Friends,
Mamata has presented her second Rail Budget. There are many things that will be found wanting and the deterioration in many fields of operations by the experts on Railway Finance but I have some appreciation, solely on the strength of Railways in keeping the operations on without raising fares for the seventh year in a row. This reflects the stoppage of leakages to a greater extent, the technological advantages, the better economy of scale and rise in number of passengers opting for higher class travel. The freights have also been spared raise. This has given a reason for the markets to cheer about.
Now, I draw your attention to some fact about Railways which shows that it is really has a social character. The Railways have been considered to be capital intensive in nature, to the contrary is the fact that it spends 47 paise of each rupee of revenue for the benefit of employees (34 paise as wages and 13 paise as pension provision). If you have been going through the P/L accounts of large companies in general, you will find that the expenditure towards salaries and wages is between 10 to 15% of gross revenue. We also know that the Rail users are mostly the common people of India. In this light, I may say that the railways are of the people and for the people. The govt should have increasing thrust towards its further development.
Hari Om,
Krsna Khandelwal
BIRDINFO Stock Rx - A prescription for stock market
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