Chennai
This is the vision most people get, but in reality, the project could experience some starting trouble even before it gets on the tracks. The privatisation of Railways is not a new idea. It was mooted almost 20 years ago. However, back then, the operational challenges seemed insurmountable, and the break-even cost unreachable. The project was once again resurrected under the Modi government, and with the involvement of think tank NITI Aayog and the Railways Ministry, a structured proposal to bring about a “paradigm shift in passenger train operations” has finally been initiated. The plan is to invite private firms to run around 150 passenger trains on 100 routes, to reduce transit time, and completely uplift the train travel experience.
Privatisation, as a concept, always meets with stiff resistance but eventually results in improved efficiency. We have seen this with telecom, banking, air travel, and several other sectors. However, in the case of rail services, the journey will be more uphill. One reason is that the great Indian Railways is the main competitor to the proposed private players. And while this could be the much-needed shark in the tank, there is no clarity on how private trains will operate without an independent regulator. One can only imagine the situation if the Railways was to sit in judgement over conflicts arising from operational issues like route overlaps, delays, etc. Private players would be at a disadvantage.
Capacity constraints are another stumbling block. The existing routes operating at full capacity have led to trains steadily losing out on bookings. The passenger traffic on Railways has hovered at a modest growth rate of 5 per cent or less since 2013, while air traffic recorded a growth of over 13 percent for the same period. And finally, the price point, which has always been a make-or-break decision for all privatisation initiatives, is the biggest challenge. Experts opine that there is very little room to raise fares for train travel, citing examples of the premium Rajdhani service that is still not profitable. However, despite the challenges, new players could bring the much-needed provocation to Indian Railways, as private trains and hopefully even private stations, could bring an international edge to our worn-out rail services that are notorious for substandard cleanliness and patchy services.
The question that begs to be asked is, why does it take privatisation to improve a service used by millions of Indians? Did all the people who depend on train travel not deserve basic hygiene, cleanliness, and punctuality? This is something that the government needs to think about, even as it gets ready once again to let the private sector show them how it’s done.
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