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Business News/ Politics / Policy/  White paper on Indian Railways’ present to write its future
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White paper on Indian Railways’ present to write its future

Suresh Prabhu’s road map lists problems and solutions with an investment of Rs8.5 trillion over the next five years

Railways minister Suresh Prabhu. In the past, railways ministers commissioned white papers but their findings were mostly brushed aside. Photo: Reuters (Reuters)Premium
Railways minister Suresh Prabhu. In the past, railways ministers commissioned white papers but their findings were mostly brushed aside. Photo: Reuters
(Reuters)

One of the first steps taken by the railways minister Suresh Prabhu within days of joining office in November was commissioning a white paper on the current state of health and future prospects of Indian Railways.

Operating 12,000 trains to carry over 23 million passengers every day, the Indian Railways—started in 1853 by British colonial rulers—is one of the largest transportation and logistics networks in the world. But as the white paper found, there are a myriad problems plaguing the system—from under-investment to poor quality service delivery.

Apart from these, “cleanliness, punctuality of services, safety, quality of terminals, capacity of trains, quality of food, security of passengers and ease of booking tickets are issues that need urgent attention," according to the white paper.

“There is a clear recognition of the fact that for serving as the lifeline of the nation and making a contribution to the country’s growth, the organization needs to become operationally and financially sound."

When Prabhu rose to present his first rail budget on Thursday, these were the issues that he addressed, with a road map spread over the next five years, envisaging an investment of 8.5 trillion.

For starters, there are no new trains or big-ticket projects but a clear understanding of the challenges.

“The railways will not be able to deliver sustained improvement in operating efficiency unless changes are made to speed up decision-making, tighten accountability and improve management information systems," Prabhu noted as he outlined his plans for reviving the ailing sector.

To improve the financial health of the railways, Prabhu said that the railways would seek pension funds and sovereign wealth funds, raise finances through special purpose vehicles in collaboration with states, partner state-run firms to ensure sufficient capacity is built to transport critical commodities and also seek financing from multilateral organizations and foreign governments.

Addressing customer dissatisfaction, the minister promised a slew of measures including better ticketing facilities, improved catering services for better onboard housekeeping facilities, a helpline to address customer grievances, improved toilet facilities, upgradation of stations and increasing the speed of certain trains.

“Populism has been discarded in this budget. There are no big-ticket projects, no false promises. It is a realistic budget with a practical approach," said A.V. Poulose, former financial commissioner, Indian Railways.

The white paper’s analysis of the problems plaguing the railways and the budget would indeed get the attention and priority it deserved, said Abhaya Krishna Agarwal, partner and leader (PPP government and transaction advisory services) at EY, a consulting firm.

In the past, railways ministers commissioned white papers but their findings were mostly brushed aside.

“I am optimistic because of the minister. He is very realistic, there was a clinical assessment of the problems affecting the railways. He has the support of the prime minister and therefore likely to stay on the job for four years," said Agarwal.

“So I am optimistic he will implement his blueprint."

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Published: 26 Feb 2015, 11:51 PM IST
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