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REVIEW OF FINANCIAL PERFORMANCE DURING 1999-2000

• 1999-2000 an extremely difficult year for Railways
• An all-time record of incremental loading of 35mn tons
• Passenger earnings &150; growth of 12%
• Additional burden of Rs9bn on account of increased fuel bill due to hike in diesel price and electricity tariff, and other post-budgetary increases
• Gross earnings increased from Rs330.21bn in Revised Estimates Rs331.25bn in actuals
• Working expenses down from Rs309.09bn in Revised Estimates to Rs308.44bn in the actuals.
• Pensionary liabilities touch Rs40.22bn
• Year ends with drawdown of Rs11.07bn from Fund balances.
• In view of shortfall in internal resources, plan expenditure restricted to Rs90.57bn from Budgeted level of Rs97bn.
• Market borrowings restricted to Rs29.19bn compared to Rs30bn in Revised Estimates

REVIEW OF FINANCIAL PERFORMANCE DURING 2000-01

• Railways set to achieve freight loading target of 475mn tons.
• Freight earnings at Rs234.86bn, however, likely to fall short of target by Rs1.22bn due to drop in lead and change in commodity-mix.
• Passenger earnings continue to Budget Estimates buoyant and likely to exceed the Budget Estimates of Rs101.48bn by Rs3.02bn.
• Position of Traffic outstanding including dues from State Electricity Boards/Power Houses continues to Budget Estimates unsatisfactory, having risen to Rs30.27bn to end December 2000; instead of clearance of Rs5bn, accretion of Rs500mn likely
• Gross Traffic receipts scaled down from Rs365.29bn in Budget Estimates to Rs354.67bn in Revised Estimates
• Despite increased expenditure on account of hike in fuel price and restoration work due to several natural calamities etc;& a saving of Rs3bn likely to be achieved
• Ordinary Working Expenses in Revised Estimates placed at Rs278.15bn
• Pensionary liabilities assessed at Rs51.67bn against Budget Estimates of Rs53.14bn
• Internal resource generation reduces and accordingly Plan expenditure re-assessed at Rs100bn against budgeted outlay of Rs110bn

BUDGET ESTIMATES 2001-02

• Freight traffic target fixed at 500 million tonnes
• Growth in Passenger Traffic - 9%
• Other Coaching to grow by 8.8%
• Sundry Other Earnings from traditional sources to increase by 5.4%
• Target for non-traditional sources of earnings kept at Rs 1,000 cr - Rs 700 cr by way of leasing of &145;right of way&146; of optic fibre cables, Rs 200 cr from commercial exploitation of land and Rs 100 cr through commercial publicity.
• Target of clearance of outstanding dues kept at Rs 750 cr &150; Rs 500 cr targeted for clearance by BTPS.
• Gross Traffic Receipts estimated at Rs 39,439 cr
• Ordinary Working Expenses estimated at Rs 30,190 cr - increase of 8.53% over Revised Estimates
• Pensionary liability estimated at Rs 5,800 cr &150; up by Rs 633 cr from 2000-01
• Appropriation to DRF - Rs 2,704 cr
• Total Working Expenses estimated at Rs 38,684 cr.
• Net Traffic Receipt at Rs 755 cr.
• Net Miscellaneous Receipt at Rs 928 cr including Rs 300 cr to be received from General Revenues for Railway safety works.
• Net Railway Revenue projected at Rs 1,683 cr.
• Dividend to General Revenues estimated at Rs 2,352 cr. In view of shortfall in internal resources, Rs 1,000 cr transferred to Deferred Dividend Liability Account and Rs 1,352 cr proposed to be paid to General Revenues.
• &145;Excess&146; of receipts over expenditure works out to Rs 331 cr - falls short of Plan requirement of internal resources by Rs 500 cr
• Rs 500 cr to be mobilised additionally through revision of freight rates &150; a small part to come through levy of &145;Congested Route&146; surcharge

PROPOSALS REGARDING FREIGHT RATES

• No increase in the freight rates for essential commodities like Sugar, Edible salt, Grains and pulses, Edible oils, Kerosene, Fruits and vegetables, LPG
• Household budget not to be upset
• 2% increase in freight rates for coal (not meant for household consumption) and iron & steel (Division A, B, and C)
• Furnace oil increase only 1%
• A nominal increase of 3% in rates of all commodities except those mentioned above.
• Urea exempted from increase.
• No increase in rates of Parcel and Luggage
• Newspaper, magazine and medicine to be exempted.
• Proposals for adjustment in tariff for Freight estimated to generate Rs 500 cr per annum.
• Changes in rates and classifications to be effective from 1st April 2001.

&CONCESSIONS

• Concessional MST for people below poverty line to continue
• Concessions available to orthopaedically handicapped and paraplegic persons to be extended to visually handicapped and to mentally handicapped
• Despite no increase in passenger fares, the earnings from passenger traffic poised to exceed budgeted level &150; 10% growth registered till December, 2000
• No proposal to increase the passenger fares of any class or category of trains.

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