Page 24 - 30NOV2018E
P. 24

CoverStory








                 uting 4.9 percent of GDP. Railways is steadily losing
                 its share to road as the continuous increase in freight
                 has made Indian Railway one of the most expensive
                 freight amongst the major countries where rail plays
                 a significant in transporting goods. Even if one com-
                 pares the freight cost on Indian Railways as 1 unit per
                 ton-km, cost in China, Russia and USA is 0.58, 0.75
                 and 0.51 respectively. So no wonder these Duronto,
                 Shatabdi and Rajdhani would soon give way to air. Is
                 there a conspiracy to boost the airlines at the cost of
                 the public sector giant?
                   One simple example of irrational increase in
                 freight, putting Railways out of the competition, is
                 the cost of transporting HF cows from Bengaluru to
                 Delhi for setting up a dairy in northern India. Railway
                 charges 3 lakh per wagon which can hold 20 cows,



                     If Railways could charge

                     the same fare as that of

                     state transport buses,

                     its passenger segment

                     revenue would go up                          top tier cities. As per a railway official, an average
                                                                  sleeper class passenger in these metropolitan cit-
                     to `100,000 crore, a                         ies spends almost half of the amount in travelling
                                                                  from his house to the station, which he spends on his
                     surplus of `60,000 crore                     entire rail journey.
                                                                  Unlocking potential
                     that may be used to                          Railways is a mammoth organisation, having huge
                                                                  potential. Unlocking its potential and leveraging its
                     improve infrastructure                       database of passengers can generate millions with
                                                                  a creative and innovative approach. Piyush Goyal
                                                                  is trying to do that, but there is much more to be
                                                                  done. Any conventional mode of raising revenue has
                                                                  done more damage to the Railways and its impact
                 taking the cost of transporting each cow to 15,000.   is far-reaching. Lalu Prasad, who was rail minister
                 Over and above this is the cost of transfer from rail-  in 2004-09, took a short cut whereby he forced the
                 way station to farm. As against this, a truck can carry   Railway Board to
                 cows and it costs 80,000 on the same route. Thus the   increase the maximum axle load on railway track
                 cost is just 9,000 per cow, and this is point-to-point   from 20.3 tonnes to 22.9 tonnes. This added load on a
                 delivery. Already, Air India is fleecing the exchequer.   four-axle wagon increased its gross weight from 81.2
                 Further subsidisation of Railways would hurt health   tonnes to 91.6 tonnes. Thus, of course, he increased
                 and education.                                   revenue. But how this is going to impact age-old
                   As for surge pricing, if its objective is to augment   infrastructure, especially bridges, which are often
                 revenue and observe passenger behaviour, it would   more than 100 years old, will be tested in time only.
                 have been better to experiment with sleeper class in   Once infrastructure starts crumbling, it would be a
                 trains where the fares are very low. In fact, 60 per-  nightmare for the Railways. Already, investment
                 cent of the passenger traffic is generated from 5-6   in replacement and renewal is shrinking and such



                                        Tehelka / 15 november 2018  24  www.Tehelka.com



     12-26 21st CStory.indd   14                                                                       02/11/18   11:21 AM
   19   20   21   22   23   24   25   26   27   28   29