Dt: 23/6/14
Railway Fares and Finances
Dr T.H.Chowdary*
The truth that the passenger operations of the Indian Railways are making losses is widely known. Despite periodical increases in railway fares. the deficit does not disappear. Many trains are described as Superfast Expresses and high rates are charged for travel by such trains. Almost invariably every one of them is always late from 30 mnts to a few hours. The explanation (and of course, it is a fact) is that in many big stations like Secunderabad there are not enough platforms to receive the trains and therefore they are halted in the outskirts for long periods even if they had covered the long distance in good time. An obvious solution is to have many terminations around the city centres. For example, in Hyderabad Moulali, Falaknama, Lingampally could be other terminations. From there the railways can run buses to the city centers, just like from and to the airports. There was indeed a time when Indian Airlines ( it was then a monopoly) used to collect its passengers from different locations in the city (e g. Connaught Place in Delhi...)
2. There is talk of “premium” trains, faster than superfast expresses and with more comfort. Fares for them would be vying with air-fares. Since people pay for fastness and so reduced travel time, railways must return a certain percentage of the fare charged, if such trains are delayed; the refund may be related to the delay. This obligation will impose discipline and responsibility in the Railways. German Railways seem to be doing so. Such an obligation must also be imposed on the Airlines too.
3. It is not necessary that railways should run the passenger trains on a monopoly basis. The rail track and the control systems can be the infrastructure. Private companies can be permitted to compete with one another by using the rail tack and control systems. This is exactly like in civil aviation where the airports and the control systems are owned by an enterprise of the government and several private companies fly passengers in competition
with one another. For using the infrastructure of tracks and control system and platforms the competing companies must give a share of their revenue to the owner of the infrastructure. The private companies may also be permitted to open separate terminals outside the city centers and transport their customers to the city centers by busses. The UK and Italy have been permitting competitive operation of passenger trains on the state -owned infrastructure of rail tracks and control systems.
4. In 1951, the first year of our planned economy about 80% of the goods transportation in our country was by rail. It has now come down to less than 30% because of the delays, uncertainty and bad quality of service from the Railways. The transportation of goods by road is inefficient but is becoming unavoidable because of the inefficiency, insufficiency and poor quality of service of the railways. It is a national loss that such a high percentage of goods is transported by road which means consumption of liquid and gas fuels, 80% of our requirement of which we are importing from abroad. We must emulate China and Japan which have built and are still building extraordinarily fast and safe rail transportation systems.
5. Accidents on railways are becoming too frequent and the disabled and dead are having their families paid very increasing amounts by way of compassion or compensation. Accidents are happening because of inadequate and proper signalling safety and control equipment. The coaches are ageing. Many require replacement. In 1978, government appointed the Js. H.R Khanna Commission which among others, recommended that Members of the Railway Board and Heads of Departments must be personally held responsible for the accidents. In the year 2010 the Anil Kakodkar Commission recommended an investment of Rs.1 lakh cr to improve the safety on railways. The Pitroda Commission there after recommended that the modernisation of the Railways should be immediately taken up and estimated the cost at Rs. 5 lakh crores. Commissions and Committees reports are piling but hardly any improvement is forthcoming because of inadequate investment and resolve. The Railways cannot generate these resources. Corruption is rampant. One senior railway officer paid Rs. 10 cr as bribe to have an appointment as Member (Electrical) of the Railway Board instead of Member (Staff). When this was discovered, he did not want promotion at all as he was finding his present position as GM of a Zonal Railway more remunerative than as Member (staff) of the Railway Board. Just as the lack of enough telephone services and poor quality of service could be ended only by ending the government monopoly and introducing competition from private sector companies under proper regulation, improvement in so essential a service like Railways can come about only by determined privatisation of the passenger and goods services utilising the same railway tracks and also laying new dedicated rail lines in certain sections for fast movement of goods and oil and coal and other minerals. (832 words)
END