Finance Ministry asked to reimburse expenses on non-profitable routes
The Prime Minister’s Office (PMO) has directed the Ministry of Finance to fund the losses incurred by the Indian Railways in operating non-profitable trains on strategic lines and backward areas.
Implications of the directive
The directive ends a tussle that began following the merger of the Railway and Union Budgets, as the Ministry of Finance had discontinued the practice of providing an annual subsidy to the Railways.
The decision comes as a relief for the Railways which feels that the social service obligation borne by it in running non-profitable lines of national and strategic importance should be funded by the Central government.
(Adapted from The Hindu)