Rly ministry heading for collision with finmin, Plan panel

new delhi: the railways ministry is on a collision path with the finance ministry and the planning commission over priority to be accorded to its ongoing projects. the finance ministry and the commission want cash-strapped railways to review its priority on implementation of some of its ongoing projects instead of spreading its resources very thinly. very clearly, the two arms of the government have reservations on new lines being added by the railways. the railways, on the other hand, has said the prioritisation of new lines and gauge conversion accorded by a cabinet committee on economic affairs in november 1998 was valid and that there was no need for any changes. other ongoing projects include doubling, signalling and telecom works, track renewal, building of road or under bridges, procurement of rolling stock and electrification. in total, the railways has projects involving investment of rs 35,000 crore under various plan heads. even the standing committee on railways in its 10th report — tabled in parliament recently — has emphasised that the indian railways needs to urgently refix its priorities. the committee has, in fact, taken exception to a somersault by the railways. apparently, the railways had agreed last year that it did need to rework its priorities and, further that it was in the process of undertaking a review. ongoing projects of laying new lines, the largest plan head, for instance require rs 22,000 crore of investment. by railways’ own admission, if all the work is to be completed within optimal time frame, it would require funds worth rs 3,500 crore per annum, without considering cost escalation and inflation. at this level of investment, railways could complete about 800-1000 kilometres of new lines a year. the present level of investment, in contrast, is in the range of rs 800 crore per annum. till december 2001, the railways managed to add only 28 route km against revised target of 100 route km for 2001-02. for the current fiscal, budgetary outlay for new lines is rs 911 crore with a target of adding 214 route km. the committee has said that ideal shelf of new line projects should be rs 6,000 crore, considering an investment of rs 800 crore per annum and the optimal time frame for new line project as 5-7 years.