Union railway minister Mamata Banerjee had an hour-long closed door meeting with Prime Minister Atal Behari Vajpayee and Union finance minister Yashwant Sinha and reportedly "had her way," over ruling serious objections to her financial strategy not only from Mr Sinha, but officials in the Prime Minister's Office and the railway ministry and board.

Ms Banerjee sought a closed door meeting, demanding that no officials should be present. Accordingly, the principal secretary to the Prime Minister, Mr Brajesh Mishra, OSD in PMO Mr NK Singh, senior officials of the finance and railway ministries and the chairman and some members of the Railway Board, were all asked not to attend the normal pre-budget meeting that the railway minister has with the Prime Minister and the finance minister.

None of the officials concerned were aware of the deliberations that went on, but it is reliably learnt that Ms Banerjee rejected the recommendations of the Expert Group on Railways as well as the views of her senior officials in the Railway Board and ministry and insisted on not rationalising railway fares.

"Mr Sinha came out of the meeting `red faced' in anger," said a source who happened to see the finance minister walking out of the meeting. Officials in the know of the final version of the Railway budget told The Financial Express, "this will be the most farcical railway budget."

"Mamata has had her way for a second year in running. Last year also she met the Prime Minister and had her way, exploiting the leverage that a coalition government gives her," said a finance ministry official.

It may be recalled that last year a former senior member of the Railway Board had termed Ms Banerjee's budget proposals as "the worst railway budget in history." Sources say Ms Banerjee has got her way again this year.

The Expert Group on Railways had suggested rationalisation of fares, including an increase in passenger fares, and increased investment in strategic areas. It had warned that populism on fares was robbing the railways of funds needed for investment. Experts have also argued that the so-called non-traditional revenue sources like income from leasing railway infrastructure have not yielded the desired revenues.