The Indian Railways has invited proposals from the private sector for running 109 Origin-Destination (OD) pairs of routes. This is expected to attract private sector investment of Rs 30,000 crore. As of now, the private sector runs three trains: two Tejas and the Kashi Mahakal Express.
Under the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government, there is a determined push towards reforming and opening the railways. The ongoing reforms fall under three broad categories: institutional, financial and infrastructural.
Slowly but steadily, the government is moving towards greater private participation, reforming the railway board, separating the core from non-core functions, decentralisation, and regulatory reforms.
The government has set in motion a significant institutional reform by merging eight rail services into one single Indian Railways Management Service (IRMS). The apex eight-member railway board has been consolidated with just four members (infrastructure, operations and business, development, rolling stocks and finance) with provision for inducting subject experts from outside the government as independent members. The British legacy of departmentalisation and working in silos has finally ended. The move will ensure much-needed restructuring of the railway cadre and human resource, and lay the groundwork for rapid modernisation.
The railway budget has already been merged into the general budget to reduce unwarranted populist pressure. Over the decades the railway budget was reduced to announce unviable, and fancy, schemes draining the resources of the railways. The railways is transitioning to the commercial accrual-based accounting system from the older cash-based accounting system. The new method of accounting provides a better picture of financial health, better ability to monitor and plan. Otherwise, as a CAG audit pointed out that in 2017-18, the older accounting system led to a negative balance show as a surplus of Rs 1,665.61 crore — it also showed an operating ratio of 98.44 percent, instead of 102.66 percent.
Besides, the railways is also undertaking extensive work on infrastructure development and modernisation. A prime focus is on improving digital connectivity and incorporating the latest technological solutions. Now there are more than 5,500 stations with Wi-Fi connectivity, a real-time train information system in collaboration with ISRO is on a fast track, and a railway complaint management portal has been rolled out to streamline the often-chaotic process.
The use of big data is being introduced, and Artificial Intelligence-based PNR confirmation predictor has been introduced to reduce the uncertainty faced by the passengers. Fifty-eight railway establishments have been converted into e-offices, and the procurement process has been digitised from end-to-end.
The impact of these behind-the-scenes but significant changes are becoming increasingly visible. The year 2019-20 was the first year when the railways recorded zero passenger fatalities. The elimination of unmanned level crossings over the broad gauge network played an important role in achieving this feat.
Besides this, it is deploying the indigenously-developed Train Collision Avoidance System (TCAS) to prevent collisions and signal passing at danger by the Loco Pilot. This will also improve throughput by increasing the average sectional speed on the Indian Railways network. The computerisation of the Train Signal Register (TSR) has been successfully rolled out in most of the stations. The Railways has already implemented a Centralised Integrated Payment System (CIPS) in collaboration with the State Bank of India to ensure faster and secure financial transactions.
Budget 2019 envisions an investment of Rs 50 lakh-crore till 2030. The big thrust on infrastructure is the much-needed push for the ageing railway network. Overhauling the signalling system, electrification of routes, station development under the PPP model is already in full swing.
The railway has also initiated a pilot project at the Modern Coach Factory in Raebareli, Uttar Pradesh, to introduce Industry 4.0 for a quantum jump in the manufacturing process. The aim is to achieve greater efficiency, higher speeds and lower costs.
Land management is being modernised with the Indian Railways Land Management System (IRLAMS) for the management of land-related data, such as land records, lease license records documented at one place. It is a critical reform to enable the railways to unlock the full potential of monetisation of its land resources by entering into public-private partnerships.
The success of the reforms launched and pursued energetically by the railways depends on its ability to mobilise resources and modernise its infrastructure. However, it also requires significant changes in the laws and procedures. Modernisation of infrastructure is not enough; modernisation of the processes and procedures needs to be pursued vigorously.
Also, the railways should not pursue privatisation for the sake of privatisation. Reforms should not mean neglect of labour laws and constitutional requirements as has been the experience with the private trains where long-working shifts, low pay, summary dismissal, caste-discrimination by private vendors forced the ministry to step in.
Abhinav Prakash Singh is assistant professor, Shri Ram College of Commerce, University of Delhi, Delhi. Views are personal.
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