Brief of the meeting held today with Hon'ble Minister for Railways on the burning issues of the Railwaymen

AIRF Meeting with Railway Minister - Burning Issues Discussed

  Brief of the meeting held today with Hon'ble Minister for Railways on the burning issues of the Railwaymen

A.I.R.F.
All India Railwaymen's Federation
4, State Entry Road, New Delhi - 1100055

No.AIRF/24(C)

Dated: January 22, 2019

The General Secretaries,
All Affiliated Unions

Dear Comrades,
Sub: Brief of the meeting held today with Hon'ble Minister for Railways on the burning issues of the Railwaymen

Today I had detailed discussions on the pending major issues in a meeting with Hon'ble Minister for Railways in the presence of CRB and Member Staff. The meeting was held in a very cordial atmosphere and I noticed quite positive attitude of Hon'ble MR on almost all the major issues. Brief details of the discussions held is as under:-

(i) Revision of rates of Running Allowances and other allowances related to Running Staff - This issue was discussed threadbare and Hon'ble MR had reservations about the proposed rates on the plea that, it will result in further increase in operating ratio. He also said that, according to Finance it comes to Rs.398/-. I explained the matter in detail and also advised him about the formula, on the basis of which it comes out to Rs.648/-. Finally, he agreed to further process the case file to MoF for Rs.525/- and advised the CRB and MS accordingly. It is expected that the case will be sent to MoF shortly.

(ii) Four-grade structure(in the ratio of 10:20:20:50) to Track Maintainers - This issue was also discussed in details and it was explained to Hon'ble MR that; the entire process is financially neutral. He directed the MS to issue orders immediately, because it has been already agreed with the AIRF in previous negotiations.

(iii) Restructuring of IT Cadre - I explained that, all the Cadre Restructuring have always been based on the sanctioned strength of the cadre and not on roll as also entire process of Cadre Restructuring is always with financial neutrality, as such, same principle should be applied in case of Cadre Restructuring of IT Cadre also. I also reminded him that, this issue has been agreed by the FC in his chamber during discussions. Hon'ble MR agreed to it and advised the MS to take action accordingly.

(iv) Promotional prospects of educated staff working in lower grades in GP Rs.1800(Level-1 of VII CPC) - I mentioned that, a large-number of highly educated people are available now in the lowest grade, who are very much curious for their career advancement. I further mentioned that, AIRF has already proposed the Railway Board to divert 10% posts, earmarked for Direct Recruitment, to LDCE open to all, so that, qualified Track Maintainers and staff of all departments and categories, who are having academic qualification, prescribed for Direct Recruitment on these higher grade posts, can be considered for promotion, which will definitely give some relief to such staff. Hon'ble MR was in an agreement with this proposal and asked the CRB and MS to take necessary action in the matter.

(v) Advancement prospects for the staff in erstwhile GP Rs.1800 and GP Rs.4600 - I explained to Hon'ble MR that, in view of poor prospects of advancement, there is serious discontentment amongst the staff working in the said two grade pay. AIRF has, therefore, proposed that, 50% posts in GP Rs.1800, i.e. Level-1 of VII CPC, be upgraded to GP Rs.1900, i.e. Level-2 of VII CPC, with financial neutrality. Hon'ble MR also agreed to this proposal and advised the CRB and MS to take necessary action in the matter.
So far as promotional prospects of the staff in GP Rs.4600 is concerned, it was informed that, Board is working out some solution to convert some posts of GP Rs.4600 to Gazetted Cadre.

(vi) LARSGESS - On the issue of LARSGESS, Hon'ble MR said, that, the Attorney General has very clearly written that, this scheme is unconstitutional, hence will not sustain before the Hon'ble Supreme Court. In the wake of this, we are proceeding to Hon'ble Supreme Court with those cases who have completed all formalities. On the issue of LARSGESS, AIRF is also likely to file a petition in the Hon'ble Supreme Court, and for that we are in consultation with the eminent lawyer.

Apart from the above, I also discussed the issues of Guaranteed Pension to NPS covered employees and improvement in Minimum Wage and Fitment Formula and requested Hon'ble MR to convene a meeting with Hon'ble Prime Minister on these significant issues. He assured that he would take these issues with all seriousness and would try to arrange a meeting with Hon'ble Prime Minister.

Yours faithfully,
sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF

Division/ Railway-wise status of pending pension eases of Normal retirement and Other than normal retirement

Inordinate delay in finalization of pension cases on all units of Indian Railways/Production units. - Railway Board Order after Railway Minister concern

Government of India
Ministry of Railways
Railway Board

No. 2016/AC-II /21/8/Pt-l New
Delhi dated: 28.08.2017

PFAs,
All Zonal Railways / PUs

Sub- Division/ Railway -wise status of pending pension eases of Normal retirement and Other than normal retirement.

Hon'ble Minister for Railways has expressed concern that there has been inordinate delay in finalization of pension cases on all units of Indian Railways/Production units. It is desired that immediate Steps be taken to streamline the system in place. A division/Railway-wise status report on pending pension cases of Normal retirement and Other than normal retirement as on 31.3.2017 has been sought.

It is therefore requested the requisite details may be provided in the following format by mail at jda[at]rb.railnet.gov.in by 31.08.2017.

Railway	Division	Number of pending cases for Settlement of Normal Retirement as on 31.03.2017	Number of pending cases for Settlement of other than Normal Retirement as on 31.03.2017	Reasons for delay

(Vivek P. Tirupathi)
Director Finance/CCN
Railway Board

Railways earn Rupees 228 crore more on child fare

Railways earn Rupees 228 crore more on child fare

New Delhi: The Railways earned Rs 228 crore more by charging full adult fare from children in the reserved class in the fiscal 2016-17, Rajya Sabha was told today.

Railways earned total Rs 914 crore from child passengers between April 21, 2016 and March 20, 2017 as against Rs 686 crore during the same period the previous year.

Children, between 5 and 12 years of age, for whom berth is sought at the time of reservation, are charged full adult fare from April 21, 2016, Railway Minister Suresh Prabhu said in a written reply in the House.

However, at the time of reservation if full berth is not sought then half of basic adult fare is charged subject to minimum distance for charge.

Children below the age of 5 years are carried free in trains.

The additional earnings from passengers booked on child fare in the reserved class during the period of April 21, 2016 to March 20, 2017 is about Rs 228 crore more as compared to the same period the previous year.

PTI

Railways to provide fresh food cooked after every two hours

Railways to provide fresh food cooked after every two hours

New Delhi: Plagued with complaints, Railways plan to provide fresh food cooked at base kitchens in trains after every two hours to the passengers.

Railways, which provides about 11 lakh meals to passengers every day, has separated cooking and distribution of food under the recently launched new catering policy.

"We have decided to provide good quality food to our passengers and for that we have decided to have base kitchens at several places so that fresh food can be picked up at every two-hours of travel," Railway Minister Suresh Prabhu said at the round table conference on catering here.

Participated by representatives from the food and beverage industry, self-help groups, senior IRCTC and railway officials, the round table conference aims to formulate a roadmap under the new catering policy to provide best catering service at rail premises.

Admitting complaints against food served in trains, Prabhu said, Whenever complaints come we always take prompt action. We had detailed discussion before formulating the policy and today we are having discussion for its smooth implementation.

 Taking note of overcharging of food in trains, he said the issue will be taken up at the conference today. We have announced a new catering policy. There were many complaints against catering service. There were complaints against those who have got the catering responsibility under our earlier catering policy, he said.

Seeking participation of private players in food business for setting up base kitchens near stations, Prabhu said, We have decided how to provide good quality food to our passengers. So we decided to have base kitchens at many places across the country. The base kitchens will be mechanised kitchens with less human intervention. It can be done through PPP mode.

He said base kitchens will benefit passengers as fresh food can be picked up in trains in every two hours which even airlines cannot do. On the distribution front, Prabhu also sought participation of reputed caterers.

Delivery of food is important for an effective catering service. Delivery of fresh food in trains can also be done by reputed caterers with proper quality control mechanism, he added.

PTI

Resolve the 7th CPC related issues: Charter of demands - Deferment of Strike Action on Government's assurance

Charter of demands - Deferment of "Strike Action" on Government's assurance.  Resolve the 7th CPC related issues - mainly improvement of Minimum Wage and Multiplying Factor: NFIR writes to RM

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI - 110 055

No. IV/NFIR/7CPC(IMP)/2016/R.B.

Dated: 16/11/2016

Shri Suresh Prabhu,
Hon'ble Minister for Railways,
Rail Mantralaya,
New Delhi


Respected Sir,

Sub: Charter of demands - Deferment of "Strike Action" on Government's assurance-reg.


At the outset, NFIR conveys its thanks to the Hon'ble Railway Minister for his initiative which had culminated into a meeting with the Group of Ministers (Hon'ble Finance Minister, Home Minister, Railway Minister and the Minister of State for Railways) on 30th June 2016 and also a separate meeting with the Hon'ble Home Minister on 06th July 2016. Pursuant to the discussions in those meetings held between the NC/JCM (Staff Side) Leaders and the Hon'ble Ministers, an assurance was given by the Government on 6th July, 2016 that High Level Committee would consider 7th CPC issues - Minimum Wage and Multiplying Factor etc., for satisfactory settlement through discussions.

Federation is disappointed to mention that although a Committee headed by Addl. Secretary (Exp), Ministry of Finance, was constituted and a few meetings were held with us, there has been no satisfactory progress. The main issues - Minimum Wage and Multiplying Factors are continued unresolved. Due to procrastination of the matters, the Central Government employees in general and Railway employees in particular are seriously disappointed as they feel that the Government is not sincere to fulfill its assurances. The National Convention of NFIR held at Guwahati from 9th to 11th November, 2016 has expressed grave concern over non- fulfillment of assurance and decided to mobilize railway employees for sustained struggle.

NFIR, therefore, requests the Hon'ble MR to kindly apprise the disappointed feelings of the employees to the Hon'ble Prime Minister for his intervention to resolve the 7th CPC related issues - mainly improvement of Minimum Wage and Multiplying Factor through discussions with the Staff Side Federations very soon in order to preserve the healthy industrial relations in Railways.

Yours Sincerely,

sd/-
(Dr. M. Raghavaiah)
General Secretary

Source : NFIR

Central government employees as good as those in private sector: Railway Minister Suresh Prabhu

Central government employees as good as those in private sector: Railway Minister Suresh Prabhu

Emphasising on rewarding performers to improve performance, Railway Minister Suresh Prabhu today said  central government employees do not lack talent and they are as good as those working in the private sector.

Addressing a large number of civil servants in a function here, he said there is a need to create a system where people will perform with all their ability.

“I do not think that getting people from outside or from private sector will solve all our problems. Also I am not convinced that government lacks any talent. What I am convinced about is the commitment of the people to work despite biggest challenges.

“It is not the private or public sector which is the solution. The solution lies in creating the organisation with the good people and at the same time working with the system. The systems are very important. Therefore we need to look at the system as a whole so that people will have the ability to perform well,” Prabhu said inaugurating 10th civil services day here.

He said there is a need to identify performers and suitably reward them. “How do you get the best of talents available within the country in the system? That is something we need to think about. How do you reward a good performer. Today there is nothing like rewarding a performer.

“You have to think of a system where a good performer is properly identified. They get properly rewarded. They are properly promoted and those who are not doing good they need not be thrown out but how to actually make them doable that is the challenge,” he said during the function being attended by senior officials of central government ministries and state governments.

Prabhu said people in the government are as good or as better as those working outside the government. “The challenge is how to use that huge human capital and how to harness it at the time when challenges are mounting,” the Minister said.

“We need to develop a system where our delivery is better or at least at par with citizen expectations. Need to build systems and teams that can address today’s challenges and future needs as well,” Prabhu said.
He said no one can deny that the country has not done progress. “No one can say that nothing has been done in the country. We have done progress and we should be proud of that,” Prabhu said.

The Minister hoped that the India will become world’s largest economy in some years. “It is a matter of time whether it is 20 years, 25 years or it may be 30 years. There is no doubt about the fact that we will be one of the largest economy in the world,” he said.

PTI

NFIRs Proposals: Rail Budget 2016-17

NFIR’s proposals for Rail Budget 2016-17

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110055

Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. IV/NFIR/RAIL-BUDGET/PT.II

Dated: 05/01/2016

Shri Suresh Prabhu,
Hon’ble Minister for Railways,
Rail Mantralaya,
Rail Bhavan,
New Delhi.

Respected Sir,

Sub: NFIR’s proposals for Rail Budget 2016-17-reg.

NFIR wishes to bring to your kind notice that the Railway Ministers have made budget pronouncements for Staff Welfare, but, however the following pronouncements have not been implemented till date. Extract of pronouncements are placed below:-

Railway Budget 2009-10

STAFF WELFARE

Item No. 32
“A thrust will be given under the Corporate Welfare Plan for improvement of staff quarters & colonies. During 2009-10, 6550 Staff Quarters are proposed to be constructed.

It is proposed to Open seven Nursing Colleges on Railway land at Delhi, Kolkata, Mumbai (Kalyan), Chennai, Secunderabad, Lucknow and Jabalpur on Public Private Partnership model so as to facilitate the wards of the Railway employees in finding a good vocational avenue”.

Railway Budget 2010-11

STAFF WELFARE & HEALTH

Item No. 49 of the Budget Speech:- A new Scheme of ‘House for All’, was launched to provide residences to all Railway employees in the next ten years with the help of Ministry of Urban Development.

Item No. 54 of Budget speech:- It is proposed to set up 50 Creches for children of 80,000 women employees and 20 hostels. Railways will also provide more numbers of community centres and stadiums.

Railway Budget 2011-12

* Extending medical facilities to both dependent father & mother.
* 20 additional hostels for children of Railway employees to be set up.

Railway Budget 2012-13

Railways is a 24×7 service available to the rail-users. To run services at this scale, the employees have to put in long hours of duty without any respite round the year and the compulsion of job creates high stress levels. I therefore intend to introduce a wellness programme for them at their places for early detection. of risk factors, prevention and early treatment of diseases caused due to high blood pressure and sugar levels, obesity and other lifestyle related ailments.

We need to recognize the dedication, hard work and sacrifice of the staff at all levels. To minimize incidence of human error especially amongst the skilled and technical staff including loco pilots, cabin men and gangmen, it is important to ensure proper rest period for them. I am also conscious of the importance of periodic training and creation of a general environment to provide them enhanced dignity. I have also requested NID to design appropriate outfits for various categories of workforce.

Railway Budget 2013-14

Construction of staff quarters has been hampered by funding constraints. Encouraged by the success of Ministry of Urban Development in constructing quarters through PPP mode, I propose to=adopt the same in the Railways. Yet, I have enhanced the fund allocation under staff quarter by 50% over previous year to provide Rs. 3000 crore.

Provision of hostel facilities for single women railway employees at all Divisional Headquarters.

Considering the stress faced by loco-pilots particularly in harsh climatic conditions, it is proposed to provide water closets and air condition the locomotive cabs.

Conduct National Skill Development Programme of the Ministry of Railways to impart skills to the youths in Railway related trades at 25 locations spread across the length and breadth of the country.
Setting up of a multi-disciplinary training institute at Nagpur for imparting training in rail related electronics technologies.

NFIR requests the Hon’ble Railway Minister to see that the Government takes steps for fulfillment of its Budget pronouncements.

II. NFIR also requests the Hon’ble MR to consider making Budget announcements on the following:-

(a) Provision of funds for construction/improvement of Railway Institutes, Community Halls and Holiday Homes.

(b) Provision of adequate funds for construction of new Railway Quarters on replacement account to the extant of 100%.

(c) Sanctioning of Cardiology Department at Northern Railway Central Hospital, New Delhi.
(d) Road Mobile Medical Vans facility for covering all remote and inaccessible areas in Railways.

III. NFIR alsoybrings to the notice of Hon’ble Railway Minister that the condition of Railway Quarters on Indian Railways is awfully bad and many of them deserve demolition. New Quarters are not being built adequately due to inadequate allotment of funds. Federation cites the case of Mumbai area of Western Railway wherein about 1200 Railway quarters (Type-I to Type-IV) have been dismantled by the Railway administration. However, Western Railway authorities have constructed only 447 Railway quarters which is only 37%, of total number demolished. Adequate funds need to be provided for construction of new Quarters atleast equivalent to the number demolished. Also there are over 600 Railway Quarters (Type-I & Type-II) in Mumbai area which do not have separate toilets. The Railway employees and their families living in those quarters in Mumbai are compelled to share common toilets (one toilet shared by 3, to 4 families), thus the lives of employees are miserable.

NFIR requests the Hon’ble MR to consider the points placed above favourably and give decisions.

sd/-
(Dr. M. Raghavaiah)
General Secretary

Railway Minister asks Finance Minister to handhold railways through 7th Pay Commission burden

Railway Minister asks Finance Minister to handhold railways through 7th Pay Commission burden

New Delhi: Railways has sought a financial grant of about Rs. 32,000 crore from Finance Ministry to tide over the the impending impact of 7th Pay Commission recommendations on the public transporter.

In a letter to Finance Minister Arun Jaitley, Railway Minister Suresh Prabhu cited the prevailing financial position of railways, efforts at cost cutting and possible gradual adjustment of fares and other non-tariff revenue measures to absorb the impact while requesting the exchequer’s help for implementation of the Commission recommendations.

“I would therefore earnestly request you to help the Ministry of Railways and handhold it for the implementation of Seventh Pay Commission recommendations,” the Railway Minister said in the letter.

“This may be done either through compensation of loss for coaching services (Rs 31,727 crore in 2013-14) or directly by virtue of a revenue grant, matching the amount of the Seventh Pay Commission’s liability placed upon railways for the next 3-4 years,” he said.

In a letter to Finance Minister Arun Jaitley, Railway Minister Suresh Prabhu cited the prevailing financial position of railways, efforts at cost cutting and possible gradual adjustment of fares and other non-tariff revenue measures to absorb the impact while requesting the exchequer’s help for implementation of the Commission recommendations.

“I would therefore earnestly request you to help the Ministry of Railways and handhold it for the implementation of Seventh Pay Commission recommendations,” the Railway Minister said in the letter.

“This may be done either through compensation of loss for coaching services (Rs 31,727 crore in 2013-14) or directly by virtue of a revenue grant, matching the amount of the Seventh Pay Commission’s liability placed upon railways for the next 3-4 years,” he said.

Prabhu hoped that during this 3-4 years period, railways would be able to absorb the impact from their resources through gradual adjustment of fares and other non-tariff revenue measures.

However, Railway Minister has expressed his reservation about increasing the freight rate in the given scenario contending that it would have a “deleterious impact” on national economy.

He said, “In order to maintain these expenses at the current proportion – at 51.5 per cent of the gross receipts, the railway revenues will need to grow substantially by 40 per cent in 2016-17 which is well nigh impossible given the fact that till October 2015 growth was only 8.4 per cent.

“The first factor of freight earnings originating loading is demand driven and is largely not within the control of railways. The second factor that is freight rates, though is within railways competence, there is hardly any headroom available for increasing the same without affecting railways competitiveness adversely.”

He said, “Moreover, exercising this option will have a deleterious impact on the national economy as well as on critical sectors such as coal, cement, foodgrains.Prabhu hoped that during this 3-4 years period, railways would be able to absorb the impact from their resources through gradual adjustment of fares and other non-tariff revenue measures.

However, Railway Minister has expressed his reservation about increasing the freight rate in the given scenario contending that it would have a “deleterious impact” on national economy.

He said, “In order to maintain these expenses at the current proportion – at 51.5 per cent of the gross receipts, the railway revenues will need to grow substantially by 40 per cent in 2016-17 which is well nigh impossible given the fact that till October 2015 growth was only 8.4 per cent.

“The first factor of freight earnings originating loading is demand driven and is largely not within the control of railways. The second factor that is freight rates, though is within railways competence, there is hardly any headroom available for increasing the same without affecting railways competitiveness adversely.”

He said, “Moreover, exercising this option will have a deleterious impact on the national economy as well as on critical sectors such as coal, cement, foodgrains.”

According to the Pay Commission report, the annual financial impact on Railways will be approximately Rs 28,450 crore in addition to the normal growth which will require to be built into the Railway Budget 2016-17.

“Our initial assessment however is that this additional impact would be around Rs 30,031 cr over and above the normal assessed growth of Rs 10,816 cr,” Railway Minister stated.

Prabhu has pointed out that the Railways bear 35.6 per cent of the total pay and allowances of the government which is more than 1/3rd of the Pay Commission’s burden for serving staff would be borne by railways. “Further nearly 28 per cent of the pension impact of central government would be on the Railways,” the letter sent last week said.

Currently, pay and allowances and pension account for 51.5 per cent of the gross receipts of railways. With the financial impact of the Seventh Pay Commission, this will increase to 68 per cent of the gross receipts in 2016-17 at present level of growth.

Prabhu has also mentioned the details about the cost cutting measures in railways.

“While we have put in place serious cost cutting measures and are focusing on fuel management and lowering of staff intake, more than 2.3rd of the railway expenditure is inelastic – staff cost, pension, lease charges, maintenance of fixed assets.”

Prabhu has sent a detailed note along with the letter on the Railways financial position vis-a-vis impact of Seventh Pay Commission’s recommendation.

PTI

Railway Minister announced Concession in Rail ticket for unemployed youth

Railway Minister announced Concession in Rail ticket for unemployed youth

Concession in Train Tickets to Unemployed Youth

Railways grant full concession in second class and 50% concession in sleeper class in the basic fares of Mail/Express trains to unemployed youths up to 35 years to appear in interviews for selection to Central/State Government jobs. Besides above, 50% concession in the basic fares of Mail/express trains in Second and sleeper class is also admissible to unemployed youths appearing in interview for selection to other public sector organisations.

This Press release is based on the information given in the written reply by the Minister of State for Railways Shri Manoj Sinha in Lok Sabha today(25.12.2015).

Press Release

AIRF secretary writes a letter to Railway Minister in protest against the Railway Budget

Com. Shiva Gopal Mishra GS/AIRF has written letter to Railway Minister in protest against the Railway Budget.

A.I.R.F
All India Railwaymen’s Federation

4, State Entry Road,
New Delhi.-110055

D.O.No. AIRF/60

Dated: July 14, 2014

Resp. Shri Sadananda Gowda Ji,

Sub: Rail Budget 2014-15

We are very much pained and constrained on the Rail Budget 2014-15, presented by you in the floor of the Lok Sabha.

I had given you a memorandum consisting of suggestions related to Rail Budget, but unfortunately none of them could get place in this Rail Budget, and by and large there is nothing motivational and inspiring for the Railwaymen in the said Rail Budget. This has happened after a long time.

Moreover, direction of the said Rail Budget is towards privatization, and the announcement of Foreign Direct Investment(FDI) in the Railways has created lot of resentment among the Railwaymen. All India Railwaymen’s Federation(AIRF) in its General Council Meeting, held at Chennai on 3-4 July, 2014, unanimously adopted a resolution to oppose all kinds of privatization in the Railways.

AIRF is a recognized federation and having a wider support among 13 lakh Railway employees. We always expect from the Railway Board that before making any announcement, which may change the face/ownership of the Railways, the matter must be discussed transparently with the Federation. But in the matter of FDI and PPP, no discussion has been made with the recognized federations.

If any decision detrimental to the interest of Railway Industry, Railwaymen in particular and the Rail users in general, takes place, we will have no other alternative, but to organize sustained struggle to save the Indian Railways.

In this Rail Budget, something also has been said about the Restructuring of the Railways. Earlier also there had been similar talks of Railway Restructuring through Rakesh Mohan and Prakash Tandan Committees and also under various modes.

We know that, the Planning Commission in the past also tried to privatize the Indian Railways but they could not do so because of pressure from the Railway workers as well as rail users.

I know that, as “Opposition”, at that time, the BJP had also opposed the idea of Privatization and FDI. There should not be any change in that stand on coming into power.

Since lot of demoralization and de-motivation are going down the line among the Railway employees, who are very sensitive and working round-the-clock to keep operative country’s lifeline. It would be appreciated, if a dialogue is organized with the recognized federations, representing 13 lakh Railway employees, at an earliest to clarify various issues, taking the Railways to a different direction.

I do hope, you will take this communication in a very justify perspective because the AIRF throughout the years, after 1974, has tried to maintain industrial peace and still stands for the same, but such announcements may create a breach of industrial peace.

Therefore, an early dialogue is requested.

With kind regards!
Yours Sincerely,
sd/-
(Shiva Gopal Mishra)
General Secretary

Source : AIRF

Outlay of Rs. 63,363 Crore Proposed in Rail Budget

Outlay of Rs. 63,363 Crore Proposed in Rail Budget
Operating Efficiency Likely to Improve to 87.8%

An outlay Rs. 63,363 crore has been proposed for 2013-14 rail budget which will be financed through Gross Budgetary Support of Rs. 26,000 crore, Railway’s Share in Road Safety Fund of Rs. 2,000 crore and internal resources of Rs. 14,260 crore.

Highlighting the importance of financially sustainability of Indian Railways for its efficient upkeep, operation and maintenance, Railway Minister, Shri Pawan Kumar Bansal said that we must be realistic in setting targets. He said that during the year the Railways shall have to borrow Rs. 15,103 crore from market and shall have to mobilize Rs. 6,000 crore through Public Private Partnership(PPP) route for its operations proposed in the Budget.

Expecting more revenue through freight and passenger tariff , the Railway Minister said that freight earning is expected to Rs. 93,554 crore, 9% higher than the previous budget year. Similarly passengers tariff earning is expected to increase to Rs. 42,210 crore.

Shri Bansal said that in view of expected growth of 11% and 10% in Other Coaching and Sundry earnings respectively, the Gross Tariff Receipts are expected to be Rs. 1,43,742 crore . While Ordinary Working Expenses for the year are expected to Rs. 96,500 crore. He said that the appropriation to the Pension Fund is estimated to Rs. 22,000 crore and the appropriation to Depreciation Reserve Fund has been kept at Rs. 7,500 crore.

Shri Bansal expressed the hope that Operating Ratio during the budget year will improve to 87.8% from the Revised Estimate of Rs. 88.8% and Railway would be able to close the financial year with the balance of Rs. 12,506 crore to Railway Funds.

NKP/NCJ/BR
(Release ID :92510)

Source: PIB

Railway Minister Announces increase in Rail Passenger Fares

Railway Minister Announces increase in Rail Passenger Fares

Ministry of Railways has decided to increase the passenger fares  with effective from the midnight of 21st January 2013 and 22nd January 2013 (i.e. w.e.f. 0000 hours of 22-1-2013). This decision was announced today i.e. on 9th January 2013, by Minister of Railways Shri Pawan Kumar Bansal at a Press Conference held in Rail Bhawan.  Minister of State for Railways Shri. Kotla Jaya Surya Prakash Reddy and Railway Board Members were also present.

The fare increase, class-wise, is as per the following table:

S No.	Class of Travel	Proposed per km increase in fares
i.	Second Class Ordinary(Suburban)	2 Paise
ii.	Second Class Ordinary(Non-Suburban)	3 Paise
iii.	Second Class(Mail / Express)	4 Paise
iv.	Sleeper Class	6 Paise
v.	AC Chair Car	10 Paise
vi.	AC 3-Tier	10 Paise
vii	First Class	03 Paise*
viii.	AC2-Tier	06 Paise*
ix.	AC First Class	10 Paise*

* In addition to increase of 10 paise per km in case of First Class, 15 paise per km in case of AC 2Tier and 30 paise per km in case of AC First / Executive Class already implemented w.e.f. 01-04-12.

Moreover, it has also been decided

(i) do away with the present practice of levying Development Charge on passenger tickets, and

(ii) have all chargeable fares in multiples of Rs. 5/-.

Elaborating the rational for fare hike,  the Railway Minister,  Shri Pawan Kumar Bansal said that  basic fares had not been revised upwards in the  last ten years (except for the increase implemented w.e.f. 01-04-12 in respect of only First Class @ 10 paise per km, AC 2Tier @ 15 paise per km and AC First / Executive Class @ 30 paise per km).   He pointed out that Losses in passenger segment which were Rs.6159 Cr in 2004-05 had risen to Rs.19964 Cr in 2010-11 (18% per annum) and  is expected to increase to Rs.25000 Cr in 2012-13.

Shri Bansal informed that Railway’s Input costs have increased by 10.6% per annum between 2004-05 and 2010-11, whereas fares stagnated or were reduced in Lower Classes aggravating passenger losses.  He emphasized that cross subsidy through freight business is  no more viable in view of fast evolving competition from other modes.  Referring to the 2012-13 Railway Budget,  Shri Bansal said that across-the-board fare hike proposal placed in 2012-13 Railway Budget in Parliament was finally approved only for First, 2nd AC and First AC/Executive Classes, which together constitute only about 0.3 % of total passengers and about 10% of total earnings from passenger segment.  The Railway Minister pointed out that as a consequence Internal resource generation was  seriously impacted, resulting in scaling down of Annual Plan size, which has now been limited to Rs. 51,000 crore in 2012-13 as against  Rs. 61,000 crore that was originally targeted.  Similarly, Fund balances became negative in 2011-12, adversely affecting essential replacement /renewal of assets, operation and maintenance activities and critical safety & passenger amenity works.  The Railway Minister emphasized that it was in view of these factors, that increasing passenger fares had became unavoidable. It was also necessary to do so in the overall interests of this critical infrastructure as well  as its users on a sustainable basis.

Source: PIB News