Internal generation of resources will pick up once the Railway reforms start, GDP growth occurs and the Railways begin to attract traffic that has moved elsewhere, especially to the road transport sector, Suresh Prabhu said in his maiden Rail Budget speech
In his first Budget speech as Railway Minister, Suresh Prabhu said that gross budgetary support from the central government was "neither viable nor necessary", despite the cash crunch his ministry was facing.
Five reasons as mentioned by Prabhu in his speech:
• The Union government's financial resources are themselves over-stretched.
• Internal generation of resources will pick up once the Railway reforms start, GDP growth occurs and the Railways begin to attract traffic that has moved elsewhere, especially to the road transport sector.
• For remunerative projects, it should be possible to generate resources through market borrowings, routed through partnerships with Railway PSUs and IRFC.
• There are several areas where resources can be generated through public private partnership.
• Moving away from debt, some projects can be equity-driven, through partnerships with State governments.
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