1. Debroy panel for complete switching of Railway tracks

Debroy panel for complete switching of Railway tracks

The annual Railway Budget could be something of the past with the high-level committee, headed by NITI Aayog member Bibek Debroy likely...

By: | New Delhi | Updated: March 21, 2015 5:23 AM

The annual Railway Budget could be something of the past with the high-level committee, headed by NITI Aayog member Bibek Debroy likely to suggest this at its final meeting on Saturday. This could be the committee’s least revolutionary suggestion. The report will be submitted at the end of the month.

Sources told FE the committee is likely to suggest coming out with an upfront passenger fare subsidy — this was R34,928 crore in FY15 — and getting both the central and state governments to pay for this as they do for the annual electricity subsidy for agriculture right now. While the Centre will pay for all central railway lines, states like Maharashtra will pay for suburban train networks.

Subsidised tickets, the committee is of the view, must be linked to Aadhaar IDs, in keeping with the government’s overall philosophy on cutting leakages on subsidies. The Economic Survey had pointed out that the bottom 80% of households comprised only 28.1% of the total passenger traffic on the railways, making it clear that it is not the poor who get subsidised.

Railway Budget, Rail Budget, NITI Aayog, Bibek Debroy, Maharashtra, Subsidised tickets, Aadhaar, Economic Survey

In addition, since private firms cannot run trains right now as the tracks and signalling are controlled by the railways, the committee has suggested this be transferred to an independent entity and, with a railway regulator in place, allow private firms to run both passenger and freight trains.

A person associated with the report said there would be no annual presentation of the Railway Budget and talk of dividend and gross budgetary support — the Union Budget, he said, will only mention the social obligation that will be borne by the Centre.

The committee has also suggested greater private entry into production of coaches and locomotives. All the production units in the railways would be made completely independent by turning them into holding companies. Rationalisation of zones and divisions; decentralisation of power to GM and DRMs; complete switch to commercial accounting for all the railway functions; and delinking of RPF, hospitals and schools are among the other steps outlined by the committee.

The Railway Board’s role in the whole scheme will be limited to what is actually run by the railways and the HR functions will also be revamped completely.

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  1. M
    Mar 21, 2015 at 10:51 am
    Sanjeev Sanyal of Deutsche Bank looks promising to me as an external consultant for fresh ideas in infrastructure!! But there could be a "conflict of interest" if he comes on board while continuing his job at Deutsche Bank!! The Indian govt. can contact the German govt. for advice; Oops, I almost forgot about the just announced "Kaya Kalp" committee announced by Railway Minister Suresh Prabhu!!
    1. M
      Mar 21, 2015 at 9:46 am
      Hmm...I doubt if Modi's NITI Panel will add any real-value to the decision-making process! Maybe some cosmetic changes here and there, but nothing substantial worth mentioning!! Since private capital only seeks profit, govt. has to make good the losses in the penger sector plus a margin of around 10-15% in order to make them attractive to private operators (Currently the govt. only makes good the losses suffered in penger sector from the freight segment, but don't have to add any extra profit margin). Bring some eminent Applied-Economics specialist for real value-addition!! But I agree the annual Railway Budget can be done away with!! The private-sector can be roped-in only for beautifying the big stations, in exchange for advertising revenue; say Tata agrees to make the Delhi station world-cl and all advertising revenue from the station would be collected by them for say, 10 years!!
      1. S
        s mazumder
        Mar 21, 2015 at 3:29 pm
        IT SEEMS a cut and paste of Rakesh Mohan committee's recommendation to suit the need of LPG.It reminds us the period of company railways at the time colonial rule.Nothing new '

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