Fare affair

Central Govt. has finally mustered courage to go for a bold and long-awaited treatment of Indian Railways through fare hikes. The nasty politics of Railways has already taken a heavy toll from this most important economic infrastructure. It took over a decade to Govt. to revise passenger tariff but this is certainly something which should ideally be done on yearly basis. It appears that political leadership has lastly realized that railways can not survive with populist policies and it is imperative to keep revising tariffs in order to keep this mass public transport healthy and moving. For that, Govt. must follow up this decision of fare-hikes with expeditiously establishing a mechanism which keeps regulating the rail fares as per market modalities.

Indian Railways is grappling with over-socialization and over-politicization of the sector. A good chunk of Indian population depends on railways to commute between far-off places. It was no doubt designed for the social benefit but gradually our politicians made it a source of offering political freebies to allure citizens. Political motives of various Govt. didn’t let the railways flourish with the changing times. Railways Ministry failed to understand that it is an economic infrastructure not a Govt. hospital or MNREGA scheme which can be run on subsidized rates. Railways lies in one of the few most important and basic infrastructures of any country. It is unfortunate that on one hand Indian Railways is in dilapidated condition, on the other it is the most expensive railways among other countries.

Monopolization of the Govt. in Railways led it to the crisis it is facing now. It kept on increasing freight fares and didn't touch passenger fares at all, just opposite of what profit-making railways in other countries do. Govt. irrationally increased its fares which resulted into squeezed cargo business of Railways. People relies more on roads to carry their heavy goods and freight trains are used to only carry perishable goods like coal, iron, grain, cereals and fertilizers. Consequently, they don’t make much profit. Instead of freight fare hikes Govt. must think of increasing freight carrying capacity so that the cargo business of railways can flourish.

Railways is reeling under huge losses due to all round loss making operations in goods and passenger segments which results in general level of low productivity. Neither does it make profit nor provide safety and decent amenities to public. Modern travelers are repelled from it and general public flooded it. Modernization of the railways is a must. It is desirable that Ministry goes for network expansion across the country and increase number of trains deployed. Well facilitated platforms and coaches, dedicated corridors, double-decker trains are also needed.

Tariff hikes for passenger trains is welcome but it is high time for Ministry of Railways to realize the dire need of setting up Railway Tariff Regulatory Authority. After all the decision of fixing freight and passenger fare must be kept aloof from political meddling and be regulated by independent and pragmatic authority. Political monopolization of the sector must also come to an end and Public Private Partnership must be encouraged. All going on PPPs projects must be expedited and scaled up. All this would only be possible if Indian Railways falls in the ambit of someone who is genuinely concerned with the economics of railways, not politics of the same.