Lok Sabha Question No. 5500 (UNSTARRED), answered on 2018-03-28
Subject: Revenue Expenditure
Ministry: RAILWAYS
Asked by: ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL, PRITAM GOPINATH MUNDE, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 5500 TO BE ANSWERED ON 28.03.2018

## REVENUE EXPENDITURE

5500.  SHRI ANANDRAO ADSUL :

SHRI ADHALRAO PATIL SHIVAJIRAO :

DR.  PRITAM GOPINATH MUNDE :

DR. SHRIKANT EKNATH SHINDE :

SHRI VINAYAK BHAURAO RAUT :

Will the Minister of RAILWAYS be pleased to state:

- (a)  whether  the  railway  transport  has  lagged  behind  the  requirement due to inadequate investment, if so, the facts thereof;
- (b) whether it is a fact that several committees including the National Transport Policy Committee, the Rail Tariff Enquiry Committee and the Railway Reforms Committee have also highlighted the shortcomings;
- (c) if so, the details thereof;
- (d)  whether  the  Railways  spends  heavily  on  revenue  expenditure  and there is little left for capital expenditure, if so, the facts thereof;
- (e) whether the Railways needs to generate enough funds on its own for capital  expenditure  and  also  find  new,  non-government  sources  of funding in order to witness a noticeable change; and
- (f)  if so, the details thereof and the steps taken or being considered by the Government in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

- (a) to (f) : A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a) TO (f) OF UNSTARRED QUESTION NO. 5500 BY SHRI ANANDRAO ADSUL,   SHRI ADHALRAO PATIL SHIVAJIRAO,  DR.  PRITAM GOPINATH MUNDE,    DR. SHRIKANT EKNATH SHINDE AND SHRI VINAYAK BHAURAO RAUT   TO BE  ANSWERED  IN  LOK  SABHA  ON  28.03.2018  REGARDING  REVENUE EXPENDITURE

(a) to (c) : Railways has lagged behind due to inadequate investment.    Railways  has  a  huge  throwforward  in  its  capital expenditure  program.    Currently,  the  throwforward  in  capacity expansion  program  is  over ` 4  lakh  crores.  Several  committees including  the  National  Transport  Policy  Committee,  the  Rail  Tariff Enquiry  Committee and the Railway Reforms Committee have also highlighted  the  shortcomings.  Recent  Committee  headed  by  Shri Debroy for 'Restructuring and Mobilization of Resources' has recommended to explore sources of funding PPPs, JVs, -institutional finance,  etc.,  in  addition  to  the  conventional  mode  of  internal generation of resources. (d)  :  Yes,  Madam.  The  total  revenue  expenditure  and  the  internal resources available out of it for capex from the year 2016-17, 201718(RE) and 2018-19(BE) is given below :-

|            | ( ` in crores)    | ( ` in crores)                                      |
|------------|-------------------|-----------------------------------------------------|
|            | Total Expenditure | Amount of Revenue available for capital expenditure |
| 2016-17    | 165382            | 10113                                               |
| 2017-18 RE | 187425            | 11425                                               |
| 2018-19 BE | 201090            | 13490                                               |

(e) & (f) :  Yes, Madam. A new source of funding viz. Extra-Budgetary Resources (Institutional Finance (EBR-IF in short) has been introduced with  effect  from  financial  year  2015-16.    It  is  envisaged  to  mobilize funds  to  the  tune  of ` 1.5  lakh  crore  through  EBR(IF)  for  financing Railway projects over a period of five years (2015-16 to 2019-20). The Ministry of Railways signed a Memorandum of Understanding(MOU) with the Life Insurance Corporation of India(LIC) on  11 th   March  2015  whereby  LIC  has  agreed  to  provide  funding assistance to the tune of ` 1,50,000 crore over a five year period from 2015-16 to 2019-20 for financing Railway projects.  These funds will be routed  through  Indian  Railway  Finance  Corporation  who  will  finance the identified projects and lease them to the Railways. ERB-IF funds are being utilized in mostly Doubling and Electrification projects.

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