Rail Budget may be a quiet affair

If Lalu Prasad���s railway budgets were big-bang affairs, marked by across-the-board fare cuts, chances are that Mamata Banerjee���s will be a quiet event. Except for some token reduction in passenger fares and freight concessions for a couple of sectors, the railway budget is expected to be a sober affair, minus any significant impact.

According to highly-placed government sources who did not wish to be identified, there are no major changes in passenger fares or freight rates. In line with Ms Banerjee���s pro-poor stand, special fares for below-poverty-line (BPL) families is expected to be announced. An insurance scheme for rail passengers would also be announced, the sources said.

On the freight side, the sectors to benefit will be cement and steel. As the freight rates are flexible to tweaking at any point in time, the railway budget is likely to refrain from making major changes on this count. In view of the downturn in the economy, freight loading target for the financial year is being revised from 910 million tonnes to 880 million tonnes.

In the interim budget for 2009-10, Lalu Prasad had announced an across-the-board 2% cut in fares of ordinary and AC class. He had also announced reduction in the fares of passenger trains by Re 1 for fares costing up to Rs 50 for journey above 10 km.

In Ms Banerjee���s case, she is expected to announce a couple of new projects and some trains for West Bengal, the sources said. At the same time, the pet projects of former Lalu Prasad yadav are not being taken away from Bihar, they added.