Sunday, January 16, 2011

Railways’ turnaround derails

Srinand Jha, Hindustan Times

New Delhi, January 14, 2011

Faced with the biggest financial crisis of the decade, the Indian Railways have decided to ask to the finance ministry to fund the additional burden of Rs 55, 000 crore that it has been required to shell out over the last three years. Railways finances are in a mess, with the growth rate in earnings plummeting from 11.4% in 2008-09 to 9.1% in 2009-10 — placed at 7.8% until the end of December 2010.

On the other hand, working expenses have grown: 35.5% in 2008-09, by 21.1% in 2009-10 — placed at 1.7% until the end of December last year.

The result of all this is that the Operating Ratio (the sum of money spent to earn a sum of R100) has galloped to 95 %—the highest since 2001-02.

When she presents the budget next month, Railways Minister Mamata Banerjee may be unable to appropriate money for the purchase of new assets and improvements in passenger amenities through the capital fund and the development fund. This is the dilemma engaging top officials in the Railways involved in the budget preparation exercise.

Top ministry sources believe, like it is done in other ministries, the finance ministry should evolve a mechanism to take care of the huge impact that hits the Railways after every pay commission. The ministry will shortly be sending out a proposal on this issue.

Banerjee has not been fortunate about the timing of her stewardship of the railways ministry. Over a three year period beginning 2008-09, the Railways has had to bear an additional burden of R55, 000 crore towards fulfilling commitments of the sixth pay commission.

This year, the Railways also need to shell out an additional R1, 500 crore to its employees under the modified assured career progression scheme.

“Although these factors are beyond the control of the railways, suitable steps are being taken to improve earnings and control expenditure,” Chairman, Railway Board Vivek Sahai said.

Related Posts:

  • Hubli Division Family DharnaAILRSA, Hubli Division conducted a “FAMILY DHARNA” in front of the office of the Divisional Railway Manager, Hubli at 10:00am on 14.09.10 to highlight the deplorable working conditions and pathetic social life of Loco pilots.… Read More
  • Railway Accidents Reasons and Remedies- Seminar at BangaloreALL INDIA LOCO RUNNING STAFF ASSOCIATIONHQ ADRA Reg. No. 17903 SOUTH WESTERN RAILWAY ZONEWeb Site: www.ailrsa-swr.org E-mail: ailrsaswr@gmail.comVisit: railwayslocopilotsblogspot.comSeminar on“Railway Accidents, R… Read More
  • New WDG 5 locomotiveNew WDG5 locomotive design finalisedLucknow, Sep 16 : Indian Railways and Electro-Motive Diesel Inc (EMD), one of the leading global locomotive manufacturers, today announced the final design of the new WDG-5 locomotive. In a… Read More
  • Accident reportThe New Indian Express23 killed in MP train mishapTwenty-three passengers were killed and over 50 injured when a goods train rammed into the stationary Indore-Gwalior Intercity Express at Badarwas station in Shivpuri district… Read More
  • Train accident on 20.09.10September 20, 2010.Trains collide in MP; 25 feared killed-----------------------------------------------------At least 25 passengers were feared killed as a goods train rammed into the stationary Indore-Gwalior Inter-city exp… Read More

0 comments:

Welcome To AILRSA....

Visitors

1116724

Admin Area

Blog Archive

AILRSA 1970 - . Powered by Blogger.

Are You Satisfied with 7th Pay commission ?

Popular Posts

Recent Posts

Text Widget

Followers

-------------------------------------------------------

-------------------------------------------------------