Railway Budget 2015: Chronic under investment has led to poor development of Railways, says Suresh Prabhu

NEW DELHI: Presenting his maiden Railway Budget, Rail Minister Suresh Prabhu on Thursday said that chronic underinvestment has led to poor development of Indian Railways.

Prabhu said that Railways can play a very important role in PM Narendra Modi's ambition of eliminating poverty from the country.

"I thank people for giving me this opportunity. PM challenged us when he talked about the need for about poverty elimination," Prabhu said. "This is an organisation that touches the heart of all Indians. Railways can play a prime role in PM's dream of eliminating poverty from India."

Ahead of his speech Suresh Prabhu presented a 'white paper' on Railways in Lok Sabha.

Ahead of the Railway Budget, Suresh Prabhu had said that it will signal the direction of long-term reforms needed to revamp the world's fourth-largest rail network.

"The budget will set the direction of long and difficult road of reform," Prabhu had said.

"We have tried our best to fulfil people's aspirations and expectation (in the budget) despite the fact that railways is passing through hard times," Prabhu had said.

Prabhu had maintained earlier that before increasing the fares, there should be improvement in passenger amenities.

Railway Minister has also met representatives of industry before finalisation of the budget.

For 10 years before 2012-13 there was no increase in rail fares. Then Railway Minister and Trinamool Congress leader Dinesh Trivedi had made an across-the-board hike in 2012-2013 but was made to roll back the hike in second and sleeper class categories.

Since then there have been hikes in passenger fares. Before the first Railway budget of the Modi government in July last, fares were increased by 14.2 per cent and freight rates by 6.5 per cent.