Lapping the recommendation of the parliamentary convention committee, railway minister Suresh Prabhu questioned the practice of the Railways paying dividends to the government at a time when the nati
Lapping the recommendation of the parliamentary convention committee, railway minister Suresh Prabhu questioned the practice of the Railways paying dividends to the government at a time when the national transporter is financially overburdened, following the implementation of the Seventh Pay Commission Report.
The Lok Sabha took up a discussion on the resolution to discuss the rate at which the Railways should pay the dividends to the government on the gross budgetary support (GBS) extended to it in the Union Budget.
The Seventh Pay Commission Report’s implementation has given the Railways an additional financial burden of about '30,000 crore.
Making an intervention at the beginning of the discussion, Mr Prabhu noted that the Railways undertakes social obligations without being compensated, but it has now been “overburdened” financially.
“I would just like to make a point. This paying dividend to the finance ministry is one area which really needs to be looked into. Why should the Railway pay dividend This has been a recommendation of the standing committee. There have been several unanimous recommendations on this by several standing committees that the Railways discharge very useful public functions,” Mr Prabhu noted in his bid to give a context and direction to the discussion in the Lok Sabha.
The minister posed the question before the House to examine how the Union Budget can actually subsidise or take care of the subsidies which are already there.
Initiating the discussion, former Union minister of state for railways and Congress leader K H Muniyappa sought to suggest that when the Railways is in financial distress then why is it taking projects like the Ahmedabad-Mumbai high speed rail corridor whose cost comes around Rs 400 crore for laying one km track. “The Railways is running in public interest and for the common people under certain obligations. So, they could not pay dividend. At the same time, the finance ministry is unable to help the common people of this country. The surprising thing is that the government is not coming forward to support the Railways,” he added.
Mr Muniyappa called upon Mr Prabhu to give top priority to modernisation of Railways instead of focussing on bullet trains and complete unfinished tasks like the closing of over 11,000 level crossings. BJP MP Ganesh Joshi, while taking part in the discussion, said that the financial health of the ministry was not good as the Railways spent 97 paise for every rupee it earned. AIADMK MP Mr Ashok Kumar K said that the railways have been providing concessions under 53 categories. Besides, it has to deal with the salary, pensions and now with the excess burden under the 7th Pay Commission, he added.
The Lok Sabha will further take up discussion on the resolution next week.
For Box Railways overburdened by implementation of 7th Pay Commission. It discharges useful public functions and shouldn’t be paying dividends, says Mr Prabhu. K H Muniyappa suggests cutting down expensive projects like the Ahmedabad-Mumbai high speed rail corridor. It provides concessions under 53 categories besides paying salaries and pensions. Lok Sabha to take up discussion on the resolution next week.
