(MENAFN- The Peninsula) In its report to be presented in Parliament on Monday, the Standing Committee on Railways has said that the Indian Railways' projected improvement in finances may not materialize significantly, and that its policy of not announcing new lines was detrimental to people in the remotest parts of the country.
The committee had asked over 40 questions to Railways regarding its finances and after thorough examination, it has concluded that Railways appears to be totally unaware of the trend of its "deteriorating systems productivity" over the years.
"Under-provisioning of depreciation and inability to generate enough cash flow for servicing debts and increased borrowings for financing of rolling stock has resulted in sharp decline in track renewal, procurement of wagons, coaches and electric locos" Simply put, railways are not generating enough cash flow for even running as a going concern," it says adding, "Railways appears to be totally unaware of this deteriorating trend as reflected in their self contradictory reply."
The committee, headed by former Railway minister Dinesh Trivedi, also raised questions whether targets set by the Rail Budget this year are realistic and achievable. In fact, in discussions with Railways over replies to questions, the committee has raised doubt about its ability to service debts since the budget talks about borrowing in large scale to finance projects. It has also said in discussions that for the money to be borrowed
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