Railways cuts outlay to get back on track
Rajat Arora Posted online: Thursday, Jan 23, 2014 at 0000 hrs
New Delhi :
Facing a shortfall of Rs 7,000 crore in passenger and freight receipts from the budget estimates, Indian Railways is set to cut its plan outlay by a similar amount, reports Rajat Arora in New Delhi. Sources said the national transporter has decided to slash its Plan outlay for 2013-14 to Rs 56,000 crore from Rs 63,000 crore estimated in the last rail budget. A 10% reduction in expenditure could hit the railways’ modernization and expansion projects, which were any under-provided for, owing to the high (and unhealthy) operating ratio of 88%. Sources say safety measures won’t be compromised but independent experts doubt this.