Friends,
Railway Budget was presented yesterday by Lalu with neck high. It has many rewards and many promises.The passenger fares have been brought down for all classes as also the freights for select items like petroleum products. Lalu has to be congratulated for the passing on of the cost saved in operations to users as also of keeping part for the grandiose plans. The IT has been helping railways in cost reduction and Lalu is only going to exploit it for further efficiency and for passenger’s convenience. Any hick up in using IT enabled services would have seen railways in dire state without doubt. The government’s other deptts should be learning their lessons before its too late. Use of modern materials in building coaches and the efficient engines together with economies of scale (made possible by the growing demand from industry and commuting populace) has all been responcible for the robust performance. These very factors would take railway finances to further hieghts. That the rupee gained was not spluttered is really praiseworthy aspect of the railway administration under Lalu. Ticketless travel has come down and pilferage of hauled goods is reduced due to fast rake movement and traceability of wagons , it seems. Lalu’s commonsense has been a good guide for the railways. He has been able to announce populist measures with ease and in natural manner without making the whole budget look ugly.
Now the numbers ; frieght target for 08-09 is fixed at 850 million tonnes(+7.6%). The growth in passenger fare earnings is expected to be 8% in 08-09 against 16.5% last year. The gross revenue growth will be 12.6% in 08-09 against 16% in 07-08 and rightly so as it has to be on larger base. Cash surplus for the raiways will be Rs25 K crs against the same roughly in 07-08 which itself was an improvement on budget estimate of Rs 20075 crs. Operating ratio for 07-08 worked out to 76.3% , an improvement over estimated 79.6%. ROCE of 21% for the railways is quite respectable but is without the revalueation of assets . Passenger amenities , cleanliness, newer projects of Rs 75 K crs , 1000 MW power plant with NTPC participation and public-private partnership projects of Rs one lac crores , all are going to be taken up over next five to seven years with full gusto and vigour.
Let us salute Lalu for the pragmatism which gets drowned in his ‘jokerism’.
This paves way for the present govt to do only such beautiful balancing of the populism and pragmatism in the union budget. Otherwise the son of soil will have scored far more points over the saave and educated one , both under the one who looks more of an onlooker than a participent.
Railway budget had made the markets more stable and strong yesterday and I expect the post budget scene will only get such a push for the markets. Nifty yesterday closed up 60 points at 5260.
HariOm,
krsnaKhandelwal
