Page 18 - English Tehelka Issue 3&4
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BudgetSpecial                                                                                                   BudgetSpecial                                                                              RAIL BUDGET








                 ommended that Finance Minister                                                                          With declining train traffic,                                              times to meet the challenges
                 Arun Jaitely extend all the incen-                                                                                                                                                 of globalised Indian economy,
                 tives being provided under Startup                                                                                                                                                 competition to the rail freight
                 India mission to Farmer Producer                                                                        govt comes to railWays’ rescue                                             from roads will still be higher.
                 Organizations (FPOs), including tax                                                                                                                                                So options for hike in freight
                 exemptions, provision of capital and                                                                                                                                               rates are saturated and few.
                 infrastructure. Though agricultural                                                                                                                                                  In the budget 2018-19, the
                 income of farmers is exempt from                                                                       The highest-ever allocation of capital expenditure of  1.48 lakh crore comes   railways had fewer options
                 income tax, the income of FPOs is                                                                                                                                                  to increase fares and freight
                 taxable at 30 per cent from the very                                                                   at the right time for the Railways that is  bearing steep losses and needs better   rates. Nevertheless, some in-
                 first year — this is a major disincen-                                                                 infrastructure, writes M.Y.Siddiqui                                         novative out of the box meas-
                 tive for farmers to come together                                                                                                                                                  ures were expected to be an-
                 to establish collective business en-  photo: tehelka archives                                                                                                                      nounced to mop up additional
                 tities. Allocation should be taken                                                                                                                        been kept low consciously   resources like dedicated
                 up to  3,000 crore. MSP should be    For the All India Kisan Sangharsh   • Price revision Most farmers sought                                             to cater to common people.   commercial ads of global cor-
                 effectively implemented for pulses   Coordination Committee, the revi-  revision of MSP by 50 per cent                                                    In this context and in view of   porations preferably in elite
                 and oilseeds as India imports over   sion of MSP by 50 per cent is a major                                                                                majority of people being poor,  trains like Rajdhani, Shatabdi
                 70 per cent of its edible oil needs.   demand that overlaps the wish lists                                                                                scope for increase in passen-  and Duronto as well as in
                 The remedy is to keep edible oil    of most of the farmers’ organisa-  terests of the producer farmers,                                                   ger fares was little.    other mail/express/superfast
                 duties higher for farmers to see val-  tions. “Get rid of subsidy and give   Indian agriculture should switch                                               Also, because of General   trains. Some other measures,
                 ue in oilseed cultivation.    the farmers remunerative prices,”   from being production-centric to                                                        Elections in 2019, the govern-  could have  included com-
                   The other suggestions of farm-  said Avik Saha, a senior member of   market-centric. There is no quick                                                  ment didn’t want to disap-  mercial space utilization for
                 ers are that the government revive   the organisation that also demands   fix solution for the challenges faced                                           point the public by increasing  additional revenue.
                 agriculture extension, announce   a complete waiver on agricultural   by farmers. A shift in the develop-                                                 train fares in the budget for   There is also talk about
                 a five-year plan to appoint one    outstanding that is estimated at    ment  paradigm  is  imminent  to                                                   the next fiscal..        Railways High Speed Author-
                 agriculture graduate as extension   13.55 lakh crore (from institutional  address the livelihoods of half of                                                It is a matter of concern   ity and Rail Development Au-
                 worker for every ten villages, thus   sources) and enable the producers   India’s  population  to  make  it  a                                            that while rail freight traffic   thority, besides the progress
                 creating 60,000 jobs.         for profitable price recoveries.  world power.                                                              photo: tehelka archives  between 1950-51 and 2013-14   of 100 per cent FDI in Indian
                   The  Chairman  of  Federation   Despite several reform initiatives   The results of Gujarat elections                                                   grew15 times, share of rail-  Railways, and the possibility
                 of Indian Farmers Associations, a   taken by the incumbent govern-  are a precursor to growing farmer           hare of rail traffic,   gradual shift of passenger   ways in originating tonnage   of announcement of Germa-
                 pan-India farmers’ outfit, has also   ment and its predecessors, agricul-  resentment and its political ramifi-  both in passen-  traffic to growth of metro rail   has come down from 89 per   ny’s Siemens setting up their
                 laid  stress on meeting  farmers’   ture marketing in India continues   cations. Political parties have taken   ger and freight,   services, cancellation of trains  cent in 1951 to 30 per cent   manufacturing of railways
                 demands to give them immediate   to suffer from several deficiencies.   quick cognizance of grievances          has come down    due to agitations, natural   in 2011-12. Apart from high   equipment under 100 per
                 relief. The President of the organi-  These stem from less than pro-  of voters and may come out with   Sdrastically in the      calamities and so on. While   freight rates, necessitated by   cent FDI under Make in India,
                 sation, Satnam Singh Behru, during   portionate  increase  in  number   temporary relief to secure their   past few decades despite   several proactive innova-  cross-subsidization of pas-  talk for which is underway.
                 the pre-budget discussions with Fi-  of mandis, non-transparent price   vote bank. The political outcome of   volume of rail traffic hav-  tive steps are underway for   senger services, other factors   With the evolving out-
                 nance Minister Jaitley in New Delhi,  discovery, bottlenecks in price dis-  the agrarian crisis is noticed and   ing gone up substantially in   improving passenger traffic,   responsible for declining   sourcing of non-core rail ser-
                 asserted to re-design the Prime   semination, non-transparent levies   recorded in time but the ramifica-  absolute terms. Presently,   a positive growth of 0.45 per   freight traffic include under-  vices, the quality of services
                 Minister’s Crop Insurance Scheme,   and variation in charges on the sale  tions on psychological and social   passenger share of Indian   cent was achieved during the   investment in augmenting   including passenger ameni-
                 as in its present format the forces   of produce in different states.  fabric of the country with so much   Railways has come down to   first half of the 2016-17 fiscal   rail transportation capacity   ties has gone down.
                 operating the market are making   We need to initiate barter-ne-  diversity may be more precarious      13 per cent from 75 per cent   ending September 2016, said a  over the years, majority of rail   Some measures have
                 a fast buck at the cost of farmers.   gotiations with deficit countries   and a greater cause of concern.   at the time of Independence.   Railway Board source.  freight basket being confined   rightly been announced to
                 “Farmers have been paying premi-  to expand the demand base of our   The proliferation of narcotics trade   There is a trend of decline in   Indian Railways incurred   to a small group of bulk core   improve rail services includ-
                 um and filling the coffers of insur-  commodities in global markets. In-  and drug addiction in rural pock-  actual number of passengers   heavy losses worth over    commodities with coal con-  ing passenger amenities
                 ance companies but the maladies   dia’s agriculture commodities face   ets of India, crime against women   which in 2012-13 was 8,421   30, 000 crore in passenger   stituting 50 per cent. Efforts   with corrective measures to
                 in the scheme have denied farmers  stiff non-tariff barriers in many    and children in the hinterland and   million and has come down to  services last year, which is   including innovative market-  improve quality of catering
                 benefits of the scheme,” he said.   developed countries simply because  caste clashes are manifestations of    8,151.90 million in 2015-16.  cross subsidised from freight   ing strategies are underway   and packaged drinking water
                   The unit of insurance should be   of their bias towards other trade   unrest among the rural commu-     According to the Ministry   earnings because of its social   to increase rail freight traffic   following damning report
                 an individual farm not a block as   partners. They refuse or restrict our  nities. The doubling of farmers’    of Railways, reduction in   responsibility. Simultaneous-  basket.   of the CAG in 2017. Besides,
                 many genuine victims of weath-  agriculture products. Government   income by 2020 would not be pos-     passenger traffic is attrib-  ly, railways is getting tougher   At the same time freight   rail safety has been given
                 er vagaries are excluded by this    should allow preferential imports of  sible when agriculture is growing at   uted to factors like capacity   competition from road traffic   rate is prohibitive and un-  additional added priority in
                 arrangement. For instance, insur-  electronics, automobiles, aircrafts,   around 2-3 per cent while it should   constraints on major trunk   and low-cost airlines. Pres-  competitive. It is also true that  view of major train accidents
                 ance cannot be claimed if a hail-  fuel, etc. to provide international   be growing at 14 per cent.     routes, improvement in road   ently, about 83 per cent of   road traffic has an edge. With   in 2016 and 2017.
                 storm occurs in less than 50 per   edge to our commodities.                                             infrastructure offering bet-  passenger traffic is from those  introduction of 60 ton trucks
                 cent of the block.              In order to safeguard the in -            letters@tehelka.com           ter and faster connectivity,   segments where fares have   to 90 ton trucks in the coming   letters@tehelka.com



                                       tehelka / 28 february 2018  18  www.tehelka.com                                                                Tehelka / 28 february 2018  19  www.Tehelka.com



   14-18 Budget.indd   6                                                                              12/02/18   3:36 PM  19 Railway Budget.indd   3                                                                 12/02/18   3:37 PM
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