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Railway Budget with a Difference

by Najam Gilani

Feb. 27, 2007

Readers Write

 

Mr. speaker sir, I rise to present the budget estimates 2006-07 for the Indian Railways; said the Union Railway Minister Mr. Lalu Prasad Yadav in the hall of Parliament; “I sit to watch the live budget speech” I said to my friend in the comfort of my room.

Sadly, my effort of paying rapt attention to the budget speech was thoroughly disturbed by the unparliamentary acts of parliamentarians from opposition party. Amidst the noise and uproar Railway Minister kept reading his 31-page long budget speech, which he kept describing as an “aam aadmi ka budget”

Without applying any bias I must say in all honesty that Mr. Yadav railway budget was commendable. Three years in a row and there has been no hike in passenger fairs, in the history of Indian railways this has never happened before. One of the leading national daily rightly reported “it will go down in history” I am sure it will.

It is commendable not only because passenger fair has not been touched, but also because all the attention and importance has been given to that section of the society which we call mass. That mass which has the limitation of income at their end. That mass which has too much expenditure but not the appropriate income. That mass which for long has kept moaning and groaning because nobody cares for them though they form the majority of the country.

Mr railway minister and his team have shown the sensitivity and the understanding of ground reality while preparing this budget. In the long run this budget will contribute a great deal in social transformation of the country.

Cushion seats will replace the painful wooden seats of general compartments; finally respect has been shown to not so privilege class of the society, who all of us needs but no one wants.

Many more Gareeb Rath’s (fully AC compartments) will run from various stations of India at much lower fares as compared to the fares of 3 tier AC coaches of other trains. This endeavor will erode the elite-ness from the society. A society, which has always believed that “not so privilege should remain not so privilege”

Further to this, fairs of 2nd and 1st class AC coaches will be reduced in peak and non-peak seasons. Good news indeed for the people who always use to aspire traveling in those coaches which has so far has been beyond their reach. This effort of the ministry besides generating revenues (from volume) will also enhance the social status of the people.

People who never thought of traveling by train will start traveling in general classes, general class passengers will shift to sleeper class, sleeper class passenger will move to
3rd AC, 3rd AC passengers will move to 2nd AC and the 2nd AC passengers will move to 1st AC.

This cycle in the long run will bring great social change in the society.

Some people have called it a populist budget-lok lobhawan. Yes it is; but I believe, in India every social policy has to be a populist policy. Government is there to provide the services to the people not to penalize them for using the services in which they don’t have much of option.

And we all should bear in mind that even though fairs has not been increased but railway has registered profit of 20,000 crore before dividend to the government for the year 2006-07-. 7,000 crore up from the year 2005-06

How is it doing so? Is the team of Railway minister using some magic wand? I think not. They are just applying the right strategy.

What is that strategy?

Permitting private players to run container trains, but the most important factor has been the reduction on wagon turn around time and through additional loading of 8-10 tonnes per wagon. This has enabled an increase of 100 mt in loading capacity and generation of over Rs. 5,000 cr in freight revenues. As per the railway minister budget speech this is the foundation of railway turnaround.

There are other similar factors which has added to the revenue of railways and which has given enough room to the Railway Minister to please the populace of which he is a darling.

Those factors are:

Dynamic pricing policy for freights in peak and non-peak season, premium and non-premium services, for busy and non-busy routes and empty flow direction. In non-peak season, on busy routes and empty flow direction charges are less than normal and for peak season, busy routes prices would be higher then normal.

Empty flow direction freight discount scheme
Non-peak season incremental freight discount scheme
Loyalty discount scheme
Long term freight discount scheme
Terminal incentive engine on load scheme
Freight forwarder scheme

These are some of the schemes which are attracting the attention of private players, and they in turn will keep piling up the coffers of railways with cash.

Till the time this keeps happening Railway minister has all the reason to laugh and with him we all should because ultimately it’s the progress of the nation and benefit will go to its people.

So, smile please :)

 

Comments:
Gilani Ji, I do agree to your views but are we aware of the very first goals of organisation like Indian Railways? I would like to mention some of those.

1) Security - How much would you give rating out of 10 to the efforts, the government has made in last 3 years? Mine is 2 out of 10. poor.

2) How much railway track we have laid of and how much electrification of tracks has been done compared to the number of trains increased?

3) How about improving commuting in Mumbai trains? I do not think situation has become so worst that now nothing can be done.

4) 100s of people are getting thrown out of running train every where, can not we apply some technical advancement that should not allow opening of door in a running train?

5) Can you see any improvements in facilities on stations?

6) What about incidents like Samjhauta, that is the result of sheer negligence.

List is endless, it depends which side of coin one prefers to look. Yes for Lalu's supporter this list will be difficult to digest and we all know accepting truth is always painful. - Sujit Kumar - Feb. 27, 2007

Indeed there are many improvements and developmental actions needed. But it shouldn't take away that sheen from the laudable "Railway Budget". Its not a matter of pro-lalu or anti-lalu rather its a matter of accepting the truth.

Najam Gilani has rightly eulogised the newly presented "Railway Budget". This budget is at least showing some way forward.

Its true that there is an urgent requirement to improve the Bombay sub-urban railway system. There are steps needed to prevent the Samjhauta Express sort of accidents and its also a reality that huge investment is needed to improve the quality of train, track as well as the conditions of platforms. But its also a reality that the steps taken by Lalu has been tremendous as compared to former railway ministers.

Take for example the case of Nitish Kumar. Didn't rail accident happen during his tenure? Did he do anything to improve the platform conditions or the train? did he do anything to improve the Bombay suburban railway system? - Mohammad Hashmi - Feb. 28, 2007


After looking at P Chidambram’s finance budget today, how about reshuffle in cabinet by proposing our Laluji as Finance Minister! No, I am not joking. :) - Shiv Shankar Sharma - Mar. 1, 2007


I do not have to say anything on performance of Railway minister, but one thing which we need to remember is that people of Bihar gave RJD complete 15 years to do some good work for the state. Where were all the excellent skills of Laluji? Now Laluji can get a lot of praise from various sections of society for his good railway budget, but where was his intellectuality when he and his wife were ruling Bihar for 15 long years? In fact, it's not only RJD but Congress is equally responsible for the bad condition of Bihar.

If Laluji is so intellectual then he should have done some good work for the state in 15 years. 15 years is more than enough time to bring a state on to the development path. Example is Mr. Chandrababu Naidu who really changed the scenario of Andhra Pradesh in 10 years of his rule.

Now the present NDA govt. is doing good work in the state. No doubt about this. They are appointing teachers and lecturers. They are also upgrading all the hospitals in the state. Road conditions have improved in the last one year. New power generation projects are being planned at various locations. Everybody knows what was the condition of roads and power situation when the RJD was ruling the state. NDA has started the ruling with a lot of planning, let's see the functioning of NDA govt. and also give them a chance. - Sanjay K. Sinha - Mar. 7, 2007

Discussion on this topic is now closed.

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