New Delhi, Feb. 24: Railway minister Mamata Banerjee is confident she has done something for posterity in her second consecutive railway budget. Speaking at her Rail Bhavan office here soon after her Lok Sabha presentation, she appeared

particularly elated by the compliment paid to her by Prime Minister Manmohan Singh, who put his hand on her head and said: "Well done. This is the best budget you’ve presented."

Excerpts from an interview:

Q: What, according to you, are the most striking features of this year’s rail budget?

The greatest challenge before the railways was to raise funds to carry out various development, and particularly socially desirable projects.

See, I could have done it much easier. Had I raised the fares ... by, say 40 per cent ... I would have raised enough money. But my challenge was I did not want to put any additional burden on the common man. I went on scratching my head for the last few months, particularly the last few days. Then I found the solution. This is my new economic model, which I’m sure has so much in it for posterity. I haven’t raised fares and nevertheless found ways of raising as much as Rs 2,000 crores just by austerity measures. And mind you, this is just by our own endeavours. If this is not a new economic or revenue model, then how would you describe it?

Then comes the (public-private participation) PPP model. I haven’t disturbed the present structure in the organisation. I haven’t privatised it, but nevertheless invited the private sector to join the process of development. Mind you, their participation and sharing of the cost is also in a way mobilisation of funds. The private sector will participate in new areas like railway lines, bottling plants, airconditioned container-making, wagon-making and so on...

While spelling out my preference for the Railways’ social responsibilities, I have also had to keep in mind that even socially desirable projects needed to have commercial viability. I did exactly that.

Time will tell and history will judge (if) I had my arithmetic right. This will work wonders. The private sector will come forward because they will now be able to share the total revenue, and recover their costs.

Q: You also talked about expanding non-core areas...

Yes, that’s another area from where I think we can generate substantial incremental revenue. I think we can raise it from the current level of Rs 130 crores to Rs 1,000 crores. We will work that out as we move ahead. Therefore, you see it is not that I only talk of new projects and don’t know how to raise funds for that...

Q: What makes you confident that the private sector will respond?

Why not? I have not only charted out ways of protecting their investments, but have also mentioned forming a special task force. This task force will be formed shortly, and it will comprise professionals and experts from outside and people with different domain knowledge. This task force will ensure that all clearances are handed over to investors within 100 days. And that’s not all. This high-powered committee will also ensure that all disputes are resolved within 100 days. Don’t you think that the private sector will just lap this up and come forward to participate in various programmes?

I am confident the modified wagon investment scheme, which will be unfolded shortly, will also draw a number of private sector investors to participate in various railway projects.

It would be wrong to think I have only thought of industry and the private sector. My thrust has also been on agriculture. The whole idea of involving the private sector aims at carrying out socially desirable projects. I knew that our farmers were having problems as the Railways did not have airconditioned containers. I have therefore invited the private sector to participate in AC container-making. From railway employees, ordinary farmers, people from arts and culture, sports to cancer patients... I have thought of everybody. And the beauty is that I did not put any additional burden either on the government or on the Railways.

Q: People say you have your eyes set on Writers’ Buildings in Kolkata. That you have done more for West Bengal this time...

This is not a budget for a particular state. Anyone can see what I have given for the state... This is a budget for the whole country. I have given whatever best I could give for the whole country. Any sensible person can make out that there has been a balanced approach for the entire country.

Ritwik Mukherjee