Saturday, January 10, 2015

Dinesh Kamath's Editorial 'India’s railways need to improve' that was published in Newsband

India’s railways need to improve
Prime Minister Narendra Modi said that there was no question of privatising the Indian Railways. The government and the Railways badly need private and foreign investment in the system. Only then we can have the dedicated rail corridor and bullet train services in our country. The Prime Minister has been looking to Japan and China to provide both technological and financial support to some of these projects.
The plan to set up four Railway universities across the country is great. The Railways is constantly trying to raise more funds and increase earnings from both freight and passenger fares. For a country to develop, you do need to have the latest and best technological advancements. Most of such facilities will be used by the so called "elite"and they will be the people who will carry the poor and middle class to a higher level by creating and developing successful organisations.
Ten years back, nobody would back up the need for creating a back bone of internet for the remotest village. However, today every farmer uses the net to take advantage of developments and best practices to cultivate the product as well as selling. Bullet trains and other faster and expensive trains are a must for India’s development.
Railways needs to change. In fact, there is a need for a complete makeover. The passengers travelling in all classes should be made aware of their rights and privileges. Safety of passengers and their belongings appears to be at the bottom of railway priorities. Ministers and Officers of this ilk should not be allowed to treat the travellers as guinea pigs on which to experiment their weird ideas like Premium Tatkal Scheme and increasing or decreasing the period of advance reservation arbitrarily without rhyme or reason.
To have a bullet train from the public exchequer would be a blunder. No doubt it would earn revenue in future. But again rich can afford to travel by air. Trains are mode of transport for the middle class and lower income groups. Upgrading toilets and having an effective disposal of waste requires not much funds but implementation of technology and laws. Clean, well maintained rest rooms, platforms, hygienic canteens would require peanuts compared to cost of a bullet train. Again setting up railway universities is a very innovative, cost effective and beneficial move.
The Railways badly need private and foreign investment in the system to render decent services to 13 million passengers that Indian Railways serve every day. Shinkansen, Japanese first bullet train was unveiled way back in 1964. But in India they are still far from reach. Bring the technology which ease layman because most travellers in trains are from middle class, if you give them bullet train in the cost of general train that would be quite beneficial. The government has to keep eye on middle class man's pocket so that it could not burden his journey.
It is true that Railway needs large investment. However, the available investment is mismanaged and corruption is rampant. Even allotted funds remain unspent for many projects. If corruption by politicians and officials are eliminated, the railways can sustain itself. With 1.4 crores passengers and 14 lakh MT of goods daily, the Railway will make profit with meticulous administration and operation and with realistic approach to tariff revision.

There is a tendency in India to decry every move of fare rise by railways. How about the fares charged by the Reliance Infrastructure for the Mumbai Metro Train services? Public utilities need not make profit but they definitely require enough funds to grow. Bullet train tracks are said to cost Rs. 125 crore per km. The money required is proposed to be funded by FDI. Who will bear the repayment in foreign exchange? Ordinary railway track costs a mere 15 crore per km. With doubling and tripling of the tracks (the third track being exclusively for goods movement) passengers will move fast and the economy will also gain by faster movement of goods.

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