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ShareThe targets set in the Railways Budget 2009-10 seem to be reflecting the slowdown. When you compare this budget with those in the previous years, it seems like a marginal increase. But in reality, it may actually go higher. So I won't be surprised if the projected freight loads exceed the estimated 882 million tonnes and touch 900 million tonnes.
This time, the Rail Budget seems to have a more human face. Over the past few years, Lalu Prasad Yadav, the previous rail minister, was more focused on what was profitable for the Railways.
One of the populist moves is the Rs 25 monthly ticket for travel within 100 km. The measure, for 'poor people', doesn't define which 100 km. Revenue is not the concern here as the second-class unreserved segment contributes very little to the overall revenues. But how will the Railways identify who can avail this benefit and how? Besides, does it have the resources to implement the move?
I like the emphasis on security at all railway stations. The focus on developing railway stations is also a good move and a good investment. Developing stations to make them an asset is important as they are major consumer interaction points.
They will also give employment to people, which, too, is a good populist move.
In one of my papers, I had suggested changing the incumbent open toilets of the railways.
My proposal was considered by the previous ministry. This new rail minister, too, reiterated that commitment, so that's a heartening development. The idea is to retrofit all toilets to make disposal air-based, which will greatly reduce water wastage.
However, I am concerned that this ministry wants to focus only on social viability and not on economic viability.
For a very long time, the Railways had been caught between social and economic focus. It had been saying the reforms had to be both commercial and social -- a kind of schizophrenic approach.
In the last rail minister's tenure, the focus on economic viability was coming out sharply. Personally, I feel as long as economic viability is not substituted with social viability, it should be fine. I am not saying that social viability should not be considered, but economic viability should get importance, too. It shouldn't be undermined.
As for the 50 new non-stop trains, we need advanced signal controlling. The proposal will generate capacity. Of course, the concept is not new. Earlier, there was the Sampark Kranti Express introduced by Nitish Kumar from Delhi to various states. It would go non-stop to a particular state. If more and more trains get specific bookings for the destinations they serve, they can afford to run on the fast track.
It will be very difficult for the Railways to not do well this year. This is because the increased asset utilisation has not been changed. Increased loading for wagon, increased turnaround for wagons has largely been retained -- a lot of them are in place.
The growth in revenues will be higher than the growth of cost, unless of course there is an overwhelming recession that brings everything down.
But in India, infrastructure is growth sector. Areas such as steel and cement are underplayed. There will be growth in all these areas. Once these things are in order, populism won't affect revenues.
As a concept, benefiting weaker segments is good. But one rule should be followed, populist measures should be implementable. Overall, we are doing fine. There have been no major disturbances in broad policies.
There are populist moves like a coach factory in West Bengal, which should benefit the region.
The author is the Indian Railways chair professor in Rail Transport and Infrastructure Management and faculty at the Indian Institute of Management, Ahmedabad. He spoke to Jumana Shah of DNA from the US.
