Railway Budget short on politics, long on economics

Freight rates to be linked to fuel price; funds to be raised from surplus land assets; tariff authority on cards

Railway minister P.K. Bansal says the proposal to set up an independent tariff regulatory authority will be taken up by an inter-ministerial panel. Photo: Ramesh Pathania/Mint

New Delhi: In his maiden budget, railway minister Pawan Kumar Bansal boldly undertook another round of fare revisions and also committed to the politically sensitive decision of monetizing Indian Railways’ surplus land assets by selling some to private developers and generating an estimated Rs.1,000 crore in revenue.

In the process, he chose pragmatism over political grandstanding, ignored populist claims from his own party and risked earning the wrath of his own constituency.

Bansal effected an across-the-board increase in freight rates, and also indexed future rates to the price of fuel. The minister chose not to increase passenger fares, which were raised last month, but did effect a 50% increase on an array of booking charges.

The minister also promised the setting up of a tariff regulatory authority; an inter-ministerial body is discussing the proposal and is expected to sign off on it shortly, Bansal disclosed in the post-budget press conference.

“We looked at the actual position prevailing on the ground and acted accordingly. I did not want to make high promises.

Rohit singh
PGDM 2 nd sem.