From no frills air-conditioned trains called โgarib rathsโ, to free tickets to students, the ministry for railways has been the ministry for the โaam aadmiโ.
A pro people budget will be the tenor of this year's budget according to Mamata Banerjee.
But there are quite a few problems. Freight has been cross-subsidising passenger fares for years now. There's a bloated wage bill because of the pay commission and now a rise in diesel prices.
NP Srivastava, Retired financial commissioner of Railways, said, โLalu Prasad had tackled this problem by what he called enhancement of volumes so both on the passenger and freight side there were more trains so that the fixed costs remained the same.โ
Although, Mamata would like to announce a populist budget by decreasing train fares, introducing new trains, especially to her home state West Bengal, and increasing stoppages, the biggest problem would be generating more revenues.
โI think freight rates would be retained as it is. Even passenger rates would be retained with only some small concessions here and there. The rest she would borrow from IRFC or ask for budgetary support,โ Srivastava said.
According to sources, as part of passenger fares Seasonal passes for vendors at Rs 20 and Insurance scheme for passengers may be announced in the Rail Budget.
As part of freight rates, incentives on freight transport may be announced. The freight-loading target for FY10 has been revised to 880 MT from 910 MT. Also, dedicated freight corridor that will benefit six states might be fast tracked. Besides, new trains, especially like Garib raths, and new lines are likely to be announced and economy meals at stations might be proposed, they added.
Meanwhile, with both the common man and the industry equally hit because of the extended slowdown, generating more revenue for the Railways without increasing either the passenger fare or the freight rates will be the biggest challenge for Mamata Banerjee when she delivers her pro-people budget this year.