Chennai: In view of the financial crunch due to Covid-19 crisis, the Railways has halted all new infrastructure works sanctioned for 2020-21. This move comes after the government issued orders suspending new schemes, with costs up to Rs 500 crore, till March 2021 due to ongoing crisis.
The Railways has also directed zonal railways and its production units to only take on new works if it was essential for the safety of running trains, that too with the approval of the Finance Ministry.
The Railways has estimated a loss of Rs 35,000 crore to Rs 40,000 crore in the passenger segment and is 18 percent behind so far in freight loading as compared to last year due to the pandemic.
In an order dated July 28, the Railway Board has also said all other work sanctioned in previous years that have made little or no progress should be halted as well.
According to the order, new works/ Umbrella works included in Pink Book 2020-21 shall be kept in abeyance. However, those works which impact the safe running of trains and are considered essential and inescapable may be considered for sanction.
Essentiality of such works will be examined by concerned Additional Member, Additional Member/Works and Additional Member/Revenue.