Railways to freeze infra projects this financial yr

nNEW DELHI: In a bid to rationalise its expenses in the wake of the economic slowdown caused by the Covid-19 pandemic Indian Railways plans to put on hold infrastructure projects sanctioned in the current financial year other than those related to safety work, according to a Railway Board order.

The railway ministry has clarified that the order , which has been reviewed by HT, will not affect any ongoing vital infrastructure projects.

In a communication sent to all zones and public sector undertaking (PSUS) on Tuesday the board said projects that were previously approved but have made insignificant progress “shall be kept frozen till further orders except those which are essentially required for safe running of trains.”

The national carrier has estimated a financial loss of around ~40,000 crore in its passenger segment due to suspension of regular passenger trains since March 22.

“In pursuance of Ministry of Finance’s Office Memorandum NO.42(02)/PFC-1/2014 dated 04.06.2020 on the subject and in view of the circumstances prevailing in the current financial year, following decisions have been taken by Board: New works/ Umbrella works included in Pink Book 2020-21 shall be kept in abeyance. However, those works which impact the safe running of trains and are considered essential and inescapable may be considered for sanction,” the board’s order said.

Unutilized projects identified as ‘umbrella works’ of 2018-19 and 2019-20, if any, may be suspended, the order added.

The board has instructed zonal railways to review all projects already approved by them.

“Exemption for sanction of works which are considered essential and inescapable will be obtained from the ministry of finance,” the order added.

The order issued by the railway board refers to a directive issued by the finance ministry in

June on government spending in the year .

“It may be appreciated that in the wake of the Covid-19 pandemic, there is an unprecedented demand on public financial resources, and a need to use resources prudently in accordance with emerging and changing priorities...,” the directive said. The initiation of new schemes already approved in FY 2020-21 will remain suspended for one year till 31 March 2021 or till further orders, it added.

When contacted by HT, a spokesperson for the railways ministry said it has to abide by the instructions of the finance ministry. “However, sufficient resources exist and have been provisioned for to ensure that wheels of progress and modernisation continue to move at rapid speed. The order is not going to impact any of any vital infrastructure projects of Railways...”.

Railway Board chairman VK Yadav on Tuesday said the railway ministry aims to make up for the losses in the passenger segment through freight revenue.