Railway Budget 2012: Dinesh Trivedi may levy cess to fund railway safety

NEW DELHI: As Dinesh Trivedi presents his maiden Rail Budget on Wednesday, all eyes are on how he deals with the political and economic requirements of the state transporter.

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With finances in a disarray and pressure on even normal replacement of worn-out infrastructure, at least two expert committees have recommended in recent weeks that a safety surcharge be levied, while even rail employees now seek a fare hike. Safety is emerging as the critical need for the Indian Railways given the rising casualty rate, although the number of fatal accidents may be lower.

Between April and November , 2011, 250 people died in 85 accidents. During 2010-11 , 381 people were killed in 141 accidents, with collisions responsible for twothirds of the death.

For years, railways has been talking of revamping its signaling and telecom systems in addition to track renewal. But with ministers focusing on launching new trains to please their constituency , safety has been glossed over. Even prime ministers have had little effect given that he has been unable to convince his regional allies.

At a time when Trivedi's political pilot Mamata Banerjee has made public her opposition to fare hikes, the minister is expected to maintain status quo like his predecessors have been doing for the last eight years.

But those travelling in AC coaches may have to contend with an additional levy in the name of a safety surcharge as Trivedi tries to garner funds. Railways needs Rs 1 lakh crore over the next five years to tone up infrastructure and improve safety standards, a committee under former Atomic Energy Commission chairman Anil Kakodkar said in its report in February. At least Rs 5,000 crore, which is onefourth of the annual requirement , can come by way of cess, the panel suggested.


A committee under Sam Pitroda too had backed the suggestion, although it had projected the fund requirement at nearly Rs 8 lakh crore that factored in spending on other heads, including safety.