Active Stocks
Thu Mar 28 2024 15:09:27
  1. Tata Steel share price
  2. 155.50 1.73%
  1. ICICI Bank share price
  2. 1,091.10 0.65%
  1. HDFC Bank share price
  2. 1,446.75 0.42%
  1. ITC share price
  2. 427.40 -0.14%
  1. Power Grid Corporation Of India share price
  2. 276.00 1.83%
Business News/ Politics / Policy/  Why should overburdened railways pay dividend: Suresh Prabhu
BackBack

Why should overburdened railways pay dividend: Suresh Prabhu

Railway minister Suresh Prabhu says the burden on the railways was as high as Rs30,000 crore after the Central Pay Commission recommendations

Photo: Indranil Bhoumik/MintPremium
Photo: Indranil Bhoumik/Mint

New Delhi: Railway minister Suresh Prabhu on Friday asked why should the railways pay dividend when it is already “overburdened" with about 60,000 crore worth of public service obligation and increased wage bill due to the latest pay commission report.

“I would just like to make a point. This paying dividend to the finance ministry is one area which really needs to be looked into. Why should the railway pay dividend? This has been a recommendation of the standing committee. There have been several unanimous recommendations on this by several standing committees that the railways discharge very useful public functions," Prabhu said in the Lok Sabha.

Maintaining that the railways was doing a public service, he said the burden on it was “as high as 30,000 crore".

“This year, the railways are even more burdened with an additional burden 30,000 crore on account of the recommendations of the pay commission," he said. This is besides paying bonus at the latest rates to its staff, he added.

All this has put additional burden on the railways, which has to bear the brunt of it being “India’s largest employer", Prabhu said, adding the issue has to be looked into by the house.

He was speaking after tabling a resolution on several recommendations of the railway convention committee, appointed to review the rate of dividend payable by the railways to the government.

“This is a recommendation of the committee. I respect it. But over a period of time we really need to look into why the railways which is already suffering due to several other problems also be overburdened with the responsibility of paying a dividend and also how the main budget can actually subsidize or take care of the subsidies which are already there," the minister said. “I think, we need to look into this issue."

Countering Prabhu, senior Congress member and former minister of state for railways K.H. Muniyappa said the railway committee “unanimously recommended regarding the issue of dividend".

However, he joined Prabhu in saying that the railways “are running in public interest and for the common people under certain obligations. So, they could not pay the dividend. At the same time, the finance ministry is unable to help the common people of this country".

“The surprising thing is that the government is not coming forward to support the railways. The projects which have been pending for the last two decades, there has been no thinking on this issue by the government. The new Planning Commission called the NITI Ayog has not at all given any thought to this issue," Muniyappa said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 29 Jul 2016, 09:25 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App