CPI(M), CPI, CITU oppose govt's move for private investment in Railways

CPI(M), CPI and CPI(M)-backed CITU on Thursday took umbrage at the Narendra Modi government's decision to initiate private investment in Railways, saying it will lead to "self subservience and not self reliance" and a move that will eat up jobs.

While demanding recall of the decision, the three outfits also found fault with the timing of the decision that came "at a time when the country and the people are in the midst of a serious effort to combat the surging" Covid-19 pandemic.

The Ministry of Railways on Wednesday announced that it has invited Request for Qualifications (RFQ) of private participation for operation of passenger train services for over 109 Origin Destination(OD) pairs of routes through introduction of 151 modern trains in 12 clusters. The project would entail private sector investment of about Rs 30,000 crore and is the "first initiative of private investment for running passenger trains over Indian Railways network".

The CPI(M) Polit Bureau said it is the first time this is happening in independent India that trains are being run by private investors, who will utilise the network established over
centuries with all the required infrastructure to run passenger trains and make "super profits".

"The livelihood of crores of our people are dependent on the railways. Such privatisation undermines the basis of India’s self-reliant economy. Contrary to the claim that this will boost job generation, past experience has shown that such privatisation results in a huge job loss creating insecurity for crores of employees of the Indian Railways," it said.

The CPI(M) also said the Centre and Prime Minister Narendra Modi "refuse to learn from international experience" of how such privatisation of public transport
has imposed unprecedented difficulties and burdens on the people.

Asserting that Railways is a public service and not a profit generating enterprise, the CPI(M) said this character should not be undermined.

CPI General Secretary D Raja said the BJP government is "determined" to hand over all the national assets and resources to the private corporates.

"Any private entity investing Rs 30,000 crore will expect a huge profit from its investment resulting in huge increase in the railway ticket fare. Train, which is the common man’s transport, will go beyond his reach. Already three lakh posts in Railways are lying vacant. This decision will take away the dream of the Indian youth to get a Railway job," he said.

Calling for a united struggle against the decision to "benefit the profit hungry corporates, domestic and foreign" entities, the CITU described the government move as "anti-national" and said it is "appalling" that the government chose the lockdown period to fast track this "anti national" policy.

It said the BJP government has permitted 100% FDI in manufacturing and maintenance of rolling stock, signalling and electric workers and dedicated freight lines. In the name of redevelopment of railway stations, it has started handing over the railway stations along with the huge amounts of real estate to the private corporates.

"The government claims of Rs 30,000 crore investment and employment generation has no meaning as the drainage due to loss of revenue to the Indian Railways in these revenue generating routes and high speed trains will more than neutralise the said hypothetical figure. The employment lost due to privatisation of our production units, the jewels of Indian Railways, in the railway workshops, in maintenance units, etc. will be many times more than the employment created by the private players. Most of the jobs that will be created will be precarious jobs, not permanent jobs with decent wages and social security," it said.