Railways gets separate safety fund for network upgradation

World Wednesday 01/February/2017 19:43 PM
By: Times News Service
Railways gets separate safety fund for network upgradation

New Delhi: Faced with a series of derailments, Railways on Wednesday got a much needed separate fund for safety upgradation of the rail network as the budget proposed an outlay of Rs1 lakh crore for the purpose.
The proposals suggested by the railways have all, more or less, been included and acted upon by the Finance Ministry, Railway Minister Suresh Prabhu said here. Rail Budget merged with the General Budget has announced Rs20,000 crore for the next fiscal for safety upgradation.
Welcoming the creation of the separate safety fund, Prabhu said, "We have been writing to the Finance Ministry for the special safety fund and it was announced today."
Railways will get Rs 20,000 crore each year for the next five years out of which Rs 15,000 crore will be from gross budgetary support (GBS) and Rs5,000 crore has to be generated through internal resources.
Prabhu said the special fund will not only strengthen the safety of rail network it will also help increasing the speed of trains. On the merger of Rail Budget with General Budget, he said, "Railways' functional autonomy will continue. It was legacy and nowhere railways has a separate budget. Now there will be an integated approach to transportation, including rail, road, aviation and waterways." Prabhu said railways will no longer pay dividends to Finance Ministry after the merger.