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  • Category: Miscellaneous

    Will privatisation of Indian Railways will make it a highly profitable organisation?

    Indian Railway is the biggest Govt organisation in our country and employs about 14 lakh people. It is not only a great source of transportation of men and material from one place to another but also provides employment for so many persons. Indian Railway earns a good revenue every year but its expenditure is also huge and comparable to the earnings (for example in the financial year 2018-19, the gross traffic receipts of Railway stood at Rs 1,96,714 crore and total working expenses were at Rs 1,88,800 crore). At the same time it has to ask money from Govt as a capital for its various modernisation projects. So strictly speaking it is not a profit making organisation.

    Some people opine that if the Railway is privatised then there is a very big scope in increasing its profit as well as enhancing the quality of service which it is providing to the customers. In that case it will also not depend on Govt for developmental projects as it will raise the required capital money from the banks.

    Do you also believe that privatisation of Railways will increase its profits and result in better services? Please share your views.
  • #670377
    I want privatisation of Indian Railways for one big reason. That to maintain the punctuality and cleanliness. Even at the originating station, there is no coordination between the line staff and the rail staff and thus invariably trains are delayed giving priority to even goods train. But big fear about the privatization of India Railways that many would be rendered jobless and the charges would be raized exorbitantly. However, we need not fear now as the Minister clarified in the Parliament that there is no move to privatize the Indian Railways as of now. But in future surely the government would do so.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #670380
    Well, profit making is the main objective behind private businesses and nothing is wrong in that. I don't think we shall remain untouchable and intolerant towards privatisation of Railways just because private entrepreneurs will focus on profit making. We have witnessed the Governance of Government in railway for decades and we can see the reality of conditions of railway coaches, railway stations and other infrastructures and also cleanliness.
    Apart from that, it is my belief and also i followed PM Modi who often reiterates that Govt's job is not to run businesses like railways, electric companies, Air India etc. but to provide facilities and greater infrastructure for ease of living of common men and therefore there is nothing wrong with privatisation.
    Besides that, we shall now change mindset and shall not expect subsidies facilities in everything that is provided by Govt. and shall make up mind to pay for services. This attitude will help revive private sectors, improve infrastructure and cleanliness and quality of service.

    "Words are precious, ought to be used wisely." - Umang Shah

  • #670393
    It is good that Indian Railways are also getting partially privatised. It is a good beginning. It is true that the railway is a vast department and requires a large control over all the events. But privatisation is the only solution for efficient and better running of the industry. If we see the airways only after privatisation the rates came down and more people started travelling by air.
    Another important aspect I get to my mind is jobs. In private industries jobs are given to candidates based on merit and no reservation system is there in these private organisations. So it may give a chance for the people who are really merit holders.
    The maintenance may improve and the commuters may bet good facilities and if there is a loss also the taxpayer need not pay from his pocket. If the service is good and better facilities are provided, the people may not hesitate to travel in upper classes also.

    always confident

  • #670406
    We were too much trotting the stereotype orchestration of privatisation as a remedy for all maladies. It is just another Utopia.
    We were blaming Indian Airlines/Air India and were clamouring for privatisation. Just see what happened to the many private airlines till now.
    Take telecom- what happened to Reliance telecom(Anil Ambani)? Where are some of the once top and very popular private sector organisations now?

    Just see the mergers and liquidations going on with private companies in various sectors.
    So privatisation alone is not a universal remedy.

    If the public sector is allowed to 'do business' without unnecessary political and governmental intervention, then the same public sector entities will run in profit. They have to be allowed to run professionally. Otherwise we should change our attitude and see public sector as a job provider and check to prevent undue profiteering by private sector. In fact it is only because there are certain public sector players in key sectors that we are not burdened by private monopoly.

    . When a private company earns profit, the industrialists or business houses or groups that benefit highly. But when the private company collapses, it is only public that loses.When a private company fails unfortunately it is again public money(either as share holding or bank borrowing) that is lost. This part nobody considers and believe private sector propaganda blindly.
    For India the mixed sector is always the best method. It is this system that has brought us upto this from scrap .

  • #670407
    Let's see both the positive and negative aspects of privatizing the largest railway network in the world.
    By privatizing railways, consumers are going to get better services. The coach conditions, cleanliness of trains, seating arrangements, washrooms, doors, etc., everything is surely going to improve. Railway platforms will get cleaner, railway platforms will get lifts, better parking facilities, wi-fi, reduce in the number of track crossing deaths, better benches, etc. Railway employees will start becoming polite and humble. Trains will start running on time. Privatization of Railways will definitely result in better and efficient services. And coming to the main question, railways will definitely start making profits because private companies do business only to make profits.

    Now, coming to the real part which most of the people fail to see. Privatizing railways means increasing the ticket costs at the end. Directly or indirectly, tickets will become much costlier over time. Tickets might not become expensive immediately but after a decade, when some other political party comes to power at the Center, ticket rates are definitely going to increase. Now let me explain this in detail.

    Privatizing means the government will call up tenders and assign the contract to some private company. In this first step itself, corruption will take place as political leaders will take huge amounts of unauthorized money from the company to give the contract to it. To name a few instances, we can consider the Rafale deal and Pilatus deal (in which fugitive arms dealer Sanjay Bhandari had given huge amounts of money to IAF officers and central ministers so that he could get the deal). There are many such more instances.

    Now since one company will get the contract, this will result in the monopoly of railways. The company could fix the ticket rates as it wants. Obviously, the government will have the power to cancel the contract if the company does anything unfair to customers but in a country like India where corruption is present at every step of life, it won't be difficult for the company to give money to a few leaders to stop the government from canceling the contract. Monopoly over such huge public service can impact both our company's economy and create huge amounts of difficulties for the general public. For example, in Punjab, initially, the state government used to provide electricity to homes. Power cuts were frequent, infrastructure was poor but the cost of 1 unit of electricity was below Rs 4. After the power supplying contract was given to a private company named PSPCL, the services improved significantly, but the cost of 1 unit has increased to almost Rs 9 per unit which is unbearable even to a common middle-class income man. And according to Punjab laws, no other company can provide electricity to homes other than PSPCL.

    Now, even if the government thinks of partially privatizing the railways, eventually after a few years, the government will fully privatize the railways as the government is trying to do in case of Air India. The government has passed the law to enable private players to own more than 49% stake in government enterprises just to be able to fully privatize Air India.

    Coming to the last and the most important point, railways will not be for poor, but for rich. Trains will not be the medium of travel for poor people, which make the most of India's population but a burden for the common man. I don't need to explain this point.

    Think and care for the poor!

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