Lalu’s popular express chugs along

Union Railways Minister, Lalu Prasad started his last budget speech under the UPA in his usual inimitable style. He said that Indian Railways scaled a new pinnacle every year and now stand at the zenith of success from where, without imposing any burden on the common man, the railways are set to establish the historic landmark of earning a cash surplus before dividend of more than Rs900bn, in five years.

The same Railways which faced a paucity of funds for replacement of over aged assets in 2001 and which had to defer payment of Rs28bn as dividend to General Revenues, have now surprised the whole world with a historic financial turnaround.

The year 2008 witnessed a financial turmoil and worldwide recession making it difficult for even Fortune 500 companies to raise debt from the international markets. This august House would be pleasantly surprised to know, that even in such adverse times, the Indian Railway Finance Corporation, in November 2008, has successfully raised a Rs5bn loan, at a rate of only 4%, from the international market.

Freight rates for the fiscal year 2009-10 have been left unchanged, Union Railway Minister Lalu Prasad Yadav said while presenting the Interim Railway Budget in the Lok Sabha. He also said that passenger fares for Air-Conditioned (AC), Mail and Express fares have been cut by 2%. Lalu Yadav also added that the Indian Railways will start 43 new trains in the year ending March 2010.