NEW DELHI: The railway ministry can now move a resolution in both Houses of Parliament adopting the Railway Convention Committee’s recommendations for a waiver on dividend for 2016-17. Cabinet approves Resolution for adoption of the recommendations of the Railway Convention Committee (2014) as contained in their Sixth Report on “Rate of Dividend payable by the Railways to the General Revenues for the year 2016-17 and other ancillary matters”
The Union Cabinet on Thursday cleared a proposal for a one-time waiver of Indian railways’ dividend payout of around Rs 9,000 crore to the general exchequer for 2016-17, purely as a one-time move, the Rate of Dividend payable by Railways to the General Revenues be waived off. With this, railways can now approach the Parliament for its approval to the waiver.
After the merger of the railway budget with general budget last year, it was decided that the national transporter would not have to pay dividend for the capital invested in it. While railways was budgeted to pay Rs 9,730 crore as dividend for last financial year, a subsidy of Rs 4,300 crore was claimed by it towards loss-making routes, putting the net dividend reportedly at about Rs 5,430 crore.
“Cabinet approves the proposal of the ministry of railways to move a resolution in both the houses of Parliament adopting Railway Convention Committee’s (2014) recommendations that for the year 2016-17, purely as a one-time move, the rate of dividend payable by the railways to the general revenues be waived off,” said the Press Information Bureau (PIB) on its Twitter handle.