Accelerated Development of Transport Infrastructure

Our inadequate transport infrastructure results in lower efficiency and productivity; higher transaction costs; and insufficient access to our large national market. How can we create an efficient and widespread multi-modal transport network.

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Should the Railways be corporatized and private participation increased? If so, how?

Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby damolpatil@gmail.com » Thu Feb 10, 2011 10:23 am

There is no meaning left in privatization, but only freight section some rights can be given to private like under PPP, so one Giant can make freight corridor and can have sum of revenues from it. Railways will have its regulation and some income too..! (although there is 3rd corridor declared earlier, nothing is happened, PPP may solve problem).

And in two track systems, we will reach saturation too early if only cry for more train n more trains! we need efficient train. I dont know statistics, but more than half engine run on lesser power than designed. Increment in no of coaches (according to demand, like vast demand in 3A & CC in short routes) can solve waiting problems and new trains always will welcomed!

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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby gopi@sankhya.com » Fri Feb 11, 2011 2:53 am

India needs fast rail connectivity between the top 50-100 cities within the next 5 years.

The right question to ask then is - how do we create a modern, eco-friendly, affordable mode of travel using fast rail connectivity for India ?

This is a challenge that needs to be dealt in 3-key phases of Innovation

1) Create modern transportation technology

a) Setup a technology center focusing on developing new
transportation technologies -- goal lower cost of modern
fast, cheap transportation

2) Demonstrate technology

b) Implement pilot projects using technology from (a)

3) Apply

c) Scale-up projects and roll-them out nationally - goal connect top-100
cities using an appropriate architecture

Now within the above context where does Indian Railways fall ? The answer is obvious - it falls under (3).

So what is the answer to this question ?

a) Start off by allocating from the funds of Innovation Bank of India (a separate proposal posted) to the tune of Rs 10,000 crores per-year for (1) and (2) above - through the innovation banking route - so that it does not add to GoI's deficit.

b) Allow All PSU Steel Plants to diversify and go for "forward integration" allowing them to setup fast-rail tracks - in joint venture with Indian Railways.

c) Allow Private Sector to "own and operate" rail routes on the fast-tracks created by allowing them to invest in modern systems developed from (1) above.

To summarize: Use the size of the Indian market to drive Innovation in the transportation industry with the goal of delivering fast, modern, inexpensive modes of travel to all Indians.

That should be the goal.

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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby arun.shekar@gmail.com » Sun Feb 13, 2011 11:29 pm

Yes the Railways must be corporatized. the method for private participation can be as per the following suggestions;

1) Convert the Indian Railways into a rail network management company. With the ownership of all the rail lines in India.The Indian Railways will be a 100% Indian Government enterprise.

2) Convert the many zones of the Indian Railways into corporations with private company involvement. Each corporation can be a PPP. or as lease to run the service. the quality of the services can be monitored and regulated by the Indian Railways.

3) The management of the trains, and the services is to be performed by the many corporations. And the Indian Railways regulate the price of the tickets and the different types of services as an example.

4) This will give the opportunity for the Indian Railways to be involved in the development of the network and providing the infrastructure.
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby abhijeet.1112@gmail.com » Wed Feb 16, 2011 6:20 am

jain_sanjayp@yahoo.co.uk wrote:The Freight movement should be privatized. Freight corridors, infra and management is a very capital intensive and long term. The business community can decide what & how they want.
Let the passenger system continue in our socialistic pattern.
The Freight system becomes capitalist pattern. It can be BOLT as well for 25 years or so. A part equity can be held by the major PSU customers of Freight system.


it will give chance to corruption & lobby-ism. partial divestment can be done.
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby sushamabajpai@yahoo.com » Thu Feb 17, 2011 6:59 pm

12fypmgr wrote:Should the Railways be corporatized and private participation increased? If so, how?

no not at all privatisation is not the answer at all.in fact more stress should be laid on strengthening the infrastructure and efficiency/punctuality and it should be fine.limited private participation would be welcome or like airlines bring in competion by bringing few private players on select routes on experimental basis may be then the govt.railways would change the mindset
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby alsanjay@gmail.com » Fri Feb 18, 2011 5:38 pm

Can we take a leaf or two from banking sector? It was also government owned, also had reluctance from employee base, now there is healthy competition between public, private, and foreign players.
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby ganeshsggs@gmail.com » Sun Apr 03, 2011 6:26 am

what we are talking will happen after say 10 to 20 years from now.
Why we want to go for privatization.
1)To have place to stand / sit in train for those who can not afford reservation
2)For better efficiency
2) For on time execution of projects
3) For changing the face of railway on time to time
4) And off course to eliminate corruption specifically in TATKAL like schemes.

The solution on above problem is not just privatization
We need to selectively privatize the functions of Indian railway like we can go for forming a new arm for execution of Infra projects like IRCTC for catering.
we should not allow private operators to run trains as it will just increase cost of traveling, which is one of cheapest facility available from Govt. and Govt still makes money from it.
But one may argue that even if cost will increase due to privatization, so will increase profit and we have lot of money available for infra investment.
Its very true, but if you look at recent development about corruption, any one can say we have enough money with us for investment.
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby mukund.kumar@sify.com » Mon May 02, 2011 8:28 am

This is very much feasible to allow private players to enter into Rail Transport. Bcz the railway itself is a very great example of mismanagement of an organisation. No minister has concentrated on this ministry. All the minister use this ministry as a platform and make a lot number of announcements and neither of their commitment get fulfilled. There are some aspects for examples, the travel by rail is a big challenge now a days. We, the people, never get tickets on the window and if you offer some cash to agents, the availabilty is there with him through some employee. 80% of trains are never on time. No body is looking towards the routes where the rail transport are more required. Some of the routes are to be taken care and provide more trains and routes, if railway ministry in not so competent enough then they should privatized these routes first.
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby govindunathpatnala@gmail.com » Tue May 03, 2011 8:49 am

It would be better to corporatize Indian Railways but a major blow to Indians if it is privatized :(
Railways could be run efficiently when it is given competitive spirit which could be done by making it a 100% Govt PSU Corporation.
But it would be unwise to privatize it given the current circumstances which has witnessed huge corruption scandals in the history of India :o
At the same time we have to run the railways efficiently and in such a way that it should generate profits with out compromising on the issue of service to the nation.
We can make it a 100% Govt owned PSU and make it compete with other PSUs :)
May be after 10 or 20 years down the line it could be privatized hopefully if India becomes better in terms of Corruption index. It would should also given opportunity to participate in other third world countries in developing their infrastructure and making profits as well :)
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Re: Should the Railways be corporatized and private participation increased? If so, how?

Postby kamleshpatel.surat@gmail.com » Fri May 06, 2011 6:14 am

Yes, Every Railway station has a prime property in each city and if they build a Hotel over the Railway Station in colobration with a private companies, it can be the best convinient solution for Business travellers and it will generate an additional revenue to the Railway department. It should be devide in 3 sectors, 1 Public Transport, 2 Goods Transport and 3 Hospitality.
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