anticipated. Of the total figure of 30 crores shown in the Revised Estimate, about 21 crores represent the probable amount to be spent on open line works and rolling stock, and 8 crores on new lines, the latter figure being nearly 2 crores over the amount spent on new lines in 1926-27.

16. As regards new lines, I have mentioned that by the end of March we expect our open mileage of railways in India to approach the figure of 40,000, that is, an increase of over 900 miles during the current year. But this new mileage is not entirely on the State Railways, as something like one-third of it will have been constructed at the cost of Indian States and others. The latter includes the important north to south connection in His Exalted Highness the Nizam's territory from Balharshah to Kazipet, which will shorten very appreciably the distance of the journey from Madras to Delhi and the north of India; some portions of this connection are already open, and it is hoped that the remainder will be opened by the end of this financial year.

Capital Expenditure, 1928-29.

17. Though Railway Administrations have, as I have said, made better progress this year than we anticipated, they have still a large number of works uncompleted, and we want them to spend next year very largely in pushing on with these works, so that the capital employed in them may quickly become productive. For this reason, that is to say, because a larger proportion of their programmes than in recent years will consist of schemes already in hand, the initial delays to the inception of which have been already overcome, we find it unnecessary to make so large an over-allotment of funds to them as in the last few years. We are estimating, therefore, in the coming year for an expenditure of 15 crores on the open lines, but are only allotting 2 crores more than this figure, showing in the aggregate of the programmes 121 for works and 5 for rolling stock. A good deal of information in regard to open line works and rolling stock is given in the Budget Memorandum, and the details of allotments for all the larger works are given in the pink books which show the programme of each railway separately. For reasons I have given there are in our programme only a very few large schemes which we find it necessary to commence in 1928-29, the only individual new project which I think it necessary to mention here being the reconstruction of Erode station on the South Indian Railway. Of other items I should like to point particularly to the provision of 3 crores for the improvement of track and strengthening of bridges, the object of this expenditure is the economical and efficient movement of increasing traffic in heavier train loads with more powerful locomotives, and it is clear that for this purpose the work on track and bridges has to be co-ordinated on the various sections of each railway in order that the best results may be obtained. The large electrification schemes in progress in the vicinity of Bombay are responsible for nearly all the expenditure, over 2 crores, allotted under the head electrification, but it has recently been decided to electrify the South Indian Railway suburban services in Madras, so a small provision is made for the commencement of that work. The anticipated expenditure on rolling stock amounts to nearly 9 crores, but about 3 crores of this is a charge to the Depreciation Fund, so that the capital expenditure will be about 5 crores. This includes provision for 549 additional units of coaching stock, each bogie carriage being reckoned as 2 units, and 860 additional metre gauge wagons.

18. For our new construction projects, including those that are already in hand, we have distributed over 11 crores and have estimated that we shall actually spend about 9 crores. Although we have 50 projects already sanctioned, this number is expected to increase to 90 in 1928-29, and of these I

hope that at least 20 will be opened in the course of the year. Taking a reasonably cautious view I think we may hope to add nearly 800 miles to our open mileage in the course of the next financial year.

19. Of these new lines which are already in progress, one of the most important, which has been known as the Central India Coalfields Railway and links up Daltonganj with the western end of the South Karanpura line at Barkakhana, is expected to be opened next year, and I hope also the branch from Anuppur to Karimati, which will eventually be linked up with the former, though this is not proposed immediately. Other lines of some importance which will, I hope, be opened throughout in 1928-29 are the Villupuram-Trichinopoly (108 miles) and the Dindigul-Pollachi (75 miles) in South India, and a part at least of the Kangra Valley Railway. The Assam Bengal, Eastern Bengal and other railways have been busy with short branches, and a number of these are likely to be opened next year. Other projects of major importance, which are in hand but will not progress quickly enough to be opened next year, are the Calcutta Chord Railway including the bridge over the Hooghly at Bally, the Lucknow-Sultanpur-Jaunpur, the Chiniot-Khushab cross connection

in the Punjab, the Kalabagh Bridge at Mari Indus, the Raipur Vizianagram, the Sagaing Bridge and Minbu-Pakokku project in Burma both recently sanctioned, and the Trichinopoly-Manamadura Chord in South India.

20. A complete list of the new lines, some already in progress, which are included in next year's programme, is given in Appendix I of the Budget Memorandum. The more important of those which have not yet been commenced are the Dacca-Aricha and Sainthia-Berhampore-Halsa connections in Bengal, the Diva-Dasgaon and Nasik-Belapur-Sheogaon Railway in Bombay, the Lyallpur-Chananwala cross connection in the Punjab, Sind Left Bank Feeder Lines (163 miles) in Sind, the Megna Bridge at Bhairab in Eastern Bengal, and the Salem-Attur-Vridachallam Chord in South India. It must be remembered, however, that some of these new projects have not yet been sanctioned, and in one or two cases it may be found on completion of the survey investigations that the anticipated earnings will not justify construction. Last year Sir Clement Hindley explained at some length the steps we had been taking in organising a programme of new construction work, and I do not propose to go over this ground again. We are still actively pursuing the same policy, and the different large Railway Administrations are continuing their investigation into all possible schemes of development in collaboration with the Local Governments respectively concerned. I might mention that the procedure laid down for obtaining the assistance of the Local Governments in framing programmes for new construction in the various provinces was found to be defective in one particular, and steps have been taken to rectify this.

Recently we have found it advisable to depute one of our senior Civil Engineers to make a tour of inspection of the new lines which are being constructed in certain areas with the object of framing a report on costs and methods of construction in different parts of India. We think it probable that such a report will open up the possibility of effecting appreciable economies and will be of value to us in carrying on the large programme which we have on hand.

It may be of interest to some members of this Council to hear about the two main trunk routes, which were referred to a year ago, namely, the BombaySind and Agra-Karachi connections. As regards the former, investigations are now well on towards completion, and we now have two senior officers working directly under us on a re-examination of the cost and prospects of the latter. Until we have arrived at a better appreciation of the advantages to be obtained from the construction of either of these links, we have considered it premature to enter them in our construction programme, for both of them are dependent

for their financial justification on the development of long distance traffic, a large proportion of which will be taken from lines already in existence.

21. There is one very important figure in the Capital Budget to which I have not yet referred, namely, an item of 4 crores for the purchase of the Burma Railways. Notice has recently been given to the Burma Railways Company of the termination of their contract, and the system will come under State management from 1st January 1929. It has been estimated that, as a result of the purchase, we shall increase our net annual revenue by about half a crore.

General Remarks.

22. Before I close I should like to assure the Council that the activities to which Sir Clement Hindley referred in the concluding part of his speech, delivered 12 months ago, continue to receive our attention. Amongst these I may mention the prevention of fraudulent travelling, publicity, recruitment, the technical question of Bridge Design, and Workshop Reorganisation. As regards the latter, I have previously mentioned the economies which have been effected in our costs of repairs and maintenance of rolling stock, and we hope for yet further improvement in this direction. I refrain from dealing at length with any of these matters, as I think, I have already taken up too much of the time of the Council.

23. I must, however, make a brief reference to our standardisation policy which is being energetically pushed on. The various Standing Committees have met at intervals during the past year, and satisfactory progress has been made. The standard designs of locomotives now comprise 8 types for the broad gauge and 6 for the metre gauge, but the work of designing all the details of these engines, which is being done by our Consulting Engineers in England, is taking longer than we expected, and the first consignment of new standard engines has only recently been received. New standard designs of wagons and underframes are also being proceeded with. As regards wagons, I might mention that we have had under investigation for some time the possibility of introducing higher capacity stock with a view to reducing operating costs. The question of the supply of special wagons to meet the requirements of mechanical loading at the collieries is also being considered. Other Committees are dealing with the standardisation of permanent-way fittings, signalling, and interlocking details and engineering structures of various kinds. We have also established recently a new Standing Committee to draw up and revise, where necessary, standard descriptions and specifications for the many classes of materials and stores in use on railways. This Committee, which is composed of the Controllers of Stores of the four State-worked Railways, has just held its first meeting.

24. As I explained at the beginning of my speech, four of the principal railway systems, including the two largest, are under direct State management, while the State owing to its financial interests has to take a considerable part in the control of all or practically all the other important lines. The results of that management during the year, which is coming to a close, and our forecast of what the result should be, if fortune is ordinarily kind to us, next year, are now before the Council. I hope the Council will admit that they prove Indian State Railways to be a live organisation, alive to the need for development of railway communications, alive in the introduction of modern improvements in their workshops, and ready to adopt any changes in operating methods: or in standards which are likely to make for efficiency and economy both. They have been enabled and encouraged to follow this forward policy by the greater freedom which they now enjoy in managing their own finances; and for this greater freedom they have the separation of railway finances from general finances to thank.

Schedule of demands for grants for expenditure of the Central Government on Railways for the year 1928-29 submitted for the vote of the Legislative Assembly.

Note. These demands were voted by the Assembly in full.

8,49,00,000

18,67,70,000

75,60,000

BUDGET

OF THE

Railway Revenue and Expenditure of the
Governor-General in Council,

1.-STATEMENT of the REVENUE of the CENTRAL GOVERNMENT from RAILWAYS

40-41

44-45

46-47

in INDIA and ENGLAND 1(a).-STATEMENT of WORKING EXPENSES of STATE RAILWAYS-COMMERCIAL LINES. 42-43 2.-STATEMENT of the EXPENDITURE on RAILWAYS charged to the REVENUE of the CENTRAL GOVERNMENT in INDIA and in ENGLAND 2(a).-CONTRIBUTION from RAILWAYS to GENERAL REVENUES, 1927-28 and 1928-29 3.-STATEMENT of RECEIPTS of the CENTRAL GOVERNMENT in INDIA and ENGLAND for CAPITAL CONTRIBUTED by RAILWAY COMPANIES and INDIAN STATES TOWARDS OUTLAY on STATE RAILWAYS 4.-STATEMENT of the CAPITAL EXPENDITURE of the CENTRAL GOVERNMENT in INDIA and ENGLAND on RAILWAYS

48-49

50-51

• Published with Government of India, Finance Department Resolution No. 3974-F., dated the 31st March 1928.