit of Rs 25,000 crore so far in FY08 on reduced fares and increased volumes. Presenting the budget for 2008-09 Tuesday, the minister said revenue from freight loading during April-December was up 8-10 per cent at Rs 34,700 crore, and operating ratio at 76 per cent.
He said the Railways had earned an additional Rs 2,000 crore on freight services and revenue from passenger fares had increased 14 per cent. Shares of companies which cater to the Indian Railways had already reacted ahead of the Budget. This is Lalu's fifth and last budget of this Lok Sabha.
Kernex Microsystems was at Rs 216.50, up 3.61 per cent. It touched a high of Rs 219.35 and low of Rs 213. It has gained 11 per cent in the past one-week. Kalindee Rail Nirman Engineers advanced 0.30 per cent to Rs 486. It touched a high of Rs 505 and low of Rs 481.20. It has surged 11.80 per cent in the last seven days.
In January, Kalindee Rail Nirman, in joint venture with Samsung, Korea, bagged Rs 81-crore order from Delhi Metro towards installation and commissioning of AFC system. It also won Rs 20.49 crore signaling contracts for North Western / South Central Railway. Simplex Casting, which bagged Rs 14-crore order from Indian Railway early this month, was up 8.71 per cent at Rs 95.45. It touched a high of Rs 102 and low of Rs 89.05.
Stone India share was up 4.31 per cent at Rs 132. Volumes were high at 47,823 compared with two-week average of 13,856. Shares of Container Corporation of India remained flat at Rs 1,723.50. It touched a high of Rs 1,728 and low of Rs 1,720. Gateway Distripark was up 3.91 per cent at Rs 114.25 on volume of 2,55,113 shares. It touched a high of Rs 116.80 and low of Rs 111.90.
BEML share was up 3.63 per cent at Rs 1,155. It touched a high of Rs 1,165 and low of Rs 1,130. Texmaco share was up 3.27 per cent at Rs 1,638.85. It touched a high of Rs 1,660 and low of Rs 1,615. Jindal Stainless Steel share was up 5.25 per cent at Rs 157.45. It touched a high of Rs 158.70 and low of Rs 150.50. Jindal Saw share was up 2.87 at Rs 894.60 on BSE. It touched a high of Rs 898.70 and low of Rs 875.65.
SAIL share was up 2.03 at Rs 244.10 on BSE. It touched a high of Rs 246.70 and low of Rs 240.55.Tata Steel share was marginally up at Rs 811. It touched a high of Rs 820.50 and low of Rs 803.50. Nitin Fire Protection surged after Minister Lalu announced plans to introduce fire protection system in the coaches. He said if the pilot project is successful, anti-fire equipment would need an investment of Rs 7,000 crore. Nitin Fire shares were at Rs 513, up 13.15 per cent on volume of 65,955 shares. It touched a high of Rs 524 and low of Rs 448.85.
Select software shares look up on Lalu's IT thrust
26 Feb 2008, 1417 hrs IST,INDIATIMES NEWS NETWORK
MUMBAI: Railway Minister Lalu Prasad Yadav's stressed on technology to drive the Railways' growth ahead saw some IT shares react positively. Presenting the Rail Budget for 2008-09 on Tuesday, the minister announced Rs 250,000-crore investment on IT and network upgradation.
In reaction, the CNX-IT was up 0.76 per cent and BSE-IT up 0.87 per cent. Infosys Technologies was the biggest gainer, up 1.53 per cent. TCS was up 0.12 per cent, HCL Technologies advanced by 3.36 per cent, Tech Mahindra gained 0.32 per cent and Zensar was up 1.69 per cent. The minister announced plans for SMARTCARD ticketing system, touch screens, colour TVs across all major stations, 6,000 automatic ticket sale machines in two years, call centres for reservations, ticket confirmation via mobiles, among others.
However, an analyst with a local brokerage said, the IT initiatives announced in the Rail Budget would not really impact the top five companies in this sector much, as they depended more on overseas contracts. He said it would have to be seen who would get the contracts.
Railway budget helps equities close higher
26 Feb 2008, 1601 hrs IST,INDIATIMES NEWS NETWORK
MUMBAI: Indices closed higher Tuesday reacting positively to the railway budget. Thrust on infrastructure and technology up gradation saw tier II and III indices outperform the benchmarks. BSE's Sensex closed 155.62 pts up at 17,806.19. It touched a high of 17,860.10 and low of 17,678.74 . NSE's Nifty ended 50.35 points or 0.95 per cent higher at 5,250.35 after touching a high of 5281.20 and low of 5200.80.
BSE Midcap index closed at 7,675.99, up 1.07 per cent and BSE Smallcap Index advanced 1.18 per cent to end at 9,638.91. Biggest Sensex gainers were Grasim Industries (up 5.14%), BHEL (4.7%), Reliance Energy (3.9%), Infosys Technologies (2.7%), HDFC Bank (2.13%) and Maruti Suzuki (1..9%).
Bharti Airtel (down 1.47%), Satyam Computer (1.18%), State Bank of India (0.76%), DLF (0.73%), ITC (0.72%), Ambuja Cements (0.65%) and HDFC (0..65%) were the losers. Nitin Fire (up 6.53 %), MIC Electronics (7.06 %), Bartronics (7.99 %) were amongst the major gainers in the smallcaps which are likely to be benefited from the budget.
Jindal Stainless (7.19 %), Gateway Distriparks (6.28%) and Bharat Bijlee (5.11%) was amongst the major gainers in the midcaps which have benefited from the railway budget. Oil marketing companies ended firm as freight rate cut of 5% on petrol and diesel was announced in the budget.
Railway Budget evokes mixed reaction from trade bodies
http://www.hindu.com/2008/02/27/stories/2008022754941900.htm
Staff Reporter
It has fallen short of the expectations of North Kerala: Malabar Chamber
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Budget raises great prospects for the State: Kerala Chamber
ICCI feels that Kerala should have given more daily trains
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Kochi: Trade bodies and chambers of commerce are generally pleased with the Railway Budget for the next financial year terming it a helpful one basically because it offers relief on passenger fares and freight charges.
Prompted by the Rs. 25,000-crore profit during 2007-08, the Railway Minister has provided five per cent cut in freight on petrol and diesel and granted nominal cut in passenger fares, said the Indian Chamber of Commerce and Industry (ICCI) in its reaction to the Railway Budget.
While the proposal for improving facilities/amenities would make travel more comfortable, "it is gratifying that the Minister has categorically announced that a new coach factory would be set up in Kerala," said the Indian Chamber statement.
The Chamber also welcomed the move by the State government to set aside 1,000 acres of land for the coach factory project for which Rs.1,000 crore has been allocated.
The Chamber, however, felt that of the 63 new trains, Kerala had only four. It would only just for Kerala to get a few more daily trains to ease the rising volume of traffic.
While the Railway Budget had promised help to the rail connectivity for Vallarpadam project, it made no mention of suburban train services, said the Chamber statement.
The Kerala Chamber of Commerce and Industry described the Rail Budget as raising great prospects for Kerala. The initiatives to strengthen private-public partnership in the railways and to improve passenger amenities were welcome, said a statement from the Chamber here. The Chamber also called on the political leadership in the State to take the initiative on completing the rail overbridges in the State, improving infrastructure and electrification and doubling of lines.
The Cochin Chamber of Commerce and Industry welcomed the confirmation of a coach factory for Kerala. "We appreciate that substantial outlays have been earmarked for the improvement and addition of infrastructure in the Indian Railways," said a statement from the Cochin Chamber. The Ernakulam Merchants' Union welcomed the Railway Budget but appealed to the State government to ensure that the land allocated for the rail coach factory was transferred immediately for the purpose so that land availability did not become a hindrance to the project being implemented.
The union expressed dissatisfaction at the several rail overbridges, including the Pulleppady overbridge, remaining incomplete. However, it welcomed the fund allocation for Vallarpadam rail connectivity project.
Malabar unhappy
Special Correspondent writes from Kozhikode:
Merchants' organisations are disappointed with the Railway Budget since it does not offer much to people in North Kerala. The Malabar Chamber of Commerce, Calicut Chamber of Commerce and Industry, the Federation of North Kerala Chambers of Commerce and Industry and the Malabar Train Action Committee are among the organisations that expressed disappointment with the budget proposals.
Unless State's MPs intervened effectively, neglect of railway needs of people of North Kerala would continue and misery of commuters in this part of the country would increase, M. Mussamil, chairman, Federation of North Kerala Chambers of Commerce and Industry, warned.
Even though the Railway Budget would bring cheer to many in the State, it had fallen short of the expectations of the people of North Kerala, P. Zakeer, president of the Malabar Chamber of Commerce, and P.V. Gangadharan, chairman, Malabar Train Action Committee said .
Malabar Chamber welcomed as plus points of the budget the proposal for cut in tariff for travel by first class and AC coaches without raising freight charges, the reduction in freight charges for petrol and diesel, the special provisions made for transporting cement, food grains and essential commodities , and the provision made for a coach factory which has been a long-standing demand of the people of North Kerala.
It was true the increase in frequency of Thiruvananthapuram- Nizamuddin Express to three days a week would be of help to travelling public of North Kerala, Malabar Chamber said but it also complained that the budget was silent on the wagon factory in Alappuzha and the concrete sleeper factory in Palakkad, the two projects that were mentioned in the last budget. Though Railways made a profit of Rs.25,000 crore, no allocation had been made for electrification of Shoranur- Mangalore line which would cost only Rs.325 crore, Mr. Gangadharan and Mr. Zakeer said.
"Railway development has been reduced to an exercise to promote the interests of Union Railway Minister Lalu Prasad and Minister of State for Railways R. Velu," said P.T.S. Unni, secretary, Calicut Chamber of Commerce and Industry.
Progressive budget to complement growing economy
27 Feb, 2008, 0424 hrs IST, TNN
http://economictimes.indiatimes.com/articleshow/2817997.cms
Pranav Adani
Director, Adani Group
I would rate the Railway Budget as industry-friendly since it opens up a huge potential for private sector investment in projects such as railway land development, terminal development, wagon fleets and laying new tracks. It is basically an economy-driven and forward-looking budget with the right kind of emphasis on public-private partnership.
Here is my analysis of the Railway Budget 2008: There will be heavy investments in technology upgradation for wagon design as foreign companies are now allowed to collaborate with Indian manufacturers for building high-capacity steel wagons that will have higher axle load capacity of up to 25 tonnes. This will open up various investment options and would result in lower cost of transportation along with increased throughput.
The new wagon leasing policy shall attract investors to induct their own wagons into the railway circuit for leasing to private operators. This shall also attract new innovative designs with commodity-specific wagons & innovative terminal management systems. So far, parties having their own production units were allowed to own wagons. The new wagon leasing policy shall attract private investors to become partners in railways' operations and will also bridge the demand-supply gap for wagons. However, it is to be seen what kind of freight discount is available to such investors.
Emphasis on port connectivity will result in improved export-import business, which is projected to be 1,100 million tonnes by the end of the 11th Five-Year Plan.
Construction of the North-East section of the dedicated freight corridor will commence in 2008-09. Work on the northern corridor should also be taken up since the current line capacity is saturated.
The railway minister's emphasis on upgradation of Information Technology at a huge investment over the next five years is a welcome step as customers need a better information system to track their consignments. The move will also help run freight trains on time. Development of surplus land at major railway stations through the railway land development authority is another attractive proposition for the private sector.
The budget has also mentioned another scheme of getting freight terminals developed via private sector participation, which will usher in revolutionary changes as it would introduce new innovations and technology that will not only improve quality of service but also improve terminal operations.
These changes would transform the operations of Indian Railways and it would become even more efficient and competitive. The budget has laid emphasis on a two-pronged approach of network expansion & modernisation and technical upgradation through public-private partnerships. In short, the budget is a step in the right direction and complements the booming Indian economy.
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| Lalu signals end for freight freebies | |||
The token reduction in freight rates for petrol & diesel (5%), fly ash (14%) and goods destined for the North-East (6%) would not lead to major losses in revenue. While only a small volume of petrol & diesel are moved by rail, the 6% discount for North-East does not apply to all commodities.
A clear message has also been conveyed to the industry not to expect any further reduction in goods tariffs by emphasising that the process of rationalising freight charges is now complete. So, not hiking freight tariffs is the major sop for India Inc. The railways could have opted for a modest hike in goods tariffs keeping in mind the ongoing economic boom and the effect of inflation, which is yet to be tamed.
The shadow of polls is also visible in the promises showered on the industry in terms of better connectivity with ports and sector-specific long-term plans for steel, cement, coal and container business—topped up with the Rs 75,000-crore plan to boost infrastructure for a high-density network. That's pretty long on promises, and clearly short on give-aways. Since this could be Lalu's last full-fledged Budget as the UPA's railway minister, promises such as a seven-year blueprint for infrastructure leave a lot on the plate for the next government to tackle.
Lalu has also indicated railways would foray into door-to-door logistics, increasing competition in this sector. The industry has been responding positively to such initiatives and there is a demand for transporting all commodities on private goods trains.
"Private freight operators should be allowed to transport all commodities instead of a listed few, which is hampering the growth of private operators and their investments," said Federation of Indian Export Organisations president GK Gupta. The move to improve connectivity to ports would help exporters, and the budget holds several promises since it is investment-oriented, he added.
For 2008-09, freight target has been fixed at 850 million tonnes, just 60 tonnes more than the current fiscal's target of 790 million tonnes. Considering that the increase in freight loading during the current fiscal is estimated at 62 million tonnes, Lalu seems to have gone for a modest target. This could be due to the realisation that utilisation of assets cannot be stretched much now.
It is estimated that railways would earn much more from movement of foodgrain and fertiliser compared to earnings of Rs 3,300 crore and Rs 1,700 crore, respectively, in the recent past.
The discount given to all freight in empty flow direction—rather than just incremental loading—is aimed at garnering more business. Similar is the case with composite freight tariffs for unclassified goods rather than charging them at the peak rate.
(With inputs from Prabha Jagannathan)
Railway Budget a Big Smokescreen: Chief Minister
Patna: February 26, 2008
Bihar Chief Minister and former Railway Minister Nitish Kumar, reacting on the 2008-09 Railway Budget presented by the Rashtriya Janata Dal (RJD) chief and Railway Minister Lalu Prasad Yadav on Tuesday, said the whole budget was without any direction and left much to be desired.
"The Railway Minister talks about a number of future plans for the railways but fails to explain how he intends to achieve those dreams," Kumar said while talking to media reporters outside Bihar Assembly on Tuesday.
Pooh-poohing the Railway Minister's claim of a profit of Rs. 25,000 crore for the Indian Railways, the Chief Minister said the numbers were manipulated and twisted in a way to paint a false 'feel-good' picture of the Ministry while hijacking the event to self-congratulate himself.
"Yadav also conveniently failed to mention who started the Rs. 17,000 crore Railway Safety Fund that now he is reaping fruit from," Kumar said.
Downplaying the claim of Rs. 25,000 profit for the Railways in the last fiscal year, the Chief Minister said the Railways was extracting money from the passengers by ending the 'tatkal' facility and slashing facilities in the trains to inflate the numbers.
Kumar also ridiculed Rabri Devi's statement that the privatization in railways began during his tenure as the Railway Minister in the NDA government.
"What would she know, whatever they ask her to say, she regurgitates it," the Chief Minister said.
Other NDA leaders also echoed Kumar's sentiments.
"The whole thing is a massive smokescreen. The Railway Minister is very cleverly picking the pockets of the passengers while showing Rs. 25,000 crore profit for his ministry," said Bhartiya Janata Party (BJP) leader and state president Radha Mohan Singh.
Janata Dal (U) state spokesperson Anil Pathak said that the budget failed to mention the schemes initiated by Nitish Kumar in Yadav's blatant attempt to steal the glories of his predecessor.
Rlys in bind over privatisation
Srinand Jha , Hindustan Times
Riding high on the turnaround story of the country's once-ailing train system, Railways Minister Lalu Prasad finds himself in a bind days before he presents his fourth budget. Should he further privatise the Railways and compromise his commitment to social justice or provide more jobs to those who belong to the lowest strata of the society?
The mammoth Indian Railways, which runs the world's second-biggest network, employed 17 lakh people five years ago when it ran 11,000 trains. The train count has risen to about 15,000, but the number of employees has fallen to about 14 lakh since Lalu took over, said Shiv Gopal Mishra of the All India Railway Men Association (AIRF). He said the trend towards privatisation threatened to destroy the system of accountability built up over decades.
An estimated 1.8 lakh positions, including 22,000 reserved category jobs, are vacant in the railway. The ministry has surrendered hundreds of other jobs. "When there are no recruitments, the commitment towards providing reservations becomes meaningless," said Mohan Paswan of the All India SC&ST Railway Employees Association.
The worst hit are the Valmikis, who occupy the lowest rung of the Hindu caste hierarchy, and are traditionally employed as safai karamcharis. Their number has shrunk by half to 22,000 since 1990. Ahead of the next budget, these are among issues that have been brought to the notice of Congress president Sonia Gandhi, said Ashok Kumar, the association's general secretary.
"Some plans are good, but the entry of the private sector in core areas can lead to a serious agitation. Policymakers must desist from adventurism," said M. Raghuviaiah of the National Federation of Indian Railway Men.
| Look before you take the PPP route | |
Public-private partnerships have become the latest mantra for various ministries and public sector undertakings. The rail minister has not been far behind in embracing this innovative route to overcome the railways' resource constraints. Lalu Prasad plans expansion of the rail network, technology modernisation and world-class facilities for customers by investment through the public-private partnership (PPP) route of no less than Rs 2,50,000 crore in the next five years. He hopes to attract investments of about Rs 15,000 crore for the upgradation of stations at New Delhi, Mumbai, Secunderabad and Patna through the PPP route. Lalu Prasad also plans to set up multi-modal logistics parks and units to manufacture electric and diesel locomotives and coaches through open competitive bidding. According to Lalu Prasad, rail land development will attract about Rs 4,000 crore in 2008-09. Earlier, every rail minister had considered and later shelved plans to make commercial use of the railways' surplus land. He also expects container trains and depots, and multi-modal logistics parks to attract investments of Rs 2,000 crore. The options appear to be unlimited and it looks as if a mere invitation may open the floodgates of investments. The private sector, however, may not be ready to put its money in projects where it is not in complete control. The railway board's mandarins are also certain to guard their turf jealously. However, the railways' experience of the PPP route has so far been quite limited. A major port connectivity project by Pipavav Rail Corporation, a joint 50:50 partnership between the Indian Railways and the Gujarat Pipavav Port, has successfully built a 271km broad gauge link between Pipavav and Surendra Nagar junction on Western Railway. The double stack containers trains on the non-electrified section of Jaipur and Pipavav have been a success story. However PPP initiatives such as "own your own wagon" schemes have found few takers. In the UK, a disastrous public-private partnership story has unfolded. Despite the failure of privatisation of the British Railways more than a decade back, the London Transport Authority chose to go the PPP way and nominated Metronet as the prime contractor for upgrading the ageing London underground network. After Metronet was placed into "administration" following a £2-billion over-run, Gwyneth Dunwoody, the chairman of a committee of British MPs that went into the causes of the fiasco, said, "Any reasonable person looking at the current situation would find scant evidence to sustain a dogma that the private sector will always deliver greater efficiency innovation and value for money than the public sector." He went on to add, "If the government is ever again tempted to a seemingly good deal from the private sector, it should recall Metronet's pathetic under-delivery and the deficiencies in the contract that allowed it to happen." Gerry Doherty, general secretary of the Transport Salaried Staff, said, "Metronet pulled off an astonishing two-card trick under this disastrous PPP deal. They picked up all the profit and left the travelling public with all the risks." Lalu Prasad has opted for a very wide area for the PPP route and hopefully the railway board's mandarins will keep their eyes open while not only shortlisting the contractors and drawing up the contracts, but also following up on the execution at every milestone. The exercise becomes a little problematic with the chief vigilance commissioner breathing down the neck of the poor bureaucrats. The Delhi Metro Rail Corporation perhaps provides one of the best examples of an efficient mega project via the PPP route, and more importantly, no cost or time overruns. But then you need a Shreedharan to pull it off without a hitch. (R.C.Acharya was former member of the Railway Board) |
| Not a lot on surface but full of promise - Four more trains for the Northeast |
| OUR SPECIAL CORRESPONDENT |
| New Delhi, Feb. 26: Lalu Prasad's railway budget seems to hide more than it shows what the Northeast will get. Although the budget does not have much for the region in popular perception, Lalu has outlined a slew of measures to galvanise the growth of rail infrastructure across the states. One of the proposals is a non-lapsable Northeast Rail Development Fund on the lines of the non-lapsable pool of central funds available to the ministry for development of the northeastern region (DoNER). The railway minister did not specify the volume of the fund in his budget speech, but sources said the decision — in principle — had already been taken by the Prime Minister's Office. The Planning Commission and the DoNER ministry will work out the modalities soon. Delhi decided earlier this year to implement national rail projects with a 25 per cent contribution from the railway ministry's gross budgetary support and sanction the rest as additional assistance. Officials in the DoNER ministry were gung-ho about the development. Lalu Prasad today thanked Prime Minister Manmohan Singh for the decision and sought Rs 1,712 crore in additional funds for eight national projects, as many as seven of them in the region. The railway ministry requires the extra resources for the proposed Jiribam-Agartala, Dimapur-Kohima, Azra-Byrnihat and Kumarghat-Agartala routes, the Bogibeel rail-cum-road bridge and for the Lumding-Silchar-Jiribam and Rangia-Murkongselek gauge conversion projects. Four new trains were announced for the Northeast, three of them to destinations beyond the region. The trains are Kamakhya-Gaya Express (weekly), Kamakhya-Gandhidham Express (weekly), New Dibrugarh Town-Kamakhya Express via Moranhat (tri-weekly) and the New Dibrugarh Town-Yesvantpur Express (weekly), also via Moranhat. There was good news for trade, too. Lalu Prasad announced a six per cent freight reduction for transportation of goods to the region. Lalu Prasad's announcement of another project, an Agartala-Sabroom link, means tracks will stretch right till the Indo-Bangladesh border. A rail link to Sabroom will bring the Chittagong port closer to the region. |
http://www.telegraphindia.com/1080227/jsp/frontpage/story_8954099.jsp
West Bengal got raw deal in rail budget: Mamata
Kolkata (PTI): West Bengal has got a raw deal while passenger safety was neglected in the rail budget presented in Parliament on Tuesday, alleged former Railway Minister and Trinamool Congress leader Mamata Banerjee.
Describing the rail budget as 'visionless and election- oriented', Banerjee said "West Bengal got a raw deal as far as new trains are concerned. Three new trains have been given only once a week while no Garib Rath has been introduced in the state.
She told reporters that she did not mind if Bihar received facilities "but West Bengal and many other states have been neglected. There is no proposal for new lines and gauge conversion."
She said that the budget provided more benefits to the rich than the poor and sought to privatise railway operations which would not benefit the country in the long run.
Accusing Railway minister Lalu Prasad of neglecting passenger safety and amenities, Banerjee said that during her tenure as Railway Minister she had allocated Rs 10,000 crore for anti-collision devices.
Budget should revive credit demand: Bankers
Mumbai (PTI): The banking sector, which has witnessed a slowdown in credit offtake this year, expects Union Budget 2008-09 to announce growth measures that will revive credit demand.
However, Finance Minister would have to resort to a tight rope walk to ensure that high growth momentum did not fuel inflation.
"Amidst global volatility, I see some headwinds in maintaining the growth momentum. A double edged sword seems to be hanging on the economy, one being concern on inflation and two moderating growth," private sector Yes Bank CEO Rana Kapoor said.
He said the Centre should provide a "fiscal stimulus" in stressed sectors, complimented with monetary easing.
The industry expects Finance Minister P Chidambaram to provide relief in the housing and infrastructure sector to spur fresh demand for loans.
"Budget may likely visit some of the levies or taxes on housing sector that add to the overall expenses... a cut in such taxes may be considered to propel housing demand in the economy," IDBI Capital analyst Ravikant Bhat said.
With a pressure on public sector banks to cut their prime lending rates and increase disbursement to priority sectors, the industry also expects tax exemptions on fixed deposits.
"We need a level playing field. Bank deposits should be a separate category with exemptions," IDBI Chairman Yogesh Agarwal said.
However, the wish is unlikely to be granted given the comfortable liquidity situation.
Posco worried over delay in start of Orissa project
Jamshedpur (PTI): Korean steel giant Posco, which has announced plans of setting up a mega steel plant in Orissa, has expressed concern over the slow progress in obtaining prospecting licence for iron ore mining and acquisition of land leading to delay in start of the project.
The company has proposed setting up a 12-million-tonne integrated steel plant in the coastal state at a cost of Rs 52,000 crore and signed an MoU with the state in June 2005 in this connection.
Chango-ho Kwag, director of Posco Research Institute in Delhi, told PTI on the sidelines of 'Steelrise 2008' here that securing prospecting licence and land acquisition were the two major issues that were worrying the Posco officials in Korea.
Kwag, who is closely associated with the Posco project in Orissa, said although the company had applied for prospecting licence for iron ore mining in November 2005, there was not much progress in this regard.
The application which was sent to the Orissa Government for onward passage to the Union Ministry of Mines, was sent back as the state had skipped the procedure of public hearing. "Now the public hearing is taking place", Kwag said.
This had led to considerable delay in the start of the project, he reasoned.
The other factor worrying Posco was land acquisition. The project required nearly 4,000 acres of land, but the company has been able to get only 300 acres. Out of the total land requirement, 90 per cent belonged to the state government and the rest was to be purchased from the people.
India Inc welcomes Railway Budget
Statesman News Service
KOLKATA/NEW DELHI, Feb. 26: Trade and industry has generally hailed the Railway Budget 2008-09 presented by the Union railway minister, Mr Lalu Prasad, in Parliament today.
The Indian Chamber of Commerce feels that the Railway Budget is progressive and welcomed most of the proposals including the fare cut of five per cent across the board.
The Bengal National Chamber of Commerce & Industry president, Mr KK Navada, complimented the railway minister for presenting the proposals for 2008-09 with huge profits during the past four consecutive years.
Mr Atul Churiwal, president of the Merchants' Chamber of Commerce, said the railway minister's budget was pragmatic and innovative as it sought to earn higher freight loading revenue while effecting a cut in freight rates for petrol, diesel and flyash.
This is an eminently passenger friendly budget. Passenger benefits were not only restricted to fare cuts but the proposals reflected advanced thinking, according to the Federation of Small & Medium Industries, WB.
Reacting to the proposals, Mr PR Agarwala, president, Bharat Chamber of Commerce, said it was an innovative and people's budget. He said: "It is heartening that Indian Railways has generated Rs 25,000 crore as surplus before dividend in 2007-08, thus making it more efficient and cost effective.
Mr Mahesh Kumar Singhania, chairman of the Federation of West Bengal Trade Associations, congratulated the railway minister for his "pragmatic" budget.
President and CEO of Texmaco Ltd, said wagon procurement in 2008-09 planned at 20,000, was a 100 per cent jump over the corresponding figure of 2007-08. This will place Indian Railways in "fast forward mode."
Captains of Indian industry appreciated the improving efficiency of Indian Railways, stating that this had led to higher profits and operating ratio over the past five years. At the same time, they cautioned against failure to take strategic measures to capture a substantially larger share of growing goods traffic, given the country's booming economy and growth in the manufacturing sector.
Stating that building capacity was the focus of this Budget, the Confederation of Indian Industry (CII) felt Mr Lalu Prasad had made the required investments in infrastructure. "The projects for port connectivity, freight corridors, container terminals and improved passenger amenities that were announced in the Budget will go a long way in making India's railway network more modern and efficient," CII president, Mr Sunil Mittal, said. "Side by side with improvement in efficiency, the Railways are also moving towards expanding capacities," he said.
The industry bodies pointed out that with both passenger and freight earnings growing at double digit rates, the Railways were able to earn a cash surplus of Rs 25,000 crore in 2007-08, even as its operating ratio of 76 per cent and return on capital of 21 per cent indicate improving efficiency. This has made it possible for the Railways to increase its investments with an Annual Plan size of Rs 37,500 crore, of which only about 20 per cent is funded by the Central government's Budget.
Complimenting Mr Prasad for presenting the most "pragmatic, progressive and futuristic" budget, Assocham president, Mr Venugopal N Dhoot, said the railway minister's commitment to generate Rs 1,00,000 crore additional investments in the next five years through public-private partnership (PPP) was especially praiseworthy.
Ficci president, Mr Rajeev Chandrasekhar, described the cuts in passenger fares and freight rates, particularly on diesel and petrol by five per cent, as a "good and strong anti-inflationary measure". A slew of proposals seeking to strengthen and expand the traffic handling capacity of the railways would take care of the requirements of India's growing economy.
Federation of Indian Export Organisations (FIEO) felt that the use of information technology for passenger convenience was the hallmark of the Railway Budget. The decision to import wagons to bridge the gap between supply and demand was the most pragmatic, said FIEO president, Mr GK Gupta.
However, the PHD Chamber of Commerce and Industry (PHDCCI) president, Mr LK Malhotra, felt it would have been prudent if freight tariff had been reduced across the board. He pointed to a moderate slowdown in economic growth and expected rise in inflation, especially in essential items and the recent petrol price hike.
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