Part - II
BUDGET ESTIMATES, 2003-2004
82.
Sir,
I shall now deal with the Budget Estimates for 2003-2004.
83.
The Railways are expecting to carry 540 million tonnes of
revenue earnings originating traffic during 2003-2004, which is 25 million
tonnes more than
the traffic of 515 million tonnes likely to be lifted in the current year and
this increase is higher than the average
incremental freight achieved in the last few years. However, taking note
of the prevailing trend in the economy and the various measures being taken by
the Railways, this target is expected to be achieved. The originating passenger
traffic
is estimated to go up by about 3 per cent resulting in
increase in earnings of 7 per cent over the Revised Estimates of the current
year. The ‘Other Coaching’ earnings are
expected to grow by 7 per cent. Sundry
Other Earnings, for 2003-2004 have been estimated at Rs 990 cr, representing a
growth rate of 5 per cent over the Revised Estimates of the current year.
84.
On
the basis of these assumptions, the Gross Traffic Receipts (GTR) are estimated
at Rs 43,495 cr. These are Rs 2,628 cr higher than the Revised Estimates of the
current financial year.
85.
Railways'
Ordinary Working Expenses estimated at Rs 32,460 cr are 7 per cent higher than
the Revised Estimates of the current year. Appropriation to Pension Fund is
placed at Rs 6,385 cr. Based upon the
anticipated requirement for plan resources, a provision of Rs. 2005 cr has been
made towards Appropriation to Depreciation Reserve Fund .
86.
The
total Working Expenses will, thus, amount to Rs 40,850 cr leading to the Net
Traffic Receipts of Rs 2,645 cr. Net
Miscellaneous Receipts are estimated at Rs 888 cr, which also take into account
the amount likely to be collected through levy of surcharge on passenger fares
for being appropriated to the Special Railway Safety Fund. Thus, the Net Revenue works out to Rs 3,533
cr.
87.
A
memorandum on the rate of dividend payable to General Revenues has been
submitted to the Railway Convention Committee. Meanwhile, dividend for 2003-2004,
has been provided at the same rate as adopted for 2002-2003. On this basis, dividend liability for
2003-2004 works out to Rs 2,930 cr. Along with certain other dues, an amount of
Rs 2,978 cr becomes payable to the General Revenues. This liability will be discharged in full.
88.
The
above projections are expected to yield funds sufficient to meet the
requirement of the Plan outlay for the year, from the internal resources.
89.
With a view to make the Freight rates and Passenger fares competitive
and increase Railways’ share in transport sector, it is necessary to continue
the process of rationalisation and re-balancing of Tariffs. In order to attract more traffic to rail, I
am proposing certain other measures and reforms.
Freight Services
90.
Sir, for year 2002-2003 I did not make any across-the-board increase in
freight rates. For the year 2003-2004, I do not propose any increase in freight
rates for any commodity.
91.
While rationalising the freight structure, the total number of classes
was reduced from 59 to 32 with Class-90 as the lowest class and Class-300 as
the highest class. In freight structure
so rationalised, the ratio between the highest and the lowest freight rate was
reduced from 8.0 to 3.3. It is proposed to reduce further the band of freight
rates through compaction in freight classification by lowering the highest
class from Class-300 to Class-250. In the revised classification, the total
number of classes will be reduced from 32 to 27 and the ratio between the
freight rates for the highest and the lowest class will be further reduced from
3.3 to 2.8.
92.
To make the freight rates competitive, it is proposed to reduce the
classification of certain commodities where Railways are facing stiff
competition due to high freight rates. The classification of Petrol for
trainload movement is proposed to be reduced by three stages from Class-280 to
Class-250, lowering the freight rates by 10.7 per cent. The classification of certain other
commodities is proposed to be reduced by two stages. These commodities include
High Speed Diesel Oil (HSD), Furnace Oil, Crude Oil, Naptha, Liquefied
Petroleum Gas (LPG), Compressed Gases, Lubricating Oils, Iron & Steel, Pig
Iron, Iron Scrap, Cement sheets, Petroleum Coke and Soda ash. Some of the
liquid commodities, carried in tank wagons, namely Molasses, Bitumen, Refined
vegetable oils (Div. A), and Sulphuric acid are also proposed to be charged two
stages lower than their existing classes. The proposed reduction in freight
rates due to lowering of classification by two stages will range from 5.3 per
cent to 9.5 per cent. The classification of Cement, Clinker, Manganese Ore and
Caustic Soda Liquid (in tank wagon) are proposed to be reduced by one stage,
which will reduce the freight rates by around 3.7 per cent. Details of the
re-classification of these commodities, along with the existing and proposed
freight rates for selected distances, are given in the Memorandum Explaining
the Budget Proposals for Adjustment in Freight Rates and Fares.
93.
There are certain groups of commodities, which are assigned different
classes based on their different physical forms such as lumps, powder etc. In
order to initiate simplification in the classification of such groups of
commodities, which are loadable upto the full carrying capacity of wagons, a
single uniform class will be assigned for each such group. Iron Ore, in its
different forms, such as lumps, powder, fines, pellets etc., which are
currently classified from class-120 to class-125 would now be charged
uniformally under class-120 for trainload. Similarly, other selected groups of
commodities, namely Manganese Ore, Gypsum, Bauxite, Limestone & Dolomite,
Soapstone and Chalk will be assigned a single uniform class for each group. The
details of the existing and proposed classification of these groups of
commodities are given in the Memorandum Explaining the Budget Proposals for
Adjustment in Freight Rates and Fares.
94. In order to increase its share in transportation of Petroleum products, Railways are ready to consider long- term agreements with individual oil companies for further reduction in freight rates on sector-to-sector basis if guaranteed volumes of additional traffic are committed for rail movement.
95. With the liberalisation of Indian economy, the pattern of industrialisation is undergoing a significant change with production centres coming closer to the source of raw materials or consumption centres. The average distances over which some of the major commodities are moved by rail have been gradually declining and Railways have to take various measures to capture short lead traffic. In the Railway Budget 1999-2000, freight concession of 25% was granted to traffic booked for distances upto 50 km. as the minimum distance for charge is 100 km. This measure has shown positive results and generated additional revenue to the Railways. It is now proposed to rationalise the charging of freight for all traffic booked upto 100 km. through a scheme of graded concessions. Under this scheme, 50 per cent freight concession will be allowed for traffic booked upto 50 km. followed by 25 per cent concession from 51 km. to 75 km. and 10 per cent concession from 76 km. to 90 km. In the proposed rationalisation, the freight rate per tonne per kilometer for these distance slabs would be exactly the same.
96. The rail users have an option to pay freight charges either at the time of booking or at the time of delivery at destination station. Presently, if the freight is not paid at the time of booking, a ‘to-pay’ surcharge of 10 per cent on normal freight is levied for all commodities other than Coal. In the case of coal traffic, 15 per cent “to-pay” surcharge is levied. The rail users consider this surcharge excessive. Therefore, it is proposed to reduce the ‘to-pay’ surcharge from 15 per cent to 10 per cent for coal and 10 per cent to 5 per cent for all other commodities.
97.
There are many commodities, which have a wagonload class
only. It has been decided that any commodity, which has only a wagonload class,
will be assigned a trainload class one stage lower than its wagonload class. As
a result, the freight will get reduced by around 4.00 per cent to 5.26 per cent
if such a commodity is now offered for trainload booking.
98.
Freight movement on the Indian Railways is predominantly in
the form of block rakes from one originating station to a single destination
point. However, with a view to reduce the carrying cost of the customers, block
rake movement from one originating station to two destination points close to
each other and vice-a-versa is also being permitted. At present, such two-point
block rakes enjoy the benefit of lower trainload rates only upto the common
point of movement. It has been decided that two-point block rakes will now be
granted the benefit of trainload rate for the entire distance of
transportation.
99.
At present, clubbing upto six consignments is permitted in a
broad gauge 8-wheeler wagon. In order to provide rail transportation to a
larger number of traders and retailers, it has been decided to allow clubbing
upto twelve consignments, on payment of Rs 100 for every additional Railway
Receipt.
100.
The wages of the railway staff deployed in private sidings
are being traditionally charged to the siding owners. In order to give relief
to the siding owners, Zonal Railways will undertake a thorough review to reduce
the cost of railway staff being charged to the private siding owners in a
phased manner.
101.
Siding owners generating freight earnings of more than Rs.
25 crore per annum from traffic originating from their sidings have been designated
as Premier Customers of the railways. An incentive scheme for the Premier
Customers to help them increase the rail share of transport is being
introduced. Premier Customers would be
granted a freight rebate of 2 per cent
for every five crore rupees of net additional originating freight
earnings over the previous financial year generated to the railways. The rebate
under this scheme will be granted in addition to any other freight concession
availed by them. However, this incentive scheme will be applicable to net
additional originating freight earnings from commodities placed in Class-135
and above.
102.
Sir, this year I do not propose any increase in Passenger
fares.
103.
Last year, the fare structures of Mail/Express, Ordinary
Passenger trains and Monthly Season Tickets (MST) were rationalised. This year,
it is proposed to rationalise the fares of Rajdhani and Shatabdi
Express trains. A separate fare structure for Rajdhani and Shatabdi Express
trains was introduced in the year 1995-96 which does not have a fixed
relationship with the fares of Mail/Express trains. It is now proposed to link
the fares of Rajdhani and Shatabdi Express trains to the rationalised fare
structure of Mail/Express trains, fixing the basic fare for each class of
Rajdhani and Shatabdi Express trains 15 per cent higher than the fares of
corresponding class of Superfast Mail/Express trains on a uniform basis.
Charges for catering services, as per requirement of the journey, would be
added to the basic fares. Sir, as a result of this rationalisation, the basic fares of
different classes of Rajdhani and Shatabdi Express trains will be lower for
most of the pairs of stations. In
exceptional cases, fares may be marginally higher for a few pairs of stations
in which case, the existing fares will apply. The details of the existing and
proposed end-to-end fares for Rajdhani and Shatabdi Express trains are given in
the Memorandum Explaining the Budget Proposals for Adjustment in Freight Rates
and Fares.
104.
I am glad to inform that all the sixteen Jan Shatabdi
Express trains, announced during last year’s Railway Budget have been
introduced. The fare structure for Jan Shatabdi Express trains was fixed 10%
higher than the fares of Superfast Mail/Express trains. Additional charges for
catering services were included in the ticket fare. To make Jan Shatabdi
Express trains more popular, it is proposed to reduce the basic fare from the
existing mark-up of 10% to 5% over the fares of corresponding class of
Superfast Mail/Express trains and make the catering services optional on these
trains.
105.
In order to benefit the passengers and also to give
competitive edge to rail travel, it is proposed to introduce the concept of
reduced fares in selected trains during the non-peak period. As an experimental
measure, 10 per cent reduction in the basic fares of AC First and AC 2-tier of
all Rajdhani Express trains would be given for travel during the period from 15th
July to 15th September this year.
106.
At present, if a
wait-listed passenger boards a Rajdhani or Shatabdi Express train, excess fare,
equal to the ticket fare, is charged. It is felt that this penal charge needs a
revision. It has been decided that the rules in respect of waitlisted
passengers boarding Mail/Express trains will now be applicable to waitlisted
passengers of Rajdhani, Shatabdi and Jan Shatabdi Express trains also.
107.
In order to simplify
the booking procedure of Parcel and Luggage traffic and optimize the use of
transport capacity available for carriage of parcels by different trains, it is
proposed to rationalise the rate structure for booking of Parcel and Luggage
traffic. At present, parcels are charged under seven different Scales based on
the type of the commodity. It is proposed that all types of commodities,
including Luggage, will now be charged uniformly at the same rate, under four
Scales, depending on the type of service selected by the customer. The highest Scale-R, for Rajdhani service,
will be applicable to all Rajdhani Express Trains. The next Scale-P will be for
Premier service by certain notified Mail/Express trains. The next lower
Scale-S, for Standard service, will apply to other Mail/Express, Shatabdi
Express and Parcel Express trains. The lowest Scale-E will be for Economy service
by Ordinary Passenger trains. In the rationalised structure, the number of
Scales for charging of Parcel and Luggage traffic will be reduced from 7 to 4
and the ratio between the highest and the lowest rates will reduce from 8.7 to
6.2 Newspapers and Magazines will now be charged at the same rates under the
lowest Scale-E by all trains. The rationalised rates for Parcel traffic under
the new structure will be lower than the existing rates. The details of the
existing and proposed rates for different commodities between a few selected
pairs of stations are given in the Memorandum Explaining the Budget Proposals
for Adjustment in Freight Rates and Fares.
108.
All the above proposals
will come into effect from 1.4.2003.
109.
Sir, achievements of a
vast organisation like Indian Railways reflect the sincerity and dedication of
the railwaymen, who deserve appreciation.
They will ever be ready to fulfil the public expectations and
aspirations. I express my gratitude to
respected Prime Minister for his continued encouragement and kind support and I
firmly believe that Indian Railways would establish new dimensions of progress
under his guidance. I also thank and
express my gratitude to Hon'ble Finance Minister for giving adequate support to
the Railways. I am confident that they
would be obliging the Railways by providing additional funds generously in the
coming year for accelerated execution of the Railway Projects. I thank Hon'ble Members for their support
and suggestions and hope that they would continue the same in future too.
110.
Sir, with these words I
commend the Railway Budget 2003-2004 to the House.