Sadananda Gowda should put the rail house in order and ensure work culture first, before going for the expensive bullet train. The politician in him needs to show the bureaucrats who often mislead, that he is the master now
The Narendra Modi-led Government is functioning well where it is guided by political wisdom. At least two decisions — cancelling the four-year undergraduate programme of the University of Delhi and postponing of KG D6 gas price increase — are people-friendly, indicating maybe that achhe din are not far away.
The FYUP was definitely aimed at increasing the income of private education shops. The Delhi University was a test case. It was made to don it by the UPA’s Human Resource Development Minister Kapil Sibal on the specious argument that this country needed equivalence with the US. It was burdening a minimum of Rs 1.5 lakh a year per student. Mr Sibal possibly could afford to do it. He can pay a rent of Rs 16 lakh per month in a country where the UPA’s Planning Commission had termed an income of Rs 26 a day enough to put one above the poverty level. That is the level of disparity. But, what Mr Sibal can do, the aam aadmi cannot.
Mr Sibal and Mr Veerappa Moily could pay higher gas price as well. But one earning Rs 26 a day or even a Government employee does not have the capacity to pay that. Besides, why should a country pay even four-dollars-a-unit presently being charged for the gas when Oil and Natural Gas Corporation itself says that the cost of production is far below two dollars. There is a case, the new Government possibly has realised, for reducing the gas price. It is vital to keep energy costs affordable lest the entire economy collapses. The UPA had lived for the large corporate; a pro-people Government cannot do that.
On sugar, there is a case for revival of the domestic industry. It is having a bit of a problem. But Nehruvian concept of securing it from competition also needs a review. Higher import duties have immediate effect of a higher sugar price in retail. Such decisions have deleterious effect on overall price situation.
The railway officials also successfully presented an untenable case to get the fares hiked. The Comptroller and Auditor-General reports need to be read to find out the level of inefficiency in the railways.
The political masters need to study the last 10 years’ budgetary and non-budgetary provisions that have increased railway earnings continuously. Even in the years it did not raise fare officially it raised various fees and cancellation charges. The cancellation does not cause any loss but those booking tickets are made to lose from 30 to 50 per cent of the fare charged. The railways never give the figures of their earning from these sources but it can be estimated that at least it earns 15 per cent of the revenue for not giving any service.
Is the railways really in lossesIJ Certainly not. Railway Board Chairman Arunendra Kumar, the very next day when 14.2 per cent passenger fare and 6.5 per cent freight fare was hiked, told the media that in reality Indian Railways was not in losses “but had the fare and freight not been hiked it could have been in losses”. A discerning reader can understand how officials have taken the new masters for a ride. They are making everyone believe that railway finances have stagnated during the last 10 years.
The truth is different. In 2003-2004, the railways had earned Rs 13,298 crore from passenger fares. In 2013-2014, the last interim Budget, it earned Rs 32,500 crore. Freight earnings have increased phenomenally too. In 2003-2004, it earned Rs 27,403 crore, in 2004-2005 Rs 30,429 crore and in the last fiscal it rose to Rs 85,000 crore due to dynamic freight policy.
So the new Union Minister for Railways Sadananda Gowda needs to understand that he can do without the Rs 8,000 crore additional accrual that the UPA-appointed bureaucrats made him do. It not only empowers him to roll back the fare but also reduce cancellation charges to the previous Rs 10. It also gives him the power to question the bureaucrats on why they misguided him.
A roll-back would not cause any loss to the railways but it would start a process of review of how the railways have been losing money where it need not. It also calls for checking the lackadaisical attitude of railway officials on maintenance. The CAG has repeatedly pointed out that it did not lack in finances but the attitude. The CAG in its various reports had cited how different railway zones and departments returned money un-utilised for upgrading various projects, including on safety.
A CAG audit of 38 of 55 divisions, revealed that the railways had failed to bring down the detention of freight trains for examination (from its arrival to its departure after TXR examination) to the stipulated 11 hour. It introduced roll-on-roll-off-freight programme for door-to door service in 2005. Since it required aggressive marketing, it was quietly shelved. It has continuously been losing goods to road traffic and has not done a bit to recapture it.
Mr Gowda should put the rail house in order and ensure work culture first before going for the expensive bullet train. The politician in him needs to show who the master is.