Indian railways will be paying a higher dividend of Rs5,479 crore during the current fiscal despite over Rs3,000 crore dip in cash surplus on account of higher wage bill following implementation of the Sixth Pay Commission award.
Unveiling the rail budget for 2009-10, railway minister Mamata Banerjee said, “The Railways paid their full dividend liability of Rs4,717 crore in 2008-09 and will pay an even higher dividend of Rs5,479 crore in 2009-10.”
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The railways will be paying higher dividend despite the adverse “impact of increase in working expenses due to the Sixth Pay Commission and sluggishness in earnings due to the economic slowdown”.The cash surplus of the railways during the current fiscal is expected to dip to Rs14,201 crore from Rs17,400 crore in the previous fiscal, mainly on account of higher wage bill during the year.
According to Banerjee, the railways disbursed Rs13,600 crore during 2008-09 towards implementation of the Sixth Pay Commission recommendations.For the current fiscal, she said, “After having absorbed the impact of the Sixth Pay Commission, to the extent of Rs14,600 crore in 2009-10, the cash surplus before dividend of the railways work out to Rs14,201, net revenue of Rs8,121 crore and operating ratio of 9.25%.”
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