Introduction
At the outset, I express my profound gratitude to Honble Prime Minister for launching the
National Rail Vikas Yojana, which involves the strengthening of the Golden Quadrilateral,
augmenting rail connectivity to ports and also the construction of four mega bridges. This
non-budgetary initiative is bound to accelerate the growth of the Indian Railways, which
is the life line of the Nation.
Financial
Performance In 2001-2002
I will now give a brief review of the performance of the year 2001-2002. The year
2001-2002 ended with a freight loading of 492.5 million tonnes which was 3.50 million
tonnes higher than the target of 489 million tonnes fixed in the Revised Estimates for the
year.
Freight earnings have consequently surpassed the revised target by Rs.235.40 cr. This
improvement was attributable to better performance during the last quarter of the year as
the economy started picking up. Passenger earnings, however, suffered a set back in the
last quarter of the year due to various extraneous factors resulting in a shortfall in
passenger earnings to the extent of Rs.204 cr. against the enhanced revised target of
Rs.11400 cr.
Taking into account the increase in Other Coaching and Sundry earnings and a lesser
accretion to the Traffic Suspense as compared to the Revised estimate targets, the Gross
Traffic Receipts for the year were Rs.118 cr higher than that envisaged in the Revised
Estimates.
As a result of continued monitoring and control over expenditure, Railways were able to
contain the Ordinary Working Expenses to Rs.28703 cr. resulting in a saving of Rs.397 cr
as compared to the revised estimates.
This, coupled with need-based appropriation to DRF and Pension Fund and also the variation
in Net Miscellaneous receipts, resulted in an increase of Rs.197 cr. in Railways net
revenue. The operating ratio for the year improved to 96.0 percent as against 96.6 percent
envisaged in the Revised Estimates.
After deferment of Rs.1000 cr., as was envisaged in the Budget, Railways were able to
discharge the balance dividend liability of Rs.1337 cr, besides repaying the loan of Rs.
249 cr taken from the General Exchequer for Capital Fund.
Review of
Financial Performance in 2002-03
In the Budget for 2002-03, the originating revenue earning freight traffic has been
estimated at 510 million tonnes. I am happy to inform the House that the performance
during the first 10 months of the current fiscal has exceeded the proportionate target.
Accordingly, the target for the originating revenue earning freight traffic has been
revised upwards to 515 million tonnes in the Revised Estimates for the year. On the other
hand, in the Passenger segment there has been a drop of nearly three percent in number of
passengers to end December 2002.
The goods earnings are likely to exceed the budget target of Rs. 26,118 cr by Rs. 540 cr.,
whereas passenger earnings are likely to fall short of the budget target of Rs. 13450 cr
by Rs. 720 cr. Taken together, the other coaching and sundry earnings are likely to be Rs.
24 cr below the budget target.
Due to continued increase in the amount owed to Railways by the users, particularly,
Electricity Boards, the unrealized earnings are likely to increase by Rs. 417 crores as
against a budgeted clearance of Rs.50 crores. Therefore, the budgeted Gross Traffic
Receipts of Rs.41,538 cr have been reduced to Rs. 40,867 cr in the Revised Estimates.
With sustained monitoring and continued austerity, there is likely to be a reduction of
Rs. 850 cr in the Ordinary Working Expenses. Accordingly, the Revised Estimates for these
are placed at Rs.30,310 cr as against Rs. 31,160 in the Budget Estimates.
The operating ratio budgeted at 94.4 percent is likely to improve to 92.5 percent in the
Revised Estimates.
Besides discharging fully the dividend liability for the year, an amount of Rs. 50 cr is
also proposed to be cleared from the Deferred Dividend Liability Account. |
