States must share cost if they want railway projects: Sadananda Gowda

Discussion in 'Politics & Society' started by parijataka, Jun 17, 2014.

  1. parijataka

    parijataka Senior Member Senior Member

    Joined:
    Oct 15, 2011
    Messages:
    4,893
    Likes Received:
    3,688
    Location:
    Bengaluru
    States must share cost if they want railway projects: DV Sadananda Gowda

    What will be the focus areas of your Budget next month?

    We will be focussing on factors of safety, security and service. If we are able to implement these three successfully, then speed will be the fourth aspect we will be looking at.

    But the Railway finances are in a shambles...

    Yes, resources are a big issue. Some ministers in the past looked at announcing new projects, without bothering about their actual delivery. They did not see if resources were available to implement them. We have some Rs 5 lakh crore (Rs 5 trillion) worth of projects, announced by earlier regimes, on ground. But the ministry gets only about Rs 25,000 crore to Rs 30,000 crore by way of net revenue. There is a grave mismatch between the income and expenditure. Some on-going projects in Southern and South Western Railways will take about 45 to 50 years to complete. This is because in the past if a project worth Rs 1,000 crore was announced, only about Rs 10-15 crore was earmarked by way of token allocation. And, as we delay on projects, costs go up. How can we deliver projects if this is the situation?

    So, how will you deal with it?

    In the past, the ministry never looked at new avenues for resources like PPP or FDI. If the current pattern of funding continues, then we can't give any project to people. The ongoing projects themselves will take anywhere between 30 and 50 years for completion. So, we have to identify the projects that are critical in the larger interests of the country, and deliver them.

    Will you revise passenger fares and freight charges?

    Certainly; that is the need of the hour. Mallikarjuna Kharge, in the interim budget, proposed a hike of 5% in freight and 10% in passenger fares. He gave the Budget factoring in these revised tariffs, but did not implement them. Now, I am forced to do something because of the present situation of the Railways. I will now discuss with the finance ministry on the funding support.

    What about the projects announced in the interim Budget?

    We don't want to ignore them. But at the same time our approach is to complete important projects within a reasonable period of time.

    Can we expect some announcement on the Diamond Quadrilateral in the Budget?

    It is an important idea that we have in our mind. We need to have highspeed trains, and working on how to get funding for these projects: whether to go for public-private partnership (PPP), or FDI or raising funds through bonds. At this juncture, I can't discuss much on this. We will have to see how much resource that is going to be available from the ministry of finance. I will meet the finance minister in the next two days.

    How will you increase the role of the private sector?

    I am working with some private sector players, who are interested to invest money in Railways for construction of infrastructure like godowns, freight corridor, etc. The coal ministry has agreed to provide funds for the construction of special coal corridors. At another level, I have discussed with rural development minister Nitin Gadkari to extend MGNREGA for railway projects. We can make use of the scheme in projects involving earth work.

    Where do you stand on Railway modernisation?

    Private players have shown interest in railway developmental work. In fact, I need to start work on modernization from my own office. I want to see all tendering process converted into e-tendering and digitise Rail Bhavan.

    You talked of forming an expert group to advise you...

    Yes. I have already had one round of talks with E Sreedharan. After presenting the Budget, I will have a team of youngsters from IITs and IIMs to provide us with inputs and fresh ideas. Railways badly needs latest technology and innovation.

    Many CMs have high expectations from your ministry. How will you deal with them?

    The CMs of Odisha, Karnataka and Goa have met me. The Railways has a cost sharing arrangement with a few states like Karnataka, Andhra Pradesh. The state provides free land and bears half of the project cost. I have written to all CMs and urged them to contribute their share to Railway development in their respective states. I gave them the example of Karnataka to say other states too should contribute similarly. Of course, it is another matter when Siddaramaiah met me recently he said his state can't take the burden anymore. If a state can't share the burden it will be the loser.
     
    NSG_Blackcats, ladder and pmaitra like this.
  2.  
  3. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
    Re: States must share cost if they want railway projects: Sadananda Go

    OFF topic but doesnt merto projects in many state should be under IR rather the respective state gov
     
  4. Kaalapani

    Kaalapani Tihar Jail Banned

    Joined:
    Apr 15, 2014
    Messages:
    613
    Likes Received:
    280
    Location:
    india
    Re: States must share cost if they want railway projects: Sadananda Go

    Nope they are local and not national.And no Metro makes profits.IT will be a burden on IR.

    IF that is the case then Railway ministers will fund most of them in their own states at the expense of others.
     
  5. SLASH

    SLASH Senior Member Senior Member

    Joined:
    Feb 5, 2011
    Messages:
    1,156
    Likes Received:
    458
    Re: States must share cost if they want railway projects: Sadananda Go

    He is absolutely correct when he says that the Railways does not have any funds to go ahead with large projects. In the past all the railway ministers provide better services and more frequency of trains to and from their respective states. First time I am hearing a minister clearly laying out the rules of engagement for the states in Indian railways.

    However I wonder how will the NE states and J&K be able to contribute to Indian railways. It is in India's strategic interest to develop rail transport in that region. Indian railways has very little presence in these regions compared to other states. That would mean these states would need to pay a lot more in developing the railway infrastructure.

    Any which way Indian railways needs private companies to participate. Rather than HSR we need to focus on improving our coaches, railway stations, routes and train frequencies. Why do we still make those heavy coaches when we can have much better coaches from private companies. If Mumbai metro can have modern coaches, why cant Mumbai suburban railway use similar coaches.



    Sent from my Surface Pro 2 using Tapatalk
     
  6. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Re: States must share cost if they want railway projects: Sadananda Go

    This is a great idea.

    No more freebies for areas where the Railway Minister wants to improve his political clout.

    It will allow balanced progress.

    A good idea to make MNERGA productive and not a waste of money, labour and time.
     
    Last edited: Jun 18, 2014
  7. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    Delhi Metro is one of the few metro systems in the world having an operational profit from the first day.
    Delhi Metro - Wikipedia, the free encyclopedia
     
  8. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Re: States must share cost if they want railway projects: Sadananda Go

    I find Metros very convenient.

    In Kolkata it is dirt cheap, but very convenient.
     
  9. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    [MAP][/MAP]
    In the last year or so, I have only taken the Airport line once.

    Delhi Metro is too crowded and then you don't have a decent provision to reach your destination from the station.
     
  10. abhi_the _gr8_maratha

    abhi_the _gr8_maratha Senior Member Senior Member

    Joined:
    Apr 15, 2014
    Messages:
    2,194
    Likes Received:
    598
    Location:
    aurangabad
    Re: States must share cost if they want railway projects: Sadananda Go

    no metro in my city :sad:
     
  11. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Re: States must share cost if they want railway projects: Sadananda Go

    I think all Metros will be crowded.

    It is the best and fastest way to travel in a city and so everyone will use it.

    In Kolkata the situation is getting worse. They don't have the money to replaced the coaches that have gone past their life cycle stage.
     
  12. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    Depends on your parameter. I am not going to walk 2 miles in 48 degrees heat after getting off a Metro station to my destination.
     
  13. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

    Joined:
    Jul 23, 2009
    Messages:
    3,485
    Likes Received:
    1,548
    Location:
    Delhi
    Re: States must share cost if they want railway projects: Sadananda Go

    Publich transport is not for rich people :p

    Its always for poor,lower and middle class people. Being from middle class, I love Delhi Metro. If you ask million of Delhietes, they will agree with me.
     
  14. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Re: States must share cost if they want railway projects: Sadananda Go

    Are you trying to bring the debate back to Kejriwal and free electricity that would have saved Delihi ;) :)
     
  15. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    Your attempt at changing the subject was almost beguiling but I shall not disappoint you Sir.

    If proper and thorough CAG audits on Distcoms and Coal Allocation Blocks etc tkae place India would enjoy cheaper electricity.

    Cheap electricity = Huge multiplier effect on GDP.

    I am paying 12 rs/unit for electricity usage, using a Diesel generator costs me about 15 rs / unit. And I also have to spend extra money to ensure that the shitty quality of electricity doesn't cause me damage and also make arrangements for alternatives in case of frequent power breakdowns

    Reference for Price.
    Delhi Electricity Regulatory Commission

    Iirc thermal electricity generation prior to the Coal Allocation Block scam costs about <2 rs / unit.

    NTPC or the main Delhi electricity supplier sells it to BSES etc. for <3 rs / unit.

    Reference :
    Power producers make a killing on giveaway coal - The Hindu

    Where is the 10 Rs / unit going ? And BSES is saying they are making losses despite reducing T&D losses to an all time low.

    And Dubai residents pay 6Rs / unit and get 24*7 high quality electricity.

    http://www.dewa.gov.ae/tariff/tariffdetails.aspx
    ==

    Try telling that to Europeans.

    Iirc you live in Noida, UP so it makes sense for you to take the metro.

    And answer a simple question why are the number of cars in Delhi's roads increasing when Middle class prefers Delhi Metro ?
     
  16. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

    Joined:
    Jul 23, 2009
    Messages:
    3,485
    Likes Received:
    1,548
    Location:
    Delhi
    Re: States must share cost if they want railway projects: Sadananda Go

    Lets stay in India. If you want to compare, do it with a developing country with high population density and not a developed one.

    Yes, it do make sense but its not only about Noida. Travel in a yellow line and you will realise. Let the 3rd phase of Delhi metro gets completed and it will become more convinient, as one have to travel less. (For example, someone travelling from Govindpuri to Sec -37 Noida)

    Its means people are taking more car loans and an improve in their purchasing power. I do not have the data, but I guess sell of commercial vehicles in Delhi/NCR will be more compared to private vehicles.

    It has nothing to do with Delhi metro otherwise we have seen a drop in metro ridership.

    Just ask any middle class having a car, what mode of transport he/she will prefer for travelling from Dwarka to Sec-18 Noida. I am dam sure it will be Delhi Metro!
     
  17. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    How about Shanghai ?

    You mean to say people take Yellow Line for their jobs in Gurgaon. Wow, the fleet owners must be going out of business then.

    Delhi has more cars than the other 3 metros combined.

    Forget Noida, lets talk about Gurgaon, its a stone's throw away.
     
  18. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,640
    Likes Received:
    17,124
    Location:
    EST, USA
    Re: States must share cost if they want railway projects: Sadananda Go

    It is a good idea to rope Mr. Shreedharan in. He is an able administrator.

    Now, we need the following:
    • To have a double broad gauge link across all the North Eastern States, without requiring those states to pay for part of it.
    • There should be an immediate hike in ticket prices. In a phased manner, subsidies should be removed. Poor people should be able to travel on a no-loss-no-profit price, while the more expensive classes should be used for making profits.
    • There has to be investment in safety and security, both in terms of security from terrorism and sabotage, and equipment and infrastructure to avoid accidents.
     
    Abhijat and Singh like this.
  19. Singh

    Singh Phat Cat Administrator

    Joined:
    Feb 23, 2009
    Messages:
    20,305
    Likes Received:
    8,270
    Location:
    011
    Re: States must share cost if they want railway projects: Sadananda Go

    1. There should be reduction in freight prices : Its cheaper to transport goods from EU to India than from Delhi to Mumbai.
    2. Bullet Trains : If people can reach Metros from 200km away in an hour, we will be able to rapidly urbanize and expand; reduce pressures on the few metro cities that we have.
     
    Abhijat, Ray and pmaitra like this.
  20. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
    Re: States must share cost if they want railway projects: Sadananda Go

    Mots of states are as burden as railways and they will be in red for running loss making metor

    Why i was suggestion because IR has expertise in running train so they would do better job.

    States has to hire expertise from outside
     
  21. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

    Joined:
    Jul 23, 2009
    Messages:
    3,485
    Likes Received:
    1,548
    Location:
    Delhi
    Re: States must share cost if they want railway projects: Sadananda Go

    Sure and the point you are trying to make is?

    You mean to say people do not use Yellow line for their jobs in Gurgaon?

    So? The length of Delhi metro is also highest in India and its making profit. So few must be using it, make sense!!

    Okie, ask any middle class having a car, what mode of transport he will prefer for travelling from Jahangirpuri to DLF Cyber Green, gurgaon.
     
    Last edited: Jun 19, 2014

Share This Page