Didi has her way

NEW DELHI: Ignoring those who suggested a get real, Mamata approach to drafting a budget for the cash-strapped Railways, Mamata Banerjee has opted for one which will please the travelling man. Particularly if he is Howrah-bound. No passengers fares have been hiked, not even for people travelling in the upper class. A `nominal'' three per cent hike in freight charges has been proposed, but the stuff heading for the common man''s kitchen has been spared.Salt, oil, fruit, vegetables, grain and pulses will travel at old rates. Railway Budget 2001-2002 follows reports that Banerjee was under pressure from the more hard nosed Cabinet colleagues to raise fares. The pre-budget economic survey also pointed out that the Railways continued to lose out to the road transporters because of the freight rates. "There is a need for re-balancing of the tariffs of Indian Railways to reduce the rate of cross-subsidisation," the survey said. In other words, increase passenger fares so that freight charges need not be hiked. Mamata resisted, in part at least, because Assembly polls are being held in her home state West Bengal in a few weeks. And as if to rub it in for all those who might have suggested a fare hike, the Railway minister told Parliament she drew strength from Rabindranath Tagore''s lines. ``Give me strength never to disown the poor or bend my knees before insolent might,'''' she quoted the poet. Yet her `populist'' budget didn''t please all. There were disruptions in the House by members from Congress and Rashtriya Janata Dal in the Opposition, and Shiv Sena and Biju Janata Dal from among the government allies. The RJD thought she had ignored Bihar, Shiv Sena felt the same about Maharashtra and BJD felt Orissa needed more attention. Some of the members came into the well of the House, shouting slogans. At least West Bengal should not be complaining when it comes to getting new trains. Of the 24 trains being introduced in the coming year, seven -- that is a little less than a third -- will head for the state. In addition, the minister''s state will get three of the six new services slated to begin after `restoration'' or gauge conversion of existing lines. Banerjee however has taken at least one decision, which any populist Railway minister would have found tough. No new line projects are being started this year, she announced, calling it a ``bold'''' decision which will disappoint many MPs. She said the decision had become ``inescapable'''' in the Railways'' long-term interests. Instead the Railways will concentrate on projects which have already begun. Banerjee announced a 45 per cent increase, amounting to over Rs 300 crore, in the investment on old, new line projects. Despite an 11 percent increase in plan outlay for the coming year, the Railways cannot spare much on developing infrastructure. Even in 1999-2000, 37 percent of each rupee earned went into paying wages and allowances. Another 11 percent was spent on pensions. Banerjee hopes Rs. 1,717 crore will flow in from ``non-traditional'''' sources of revenue in the coming year: leasing the right of way for optic fibre cables, exploitation of railway land and advertisements on railway property. These sources didn''t yield much last year -- about Rs 110 crore against a budgeted Rs 750 crores. But the Railways say the groundwork for making money this way is now complete. Though she has spared travellers, even the ``nominal'''' increase in freight charge has brought about the predictable response. Steel Authority of India says it will have to pay Rs 30 crore more this year because of the two percent hike on charges for carrying iron, steel and coal. Banerjee has also proposed a `premium'' on freight charges on carrying goods over busy, ``congested'''' sections of the rail network. Like previous Railway minister, Banerjee complained about dwindling budgetary support from the government. She also reminded that the Justice Khanna Committee on railway safety had recommended a grant of Rs 15,000 crore over the next five to seven years. Her budget still earmarks Rs 3,000 crore under various safety heads. But this was just enough to meet the ``current arising'''' and not the ``arrears,'''' she said. Later, Railway Board chairman Ashok Kumar told reporters the Railways had done what they could for safety. But he would rather not talk about it, as bragging about it could prove inauspicious. ``Shani Devta gets angry,'''' he said.