Speech of Shri Lalu Prasad

Introducing Railway Budget 2005-06

   1.            Mr. Speaker Sir, I rise to present the Budget Estimates for 2005-06 for the Indian Railways. I am presenting this budget at a point in time when the Indian economy reflects a vibrant growth. The Tenth Plan envisages an economic growth of eight per cent. This requires significant investment in infrastructure, of which railways are important and integral part, through larger public and private investment. This also needs greater efficiency in these sectors and sound fiscal management for financial viability.

   2.            Indian Railways have a critical role in ensuring the continued economic development of the country. We have drawn up an ambitious plan for meeting the increasing and emerging demands of the economy through the provision of world-class infrastructure. We will work not only towards streamlining the passenger services further and ensuring a palpable improvement in the quality of passenger services but also initiate a gamut of commercial, operational and investment - oriented initiatives in the freight sector thereby doing everything possible to improve Railways' share in the transport sector. I shall outline these policy decisions in the course of my speech.

REVIEW OF PHYSICAL AND FINANCIAL PERFORMANCE IN 2004-05

   3.            Sir, when I presented the first railway budget of the United Progressive Alliance Government, the so called intelligentsia had criticized it as a populist one since I had not increased railway fares and freight. I have immense pleasure in reporting to this August House that with the untiring efforts of lakhs of railway employees, the physical as well as financial performance of Railways in the first nine months of the current financial year has been excellent, thereby belying this criticism. On the freight front Indian Railways have transported 438.36 million tonnes which is 31.21 million tonnes more than the traffic lifted during the corresponding period of the last year. This implies a growth of 7.67 per cent over last year. Keeping this trend in mind, the revised target for loading has been raised from 580 million tonnes to 600 million tonnes and the revised freight earnings have also been increased from Rs 28,745 cr. to Rs 30,450 cr. For many decades the railways share of the freight market has been progressively reducing. Sir, it is a matter of pride for every railwayperson that this year, by registering a freight growth that surpasses the growth of economy, not only have the railways regained some market share, but will also be surpassing the Tenth Plan target of 396 billion tonne kilometres of the terminal year 2006-07 in this year itself, that is two years ahead of target. Sir, the current year's expected incremental freight loading of 43 mt is the highest achieved so far. Originating passenger traffic has also registered a growth of around six percent as compared to the budget target of 3%. The total earnings to end of December 04, which stand at Rs.33,900 cr., represent an 8.3 percent growth over the last year as against a growth of 4.1% registered in the previous financial year. The Revised Estimates have been framed keeping this trend in mind. Total earnings of Revised Estimates at Rs 46,635 cr are Rs 1,838 cr higher as compared to Budget Estimates.

   4.            Concerted efforts of the Ministry of Railways have also resulted in a two-fold increase in realisation of outstanding dues over the previous year. With the anticipated clearance of Rs 150 cr, the budgeted gross traffic receipts of Rs 44,902 cr will increase to Rs 46,785 cr.

   5.            The Ordinary Working Expenses are likely to increase by Rs 400 cr., mainly due to the steep post budgetary increase in fuel prices and the Revised Estimates for these are placed at Rs. 33,260 cr as against Rs. 32,860 cr in the Budget Estimates.

   6.            While the gross traffic receipts are anticipated to increase by Rs. 1883 cr over the Budget Estimates, the working expenses are expected to grow by only Rs. 400 cr, resulting in a significant increase in the internal generation during the current fiscal. With this the ratio of the ordinary working expenses and pension to the gross traffic receipts, i.e., "Working Ratio", is expected to be around 85%. Despite the appropriation to Depreciation Reserve Fund being Rs. 395 cr higher than budgeted, the Operating Ratio is expected to be 91.2% against the budgeted 92.6%.

   7.            Hon'ble members have been expressing concern about depleting balances in the Railway funds. It is a matter of satisfaction that despite withdrawals in the current year being higher compared to previous years, the fund balances are expected to close with a healthy figure of Rs 6963 cr.

   8.            In comparison with earlier years our physical and financial performance has been praiseworthy. However, we will not remain content with this.

"Uthna hai aur bhi upar, hai uchaiana pukartin

Hai apar kshmtayein,aashaein tumhe nihartin"

Several policy initiatives which I shall spell out in the course of my speech, have been taken with a view to ensuring that the economy and populace are able to reap the full benefits of Railways' vast potential.

FREIGHT BUSINESS INITIATIVES

   9.            Sir, policy decisions on several commercial, operating and investment related aspects have been taken with a view to bringing about an increase in the average speed of freight trains and reduction of detention to rolling stock at terminals which I would like to mention briefly.

Strategy to improve wagon availability and wagon utilization

10.            Sir, despite no significant augmentation in the number of wagons last year, considerable increase in loading has been possible due to improvements in the wagon turn round. The latter is expected to improve from seven last year to about six in year 2004-05. By taking up measures for improvements in this area on a war footing it is expected to bring the wagon turn round down to five days in the near future.

11.               The Preferential Tariff Schedule for supply of wagons has been rationalised and simplified. Highest priority "A" will be accorded to the Military traffic for Defence movement. Priority "B" shall be accorded to the emergency relief material for natural calamities and traffic sponsored by the Central Government agencies. Approved programmed traffic shall be accorded "C" priority. All other commodities will be moved under priority "D". In every category a higher priority within the same class of priority shall be accorded to the traffic offered by the customers adopting Engine-on-Load scheme, Wagon Investment Scheme or full rake sidings with mechanized round-the-clock working.

12.            In order to ensure un-interrupted movement of goods trains and to have better turn round of wagons, it is proposed to electrify diesel sidings located on electrified sections at Railways' cost, where heavy detentions occur and a prescribed number of rakes is handled per month.

Engine-on-Load

13.            As the House is aware, "Engine-on-Load" (EOL) scheme, was announced in the last Budget, wherein the train engine waits during loading and unloading operations to ensure faster release and better availability of wagons. After consultation with customers, the terms and conditions have been further liberalized. The permissible free time for loading is being increased from three hours to four hours for bulk commodities and from five hours to six hours for bagged consignments. It has also been decided to give a cash incentive by way of encashment of the credit hours available at the end of every quarter to be adjusted as a rebate in the freight payable in the following quarter. It has been decided that higher preference, within the same class of priority, will be accorded in supply of rakes to the EOL customers. The EOL scheme is also being extended to selected goods sheds and for customers not having their own private sidings.

Terminal Incentive Scheme

14.            It is proposed to introduce a cash incentive scheme for such freight customers who help the railways in reducing the terminal detention through investments in infrastructure for mechanized loading and unloading, round-the-clock working and improvements in yard lay out in their sidings. The "Terminal Incentive Scheme" shall be formulated in consultation with industry and after getting all related aspects examined by a professional agency.

15.            To bring about a qualitative improvement in freight train examination and wagons maintenance practices, infrastructural facilities will be upgraded at freight train examination centres, particularly those for close circuit rakes. In the coming year 20 such examination centres will be upgraded. With this, detentions during examination of freight trains will be reduced, quality of train examinations will be improved and safety will be enhanced. Substantially longer intervals will be provided between two successive train examinations by providing extended run of freight trains after every examination and for most close circuit rakes there will be no need for re-examination upto 6000 kms.

16.            It is proposed to rationalise the rules relating to demurrage and wharfage and the time given for loading and unloading. Accordingly, it has been decided that all goods sheds and sidings shall have uniform working hours and business hours. Customers are being encouraged to undertake loading and unloading operations through mechanized handling equipment and adopt round-the-clock working. As an incentive, only fifty percent of the actual time taken for loading or unloading operation from 22.00 hours to 06.00 hours will be reckoned for calculation of free time for the purpose of demurrage.

17.               Unloading from wagons is sometimes held up due to delayed removal of consignments from an earlier rake lying on the ground. In order to encourage expeditious removal of the goods, it has been decided that a grace period of two hours beyond the prescribed free time for unloading of wagons shall be permitted if the entire consignment from the rake is removed from the goods sheds within the extended free time.

Electronic Payment Gateway

18.            I am happy to advise that the pilot project for setting up Electronic Payment Gateway for freight, which I had proposed during the last Railway Budget, has been implemented for Badarpur Thermal Power Station in January' 2005 and a clearance of Rs. 110 crores has been effected from their outstanding dues. This facility will be extended to all major customers during the coming years, who opt for the same.

Public - Private Partnership

19.               Several public-private partnership initiatives are being taken to garner resources through non-traditional methods for the modernization and development of the railways and to provide enhanced facilities for users. Prominent amongst these are private sidings, commercial utilization of surplus railway land through construction of modern railway stations with provision of additional passenger amenities and logistics parks under the aegis of Rail Land Development Authority, initiatives related to parcel, utilization of optic fibre cable network of RailTel, computerized train enquiry system and wagon investment scheme, which will be covered in the course of my speech.

Sidings

20.            In order to enhance the rail share in transportation, it is necessary that freight customers are encouraged to develop their private sidings. It is proposed that the Railways shall share the cost of a new railway siding if the industry comes up with a long-term commitment of traffic; say for 10 years or more. Under this arrangement, the cost of the removable super structure including the track, sleepers, fastening etc. and the overhead electric equipment shall be borne by the railways. The capital cost of all traffic facilities such as 'Y' connection, additional lines at the serving station, crossing stations, patch doubling of the section etc. shall be fully borne by the railways. The siding owners will be required to bear the cost of the land, earthwork and the sub structure of the track.

21.            It has further been decided that in all private sidings other than Engine on load only, barring the cost of one commercial staff per shift, the Railways would bear the cost of all other Railway staff. The cost of all staff at engine on load sidings will be borne by the Railways.

Rail Land Development Authority (RLDA)

22.            To ensure the commercial utilisation of surplus railway land and air space I had, during the last Parliament session, presented a Railway (Amendment) Bill, 2004 in the Rajya Sabha, for setting up of RLDA. This authority will, through public-private participation, develop surplus land adjoining railway stations and goods sheds for constructing warehouses and logistics parks. It would also generate additional resources for the development of railways. Sir, in the coming years we propose, with the help of this Authority, to develop metro stations into world class modern stations and extend passenger amenities through construction of food plazas, shopping malls, etc. on vacant land. In the year 2005-06, all efforts will be made to complete the process relating to sanction of an action plan for converting New Delhi Railway Station into such a modern world class station.

Integrated Warehouse Complexes

23.            Indian Railways have entered into a Memorandum of Understanding with Central Warehousing Corporation (CWC) who will develop integrated warehouse complexes at 22 locations. A scheme for development of integrated warehouse complex by private sector has also been approved with a view to encourage public-private partnerships as per this model. It will provide a single window service to the customers for providing value added service of forwarding, handling, warehousing and road bridging.

RailTel Corporation of India Limited

24.            Sir, the optic fibre network of RailTel Corporation has now grown to 26,000 route kilometres (rkms) and is likely to reach 40,000 rkms by 2008. During the current financial year RailTel has completed connectivity of four metros and four mini metros. This apart, the present network already provides connectivity to 180 important cities and 1750 other railway stations. The telecommunication and safety requirements of railways are being satisfactorily met by this network. Once the ongoing process of upgrading the capacity of their OFC network from STM-4 to STM-16 over 23,000 rkms is completed in June 2005, RailTel's revenue earning capability will increase beyond expectations. RailTel will make every effort to exploit this vast network through public private partnership by means of joint venture, either through leasing or channel partner and provide various broadband services such as internet, voice telephony on internet, cable TV, national long distance telephony in urban as well as rural areas.

Container Traffic

25.            With the globalization of the Indian economy and spurt in imports and exports, the container traffic is expected to grow exponentially. It has been assessed that the growth will be of the order of 15%. In order to meet the growing demand for container trains, organizations other than Container Corporation of India will also be considered for movement of container traffic.

26.            Capacity constraints on the existing routes necessitate introduction of double stack container freight trains. It is proposed to introduce double stack container trains during the next two years on one of the identified routes connecting North India with Gujarat ports, based on cost economics.

PARCEL BUSINESS - INITIATIVES

27.            In order to provide value added services for transportation of parcels, railways have been leasing the parcel space in the front SLR coaches of passenger carrying trains by inviting bids through open tenders. It is proposed to introduce additional leasing of one of the two compartments in the rear SLR coaches of certain nominated Mail/Express trains also to attract more traffic. It is also proposed to lease out the vacant compartment of guard in the front SLR coach to courier services for carriage of small packages.

28.            Currently the parcel space in SLRs of many Mail/Express and passenger trains is underutilized and in some trains it is even below fifty percent. In order to attract traffic in such trains short-term lease for a period of one year shall be introduced. The reserve price for such leasing shall also be lower, keeping in view the past utilization of parcel space by such trains. Leasing of parcel space by ordinary passenger trains shall also be permitted for intermediate stations, if there is adequate demand between different pairs of stations covered by the train.

PASSENGER BUSINESS - INITIATIVES AND AMENITIES

29.            In the ensuing year I propose a number of steps for providing new, modern and improved facilities to the passengers. Some of these are detailed below:

Computerized Train Enquiry System

30.            Sir, passengers often complain that telephone lines pertaining to railway enquiry remain always busy. An attempt has, therefore, been made to expand its reach up to village level by modernizing the train enquiry system and opening call centres at Patna. Under this initiative, people from any corner of Bihar can enquire about arrival and departure of trains, reservation status, fare, concessions, etc., by dialling a universal telephone number 139 at local call rates. To ensure that the lines do not remain busy, depending upon the need, 200 to 500 lines are used in a call centre so that a large number of people can access the facility of enquiry simultaneously. Considering the unprecedented success of this initiative, I am happy to inform the House that I have decided to extend this facility throughout the country by the end of 2005-06 so that not only urban but rural people are also able to get the desired information instantly by dialling a universal number 139 at local call rates.

Round the clock Internet booking.

31.            The facility of booking tickets through Internet, which was started for cell-phones in the current year will soon be available on landline phones also. Presently booking of rail tickets on the Internet is restricted from 8 a.m. to 10 p.m. With effect from 15^th March 2005 this facility will be available from 4.00 a.m. to 11.30 p.m. without a break.

Reservation status in advance

32.            At present, waitlisted passengers do not know their status till the preparation of chart, which is normally done only about four hours before train departure. This time is considered too short for a person to finalise his journey plans. Therefore, continuous updation of the waiting list will now be made possible through suitable modifications in the passenger reservation system.

Display of vacant berth position

33.            Along with the reservation chart, it is proposed to display vacancy position charts in all reserved coaches and on the platform so that waitlisted passengers can have information about vacant berths in various legs of journeys which will further enable transparency in their allotment. Wherever possible, this data would be linked to the current booking counters, so that vacant berths can be released.

Expansion of IT for customer satisfaction

34.            Sir, it is proposed to launch a pilot scheme for Mumbai suburban passengers to renew their season tickets on Internet and have it home-delivered on the lines of Internet ticketing for reserved category. This will provide relief for a large number of season ticket holders and ease congestion at the booking counters.

35.            The Passenger Reservation System (PRS) has already been installed at 1,163 locations all over the country. Another 152 locations have been sanctioned and are at various stages of completion. While the majority of District Headquarters have been provided with PRS facilities, it is proposed to cover the remaining District Headquarters, 100 in number, with these facilities within the next two years. 45 such locations will be taken up in 2005-06 subject to provision of space by the district authorities as per extant policy.

36.            The Unreserved Ticketing System (UTS) has already been provided at 108 locations in 14 Zonal Railways. A total of 120 locations are likely to be covered by the end of the financial year. It will be further expanded by over 300 locations during the year 2005-06.

IT STEPS ORIENTED TOWARDS MIS

37.            Indian Railways will move towards greater deployment of information technology so as to improve the process of planning, monitoring and decision making, reduce operating expense through a more efficient utilisation of rolling stock and to enhance the public image of the railways. I would like to briefly mention some of the new initiatives being taken.

38.            It is proposed to develop a Management Information System through a data warehouse developed from the Unreserved Ticketing System (UTS), Passenger Reservation System (PRS), and Freight Operations Information System (FOIS) on the Indian Railways. The proposed data warehouse will significantly boost the efficiency and effectiveness of the planning, control and monitoring processes.

39.            At present control over movement of trains is carried out through manual charting by the staff in most of the divisional control offices. Computerization of control charting will be taken up on Indian Railways during 2005-06. This will not only enable charting to be carried out with greater ease but will also result in more effective control over movement. Simultaneously, useful information on real time basis shall be made available to passengers on line through the NTES and call centres. The Control Charting system would be implemented on 15 divisions in the coming year.

40.            A computerized Crew Management System is already running in a few divisions on different railways. On the basis of the experience gained from these, it is proposed to develop and implement a unified crew management system. This system will streamline the management of train crews, optimising manning of trains, and providing running staff with rational working hours.

41.            COIS Punctuality Module is already available at most of the Divisional and Zonal Headquarters i.e. 80 locations approximately. The timetable module of COIS is under development and a central timetable date base has been built up. This will be web-enabled during the year 2005-06.

42.            During the year 2005-06, computerization of Railway Claims Tribunals, Goods Refund Offices and Subsidiary Claim Offices will be undertaken on similar lines as those of Claim Offices. Computerisation of goods refund offices will provide facility of online registration of goods refund cases and of checking the status of these cases from the Railways. It is anticipated that the web-enabled Claims Management System would help in reducing the average time taken for claim settlement.

INTEGRATED RAILWAY MODERNISATION PLAN (IRMP)

43.            Sir, with above new initiatives and by formulating an Integrated Railway Modernization Plan we have a dream of making the Indian Railways as the best Railway system in the world.

"Sirf hungama khara karna mera maksad nahin,

Meri koshish hai ki ye surat badalni chahiye"

44.            With a view to develop Indian Railways as a world class railway, an Integrated Railways Modernisation Plan spanning five years upto 2010 has been formulated. Under this plan, in the passenger segment, running of 150 kmph trains on New Delhi- Howrah and New Delhi-Chennai routes is envisaged. The freight business segment envisages running of freight trains at 100 kmph on the golden quadrilateral and its diagonals, introduction of higher axle load, double stack containers and Roll-on-Roll-Off wagons on the identified routes, etc.

45.            The tare weight of the wagons currently being used limits the freight loading of the Railways. With a view to increasing the loading capacity of each wagon by four tonnes, it is proposed to introduce lightweight, corrosion resistant aluminium wagons during the period of the modernisation plan.

46.            Other modernisation initiatives also include track modernisation and its maintenance practices, modernisation of Bridge Management System, signalling and telecommunication system, mechanical and electrical system and the Disaster Management System. The total expenditure envisaged for execution of the identified items in the IRMP is about Rs. 24,000 crore.

ACCOUNTING INITIATIVES

47.            The existing Accounting system on Indian Railways is time tested and provides a reasonable base for capture of data and production of financial statements in accordance with reporting requirements of Government. However, recent trends witnessed worldwide lay stress on uniform accounting standards and deployment of information technology assisted accounting system with greater transparency in financial reporting of the organization. The Railways have accordingly set in motion an Accounting Reforms process to meet the emerging business needs.

48.            In the Railway accounting system certain accounting heads are maintained to record transactions on accrual basis so as to establish a link between commercial accounts and government accounts. Also, revenue and capital expenses are classified under different heads. However, the total amount of lease charges paid to Indian Railway Finance Corporation for rolling stock leased by it is treated as a revenue expenditure whereas this amount includes both interest and principal repayment components, which are in the nature of revenue and capital expenditure, respectively. Therefore, it is proposed to modify this accounting system, following due procedures, in such a way that the true nature of such transactions and contribution of such assets to railway revenues can be ascertained and the accounting is in line with the generally accepted and standard accounting practices followed for lease finance.

49.            Besides, there is a need to go into the capital structure of the Railways particularly with reference to the contribution to Depreciation Reserve Fund on a scientific basis, identification of unproductive and redundant capital assets and the need for a policy of amortization. I have, therefore, directed the Ministry to draw up a suitable action plan so as to rationalize the capital structure of the Indian Railways.

50.            In the context of the ongoing accounting reforms and the contemplated capital restructuring initiatives, it is proposed to establish a Chair for studies in railway finance at one of the Indian Institutes of Management. This will be a fitting commemoration of the platinum jubilee celebrations of the Indian Railway Accounts Service.

Actuarial Assessment of Pension Liability on Indian Railways

51.            Sir, Indian Railways have nearly 12 lakh pensioners, spread all over India, with expenditure on pension touching Rs. 7,000 cr per annum. Liability on this account is increasing progressively. The appropriation to Pension Fund, which has been created for meeting pension requirements, should ideally be made on the basis of actuarial assessment. The last such assessment for the Central Government employees including Railways took place in 1974. It is proposed to have an actuarial assessment done for railway pensioners to assess the future liability on account of pensionary charges on railways. This will help in managing this liability in a better way. Accordingly, it is proposed to get this study done through a professional agency.

Transparency in Purchase and Sale

52.            Sir, while presenting the last year's Railway Budget I had announced that transparency would be brought in the auction of scrap by curbing the activities of mafia elements effectively. Every year the Railways make purchases of material worth thousands of crores of rupees. In certain cases the material cannot be supplied to the Railways at fair prices for want of limited number of approved suppliers. There have been complaints of cartel formation in the recent years, specially in tenders of concrete sleepers. Therefore, it has now been decided that in all such cases where Railways are not able to procure stores at fair prices for want of the adequate number of suppliers, efforts would be made to develop the new vendors in the public or private sector in order to infuse healthy competition amongst them. It has also been decided that the value of the tender will be determined on the basis of total cost of the supply which will be inclusive of local taxes etc. and it will be kept low to the extent possible.

SAFETY - PERFORMANCE AND INITIATIVES

53.            As a result of sustained and intensified efforts, the number of consequential train accidents has come down from 415 in 2001-2002, 351 in 2002-2003, and 325 in 2003-2004. During the period April to December 2004 it is 175 (provisional) as compared to 260 during the corresponding period of last year, reflecting a reduction of about 33%.

Special Railway Safety Fund

54.            Considerable progress has been made in the execution of works sanctioned under Special Railway Safety Fund (SRSF). Rs. 6504 cr have already been spent upto 31.03.04 and Rs. 3645 cr are likely to be spent during the current financial year making a total of Rs. 10,149 cr. As regards physical progress, 12138 kilometres of track are likely to be renewed up to 31.3.2005 out of the total target of 16,538 kilometres. Out of around 2700 bridges to be rehabilitated/rebuilt from SRSF, 1306 were completed by 31.03.04. In the current year, 411 bridges would be rehabilitated/rebuilt, as targeted. The work of replacement of over-aged signalling systems with modern systems has been completed at 567 stations. The work is in progress at 881 other stations. Interlocking at level crossings with signals is likely to be completed at 300 gates during 2004-05, bringing the total of inter-locked level crossings to 7395 out of 16741 manned level crossings. Track-circuiting works are sanctioned for 5300 locations. Out of these, work has been completed at 2277 locations upto January 2005.

Safety Initiatives

55.            Rolling Stock: To enable quick response for both rescue and restoration, medical relief trains and trains carrying equipment for restoration have been upgraded for operation at 100 kmph. To facilitate training on improved driving techniques for motormen resulting in better safety performance, it is proposed to provide three simulators for EMU/MEMU Sheds. A pilot project for development of "Track Side Bogie Monitoring System" is proposed to be launched. This system uses wayside detectors to monitor performance of bogies including bearing, which relay warning signals to the nodal stations about abnormal conditions, enabling advance action to be taken before the vehicle causes damage.

56.            Track: A modern Rail Profile Measuring and Analysis System (RPMS), a laser based contact-less rail measuring device has been commissioned recently on Indian Railways and regular recording of rail features has been started. Apart from this a state of the art, modern Track Recording Car with the additional features has been procured and is likely to be commissioned by March'05. These initiatives will give better monitoring of track geometry for maintenance planning to provide a safer travel and better comfort to the travelling public.

57.            Signalling and Telecommunication: The first ACD worked section on Indian Railways, designed to prevent collisions, especially at high speeds is likely to be ready by March 2005 on Northeast Frontier Railway. GSM-R based Mobile Train Radio Communication (MTRC) work is in progress over 2415 RKMs. These will prove to be a useful telecommunication and safety aid between various operational and maintenance staff. Train Protection and Warning system, to prevent Signal Passed at Danger (SPAD) by drivers shall be introduced on 280 track kms on certain sections of North Central and Southern Railways during the year 2005-06.

SECURITY

58.            With effect from 1^st July 2004 Railway Protection Force (RPF) has been entrusted with the responsibilities for better protection of passengers and passenger areas, in addition to railway property, and made responsible for minor offences which affect the passengers and the railway system. On an average 1262 train escort parties are being deployed by RPF daily to supplement the efforts of the GRP and also supplement security in many stations. For taking up the new challenges and additional responsibilities of passenger security, recruitment drive to fill up vacancies in RPF and modernization programme of RPF are in full swing. With these steps, the security to passengers and their belongings is likely to improve considerably.

CONCESSIONS

59.            Sir, in my last budget speech I had announced that unemployed youth attending interviews for selection to Central Government jobs would be given full concession in second class on production of a certified copy of call letter and application. This year I propose to extend the same concession in second class to unemployed youth appearing for interviews of State Governments jobs also.

60.            It is proposed to give 50% concession in Second Class fares to farmers and milk producers for travel to institutes of national level in other parts of the country for the purpose of training/learning better agricultural practices and dairy farming.

61.            It is proposed to provide 75% concession in Second Class fares to Government rural school students, once in a year, for study tour.

62.            It is proposed to give 75% concession in Second Class fares to girls from rural areas studying in Government schools for the purpose of attending national level entrance examination for medical, engineering and other professional courses in colleges.

63.            Railways have been carrying relief material for the people affected by the natural calamities/disasters. It is proposed that in notified cases of National Calamities/Disasters, the transportation of the relief material will be carried on priority and free of cost. It is also proposed that Railways will provide free Second Class transportation to persons stranded in such calamities for their evacuation.

64.            It is proposed that the dead bodies of patients who die while undergoing treatment in major Government hospitals will be carried on priority basis, to the nearest rail-head connecting their home town at 50% concession of the normal tariff rates.

Recruitment for Group D posts by field units

65.            Sir, in my last budget speech I had announced that the recruitment for RPF posts by the Railway Recruitment Boards would be discontinued and the previous practice of filling up the vacancies directly by the field units would be restored. The results have been satisfactory and there has been an improvement in the process of filling up of vacancies. Therefore, in order to tackle the problem of filling up of Group 'D' vacancies, the recruitment to Group 'D' posts will henceforth be made by the field units, as per earlier practice and not by the RRBs.

RESERVATION

66.            Sir, I am glad to inform this August House that the prescribed percentage of representation of the Scheduled Castes has been attained in all the groups of Railway services. In order to ensure the appropriate representation of the Scheduled Tribes and Other Backward Castes in all the groups of Railway services, special efforts are being made for running special drives.

67.            Sir, in the new catering policy provision of 25% reservation in award of licences of small catering units at 'A', 'B' and 'C' category stations and 49.5% reservation at other categories of stations have been made for SC, ST, OBCs, Minorities, war widows and widows of railway employees, freedom fighters and other weaker sections of the society. These categories have been kept out of tendering process in allotment of licences.

68.            Sir, last year, I had announced the elimination of the system of sole selling rights over bookstalls all over Indian Railway. I have pleasure informing the House that a reservation of 25% has been made for the people of above mentioned weaker sections of society in the new bookstall policy.

Corporate Welfare Plan

69.            Railways propose to prepare a Corporate Welfare Plan to pay special attention towards maintenance and improvement of staff quarters with particular emphasis on substandard quarters lacking basic amenities. For this purpose a ten year plan will be formulated in consultation with the staff representatives.

Achievements of Railways in Sports

70.            In the field of sports, the performance of Indian Railways during the year 2004-05 has been outstanding both at National and International levels. Indian Railways Chess team won the Gold Medal in the World Railway USIC Chess Championship held at Piestany (Slovakia) in November, 2004. During the current year Ms. Rachel Thomas, Indian Railway Skydiver has been honoured with prestigious Padmashri Award for adventurous sport. Five Railway sportspersons have been honoured with Arjun Award for their sports achievements and at the National level, Indian Railways sportspersons won 16 National titles in different games.

Medical Facilities

71.            Indian Railways with a vast network covering even inaccessible areas has around 600 health units, which require minimal upgradation by way of providing investigation facilities, mobile medical vans, etc., so as to provide better attention to the staff and their families posted in wayside and far-flung stations. Similarly, secondary level health care system will be strengthened in Railway hospitals duly making use of specialists' facilities available in the local areas.

ENVIRONMENT FRIENDLY STEPS

Provision for sale of dairy products under Catering Policy

72.            In my last Budget Speech I had announced the promotion of sale of milk, curd, mattha and dairy products on Indian Railways for improving the health of passengers. With the same objective, in the new catering policy milk stalls will be allotted to Apex Dairy Cooperative Societies of Centre or State Government without participating in open tender, on the basis of application in all categories of stations. Sale of other hygienic eatables and beverages in eco-friendly potteries/dishes like Kulhars will be promoted on Indian Railways.

Towards Cleaner Trains

73.            Given the intensive use of our trains and the long distances travelled, it has been felt that standardization of methods of ensuring complete cleaning of trains at identified intermediate stations is a must. Railways have been working in this direction for the last two years, and a comprehensive system for this purpose has been developed at Ratlam station of Western Railway. In the coming year this standard 'Clean Train Station System' will be implemented on at least one station of each zonal railway and the total number is proposed to be raised to 50 during the course of next five years.

74.            I am glad to inform the Hon'ble members that, as a trial measure, use of stainless steel EMU coaches is being adopted in the corrosion prone suburban area of Mumbai using the technology already acquired by M/s Bharat Earth Movers Limited (BEML). Apart from improving the availability of EMU coaches due to its corrosion resistant features, these EMU coaches will be aesthetically superior, have pleasing ambience and provide neat and clean look to the passengers.

Development of Composite Sleepers

75.            Indian Railways have developed an alternative to wooden sleepers in the form of concrete sleepers and steel channel sleepers. However, there are locations where wooden sleepers are still required. For such locations also, as an alternative to wooden sleepers, composite sleepers, made of recycled waste material have been tried and the initial field trials have been found to be successful. It has, therefore, been decided to go for extensive trials of composite sleepers.

Awards to Rail Wheel Factory, Bangalore

76.            In line with Railways' policy to upgrade quality and environmental management systems in Production Units to international standards, Rail Wheel Factory at Yelahanka achieved distinction by winning several National Awards in the current year. Recently, Rail Wheel Factory has also been certified for Occupational Health and Safety Management System conforming to OHSAS-18001.

OTHER INITIATIVES

Rail Heritage

77.            I am happy to inform this August House that in June 2004, the Mumbai CST building was inscribed by UNESCO as World Heritage Site. I must add that this is the only railway station in the world that has been bestowed this honour. It may be recalled that earlier the Darjeeling Himalayan Railway was inscribed as a World Heritage Site. Considering the social and cultural significance of rail heritage, training on this subject has been started in Railway Staff College.

Indian Railways -UIC Initiatives

78.            The World Executive Council Meeting of the Union of International Railways (UIC) is being held in India in April 2005, for the first time under the Chairmanship of Indian Railways, which is a recognition of the importance of Indian Railways in the world Railway community.

79.            Towards establishing an International Railway Strategic Management Institute under the aegis of UIC in India, the initial module of the first course for railway managers, would commence in Paris in May, 2005. The second module of this course would be held in Railway Staff College, Vadodara in November, 2005.

Free training to Railway personnel of BIMSTEC countries

80.            India's membership of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral, Technical and Economic Cooperation) is an important articulation of our Government's "Look East" Policy. The first meeting of Railway Chief Executive Officers of BIMSTEC countries was held in New Delhi in September 2004. During the meeting, Indian Railways have offered to train the railway personnel from the member countries free of cost. This gesture was widely appreciated by member countries.

PUBLIC SECTOR UNDERTAKINGS

81.            The performance of Public Sector Undertakings has been satisfactory during the year 2003-04 also. Indian Railway Finance Corporation Ltd. posted a net profit after tax of Rs. 379 crore during the year 2003-04 and paid a dividend of Rs. 110 crore, as against dividend of Rs. 101 crore in the previous year. Container Corporation of India Ltd. registered a turnover of Rs. 1807 crore with a net profit of Rs. 368 crore. The Company paid a dividend of Rs. 81crores during the year 2003-04.