State of Indian Railways Even doubling of Passenger fare would not fill the gap of Railway deficit

Railway needs efficiency and lots of Reform
By Manohar Manoj, Editor, Economy India,
president, Bhartiya Yuva Patrakar Sangthan
Almost all governments whether it is central government or all state governments, they all raise the prices of commodities like petroleum products, steel, cement, coal, bus and auto fares or sugar or milk, whenever they felt requirement of doing so. They do not hesitate to do it particularly during the off elections period. But, the Railway, despite being big hike in prices of its input like diesel, coal, electricity, water and staff salaries & wages through sixth pay commission, did not hike its passengers fare in last 9 years. When Railway minister Dinesh Trivedi made some hike in passenger fares in the Rail budget for year 2012-13, the politics overshadows the economics of railways and the real mistress of Railway Ms. Mamta Banerjee just ordered to remove her minister overnight out of cabinet of UPA government. It seemed so that rail passenger fare hike was going to hamper the ultra left politics adopted by Ms. Mamata Banerjeee by affecting the the Maa, Mati, Manush citizenry of west Bengal only, not the whole country. But people of country should know this fact that just before the budget, the freight rates of many important items like fertilizer, food were hiked by 20 percent and thus railway managed to collect an additional revenue of around 15,000 crores in its kitty. Was this not a burden on the common public, does the passenger fare hike of around 4000 crores, only burden on the common public, which have been negated by all railway ministers for last 9 years for the shier political reason. It means in this country, freight hike is politically easier mode than passenger fare hike in order to raise railway revenue.
Nothing to say that now the outgoing Railway Minister Mr. Dinesh Trivedi had tried to make all out effort to revamp the present state of Indian Railway, in regards to safety of the railway and for the empowerment of railway. He initiated many visionary and path breaking measures and provisions, whether it was related to modernization and having better equipped infrastructure of railways, whether it was to make the railway journey safer and securer by introducing numbers of measures as per recommendations of Sam Pitroda and Anil Kakodakar committees, whether it was related to restructuring of Rail administration. But irony is that, in India all debate held on railways centers around thing like fares and facilities of Rail passengers. We do not discuss about the core issue of railways’ productivities and efficiency and addressing the real cause of rail passengers together with Indian economy.
Railway is the second enterprise of the country after postal services, which is directly run by Ministry followed by high powered railway board and down the order 16 railway zones which have been established in different parts of country. Indian Railway has shouldered the responsibility of carrying 120 crores citizens of the country and work as a major infrastructure for the all three major sectors of economy viz.-agriculture, industry and services. It all will be happen, until unless railway emerge as an economically stronger and sustainable organisation which can meet out the all growing need of the economy. For all this, we need to review the all capital employed by Indian railway and asset created by it in last 160 years along with its 14 lakhs employees’ productivity along with their social and economic audit.
Today the biggest question before railway is its revenue imbalances and cross subsidization of passenger services by freight services of Indian railway. Railway gets its one-third of its revenue by its passenger, coaching and parcel services, whereas the remaining two-third of railway revenue comes through freight services. Apart from revenue front, on the front of expenditure the situation is totally different, the passenger service consumes about two-third share of total expenditure, and remaining one third shares is being consumed by freight department. So, in a way freight earns and passenger services spend. We can not cover up these matters of imbalances by simply saying that passenger fares are not being properly charged over Rail riders. Even if we hike our rail fare even double of what we are paying today; it will not adjust the deficit of around 30000 crores on passenger front. The question is, has any railway minister ever tried to know about these facts or have they constituted any study group to enquire about it. We can not say fares are less, rather why do not we say the cost of passenger services are very high. Is there lack of efficiency and productivity in railway, are the employees of railways not productive enough to bring the balance between its cost and output. We are not the expert of railway ergonomics, but what we view railways operation as a common man, we find that there is no relevancy of the post of T.T.E.? Have they been appointed to enjoy the discretionary power of taking bribe from the passengers for allotting them berth? I think nobody goes without ticket especially for long distance, provided that there is no heavy rush at the booking counter. Firstly, why rail administration is not instituting booking counter in such large numbers, so that no passenger have to suffer in long queue. Secondly, can we not introduce the system and technology like Metro railway, where there becomes no TTE and one can not enter inside bogey without ticket? After all what are the productivities of dozens of TTE employed in a train. They exploit the needy passengers and they take penalty up to Rs. 350 for travelling in a sleeper class. People are making hue and cry over marginal fare hike, whenever passenger gives just 10 times of fare hike amount as penalty to the railway but what railway earns by penalty? It pays more amount as salary to the TTE, so this is just negative productivity of TTE.
When will we be able to avert the scenario of passenger who suffers inside a train just like cattle? At present, railway is not capable to provide berth and train to each and every travel seeker passenger all the time. It means railway has to provide sufficient numbers of train so that commuters can get rail ticket as per their demand. This is what kind of revenue model of railway which charges penalty over the passengers and at the same time it is not able to enhance revenue of the railway in real term. It is neither the welfare of public nor the profit of railway. TTE takes away the major share of revenue in terms of bribe and salary both. In the same pattern there are many more departments of railway which are being run like while elephant. Let take the example of parcel services. What the client s spend amount over parcel, hardly one third or one fourth of expenses goes to the kitty of railway in form of parcel bilty, rest amount goes to the pocket of agent, brokers and coolie. Is this not mismanagement on the part of railway. In the same way, people were being looted by train cater ring service for years. Hardly 10 rupee cost food being sold at Rs. 60 by pantrywala and what revenue railways get out of it? It only takes 12 percent of total earning made by caterer. This was being done by IRCTC for many years and that is why this Rail PSU was running either on loss or on marginal profit. So railway needs to correct lot of imbalances and mismanagement. We underplay the issue of long queue in ticketing, berth availability, train shortages and we talk about facilities like big stations, water, toilet etc. We take the case of bus-taxi stand, airport, do they avail facilities like railway, then why are they expecting so much thing out of railway. And we talk about cleanliness in railway station but does our freight office not deserve to be clean like station platform.
. If a passenger do not get sitting chair at platform, but if he gets his ticket and berth easily in the train at his willing date with appropriate fare, that is best way to serve the commuters. Railway needs lots of investment and productive environment, cost and output balances, man management and non corrupt atmosphere but in the present circumstances it does not look so. Railway is lacking competition and efficiency simply because it is a govt. monopoly organization, unless it is being injected feeling of competition, it is not going to raise its efficiency and productivity
Off course the outgoing railway minister Dinesh Trivedi made all out effort to raise the revenue and productivity of railway by using unused land and station space of railway, by disposing the scrap of railway etc.. But it is also necessary to enhance the efficiency of each railway employee; he should have taken step in this regard. But his announcement regarding lowering down of operational expenditure ratio of railway from 94 percent to 74 percent till the end of 12 five year plan is a very good macro policy initiative. It will enable the Indian railway having flush of more margin money and surplus in its kitty. But irony is that, Ms. Mamta Banerjee, who is undoubtedly a picture of honesty and leader of downtrodden, but her cheap common men politics has overshadowed the many fundamental reforms of railway which was planned out by Mr. Dinesh Trived. Now, the new incumbent minister Mukul Rai has already roll backed all price hike , leaving aside only AC- 1 &2 Class passengers, at the same time he has also withdrawn the reorganization proposal of Railway board as it was mentioned by his predecessor for inducting two more member of ‘safety’ and ‘marketing’. The thing is that our economics is servant of our politics that is not going to give any more relief to the common men in actual term. The benefit of common men solely depends on making railway more competitive, productive and efficient. To provide passengers ticket on demand and smooth freight services to the traders at appropriate prices are the only benchmark for the railway. It is possible if we follow the success model of telecom revolution, the polio eradication and IT application in making administration more transparent happened in last decade in India.