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provide passage to some village, building a bridge
or subway. Even introducing a new stop for fast
Express trains has wide implications on the popular-
ity of the Railway Minister, though the rationale may
be questionable.
Such has been the charm of this ministry that in
every coalition government in the past, support from
the coalition partner has come with the precondition
of the railway portfolio being part of the deal. Suc-
cessively, from Ram Vilas Paswan to Nitish Kumar,
Mamata Banerjee to Lalu Prasad Yadav, each one has
exploited the Railways to extend his popularity in his
own bastion. While the cost of operations continues
to rise with increasing wages, fuel and electricity and its weak bureaucracy. The Railway Board performs
road transport cost increasing in tandem, yet each of the combined function of policy as well as opera-
the ministers tried to prove a point — that they could tion, and is manned by career professionals who are
run the system as efficiently or better than the pre- pliable as they carry the baggage of their past field
vious one — without raising passenger fares. Even workings. Railway Ministers have unlimited power
Prabhu also could not rise above the allurement of to get their desired outcomes from this pliable Board
using this great institution to nurse his own constitu- and bureaucracy.
ency Mumbai, where no rationalisation of suburban
fares has been undertaken. Also, many a railway Surge pricing
project is being sanctioned for Mumbai which does Unable to achieve an increase in passenger fares,
not weigh correctly on economic balance. Succes- the Railway Board time and again resorted to the
sive railway ministers tried to prove that they could easy way out, raising fares for upper-class seats, and
manage without raising passenger fares, despite for Rajdhani and Shatabdi trains, which have now
rising costs started feeling the heat of competition from airlines.
The public sector has ushered in economic These trains are profit making but a series of wrong
reforms, as we call them, in two major sectors: decisions may plunge them into the red. Recently,
petroleum pricing and fertiliser subsidy. These were the Railways announced a ‘surge pricing’ mecha-
swallowing up a big chunk of subsidy from the state nism that primarily emerges out of helplessness to
exchequer. However, the Railways never forcefully stem the rot and to subvert the tradition of not tink-
put forth a case for rationalisation of investments ering with normal subsidised passenger fare.
and revenue based on fundamental economic prin- About 12,000 passenger trains traverse the coun-
ciples. Some half-hearted efforts to increase fares at try daily. Out of this, there are only 42 Rajdhanis,46
reasonably low incremental levels were thwarted Shatabdis and 54 Durontos, which means they make
by Parliament. One of the reasons for Railways not up merely 1.25 percent of the total trains plying cur-
being able to take up the case with vigour is perhaps rently. While the fare on these train is already in the
No to Uber, Uber is an organised taxi service them to meet additional demand.
yes to which has brought huge relief in the life taxis improves, the algorithm automati-
Further, as soon as the availability of
of millions of travellers and also gener-
railways? ated huge employment opportunities for cally cancels the surge pricing. so in a
way, by opposing Uber’s surge pricing,
individuals, barring a few aberrations.
The Railways’ adoption of surge pricing Further, with surge pricing, it was the the government is blocking the drivers’
is in contrast to the Delhi government’s individual who got the benefits. The ability to earn more money. Moreover,
stand in the case of taxi aggregator Uber. algorithm of Uber is so designed that the often one finds educated youth driving
when Uber introduced surge pricing, the moment the available number of taxis the car. it is satisfying that this seg-
Delhi government had issued a diktat falls below 20 percent of the demand ment is not only bringing respect to the
asking Uber to stop. The government is it notifies the drivers to rush to the profession as in the western world but
at fault in both principle and approach in locations where the demand from the creating opportunities for hard-working
issuing such an order. commuters is high. Thus it incentivises entrepreneurs to earn decent money.
Tehelka / 15 november 2018 22 www.Tehelka.com
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