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March 30, 2015

Suresh Prabhu on the Financial Situation of Railways

In an exclusive interview to CNBC-TV18, Suresh Prabhu, Railways Minister briefs the media about the financial state of the Indian railways. He says that:


"Traditionally railways have been relying on ministry of finance to give gross budgetary support. You must understand that ministry of finance is also under serious strain. We have given almost more than half of the money to the states now. So, therefore centres ability to put in money into some interesting project is also little bit under stress. In such a situation I must ask from finance ministry but must realise their limitation".


When asked about the reason for setting up 2 committees - one headed by Ratan Tata and the other by Ajay Shankar, Prabhu responded by saying that:

"Ratan Tata with two of the top union that we have -- they are very strong unions, they are leaders. Just imagine I feel they are stakeholders into this. If the employee union leaders and someone like Ratan Tata who is no longer in business so there is no conflict of interest but he has a huge experience of running the business, he is going to do that and that is how -- it is like a Kaya Kalp concept which is bringing people together, ideas together and try to implement them. This is one. Second is Ajay Shankar -- he is again for few weeks -- I told him you have to revamp the Independent Power Producer (IPP) cells. If you want to revamp IPP cell don’t you think somebody has to apply mind to it, it is not something like a committee. So he is going to look into that. So there is one more that we are looking at and that I have announced in my budget and all of these are implementing budget announcements and we have only short duration so this is not going to be there for years or something, we will come, report, finish the task and go away".

Read the transcript of the interview here

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