Surplus 90000 cr
8000 cr Profit...?
Parmeet Ghosh an irfca member says...
With Mr Lalu Prasad Yadav declaring that railway had a surplus of 90000crores but Mrs Mamta Banerjee had declared that Railway has just 8000crores. With now Railway ready to bring white paper on it let see whether Management guru was worth or not. If not IIM A student should be given a case study called Mr fraud on Lalu.
N.Prakash Prasad an irfca member says...
Lalu was heard saying that 90000 crore was the total revenue that railways earned and this figure excludes all expenditure.Hence if expenditure was deducted then may be we come to the figures that mamtaji has given
Roy S Karia an irfca member says....
Actually neither of them are lying: its the story of 5 blind men and the elephant all over again! Each person is "seeing" one side of the story and interpreting it to mean the whole.
When laloo quotes a figure of 90000 crores it is actually the sum of the surplus earned in the years he was railway minister. Mamta's figures of 8000 crore are what is left of the surplus right now!
The surplus - what is left of revenue after meeting operational and capital expenses - of every year is not really being transferred to the Consolidated Fund of India. The railways use this to meet their expenditure and earmark for new projects as well. And these kind of expenses don't remain the same every year: some expenses, like after the 6th pay commission implementation could inflate expense accounts for a year.
Either ways: 90K or 8K: there is no denying that the Railways is in a much better position now than it was in after the low of 2003.
Rajendra Saxena an senior railway official says...
There is nothing wrong in budget figures. It is English language which can distort the picture . see following extract from rail minister speech
new minister has not question the profit . she has said that current balance with railway is 8361 cr . what laluji has said that he has generated 90000 cr surplus in last five year
Extract of MR speech 3rd july Performance in 2008-09
50. Madam, despite the economic slowdown in the last financial year, the Railways loaded 833 MT of freight cargo which is a 5% growth over the previous year. Traffic Receipts grew by 11.4% to reach Rs 79862 cr. Even after having disbursed Rs. 13,600 cr. towards implementation of 6th Pay Commission recommendations the Railways were successful in generating a cash surplus before dividend of Rs. 17,400 cr. and after fulfilling their full dividend liability of Rs 4,717 cr were able to maintain internal generation for investment at Rs. 12,681 cr.
it is clear from above that gross revenue of Rs 79862 cr against the gross expenditure of Rs 48000 cr generating a surplus of Rs 31000 cr in 2008-9 .even after paying the pay commission arrear & dividends , surplus remains Rs 12 ,681 cr .if pay commission would not have been there (which was not there in last 5 yr) surplus would have been Rs 25000 cr after paying full dividend liability
now you add the surplus of last 5 year & total will be Rs 90,000 cr or so
2.extract of Laluji speech in feb 2009
Performance Review of 2007-08
11. Sir, I would now like to present in brief the operating results
for the previous fiscal2007-08. . Freight and passenger earnings
grew at 14 and 15 percent respectively. Total traffic earnings also
increased by 15 percent to reach Rs 71,645 cr. The cash surplus before dividend increased from the 2006-07 level of Rs 20,338 cr to Rs 25,006 cr
Now where is that surplus . naturally it is not in fixed deposit . only 8361 cr at present are with RBI in Railway account & balance has been invested in various planned & development project .earlier railway was borrowing from market & central govt for its developmental projects but now a days majority was funded with railway own surplus. RailSamachar