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Lofty speeches, but no concrete work

Social obligation costs railways half its plan outlay leaving little for growth.
Last Updated 13 February 2015, 19:25 IST

Rail Ministers unfailingly turn poetic and make lofty philosophical observations when presenting their annual budgets, yet seldom bother to follow what they preach.

Lalu Prasad Yadav kept the Lok Sabha regaled with his ‘shaayari’ and quick repartees, while Mamata Banerjee never failed to spout Tagore or Nasrul Islam. Sadananda Gowda presenting his maiden rail budget last year quoted from Kautilya’s famous ‘Arthashastra’.
“In the happiness of the people lies the ruler’s happiness, their welfare is his welfare, What pleases him, the ruler shall not consider good, but what pleases his people the ruler shall consider good” – perhaps a licence for rampant populism ?

In the same breath, Gowda commented on the Railways dismal operating ratio which stood at 94 per cent and that social service obligations cost the Railways almost half its plan outlay leaving very little for development works, and soon after won a round of applause in the Lok Sabha by announcing surveys for 18 new lines, most of which may not be financially remunerative !

According to Gowda, the unrealistically low passenger fares, lower than the cost of operations which had caused a loss of 10 paise per km in 2000-01 had ballooned to 23 paise in 2012-13.

Then he went on to boldly announce substantial hikes in passenger tariff in his budget proposals. However his bravado was short lived as soon the NDA partner Shiv Sena, went on the war path forcing him to back track, rather meekly.

Not only this, Gowda also announced new trains, 5 jansadharan, 5 premium, 6 AC express, 27 express, 8 passenger, 2 MEMU, 5 DEMU, in all 58 new ones and extending the run of 11 existing trains which further crowded out its money spinner – the freight trains – while adding more red ink to the Railways bottom line.

With a rather hazy idea of what makes the 1.4 million strong behemoth tick, political heavy weights adorning the corner room at the Rail Bhavan have from time to time opted for opinion from management and other experts, making the Indian Railways as perhaps one of the most studied transport systems in the world. In the early years , safety was the main concern with every major rail accident prompting the rail minister to set up a commission.
Starting with retired Chief Justice Kunzru in 1962, we have had Justice Wanchoo in 1968, Justice Sikri in 1978 and Justice Khanna in1998 to head them.

Prakash Tandon, the former MD of Hindustan Lever, was the first corporate honcho assigned with the task to look into managerial aspects of the Railways in 1994, followed by Rakesh Mohan, a bureaucrat in 2001. In the last two years, there have been no less than six committees, starting with Dr Anil Kakodkar, Atomic Energy Commission former-chief on safety, and Sam Pitroda, the telecom wizard , on modernisation.

Last year, Bibek Debroy,an economist, was asked to head a committee on Railway Restructuring and reforms, E Shreedharan, ex-MD, DMRC, on Delegation of Tendering Process, D K Mittal , ex-revenue secretary, on Improving financial health of the Railways, and last but not the least Vinod Rai, ex-CAG, to bring in transparency.

Railway roadmap

Suresh Prabhu, the current incumbent of the Rail Bhavan, is reportedly cobbling together inputs from various sources preparing a white paper, to be presented on the floor of the House on February 26 providing a roadmap for the Railways for perhaps next two decades.

Fortunately, he appears to have realised what not to do, and topping the list of no go areas is announcing any new passenger trains, increasing frequency or extending their runs etc. New projects, unless it is for increasing throughput such as doubling or gauge conversions, should also be taboo.

Taking a cue from the prime minister, who soon after assuming charge had disbanded all GoM and EGoMs to ensure a quick and accountable decision making, Suresh Prabhu should now refrain from reviving Railway Users Consultative Committees, 68 at divisional, 16 at zonal, and one at national level, which all became defunct soon after the last general elections, and are yet to be reconstituted.

These committees packed with political allies, MPs, MLAs of various hues, and other self-appointed representatives of rail users have in the past been responsible for generating hundreds of populist suggestions which are responsible for the Railway’s present poor financial health.

He can ill afford to delay getting the Railways back in shape for the long haul, for which he has to be pragmatic, taking some unpopular decisions, and eschew ‘lok lubhavanvad’ (populism) all the way. His maiden rail budget end of this month perhaps would reveal the stuff he is made of.

(The writer  is former member, Railway Board, New Delhi)

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(Published 13 February 2015, 19:25 IST)

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