17/03/2012

Undoing Bihar projects: It is out and out Bengal Railway Budget

 

Prateek Anand

 

It seems that Mamata Banarjee is not only a regional chauvinist, unmindful of national interest, but also an out and out irrational person. What else can explain her behavior towards Dinesh Trivedi even in face of entire Railway Budget being devoted to West Bengal? While Railway under tutelage of Banarjee has not only delayed projects announced for Bihar, but has also skillfully sabotaged them. Fate of Madhepura and Marhaura factories now stands suspect. This has been happening despite almost monthly follow up by PM and PMO. Railway Board under her control has been blatant enough not to even respond to PM & PMO enquiries in this regard (refer: http://ibnlive.in.com/news/railway-board-prefers-ruin-to-private-investment/237621-7-171.html and http://economictimes.indiatimes.com/news/news-by-industry/transportation/railways/rail-budget-2012-railway-ministry-ignores-pmos-repeated-pleas-to-speed-up-key-ppp-projects/articleshow/12225724.cms ). An innocuous line in Budget speech indicates that Madhepura Factory may soon become unwarranted (refer http://pib.nic.in/newsite/PrintRelease.aspx?relid=80902 statement reads “The factory is proposed to be set up on PPP basis at Shyamnagar in West Bengal for manufacture of next generation technology propulsion system for use in high power electric locomotive. It is also proposed to utilise and augment the electric loco Ancillaries Unit of CLW being set up at Dankuni for fabrication of locomotive shells and assembly of three phase locomotives for manufacturing of new generation 9000 HP locomotives under transfer of technology from Japan. This unit will be a modern facility with capacity to assemble 100 electric locomotives per year”).

A comparative analysis of the Budget provisions in pink book shows blatant hijacking of Railway Budget. Most of the investment seems to be going into Kolkata Metro. In comparison to around Rs 12,500 crore Budget for Kolkata headquartered zones, East Central Railway at Hajipur in Bihar has got only around Rs 3,000 crores Budget.

Project
Estimated Cost
Last Year Allocation
Current Year Allocation
Remaining Amount
Dum Dum-Tollyganj - Design & construction of rapid transit system incl
extension between Tollyganj-Garia, Dum Dum-Baranagar & Noapara-
NSCB Airport
3483
2683
600
200
Kolkata - Circular Railway incl Princepghat-Majerhat, DumDum Cantt-
NSCB Airport, Ultadanga-Rajerhat & Remount Rd-Santoshpur via
Garden Reach/Metiabruz
573
170
51
352
Joka-Binoy Badal Dinesh Bagh via Majerhat - Construction of Metro
railway (16.72 km) incl material modification for extension from Joka-
Diamond Harbour (Phase-I)
2913
1516
750
646
Noapara-Barasat via Bimanbandar - Construction of Metro railway (18
km)
2500
850
1050
600
Dum Dum Airport-New Garia via Rajerhat - Construction of Metro
railway (32 km)
3951
1450
1050
1451
Baranagar-Barrackpore & Dakshineswar - Construction of Metro
railway (14.5 km)
2069
1455
602
11
Total Metro Budget
4229
Railway Zone HQ in West Bengal
Eastern Zone Budget
5336
SE Zone Budget
3114
Eastern Central Zone Budget
3124
Only Railway Zone HQ in Bihar
(Sources:
In Bihar we have Nitish Kumar. He has been gloating over vilification of his betenoir Lalu Pd Yadav by Banarjee. However, as per Banaerjee’s own White Paper, Railways had a surplus of Rs 39,000 crores when Lalu Yadav left the ministry, even after counting out the provisions for Sixth Pay Commission. Even if we were to accept her figure, instead of Yadav’s claim of around Rs 62,000 crore excluding provision for sixth pay commission arrears and total of Rs 95,000 crore, Railway has been really in the pink of health then. Had railway been so bankrupt after Yadav’s exit, Banerjee would not have been able to support numerous factories in her state from Railway’s own coffers.
There were only two accounting changes during the last five years, these have contributed significantly in inflating the figures of "cash surplus before dividend", a new way of portraying surpluses generated, introduced in 2007-08. These, together with other factors such as interest on fund balances and treatment of SRSF, inflated the cash surplus before dividend by Rs 17,006 crore. If the pay-outs for the 6th Pay Commission were also to be reckoned on accrual basis, the cumulative cash surplus before dividend would come down from the Rs 88,669 crore claimed to Rs 62,363 crore. Furthermore, in terms of investible surplus, a concept also introduced in 2007-08, the figure would come down from Rs 66,804 crore to Rs 43,220 crore.
The consultant, has brought out certain "inadequacies and weaknesses" in the existing accounting system and have recommended that these be considered at the time of the accounting reforms now underway. One of their recommendations is that appropriation to DRF should be part of the working expenses. Considering this, the cash and investible surplus get reduced to Rs 39,411 crore and Rs 20,268 crore respectively.)
It seems with the kind of Media, MPs and Leadership Bihar has, it cannot even safeguard its own interest. Nitish may be much better leader than what Bihar has seen in over five decades, but it seems even he is not good enough for the challenges facing the state. His party colleague, Sharad Yadav could single-handed bring Parliament to standstill on Women Reservation Bill, but had not ventured to do so to extract Kosi Reconstruction Package from the central government. Non-redressal of his other demands on special state status, coal linkages, setting up of more central institutions by federal government is a sad reflection on his ability to deliver.
Hope he would realize the power of over 10 crore people behind his throne and find a way of delivering than going on ranting about the non-cooperation of Federal Government. No government on this earth can ever dare defying the collective will of over 10 crore people. Nitish, please stand up, and walk your talk.

 

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