• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi , March 8

THE Ministry of Railways should earmark ten per cent of the total Railway Budget for developing rail network in the North East region instead of ten per cent from the budgetary support available for general distribution alone, as is the present practice, according to Parliamentary Standing Committee recommendations.

The budgetary support for general distribution excludes diesel cess, contribution to Special Railway Safety Fund (SRSF), funds allotted for National Projects and for externally aided projects from the total budgetary support.

While the Railways has spent over ten per cent of the budgetary support available for general distribution for development of rail infrastructure during the past few years, but "the Railways have been spending an average of 4.2 per cent, 3.7 per cent and 2.8 per cent from their internal resources, Railway Safety Fund (diesel cess) and SRSF respectively," stated the report.

A guideline has been laid down for all the Union Ministries and departments to earmark ten per cent of their budget for the specific projects in the North Eastern States, based on the "New Initiatives" programme announced in 1996 by the then Prime Minister, Mr H.D. Deve Gowda.

The Financial Commissioner of Railways, however, clarified that the present calculation "has been done in consultation and approval of the Ministry of Home Affairs".

Additionally, the Committee has also recommended that norms of financial viability for projects in the region should be relaxed since development and expansion of rail network was imperative for socio-economic development apart from strategic relevance.

"Internal Rate of Return of 14 per cent is too high for determining the viability of a project," the Committee said, calling for a downward review of the IRR.

The North Eastern region comprises of Arunachal Pradesh, Assam, Meghalaya, Nagaland, Manipur, Tripura, Mizoram and Sikkim.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NRKs, exporters oppose Air India move to curtail flights to Dubai

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line