One of the first things that the government can do is increase passenger fares as proposed in the 2012-13 Railway Budget by Dinesh Trivedi
With a new railway minister in place (though possibly only in temporary charge) and the government in reform mode, it’s more than necessary for it to announce key reforms to improve the finances, security and efficiency of the Indian Railways, badly neglected in the tenure of the Trinamul Congress that held this ministry.
One of the first things the government can do is raise passenger fares as proposed in the 2012-13 Railway Budget by Dinesh Trivedi, who then lost his job as railway minister as a consequence of this. Passenger fares have not been hiked in the past decade for one reason or another, and the Railways have suffered a loss of Rs 20,000 crores. This amount can finance a high-speed train every year.
There are various concessions given by the Railways to different sections of society like senior citizens, students, the disabled and others. If it is considered desirable to continue these for the greater social good, then the cost should be borne by the government in the Union Budget, and these should not play havoc with railway finances. The government after all subsidises the fuel costs of the oil marketing companies. A surcharge on Mumbai suburban rail fares, imposed initially to repay a World Bank loan, had been discontinued for several years now. There is no logic in keeping it pending, and it should be reintroduced immediately.
It would not be out of place to point out anomalies that exist regarding rail fares and other forms of transport. In Mumbai, for instance, a railway season ticket for the suburban train from Churchgate to Virar comes to just nine paise per km, whereas an auto charges Rs 15 per km for the same journey. The rail fare from Mumbai to Lucknow is Rs 350-360, while the taxi fare from Borivali to VT in central Mumbai is Rs 400. Rail fares should be indexed to some benchmark while making future revisions.
The government could also consider commercialisation of the land around railway stations, although some experts feel there is little scope for this considering that space is needed for future railway expansion, and that outside the major cities, few would be interested. Most important, experts say, is the need for immediate clarity and a clear-cut policy on public-private partnership. An independent regulator to coordinate the working of PPP projects can be set up on the lines of those in the telecom and insurance sectors. This could bring in badly needed funds for the modernisation of the railways. Yet another suggestion is for privatisation of railway workshops to unlock their value. Freight rates have, however, already been raised, so a further hike is ruled out given the tough competition the railways already face from the trucking companies.