Question : EXPENDITURE ON NEW ZONES

(a) whether the Railways has earmarked Rs.700 crores for creation of new railway zones;

(b) if so, whether many safety related works are pending due to financial crisis in railway;

(c) if so, the reasons for spending huge money on creation of new zones;

(d) whether the Railway Board in its note to the Cabinet recommended against the creation of new zones;

(e) if so, the details thereof;

(f) whether the former Chairman of Railway Board and Federation of Railway Officer`s Associations have urged the Government to reconsider reorganisation of railway zones; and

(g) if so, the reaction of the Government thereto?

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI BANDARU DATTATRAYA)

(a) No,Sir. However, the estimated cost of setting of the new zones is of the order of Rs. 620 crore to be incurred over a five year period, including Rs. 58 crore already incurred and Rs. 29.77 crore earmarked during the current year (i.e. 2002-03).

(b) To carryout the safety related works is an ongoing process on the Railways. Recently a Special Rail Safety Fund to the tune of Rs. 17,000 crore has been set up to wipe out the arrears of renewal of vital safety assets.

(c) The objective of new zones is to improve efficiency of Railways as recommended by experts. Smaller organisations are more efficient. Looking to the large size of operation of Railways, even a small increase in efficiency will give rich dividends and will far outweigh the one time investments.

(d) No, Sir.

(e) Does not arise.

(f) Yes, Sir. Representation from former Chairman, Federation of Railway Officers` Association (FROA) and others have been received.

(g) The Government does not agree with their views.