The Hindu Business Line : Rlys to present Rs 790-cr loss on freight operations

THE Indian Railways is set to end the financial year 2003-04 with a loss of Rs 790 crore on freight operations despite record loading volumes. The loss will, however, be made up by operational savings of Rs 1,440 crore.

These projections were finalised on Tuesday at a meeting of the Railway Board held following a directive from the Prime Minister's Office to prepare for a vote-on-account instead of the regular Budget, a senior Railways Board official told Business Line.

A special session of Parliament is likely to be convened in early February to pass the vote-on-account to enable the Government to continue drawing money from the Consolidated Fund of India till the regular Budget is passed after Lok Sabha elections. The Railways Minister, Mr Nitish Kumar, will present a separate vote-on-account.

The Railways is poised to cross its freight-loading target of 540 million tonnes for 2003-04 on the back of a buoyant economy. "We had internally revised the loading target to 550 million tonnes and we may even surpass the revised target," the official said.

In the first nine months of the current financial year, the Railways transported 407.15 million tonnes of revenue-earning goods, which was 11.01 million tonnes higher than the proportionate target for the period.

Even the passenger volumes have shown a three per cent increase as compared to a marginal fall in the first three quarters of last year.

In fact, despite higher loading, the Railways is set to end the year with an earning of Rs 27,025 crore from freight operations, which works out to a shortfall of Rs 790 crore when compared to the budgeted amount of Rs 27,815 crore.

Better financial health will enable the Railways to clear its full dividend liability of about Rs 2,500 crore for 2002-03 and pay another Rs 500 crore as deferred dividend, which stands at Rs 2,773 crore, at present.