NEW DELHI, June 9: Railway Minister Nitish Kumar today unveiled a "swadeshi" package of passenger amenities even as he stoutly defended the hike in passenger fares saying it was aimed at drastically reducing cross-subsidisation and boosting freight traffic.Replying to a marathon 20-hour debate in Lok Sabha, he announced that kulhar (earthen pots) would replace plastic cups for serving tea, water and curd on trains and stations, leaf plates for meals and handloom products would be increasingly used in various rail departments. He said railways proposed to gradually introduce 24 coaches in different trains, with the additional coaches being earmarked for second class passengers. Subsequently, railways would also consider introducing 26 coaches.
The House approved demands for excess grants for 1995-96 and cleared introduction of appropriation bills. The railway budget for 1998-99 along with the demands for grants would be scrutinised by the standing committee for railways before being placed for voting inJuly when the House re-assembles after a three-week break. Following persistent demands by members from the north-east, the minister announced that ten per cent of the budgetary support, which would amount to Rs 220 crore, has been earmarked for development of rail services in the region. He said several projects, including those for the north-east, were awaiting the clearance of the Union Cabinet. To meet the resource crunch, the minister proposed a cess to be used as a special fund for closing unmanned railway crossings and building of road overbridges since many states were not coming forward to bear 50 per cent of the cost. Justifying the increase in passenger fares, the minister said this had not been effected for the last three years due to fear of unpopular backlash in elections and only freight charges were raised to cross-subsidise the losses in the passenger sector.
This had resulted in diversion of rail freight traffic to roadways causing huge loss of revenue, he said. By leaving the freightrates untouched in this year's budget, railways hoped to woo back some of the freight traffic and step up its finances, Kumar said.
Kumar termed the hike in passenger fares as ``nominal'' and a ``service charge'' and claimed it would not affect 80 per cent of the passengers. The minister assured the House that concerted efforts would be made to complete all on-going projects instead of going in for new ones.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.