WHO: Slight cancer risk after Japan nuke accident


LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.


In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.


"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."


The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.


On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.


In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.


Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.


In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.


The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.


Wakeford said the increase may be so small it will probably not be observable.


For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."


David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.


Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.


Some experts said it was surprising that any increase in cancer was even predicted.


"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.


WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.


Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.


"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.


Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.


"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.


In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."


Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.


Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.


Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.


"I'm enraged," he said.


___


Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.


__


Online:


WHO report: http://bit.ly/YDCXcb


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Obama Admin to Court: End Calif. Gay Marriage Ban











Solicitor General Donald B. Verrilli, plans to file a brief today with the Supreme Court in favor of challengers of Prop. 8, according to an administration source.


It would mark the first time that the Obama administration has come out in court against the California ballot initiative that defines marriage as between one man and one woman.


As far back as 2008, the president said that he thought Prop 8 was "divisive and discriminatory," but his Justice Department has never opined on its constitutionality. Because the DOJ is not a party to the case, it is not required to file a "friend of the court" brief, but the deadlines for briefs supporting the challengers to Prop 8 is tonight at midnight.






Justin Sullivan/Getty Images







Theodore Olson, one of the lead lawyers challenging Prop 8, told reporters last week that he hoped the DOJ lawyers would take the opportunity to set down a legal position.


In Depth: Obama's Prop 8 Decision


"However," Olson added, "whether they do or not, the president of the United States made it very clear in his inaugural address that we cannot rest in America until all civilians have equal rights under the law so, in a sense, the president has made that statement already."


Today, 39 states have laws restricting marriage to opposite-sex couples. This number includes voter-approved constitutional amendments in 30 states barring same sex marriage. Nine states allow gay marriage.


Related: Eric Holder Says Gay Marriage is the Next Civil Rights Issue


Related: Republican Moderates Join Legal Fight for Gay Marriage



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Iran upbeat on nuclear talks, West still wary


ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.


Rapid progress was unlikely with Iran's presidential election, due in June, raising domestic political tensions, diplomats and analysts had said ahead of the February 26-27 meeting in the Kazakh city of Almaty, the first in eight months.


The United States, China, France, Russia, Britain and Germany offered modest sanctions relief in return for Iran curbing its most sensitive nuclear work but made clear that they expected no immediate breakthrough.


In an attempt to make their proposals more palatable to Iran, the six powers appeared to have softened previous demands somewhat, for example regarding their requirement that the Islamic state ship out its stockpile of higher-grade uranium.


Iran's chief nuclear negotiator Saeed Jalili said the powers had tried to "get closer to our viewpoint", which he said was positive.


In Paris, U.S. Secretary of State John Kerry commented that the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.


Iran's foreign minister said in Vienna he was "very confident" an agreement could be reached and Jalili, the chief negotiator, said he believed the Almaty meeting could be a "turning point".


However, one diplomat said Iranian officials at the negotiations appeared to be suggesting that they were opening new avenues, but it was not clear if this was really the case.


Iran expert Dina Esfandiary of the International Institute for Strategic Studies said: "Everyone is saying Iran was more positive and portrayed the talks as a win."


"I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections," she said.


The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the powers' proposals, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see a substantive response from Iran.


"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said.


A senior U.S. official in Almaty said, "What we care about at the end is concrete results."


ISRAELI WARNING


Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.


Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.


Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.


In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".


The official did not describe what was being asked of Iran as a "shutdown" of the plant as Western diplomats had said in previous meetings with Iran last year.


Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.


But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade uranium. Iran says it produces higher-grade uranium to fuel a research reactor.


Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.


In Vienna on Wednesday, a senior U.N. nuclear agency official told diplomats in a closed-door briefing that Iran was technically ready to sharply increase this higher-grade enrichment, two Western diplomats said.


"Iran can triple 20 percent production in the blink of an eye," one of the diplomats said.


The U.S. official in Almaty said the powers' latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.


This appeared to be a softening of a previous demand that Iran ship out its stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.


Iran has often indicated that 20-percent enrichment could be up for negotiation if it received the fuel from abroad instead.


Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.


The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking websites reported.


(Additional reporting by Fredrik Dahl and Yeganeh Torbati in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Louise Ireland)



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AIM not bidding for PAP town councils' tender






SINGAPORE: Action Information Management (AIM), which runs the People's Action Party (PAP) town councils' computer systems, will no longer operate the systems when its contract expires on April 30. It said on Wednesday that it will not participate in the latest tender exercise.

The arrangement between AIM, a company fully owned by the PAP, and the PAP town councils had caused controversy even though both parties had explained that the process by which the open tender was awarded to AIM was above board.

AIM Chairman S Chandra Das said: "Given that AIM had helped prepare the tender documents, it decided not to participate in the tender."

When contacted, Dr Teo Ho Pin, who is the Coordinating Chairman of the PAP town councils, confirmed the news: "AIM should not bid for this tender as they are involved in the tender specification preparation."

Dr Teo declined to reveal how many parties had collected the tender documents "as tendering is in progress".

In media reports last week, Mr Das declined to say whether AIM had - or would - bid for the tender, which was put up by the PAP town councils on February 4 and will close on Monday. Dr Teo had also said the latest tender was for developing a new town council management system. The previous tender - which was won by AIM in 2010 - was to sell and lease back computer software to the PAP town councils.

The saga began on December 14 after Aljunied-Hougang Town Council (AHTC) Chairman Sylvia Lim explained the town council's less-than-stellar performance in a management report.

Ms Lim, part of the Workers' Party team which took over management of the town council after the General Election in 2011, blamed the AHTC's poor performance on the need to develop new IT systems within two months of the PAP-owned AIM terminating its contract last August.

Her explanation was followed by a series of statements by the AHTC and AIM. Among other things, questions were raised about the termination of the contract and the fact that AIM won a tender to manage the computer systems used by the town councils.

Last month, Prime Minister Lee Hsien Loong announced that the Ministry of National Development will review the transaction. Among other things, the review will re-examine the fundamental nature of town councils, after much public debate about whether the town councils are public institutions or political organisations.

- TODAY



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After thaw, UK opens floodgates for Gujarat

AHMEDABAD: After the thaw, relations between the UK and Narendra Modi's Gujarat are all set to get warmer. One of UK's biggest industry associations, led by UK member of Parliament Ian Swales, will visit the state next month. Later in April, a delegation of British MPs is likely to visit Gujarat.

Swales is bringing a 20-member delegation of the North East of England Process Industry Cluster (NEPIC), which will visit Vapi and Dahej on March 4 and 5. They will explore trade and investment opportunities with companies here to source active pharmaceutical ingredients, besides specialty chemicals from the state.

The NEPIC cluster represents 560 industrial units. It accounts for 60% of UK's petrochemicals output, and around 35% of the pharmaceutical production. Goods worth 11 billion pounds are exported from the cluster annually.

After cold-shouldering Modi for more than a decade over the 2002 post-Godhra riots, the UK government has only recently started engaging with the chief minister at the diplomatic level. The UK India Business Council had even partnered the Vibrant Gujarat investor summit in January with the British high commissioner to India, James Bevan, attending the event.

During the visit in March, the delegation will meet potential customers and partners, besides networking with local businessmen, said an official of the UK Trade and Investment (UKTI), which is supporting the trip. Four British universities will also be part of the delegation to search for setting up campuses and franchises in the state.

Bilateral trade between India and the UK is being pegged at 14 billion pounds per annum and Gujarat is enjoying a lion's share in it.

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Huge study: 5 mental disorders share genetic links


WASHINGTON (AP) — The largest genetic study of mental illnesses to date finds five major disorders may not look much alike but they share some gene-based risks. The surprising discovery comes in the quest to unravel what causes psychiatric disorders and how to better diagnose and treat them.


The disorders — autism, attention deficit-hyperactivity disorder or ADHD, bipolar disorder, major depressive disorder and schizophrenia — are considered distinct problems. But findings published online Wednesday suggest they're related in some way.


"These disorders that we thought of as quite different may not have such sharp boundaries," said Dr. Jordan Smoller of Massachusetts General Hospital, one of the lead researchers for the international study appearing in The Lancet.


That has implications for learning how to diagnose mental illnesses with the same precision that physical illnesses are diagnosed, said Dr. Bruce Cuthbert of the National Institute on Mental Health, which funded the research.


Consider: Just because someone has chest pain doesn't mean it's a heart attack; doctors have a variety of tests to find out. But there's no blood test for schizophrenia or other mental illnesses. Instead, doctors rely on symptoms agreed upon by experts. Learning the genetic underpinnings of mental illnesses is part of one day knowing if someone's symptoms really are schizophrenia and not something a bit different.


"If we really want to diagnose and treat people effectively, we have to get to these more fine-grained understandings of what's actually going wrong biologically," Cuthbert explained.


Added Mass General's Smoller: "We are still in the early stages of understanding what are the causes of mental illnesses, so these are clues."


The Psychiatric Genomics Consortium, a collaboration of researchers in 19 countries, analyzed the genomes of more than 61,000 people, some with one of the five disorders and some without. They found four regions of the genetic code where variation was linked to all five disorders.


Of particular interest are disruptions in two specific genes that regulate the flow of calcium in brain cells, key to how neurons signal each other. That suggests that this change in a basic brain function could be one early pathway that leaves someone vulnerable to developing these disorders, depending on what else goes wrong.


For patients and their families, the research offers no immediate benefit. These disorders are thought to be caused by a complex mix of numerous genes and other risk factors that range from exposures in the womb to the experiences of daily life.


"There may be many paths to each of these illnesses," Smoller cautioned.


But the study offers a lead in the hunt for psychiatric treatments, said NIMH's Cuthbert. Drugs that affect calcium channels in other parts of the body are used for such conditions as high blood pressure, and scientists could explore whether they'd be useful for psychiatric disorders as well.


The findings make sense, as there is some overlap in the symptoms of the different disorders, he said. People with schizophrenia can have some of the same social withdrawal that's so characteristic of autism, for example. Nor is it uncommon for people to be affected by more than one psychiatric disorder.


___


Online:


http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)60223-8/abstract


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Holder Says Sequester Makes America Less Safe












The looming budget sequestration will make Americans less safe, Eric Holder says—and anyone who says otherwise isn't telling the truth.


"This is something that is going to have an impact on the safety of this country," the U.S. attorney general told ABC's Pierre Thomas on Wednesday in a wide-ranging, exclusive interview.


"And anybody that says otherwise is either lying or saying something that runs contrary to the facts," Holder said.


In his interview with ABC News, Holder reiterated warnings that if automatic spending cuts are triggered on Friday, the Justice Department will be handicapped in some of its most vital missions to prevent terrorist attacks and crime.


"The Justice Department is going to lose nine percent of its budget between now and September 30th. We're going to lose $1.6 billion. There are not going to be as many FBI agents, ATF agents, DEA agents, prosecutors who are going to be able to do their jobs," Holder said. "They're going to be furloughed. They're going to spend time out of their offices, not doing their jobs."


Portions of the interview will air Wednesday, February 27 on "ABC World News"






Patrick Semansky/AP Photo











Eric Holder Says Homegrown Terror Threat Equals International: Exclusive Watch Video









Eric Holder Remembers Newtown, His Worst Day on the Job: Exclusive Watch Video







President Obama's Cabinet members have been warning for weeks that budget sequestration, which will begin Friday unless Obama and Republicans reach a deficit-reduction deal to avoid it, will leave their agencies shorthanded and could bring about disastrous consequences. Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood have both appeared at the White House press briefing room to warn that furloughs for border-patrol agents, TSA agents and air-traffic controllers will mean weakened border and port security, longer waits in airport security lines, and logjammed air travel.


Holder, for his part, warned in a Feb. 1 letter to the Senate Appropriations Committee that cuts to the FBI, the ATF, the U.S. Marshals Service, and U.S. Attorneys would limit the department's capacity to investigate crimes. Cuts at the Bureau of Prisons, Holder wrote, would mean lockdowns and potential violence, with fewer staff members on hand. In a separate letter, FBI Director Robert Mueller warned that counterterrorism operations would be affected, with the possible elimination of some joint terrorism task forces with state and local police. Limited surveillance and slower response times would mean unwatched targets and the possibility that individuals on terrorism watch lists could gain entry to the U.S.


"FBI's ability to proactively penetrate and disrupt terrorist plans and groups prior to an attack would be impacted," Mueller wrote.


To Holder, the problem is simple.


"If you don't have prosecutors and agents doing what we expect them to do, and we won't if this thing actually takes place, we are going to be a nation that is going to be less safe. And that is simple fact," Holder said.


Some Republicans have claimed the Obama administration is exaggerating the sequester's purported consequences as a ploy to campaign for tax hikes. On "Fox News Sunday" this week, Sen. Tom Coburn, R-Okla., posited that federal agencies enjoy enough flexibility to avoid the worst consequences of the cuts.


On Wednesday, Holder acknowledged that the Justice Department will do what it can to avoid compromised security, while maintaining that furloughs can't be avoided.






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Powers wait to hear Iran response to nuclear offer


ALMATY (Reuters) - World powers hope Iran will respond positively on Wednesday to their new offer to lift some sanctions if Tehran scales back nuclear activity the West fears could be used to build bombs.


The United States, France, Germany, Britain, China and Russia presented the offer when their first meeting with Iran in eight months began in Almaty on Tuesday and the Islamic state was considering it, the powers' spokesman said.


Western officials described the first day of talks as "useful". One said Iran discussed specific aspects of the powers' ideas in bilateral talks with three of them - Russia, Germany and Britain - but gave no indication how Tehran viewed them.


Iranian state television described the atmosphere in the discussions as "very serious".


The outcome of the two-day meeting in the Kazakh city will be closely watched in Israel, which has strongly hinted that it could attack Iran's nuclear sites if diplomacy and sanctions fail to stop the uranium enrichment program.


Iran says Israel's assumed nuclear arsenal is the main threat to peace and denies Western allegations it is seeking to develop the capability to make atomic bombs. It says it is only aiming to produce nuclear energy so that it can export more oil.


In their latest attempt to break years of deadlock in the dispute, the powers are offering Iran a relaxation of some of the sanctions that are taking a heavy toll on its economy.


"Hopefully the Iranians will be able to reflect overnight and will come back and view our proposal positively," the spokesman for European Union foreign policy chief Catherine Ashton, who represents the powers in the talks, said.


"The ball is in their court," Michael Mann added after the first day of discussions on Tuesday.


He did not give details of the offer, but other Western officials have confirmed it includes some limited sanctions easing if Iran closes a underground site where it carries out its most controversial uranium enrichment work.


Diplomats and analysts see scant chances of a conclusive deal with Iran before a June presidential election, with the political elite preoccupied with domestic issues.


Wednesday's talks are due to start at around 11 a.m. (0500 GMT).


IRANIAN COUNTERPROPOSAL


Iran would put forward its own proposal "of the same weight" as that of the other side, a source close to the Iranian negotiating team said on Tuesday, but Western officials said it had not done so during the first day of negotiations.


Iran, whose chief negotiator Saeed Jalili is close to Supreme Leader Ayatollah Ali Khamenei and is a veteran of Iran's 1980s war against Iraq and the Western powers that backed it, has shown no sign of willingness to scale back its nuclear work.


It argues that has a sovereign right to carry out nuclear enrichment for peaceful energy purposes, and in particular refuses to close its underground Fordow enrichment plant, a condition the powers have set for any sanctions relief.


Tightening Western sanctions on Iran over the last 14 months are hurting Iran's economy and slashing oil revenue. Its currency has more than halved in value, which in turn has pushed up inflation.


But analysts say the sanctions are not close to having the crippling effect envisaged by Washington and - so far at least - they have not prompted a change in Iran's nuclear course.


Western officials said the powers' offer would include an easing of restrictions on trade in gold and other precious metals if Tehran closes Fordow.


The facility is used for enriching uranium to 20 percent fissile purity, a short technical step from weapons grade.


Western officials acknowledge an easing of U.S. and EU sanctions on trade in gold represents a relatively modest step. But gold could be used as part of barter transactions that might allow Iran to circumvent financial sanctions.


Iran's foreign ministry spokesman last week dismissed the reported incentive as insufficient and a senior Iranian lawmaker has ruled out closing Fordow, close to the holy city of Qom.


(Additional reporting by Yeganeh Torbati in Almaty and Zahra Hosseinian in Zurich; Editing by Robin Pomeroy)



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Dollar edges higher as Bernanke confirms stimulus






NEW YORK: The dollar edged higher Tuesday against the euro after Ben Bernanke confirmed the US Fed's stimulus program would continue, while the yen traded flat ahead of the nomination of a new Bank of Japan chief.

At 2200 GMT the euro was at $1.3061, compared to $1.3065 late Monday. The euro remained under pressure after Italy's inconclusive election, which some fear could lead to more political trouble and policy stalemate in the country.

"Political uncertainty has increased in Italy following the election results weighing upon the euro and risk assets," said Lee Hardman, currency analyst at the Bank of Tokyo-Mitsubishi UFJ in London.

In Washington, Federal Reserve Chairman Bernanke quelled speculation of an early end to quantitative easing when he told a Senate panel that the Fed's stimulus program was having an impact and was still needed.

He said inflation remained subdued and the Fed was keeping its eye on any potentially risky behavior in the market due to low-interest rates.

The Fed policy board "remains confident that it has the tools necessary to tighten monetary policy when the time comes to do so," he added.

The yen was barely changed against the dollar at 91.93, and the euro was at 120.08 yen compared to 120.12 yen late Monday.

Markets were waiting for confirmation of who would be named to head the bank of Japan, after newspapers reported Monday that Asian Development Bank chief Haruhiko Kuroda, an advocate of a lower yen, would be named.

The British pound fell further, to $1.5126 from $1.5166 late Monday. The dollar was little changed on the Swiss franc, at 0.9315 francs.

-AFP/ac



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Rail Budget 2013: Raising funds an uphill journey

When he hiked passenger fares in late January, railway minister Pawan Kumar Bansal had argued that the extent to which freight earnings had been used to subsidise passenger operations was unsustainable. On Tuesday, however, he said he would not affect any changes in passenger fares while imposing an across-the-board 5.8% increase in freight rates.

According to Bansal, losses on passenger operations are estimated to have risen from Rs 4,955 crore in 2001-02 to about Rs 24,600 crore in 2012-13. Considering that the earnings from passengers were Rs 32,500 crore in 2012-13, that suggests that the railways recover only about 55% of their costs on carrying passengers, the rest coming from the surplus generated in freight operations.

That explains why Bansal has bucked the trend of over a decade in recent weeks and announced measures that will yield him an estimated Rs 7,000 crore plus from passengers. Despite such a sizeable mop-up, Railway finances as projected for 2013-14 look only somewhat better than in the last couple of years.

The operating ratio - a measure of what percentage of revenues is used up in running expenses - is pegged at 88.8% for the current year and 87.8% for the coming year. In other words barely 12% of what the Railways earn will be available for investing in building future assets. While this is significantly better than the situation in the last couple of years when the OR had touched 95%, it is still a far cry from the 2007-08 scenario in which nearly 25% of earnings were available for investment.

The squeeze on resources was evident in the minister's lament that the 12th Plan target of investing Rs 5.19 lakh crore on the Railways with Rs 1.05 lakh crore coming from internal resources was beginning to look like an increasingly tall order. He pointed out that only Rs 10,000 crore had been contributed by internal resources in the first year. Yet, the budget for 2013-14 does not do very much better with Rs 14,260 crore of internal accruals contributing to an annual Plan size of Rs 63,363 crore.

Put together, therefore, the first two years of the Plan are now estimated to add up to investments of Rs 1.16 lakh crore with internal resources contributing just over Rs 24,000 crore. That means the Railways will have to invest over Rs 4 lakh crore in the remaining three years of the Plan and find nearly Rs 81,000 crore of that internally, clearly a tall order.

Budget 2013 > Rail Budget 2013 > Economic Survey 2013

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