Indian Railways – The Challenges Ahead

What is the issue?

What would be the primary concern?

The main focus of the railways will undoubtedly be on improving the safety profile.
As reports of various committees appointed in the recent past are already available, newer committees hopefully won’t be appointed.

Emphasis in the past has generally been on investments in physical infrastructure to improve safety.
But an attitudinal change to facilitate frank information sharing within the organisation about safety issues is what is primary.
A culture of openness needs to be cultivated, overcoming decades of secrecy and finger-pointing between departments.
To ensure funds are invested productively, it is necessary to evolve a comprehensive safety plan covering the next five to 10 years.
Also, clearly defined rational targets for reduction of accidents of different types are to be envisioned to work towards.

What are the other areas of concern?

Transaparancy - The impact of scrapping the Railway Budget is yet to be ascertained.
But opacity has certainly crept into railway balance-sheets for now.
This is majorly in areas regarding the actual state of the finances of the Railways and its liabilities vis a vis the Centre.
This assumes importance in the light of huge borrowings such as the 1.5 lakh crore loan from the LIC for funding infra-projects.
The financial health of the railways is too important to be allowed to fade into anonymity within the General Budget.
Hence, a performance report that coveres the physical and financial performance of Railways – could be considered annually.
Revenue - Freight earnings have fell behind the target this fiscal.

While coal is the main source of freight earnings for railways, there has to be a long-term plan for a life after coal.
The ministries of railways and the road transport need to jointly come up with solutions that optimise passenger load among them.
Sustaining Railways a viable self-sustaining entity is need to ensure its health & robustness.

Source: Businessline