Indian Railways – The Challenges Ahead

What is the issue?

• The new Railway minister ‘Piyush Goyal’ recently took charge.
• Railways currently is facing certain issues needing high priority.

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