New lines, coach & engine plants to Godspeed Railways

NEW DELHI: Railway minister Lalu Prasad Yadav is likely to announce an outlay of Rs 32,225 crore for the railways in railway budget 2007. The proposed outlay represents a 36% growth over the previous year’s outlay of Rs 23,700 crore. According to budget estimates, the railways would generate Rs 17,084 crore through internal generation during 2007-08 against last year’s Rs 10,794 crore. This represents a 58% increase in mobilisation of internal resources.

When he presents the railway budget next week, Mr Yadav is likely to announce that Rs 2,500 crore would be spent for construction of four mega bridges and new railways lines. Around Rs 2,300 crore would be invested in gauge conversion involving 1,500 km of tracks. In addition, 16 new lines are expected to be sanctioned by the Union Cabinet on Thursday. According to government sources, the railway budget would announce that Rs 4,500 crore would be raised through market borrowings.

The railways would also take up new lines and gauge conversion in the north-east and Jammu & Kashmir. For this, funds to the tune of Rs 2,725 crore have been sought in excess of the budget support. Some of the projects covered include the Udhampur-Srinagar-Baramullah and Kumarghat-Agartala rail links.

“This year, a major chunk of the outlay will be incurred on construction of new rail lines. This includes four mega bridge projects. A considerable part of the outlay would also be used for setting up new rail coach factories and locomotive manufacturing,” a senior government official said.

Budget support is also likely to facilitate freight movement in coal, fertilisers, food grains and iron ore. Major expenditure is also expected in rolling stock such as wheels, rails and tracks. The railways hope to generate a major part of the revenues to meet the growing expenditure through increased public-private partnership (PPP).