12th November, 2002
Ministry of Railways  


INDIAN RAILWAYS EFFECTING SEVERAL REFORMS SAYS B.DATTATREYA


Minister of State for Railways, Shri Bandaru Dattatreya has said that Indian Railways has been effecting several reforms so as to make it an efficient, strong and customer friendly organization. Shri Dattatrya was speaking at a National Conference ‘Logistics by Railways’ organized by Confederation of Indian Industry in collaboration with Indian Railways. Shri Dattatreya said that Railways have been strengthening their finances regularly over the years. He said that the Government has almost doubled the Railways’ Plan allocation to Rs.27600 crore in the Tenth Plan from Rs.15200 crore in the Eighth Plan period. The Minister pointed out that a ten-year manpower planning programme is under implementation as part of concrete austerity measures undertaken by Railways. With this, the staff cost is proposed to be reduced to about 35 per cent of the gross traffic receipts within the next 10 years. The Minister said that the operating ratio which had once sored to alarmaing high to 98.8 per cent in 2000-01 is likely to be brought down to 94.4 per cent this year. He said that the Railways is taking several measures to mobilize resources internally from non-traditional sources such as leasing of "right of way’ for laying optic fibre cables, commercial utilization of land and air space and commercial publicity on rolling stock and station buildings. Shri Dattatraya said the Railways have decided to increase its share in total freight traffic from the present 40 per cent to 50 per cent in the next ten years. The steps taken to realize this target include, rationalization of classes of commodities, delegation of powers to Zonal and Divisional Railways for devising marketing strategies at local level, introduction of high speed refrigerated parcel vans, continuation of Volume Discount Scheme and extension of Roll-on-Roll-off services. The Minister also informed that a Railway Traffic Regulatory Authority is proposed to be set up in the Tenth Five Year Plan to oversee pricing of the passenger and freight traffic services to ensure rational transparent and competitive pricing. Underscoring the Railways’commitments to safety, the Minister said that the safety related works are in full swing from the Rs.17000 crore Special Railway Safety Fund and from the normal funds. The Minister said that the Railways is also making efforts to promote public private partnership. The Minister said the Railways is committed to provide efficient and modern logistics service to all its users encompassing complete ambit of services.

In his key-note address the Chairman, Railway Board, Shri I.I.M.S. Rana said that Indian Railways is fully geared to offer complete logistic functions to its customers. Shri Rana said that in order to improve logistic functions Railways have developed Freight Operation Information System (FOIS) and its phase-I namely Rake Management System has become functional. Emphasising the need for increased use of information technology, Mr. Rana said that the Indian Railways is also exploring to develop its own logistic portal where the entire band of freight and passenger business related products and services will be offered to customers.

Mrs. V. Viswanathan, Additional Member of Finance officiating as Financial Commissioner, Railway Board also addressed the separate session on the theme ‘strengthening the Railway Finance’.