India Railway budget: investment not fare hike |
Indian Railway Minister Suresh Prabhu of the new BJP party in power on February 26 spared passengers from any hike in fares in his government first budget, but made changes in freight rates to rake in more money while ruling out privatisation. Presenting the budget, Prabhu said freight rates exempted salt but would hike rates on carriage of cement, coal and coke, iron or steel and petroleum products. The budget also revised the commodity classification and distance slabs for carriage of commodities that can raise freight rates up to 10 per cent in some of the items. The minister did not project any figures that will accrue out of the adjustment in freight rates to be effective from April 1. He did not announce any new trains, saying on the ground that a review was on about the capacity to add more trains which will be announced after the review is over. Outlining the budget estimates for the coming year, he proposed a plan outlay of Rs 100,011 crore or nearly US$ 16 billion, an increase of 52 per cent over revised estimate of 2014-15. Passenger earnings growth has been pegged at 16.7 per cent. He said over the next five years, Railways envisage an investment of Rs 850,000 crore or nearly US$ 130 billion through multilateral development banks and pension funds. He has said the railways need $100 billion or Rs 600,000 crore in funding over the next three to four years.
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