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Thursday, February 26, 2015

Railway Budget: This time its different

When I think of Indian railway, the picture that comes to mind is overcrowded stations, late running trains, tracks full of filth at stations and long lines for enquiry and ticketing. It may be because I was limited to north and East India, most populous region. But, when 65% of an organization's customer are not satisfied with the facilities, it must need to be restructured.
The status of Indian railway can be judged from the facts that only 200 km/year has been added since independence to Indian Railway infrastructure. Also, new trains were announced every other year to woo the voters of whichever states undergoing assembly elections; and they had to run on same limited track length. In last 30 years, only 317 projects out of 676 sanctioned projects have been completed. All this shows the poor decision making and operational efficiency of Indian railway.
This railway budget 2015-16 represented by Suresh Prabhu is bit different as there isn't any announcement of newer trains and jinx regarding focusing on transparency and accountability has been broken. The railway budget rather can be viewed from different angles like
Transparency and Accountability
In order to take care of projects running and prevent time delay, a new delivery mechanism and monitoring system (to prepare deadlines and make sure deliveries sticking to deadlines ) has been proposed. Further management inside railways has been said to be revamped to the need of time and increase the operating efficiency of railways. Training to front line  employees has been proposed to enhance accountability.
Services
Various measures are taken from installing CCTV cameras in Women compartment to declaring 182 as the helpline number . Although, it's efficiency depends on time that whether someone would be there to pick that phone or repair the faulty cameras or not. A separate department is going to be established for cleanliness which will ensure training of employees, coordinate with RDSO regarding vacuum toilets or with NIFT regarding linen that is in use inside bogies.
Technology
This year special emphasis has been given on use of technology by railways to efficiently serve customers. Use of Ipads by TTE, bar code on parcel handling, unreserved tickets available on smartphones are few such measures. But, how railway is going to implement such measures is yet to be seen because it's the same country where there is more than 95% enrollment to schools one side and 8th standard student unable to divide on another side. (truly, we are in a diverse nation). Also, there is emphasis on applied and fundamental research with new centre proposed to be established in four universities.
Infrastructure
The much needed boost to infrastructure has been given in this budget with eyeing finance from international development banks and pension funds, joint ventures for developmental projects with revamped PPP model (specially the contractual clause part), stress on satellite railway terminal to ease off overcrowding at metros and junctions. Also, to increase the freight handling capacity of railway that make it earn 67% of its revenue, private participation has been encouraged through freight terminal scheme.


This railway budget seems realistic with emphasizing completion of already undertaken projects, call for participation of NGO and MPs (through MPLADS), revamping the services being provided by railways and not on populist measures like bullet train. Rather, it led stress on research and use of technology in existing infrastructure. And as said in hard core economics, "All can't be satisfied with sops but can with hope" and this hope seems achievable. 

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