August 29, 2001

‘23’

SUO-MOTO STATEMENT MADE BV SHRI NITISH KUMAR,MINISTER FOR RAILWAYS IN LOK SABHA REGARDING SETTING UP OF NON- LAPSABLE SPECIAL RAILWAY SAFETY FUND FOR INDIAN RAILWAVS

    Hon'ble Members would recall that the safety of travelling on the Railways has been a growing concern, and has been under frequent discussion in various fora. Many high level inquiry Committees have been engaged in the past to go into the issue of Railway Safety, namely, the Shah Nawaaz Committee (1954), the Kunzru Committee (1962), Wanchoo Committee (1968), Sikri Committee (1978). More recently, the Railway Safety Review Committee (1998) under the Chairmanship of Justice H.R. Khanna has also examined this issue. The Railway Safety Review Committee gave its interim report in August, 1999 and final report in February 2001. In its report it had interalia recommended that in the interest of safety of the travelling public, the Central Government should provide a one time grant to the Railways so that arrears in the renewal of vital safety equipment are wiped out within a fixed time frame of 5 to 7 years-The Committee had also recommended that one time grant of Rs. 15000 cr be given by the Central Government to the Railways to wipe out arrears of replacement of over aged assets. The cost of replacement of such over-aged assets has been re-assessed at current price level as Rs. 17000 cr.

    The Government has been siezed of this issue and I am glad to inform the House that the Cabinet has, on 27th August 2001, decided to set up a non-lapsable Special Railway Safety Fund to wipe out the arrears of replacement on the Railways in a fixed time schedule, as recommended by the Justice Khanna Committee. This Special Railway Safety Fund will be funded through two sources viz. (1) Railways' contribution through the levy of Safety Surcharge on passenger traffic and (2) through additional financial assistance to be given by the Ministry of Finance.

    It is expected that with the levy of the Safety Surcharge, the Railways would be able to raise Rs. 5000 cr over a period of 6 years including the current financial year, which will be credited to the newly created non-lapsable Special Railway Safety Fund.

    The remaining Rs. 12000 cr would be provided by the Ministry of Finance. In the current financial year the Ministry of Finance have agreed to provide Rs. 1000 cr towards, this fund. The balance amount would be provided over the next five years.

    The Safety surcharge would be levied as a flat amount depending on the class of travel with a certain surcharge for travelling distances upto 500 kms. and a higher surcharge beyond 500 kms. The second class (ordinary) and second class (mail/express) passengers will have to pay @ Re. 1 and Rs. 2 respectively, irrespective of the distance of journey performed. In the sleeper class the levy would be Rs. 10 for distances upto 500 kms. and Rs. 20 for beyond 500 kms. For passengers travelling by the AC Chair Car and First Class, the surcharge would be Rs. 20 upto 500 kms. and Rs. 40 beyond 500 kms. In AC 3 Tier it will be Rs. 30 upto 500 kms. and Rs. 60 beyond 500 kms, AC 2 tier Rs. 40 upto 500 kms. and Rs. 80 beyond 500 kms. and in AC-1 Class, it will be Rs. 50 upto 500 kms. and Rs. 100 beyond 500 kms. As far as the monthly season tickets are concerned, it will be Rs. 20 for First Class and Rs. 10 for the second class travel. The surcharge would be levied with effect from 1st October 2001.

    With the creation of this non-lapsable Special Railway Safety Fund, Railways expect to be able to wipe out its arrears of replacement of assets in a time bound manner and thereby considerably improve the safety of the travelling public.

    The identification of these arrears is in an advanced stage- Only the replacement arrears, as approved by the Expanded Railway Board, would be charged to this Fund and will be incorporated in a separate book of sanctioned projects called the Green Book.