CHENNAI, Dec 30: A hectic hike in the rail fares, both passenger and freight, will be inevitable in the 1998-99 Railway Budget, Chairman Railway Board M Ravindra has said. In a candid interview to The Indian Express on Monday, Ravindra who is retiring tomorrow said that the Railway Board has recommended to the government that a massive fare hike would have to be imposed if the railways were to be run profitably and to offset the hefty hike in salaries following the decision to implement the fifth Pay Commission.``We have even apprised the Prime Minister on the need to increase the fares.''Ravindra said the passenger fares in India was one of the lowest and the country had no option but to increase the fares. However, he declined to comment on the extent of the hike. ``It will have to be decided by the new government. The railways have so far being carrying a heavy social burden.''The railways have told the Govt that if it has to operate on uneconomical branch lines, the government will have to bear the expenditure.The railways were growing at the rate of four per cent against a requirement of six per cent. The railways will require Rs 65,000 crore in the ninth Five-Year Plan of which Rs 20,000 crore would come from internal accruals and Rs 18,000 crore from plan outlay. For the balance, about Rs 20,000 crore would be garnered from the Indian Railway Finance Corporation (IRFC), external borrowing from ADB and World Bank, and from private companies.The railways will also reintroduce the BOLT (Build, Operate, Lease and Transfer) scheme with assistance from the Asian Development Bank (ADB). Mckinsays have been appointed as consultants for reworking the BOLT to make it successful.If the railways have to perform, it has no option but to change its priorities on important ongoing projects and complete them on time.It will concentrate on doubling and select gauge conversion projects apart from replacement of old stock. The railways will have to redefine its priorities as there are no funds. `Dead projects' will have to be dropped.Even if massive funds are given to the railways, it is difficult to spend the money. The railways may be able to spend only Rs 300 crore per annum on projects.
