Railways needs more subsidy

    Worldwide, most of the railway men and material transfer efficiency and more pollution, rather than road transport, to encourage use.

Less than 6 percent of GDP in most developed areas of the supply costs and subsidies of around 8 percent in China, and India, where it has been said to be close to 12-13 percent (up $ 15 billion in proposed road).

Road - Centric Policy

The main reason is for the supply of high GDP and expenditure related to the street - central policy. The road transport sector to provide large subsidies. Input VAT refund of Rs 15,000 crore by the State Government alone has the money. Diesel subsidy, even if we assume that only 50 percent of subsidized diesel fuel consumed by these sectors is close to Rs 50,000 crore. Insurance subsidy to insurance companies for road sector. The ability to enjoy more protection from the road sector, and even import some of the FTAs ​​in the field of road for a bargain is to get.

In addition, the country lay in the street years later, makes huge investments, and their maintenance over the years.

At least one expert in the field of road transport in the main modes - rail and the other is water (sea and inland). In India, a result we have to fend for themselves from the more efficient sectors niskramana, and automatic field fill the space with our mind, that it is the only way to move men and material - to the extent that we were visible and the Railway Ministry has a budget deficit of billions in subsidies, even request for explanatory.

Clear benefits

When the country is Rs 65,000-70,000 crore per year to support at least one expert in the field will find it, why not ask the Minister of Railways for a subsidy equal to the amount of benefit to the exchange of projecting what you can - we can have a secure way to Railway expenditure at a fraction of the male and elements, the transfer of oil imports and save billions of dollars. If we keep the road in five years in the field of rail subsidies for investment, we will provide at least 3 percent of GDP, we can shave off costs. We train in a few other investments that benefit from the investment can be extracted from the case.

Such as Great Britain and Germany as countries subsidize their railways. Former Indian Railway Finance Corporation, Mr SN Mathur, managing director of Germany, the annual amount of 20 billion euro subsidy to railways, and supply costs as a percentage of GDP has been minimum.

If we want to reduce imports of oil from India and an expert on the economy, but we do not have a little way towards the railway between investment, and inefficient subsidy helplessly in the road sector.

Seven to ten years, doubling the tracks and rolling stock, together with the development of multiple non-customs ports handle domestic cargo, our race will be competitive.



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