On freight: We did not increase the fares last year. But compared to the previous years, four per cent is very low. It has never been so low. We are actually not hiking but only passing on one-third of the inflationary burden. The process of discount and concessions has been continued by giving 25 per cent discount for 50 km. In the year before last, Rs 2,000-crore of resource mobilisation was through freight alone.

We found that there was no relationship between rate and volume since freight traffic did not rise despite there being no increase in fareslast year. We will take a number of other steps like leasing out break wagons (to raise resources).

On fare rationalisation: There are a lot of distortions in fares. We are attempting to remove them. Mail second class is not loss-making. We have taken it as a base and decided on comfort levels and accordingly raised the fares. We wanted to raise sleeper class fares by (a factor of) 1.6, but instead we opted for 1.55 since we found it was too high.

On technological upgradation: The emphasis this year will be on safety. Technological upgradation needs money. For manning the crossings alone we need Rs 2,200 crore. The Railways has decided that for every unmanned level crossing which is converted into a manned crossing by an MP, they will contribute with an additional one.

On increased outlays: We are requesting Rs 200 crore more (from the general budget) to increase the plan outlay. If the government is helping by increasing the outlay, industry should also help us, otherwise ourrolling stock and other infrastructure will suffer.

On working expenses: Like others we don't have any control on them. The Fifth Pay Commission has increased everybody's burden. Last year not much expense was incurred on maintenance. But we can't afford to neglect it so we will be spending more on it.

On the fall in surplus: We had no option but to declare a lower surplus. If not, then new projects would suffer and the overall economy will be affected.

On private trains: No new trains for privatisation have been announced because the two projects announced last year have not been finalised as yet. The private sector is not coming forward to invest.

On catering services: Caterers make enormous profit. We want a share of it. They get pantry cars free and other facilities but still they serve bad food and there are constant complaints. We cannot raise penalties because they could take us to court. We will increase the licence fee instead.