August 13, 2001

   Indian Railways need urgent and systematic internal reforms to face the financial challenges and competition from the road sector said Railway Minister, Shri Nitish Kumar. Addressing the Conference of Indian Railways Accounts Service (IRAS) Officers here today, the Minister asked them to avoid delay in decision making and identify different sources of revenue leakage to improve the financial health of the Railways.

    Speaking on the issue of corporatisation of the Railways, Shri Nitish Kumar said that the issue deserves serious deliberation and any hasty decision will not be in the interest of the Railways and the economy. Apart from giving direct employment to hundreds of thousands of people, Railways provide livelihood to innumerable families both directly and indirectly. Stressing on the need to identify the areas which can be decentralised, Shri Nitish Kumar said that decentralisation is in the interest of the employees and the financial performance of the Railways.

    Admitting that the Indian Railways is no exception to the impact of economic slow down, the Minister focussed on reducing expenditure on unproductive areas. He asked the Finance officers to come forward with new and practical ideas to attract more revenues and face the competition from the road sector.

    Earlier addressing the officers, the Financial Commissioner Shri S. Murali touched upon the inherent strength of the Indian Railways and urged the officers to identify and rectify the internal weaknesses. Highlighting the impact of pension liability on the Indian Railways, the Financial Commissioner called upon the officers to strictly follow the laid down norms of healthy financial management.