New Lines, Gauge Conversions and Doublings

The following new line projects and sections, totalling 277 km, are targeted for opening before the end of March, 1992:

1 . Trichur-Guruvayoor

2. Amguri-Tuli

3. Alleppey-Kayankulam

4. Telapur-Patancheru

5. Adilabad-Pimpalkutti

6. Satna-Rampur Road of SatnaRewa project

7. Gwalior-Panihar of Guna-Etawah project

8. Lakshmikantapur-Kulpi of Lakshm ikantapur-Namkhana project 9. Jammu-Bajalta of Jammu Udhampur project

440 Budget 1992-93

10. Rampur-Bilaspur of Rampur-New Haldwani project

11. Damanjodi-Lakshmipur of KoraputRayagada project

Besides, the following new line projects and sections are programmed to be opened to traffic during 1992-93;

1 . Rampur Road-Rewa of SatnaRewa project

2. Bilaspur-Lalkua of Rampur-New Haldwani project

3. Gwalior-Sanichara of GunaEtawah project

4. Mathura-Deeg of Mathura-Alwar project

5. Challakere-Rayadurg of Chitradurg-Rayadurg project 6. Dindigul-Madurai of Karur-DindigulTuticorin project 7. Lakshmipur-Singapuram Road of Koraput-Rayagada project 8. Talcher-Angul and SambalpurManeswar of Talcher-Sambalpur project

The new lines programmed for opening in 1992-93 total to 367 km.

With the opening of these sections, three projects, SatnaRewa, Chitradurg-Rayadurg and KoraputRayagada would be completed.

Two new lines Dudhnoi-Depa and Migrendisa-Ditokchera, both in the northeast frontier region, are proposed to be taken up in 1992-93.

Broad Gauge lines from Hubli to Ankola, Narkher to Amravati, Pedapalli to Nizaqmbad via Karimnagar and Raichur to Gadwal are proposed to bring about speedy development of backward areas. The proposals are being sent to the Planning Commission.

441 Railway

Gauge conversions of Manmad-Aurangabad and Salempur Barhaj Bazar sections have been completed during the current year. 16 new projects of gauge conversions, totalling 3,352 km are proposed to be taken up in the year 1992-93.

The following are the 16 new projects:

1 . Daund-Baramati

2. Delhi-Rewarl

3. Gurhwal-Sitapur

4. Muzffarpur-Raxaul and Sagauli Narkatiaganj

5. Allahabad-Varanasi

6. Mankapur-Katra-Faizabad

7. New Guwahati-Lumding

8. Bangalore-Hubli

9. Dindigul-Trichy

10. Miraj-Londa

11. Hospet-Hubli-Goa

12. Guntur-Guntakal and GuntakalKalluru

13. Secunderabad-Dronachelam and Secunderabad-Belaram

14. Katpadi-Pakala-Tirupati

15. Gondia-Chandafort

16. Rewari-Jaipur

Doubling of about 240 km of track will be commissioned during 1991-92. Another 350 km are proposed to be completed in 1992-93.

Doubling of Khana-Sainthia section on Eastern Railway, Maksi- Bairagarh on Western Railway and Kuppam-Whitefield on Southern Railway are proposed to betaken up during 1 992-93. In respect of the Khana- 442 Budget 1992-93

Sainthia doubling, the work of land acquisition and doubling between Khana-Jhapter Dhal with a fly-over at Khana will betaken up in 1992- 93. The survey for doubling of Andal- Sainthia section is also pro- posed to be taken up in 1992-93.

Track Renewals

Sir, the House is aware of the stress being placed by the Railways to wipe out the arrears in track renewals, which, at the beginning of the Seventh Plan, stood at a staggering figure of 19,500 km. As a result of the accelerated pace of track renewals initiated from the year 1985-86, the arrears are expected to come down to 9,600 km at the end of the current financial year. The target for track renewals set for the year 1992-93 is 2,950 km, including 2,300 km of track which falls due for renewal every year. While a part of the overdue renewals will extend into the Ninth Plan, all efforts are being made to ensure that track renewals are current by the end of the Eighth Plan on the highdensity routes.

Railway Electrification

We have assigned a high priority to Railway Electrification to meet the national objectives of energy conservation and reducing our dependence on scarce petroleum-based energy. In my Budget Speech for the year 1991-92, 1 had indicated that the Railway proposed to electrify about 3,000 route kilometres during the Eighth Plan. We now propose to step up the pace of electrification and have set a target of 3,500 route kilometres for the Eighth Plan.

I am happy to Inform the House that, with the completion of electrification of Itarsi-Nagpur, Durg-Nagpur, and Itarsi-Bhusawal sections, three more important trunk routes linking Delhi and Madras, Howrah and Bombay, and Delhi and Bombay via Central Railway have been completed. The sections Jolarpettai-Bangalore, Jolarpettai, SalemEr- ode, Nagda Bhopal, Diva-Panvel and substantial portion of Kazipet- Secunderabad section are also getting completed. Our target for the current year is to complete

443 Railway

[Sh. C. K. Jaffer Sharief]

electrification of 675 route kilometres.

The following new electrification schemes, totalling 1,553 route kilometres, have been included in the Budget:

1. Ambala-Moradabad

2. Renigunta-Guntakal-Hospet including Tornagallu-Ranjitpura 3. E r o d e - E r n a k u l a m - C o c h i n Harbour-Terminus 4. Vijayawada-Visakhapatnam including Samalkot-Kakinada 5. Chandil-Muri-Barkakana

6. Jamadoba-Mlohuda

Indian Railways will also commence electrification of Jhajha- Patna-Mughalsarai section which, though sanctioned, was held in abeyance so far.

As the House is aware, the two sections, Esplanade to Tollyganj and Dum Dum to Belgachia, totalling 1 0 km have already beer commis- sioned. Unfortunately, the work on the remaining 6.5 km stretch between Esplanade and Belgachia could not progress as per the sched- ule, mainly because of labour problems. These problems have since been resolved with the assistance of the State Government of West Bengal and the work is now progressing satisfactorily. It is hoped that the remaining stretch will be commissioned in 1995.

In Bombay, the extension of railway line from Mankhurd to Beiapur including the 2 km long bridge across Thane, Greek is progressing satisfactorily and the line is expected to be opened to traffic in 1992.

The Rapid Transit system from Madras Beach to Luz is progressing.

One subsection of this stretch, from Madras Beach

444 Budget 1992-93

to Park Town has since been opened to traffic. The next sub-section from Park Town to Chepauk is likely to be completed in 1993.

Production Units

The performance of production units has been satisfactory in the year 1990-91. Diesel Locomotive Works, Varanasi, achieved an out-turn of 147 diesel locomotives, exceeding the original target of 140 locomotives. Chittaranjan Locomotive Works produced 110 electric locomotives against the target of 1 00. It also produced 44 diesel locomotives. Integral Coach Factory, Perambur exceeded its capacity of 1,000 coaches by manufacturing 1,013 coaches. Rail Coach Factory, Kapurthala, produced 600 coaches against the target of 500, Wheel and Axle Plant, Bangalore manufactured more than 23,000 wheelsets. In the current year also, the production units will not only achieve the targets but some may do even better.

Sir, it will be our endeavour to modernise the manufacturing technology, improve designs, maximise indigenisation, strengthen value engineering and improve overall productivity.

Energy Conservation

Indian Railways attach great importance to energy conservation.

Energy bill of the Railways constitutes about 20% of the working expenses. Bulk of the energy is consumed on traction. Of the three modes of traction-steam, diesel and electric-steam is the least efficient. 31 5 steam locomotives are likely to be withdrawn from service in the current year, leaving a balance of around 2,500 steam locos. Of these 2,000 steam locos will be condemned during the Eighth Plan. Our target is that by the year 2000 AD, no steam loco will be left in the system. Besides, Indian Railways have been making vigorous and concerted efforts towards conservation of energy. A number of energy conservation measures and programmes involving technological changes have been identified and are being pursued.

445 Railway

Railway Fare and Freight Committee

Sir, I am glad to inform the House that a Railway Fare and Freight Committee headed by Dr. D.M. Nanjundappa, an eminent transport economist, has been set up. The Committee will examine closely not only the modalities of pricing of various services but also costing of services and main components of costs and make suitable suggestions.

Ali sectors of the economy have to be cost-effective and the various factors of production should be deployed lo the best advantage of the community and the nation. The key issues are greater productivity and quality of work for enrichment of the country.

Indian Railway Finance Corporation

An amount of Rs. 1,500 cr. has been raised by Indian Railway Finance Corporation in the current year. The funds raised by the Corporation form part of Railways'Plan and do not constitute an additionality. Sir, I am glad to inform the House that in 1990-91, the Corporation has made a profit of Rs. 1 1 4 cr., compared to Rs.

16.5 cr. in 1989-90, and declared a dividend of 10% amounting to Rs.

23.2 cr.

Rail India Technical and Economic Services

Rail India Technical and Economic Services registered a turnover of Rs. 54 cr. in 1990-91 with net foreign exchange earnings of Rs. 8.6 cr. The Company earned profit before tax of Rs. 3.1 cr. and declared a dividend of 25% amounting to Rs. 25 lakhs.

Indian Railway Construction company

Indian Railway Construction Company recorded a turnover of Rs.

246 cr. and earned profit before tax of Rs. 11.7 cr. in 1990-91 and declared a dividend of 10% amounting to Rs. 49 lakhs. The Company has been selected by the Government for disinvestment of shares.

Container Corporation of India

Container Corporation of India recorded a turnover of Rs.33.5 cr.

in 1990-91, regis-

446 Budget 1992-93

tering a 40% growth over the previous year. During 1990-91, CONCOR commissioned three Inland Container Depots at Ahmedabad, Pune and Hyderabad, and two Container Freight Stations at Moradabad and Panipat.

Konkan Railway Project

Konkan Railway Project is very dear to all of us. At the outset, I must place on record my grateful thanks to the State Governments of Maharashtra. Karnataka, Kerala and Goa for their whole-hearted co- opera. tion in the progressing of this project. Additional resources, keeping in view the anticipated increase in the cost from Rs. 1,043 cr to Rs, 1,604 cr., would be required. Market borrowing on a larger scale has to be resorted to in order to fill the gap. However, notwithstanding the difficult resource position, I have allocated Rs.

50 cr. more for the Konkan Railway Project for this year as equity.

Industrial Relations

Industrial relations on the Railways during 1991-92 have remained cordial and harmonious. Sir, I would like to acknowledge the yeoman service by the railwaymen to the victims of earthquake at Uttarkashi and the flood and cyclone victims in the State of Karnataka.


The performance of Railways in the field of sports is a shining example. I am glad to inform the House that the Railways achieved an all-time record of winning 26 national championships in 1990-91. In the current year, the Railways have already won 17 national titles.

Three railway sports persons were recipients of the coveted Arjuna Award.

Hon'ble Members-would be happy to note that I intend to extend the facility of free pass to former eligible Members of Parliament, in keeping with Prime Minister's desire so that they can continue to play their active part in public life.

447 Railway

[Sh. C.K. Jaffer Sharief]

13.00 hrs

Budget Estimates 1992-93

I shall now deal with the Budget Estimates for 1992-93. In 1992- 93, the Railways are expected to carry 17 million tonnes more of revenue earning traffic over the level of 337 million tonnes likely to be reached in the current year. As regards passenger traffic, a growth rate of 5% has been estimated.

Based on these projections, the Gross Traffic Receipts at current fares and freight rates are estimated at Rs. 14,518 cr., an increase of Rs. 932 cr. over the Revised Estimates for the current year.

The Ordinary Working Expenses for the year are estimated at Rs.

10,460 cr., an increase of Rs. 1,255 cr. over the Revised Estimates for the current year. This increase is primarily to cover the cost of inputs for the incremental traffic, additional lease rental payable to the Indian Railway Finance Corporation, increase in prices of fuel and other inputs and additional payment of Dearness Allowance.

It is proposed to step up the contribution to Depreciation Reserve Fund from Rs.2,000 cr. in the current year to Rs. 2,300 cr. in 1992-93.

The contribution to Pension Fund is proposed to be increased from Rs. 1,090cr. in the Revised Estimates for 1991-92 to Rs. 1,200 cr. in the next year.

A Memorandum on the rate of dividend payable to the General Revenues on the Capital-at-charge has been submitted to the Railway Convention Committee constituted recently. Meanwhile, provision for dividend for the year 1992-93 has been made at the same rate as for the current year. On this basis, the dividend liability for 1992-93 448 Budget 1992-93

works out to Rs. 1, 1 50 cr.

The Total Working Expenses, comprising Ordinary Working Expenses and the appropriations to Depreciation Reserve Fund and Pension Fund, are thus expected to be Rs. 13,960 cr. After taking into account the Net Miscellaneous Receipts of Rs. 206 cr., the Net Revenue will amount to Rs. 764 cr. This would not be sufficient to meet even the dividend liability of Rs. 1,150 cr. Besides, the Railways need additional resources to sustain an adequate Plan size.

Tariff Proposals

Sir, the House is aware that the Railways have a long tradition of absorbing costs and even rendering service below cost as a matter of public policy. This becomes counter productive beyond a point and would be deterimental to nation building. The social costs have risen from Rs. 421 cr. in 1980-81 to Rs. 2,202 cr. in 1990-91, and to an estimated amount of Rs. 2,227 cr. in 1991-92. Further, the input costs are going up and hence a certain adjustment in fares and freight rates has become inevitable.

Sir, I am deeply concerned and shall still strive to render service to the rail users at affordable prices by absorbing costs by internal economies to some extent. Accordingly, I have decided to protect the interests of the common man, weaker sections Of our society residing in urban and rural areas and the farmers by not only continuing the existing low tariff but also exempting altogether the following essential commodities from either any increase in freight rates or stepping up of classification:

(i) Foodgrains and Pulses

(ii) Salt for human consumption

(iii) Sugar

(iv) Gur, Shakkar and Jaggery

(v) Tea

449 Ralway

(vi) Fruits and Vegetables

(vii) Edible Oils

(viii) Kerosene

(ix) Diesel

(x) Chemical manures

(xi) Organic manure

(xii) Oil cake

(xiii) Oil seeds

(xiv) Livestock and

(xv) Fodder

There will be no increase In platform ticket. There will be no increase in the Second Class ordinary fares upto 10 kilometres. There will be no increase in sleeper surcharge up to 500 kilometres.

The Hon'ble Members, Sir, would appreciate that rail transport is the mainstay of the economy and infrastructure development cannot be neglected. Investment is necessary to generate future income and that can be achieved only by generating resources internally now.

I, therefore, propose some changes in tariff and rationalisation in freight structure to be made effective from 1.4.1992.

It is proposed to increase freight rates of all commodities, other than the essential commodities mentioned earlier, by 7.5%, except coal where the increase will be only 4%. The tariff increase on coal is being kept low in order to contain the inflationary pressures in the economy.

I also propose to rationalise the classification structure of different commodities, other than the essential commodities mentioned earlier, by raising the trainload,

450 Budget 1992-93

wagonload and smalls classification by one step.

Some rationalisation of parcel classification and charge is also proposed to be effected. The minimum charge in respect of parcels and luggage is proposed to be revised from Rs. 17 to Rs. 30, except for fresh fruits and vegetables where the revised minimum charge will be Rs. 20.

My proposals in regard to passenger fares are as under:-

(i) The fares for upper classes, namely, Air-conditioned First Class, Air-Conditioned Sleeper, First Class, and Air-Conditioned Chair Car are proposed to be increased by 20% for all distances.

The fares for the Rajdhani Express, New Delhi Bombay AC Express and the Shatabadi Express trains are also proposed to be suitably increased.

(ii) The fares for Second Class Ordinary are proposed to be increased by 50 paise per ticket in the lowest slab, progressively rising to Rs. 5 per ticket for distances beyond 250 km. I do not, however, propose to increase the fares for passengers travelling up to 10 km.

(iii) The Second Class Mail/Express fares are proposed to be increased by Re I at the lowest distance slab, rising progressively to Rs. 25 per ticket for distances beyond 1,300 km.

The fare a passenger has to pay between Jammu Tawi and Kanyakumari-a distance of 3,726 km-will thus go up by only Rs.


(iv) For Second Class Monthly Season Ticket fares, the existing number of equivalent single journeys is proposed to be increased by one in all distance slabs. A Second Class Monthly Season Ticket holder will now have to pay fare equivalent to