INDIAN Prime Minister A B Vajpayee has approved a 10% increase in the Railways Ministry budget for 1998-99, which will total US$2 454m compared to US$2 155m in 1997-98. Railways Minister Nitish Kumar says the increase will help to to boost IR’s capital investment under the 1997-2002 five-year plan.
The budget announcement coincided with the presentation to parliament of a White Paper prepared by the Ministry of Railways. Highlighting the railways’ poor financial performance in recent years, it underlined the need for extra investment during 1998-99. The Indian Railways Board has also been instructed to draw up an action plan on improving the company’s financial management. IR Chairman V K Agarwal says IR’s market share of passenger and freight traffic has fallen from 80% in 1951 to around 40% of freight and 20% of passengers today.
The budget total will be funded in three ways. The government will provide US$564m in central support, and IR will raise US$749m through commercial borrowings. The remainder will be generated internally, with IR expected to increase passenger fares and freight rates.
H On June 8 GEC Alsthom announced that it had won a £16m contract from IR to supply and install ONIX IGBT asynchronous traction drives in 50 EMUs being refurbished for the Mumbai suburban network. The first four sets will be supplied from Europe to enter service within 16 months, with the remainder to be manufactured in India for use between the 20th and 30th months. o
