The finance ministry has not indicated increased budgetary support to the railway despite unanimous demand of members of Parliament belonging to various parties for enhancing it by 30 per cent. The ministry of railways is also pleading with the government to come to its rescue. As it might not be possible for the finance ministry to accede to the demand in view of the financial crunch being faced by the Union government, the railways would have to fend for itself, sources said.

Even as the railways finds it difficult to mop up additional revenue because of the sharp fall in the transportation of bulk traffic from the core sector, including coal, the demands from the states and various political parties are mounting.

Itis now imposible for the railways to achieve the target for loading 450 million tonnes of freight traffic. The railways would pat itself if it could carry 430 million tonnes of freight traffic by the end of march due to vigorous marketing strategy launched for this purpose. The loss of earnings from the core sector due to less offerings of such bulk traffic as projected in the current yearŐs Budget was estimated at Rs 14,000 crore.

Besides budgetary support, which is unlikely to be increased substantially, the Railways cannot depend indefinltely on market borrowings and the private sector. For market borrowings, regular dividends have to be paid to the investors and the railways have to maintain a huge infrastructure and launch a sustained publicity drive to attract investment. This is becoming expensive and the railways must avoid this to prevent itself from falling in the debt trap, the sources said.

Despite several incentives, private investment in the develpment of the Railways had not beensubstantial. One of the major reasons for this was that investment in the sector is long term and quick returns on investment is not assured.

According to indications available from the railway board where the draft budget is being prepared, railway minister Nitish Kumar will have to walk a tight rope while finalising the Budget. He has to keep in mind that Assembly elections are due in ten states later this year and all political parties, including the Bharatiya Janata Party (BJP) and its allies, are aspiring for power in the states. Public opinion will go against the BJP and its allies, if there is a steep hike in fares and freight causing inflation.

Modernisation of the track, signalling, telecommuication systems, amenities for passengers, gauge conversion and doubling projects are on the priority list to be announced in the railway Budget. Therefore, the mandarins in the railway board are trying to find out ways and means to mobilise additional revenue to maintain the railway network and update it tomeet the challenge in the coming century, the sources said.