Just read the headlines at the IBN-CNN website: "Lalu's train on right track, chugs into IIM books". It's not a small feat to turnaround a loss-making PSU into one with Rs 13,000 crore worth internal resources as also surplus revenue of Rs 11,000 crore.
As per the 2006 budget, Indian Railways (IR) earned Rs. 54,600 crores. Freight earnings increased by 10% in the previous year. Passenger earnings, other coaching earnings and sundry other earnings increased by 7%, 19% and 56% respectively over previous year. Its year end fund balance is expected to stand at Rs. 11,280 cr. Compare it with IR's performance in 2001 when it had deferred dividend payment, its fund balances had reduced to just Rs. 350 cr and about which experts had started saying that it is enmeshed in a terminal debt trap.
IR has come a long way since 16th April 1853, when the first passenger train service was inaugurated between Bori Bunder, Bombay and Thana covering a distance of 34 km. Today it is world's largest and busiest rail networks in the world, transporting ~ 5 billion passengers and almost 350 million tonnes of freight annually. IR is the world's largest commercial or utility employer, with more than 1.6 million employees. Not a mean achievement!
Let's compare IR with its Chinese counterpart. Goods hauled by Railways (Tons-km billions in 2002) for China was 1508.7 and for India 333.2. According to the IR’s own figures, moving one passenger one kilometre made a loss of 15 paise. Shifting a tonne of freight made a profit of 16 paise. As a result, the ratio of passenger fares per person-kilometre to freight rates per tonne-kilometre is among the lowest in the world: about 0.3, compared with 2.2 in Japan. China (between 1994 and 1998)raised passenger fares by 75%, lifting the passenger fare to freight-tariff ratio from 0.9 to 1.2.
IR still has a long way to go to be the world leader in rail transport. It needs to address the safety issue, both in terms of accidents as well as attacks by naxalites/dacoits on moving trains & railway property. There is the humungous task of track, signalling mechanism and engine modernisation. With increasing competition from road network & Low-cost airlines, IR has to act fast to set its house in order lest it loses its loyal clientele.
I would ask dear Mr. Yadav to take a long term strategic view for IR even if it entails forgoing petty political gains in short-term. Now, that's an acid test for Lalu the Maverick Politician before he can be labelled a Mentor Minister! He needs to live upto his own words [quoted from L.P.Yadav's 2006-07 Railways Budget speech]
“Hum bhi dariyaa hain, apnaa hunar hume maloom hai,
jis taraf bhi chal padenge, rastaa ban jayega.”
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