The railways will have to double their investment from the level of Rs 33,000 crore in the Eighth Plan to Rs 85,000 crore in the Ninth Plan to retain the present share in transport. The paper seeks power for electric traction on low tariffs, currently being supplied at three times the generation cost. The paper also seeks government approval for commercial exploitation of railway land and air space to upgrade passenger and freight terminals and also a supplementary source of funding for railway development. It seeks compensation for public service obligations, like running unremunerative passenger and commuter services and carrying essential commodities at subsidised rates, currentlycosting Rs 1,800 crore for commercially unviable but socially relevant projects, the paper suggests funding through outright grants without dividend liability for execution and operation of such projects.
Speculation abounds regarding the new rail budget.
Obviously the new budget won't be able to support the past rate of new construction and guage conversion done for political purpose, but the real question is whether passenger fares will be raised substantially. International lenders such as World Bank would like to see Indian Railways change to a more commercial basis. The subsidization of passenger service with freight revenue seems to be contrary to what international lenders want to see. National Rail Museum Controller of Stores, Northeast Frontier Railway Official Fairy Queen Website, See the world's oldest working steam locomotive. Railway Museum in Delhi Photos from Railway Museum Museum is located to the South of Delhi, Close to Chanakayapuri.