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Sat Mar 25, 2017 17:40:07 ISTHomeTrainsΣChainsAtlasPNRForumGalleryNewsFAQTripsLoginFeedback
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Blog Entry# 2095058  
Posted: Dec 18 2016 (11:55)

1 Responses
Last Response: Dec 18 2016 (11:55)
  
Rail News
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Commentary/Human Interest
Dec 18 2016 (11:22)   Comprehensive strategy to deal with railways’ concerns

rdb*^   127055 news posts
Entry# 2095058   News Entry# 288977         Tags   Past Edits
Railways is working out a comprehensive strategy to deal with its immediate concerns like customer satisfaction, perking up loadings and infrastructure development like station redevelopment.
“Railways needs structural changes, that is reform. It is suffering because of lack of investment so you need investments. But our immediate concern is customer satisfaction, punctuality, freight,” Railway Minister Suresh Prabhu said at the FICCI conference.
Referring to the reforms being undertaken in railways, Prabhu said the conference’s theme is sustaining high growth.
“Reform
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is a continuous process. But unless you refine the goal...it will not be a successful,” he said.
On the ambitious station redevelopment plan, he said, “We have come out with different models for station the re development plan. While our Habibgunj station is a PPP model, Bhubaneswar station is being developed by the state government.”
He said that the Gandhinagar station is being redeveloped by both the state and the Centre with 76 per cent and 24 per cent equity participation respectively.
Surat station is also being developed with the participation of the state, Centre and railways, he said, adding, it will be part of the multi-modal transportation system.
Referring to joint ventures with state governments for rail infrastructure development, he said it helps in addressing land acquisition, law and problems in the state.
“If 10 km line is laid in a state then 100 km long line can be built with 10 states,” he said.
Stressing on the need for infrastructure development, he said, “One cannot just discuss it academically. We must work on it. Railways is suffering for lack of infrastructure development. We must find resources for investment.”
He said railways stepped up investment in last 2 years.
“Our investment is 3 times higher than the last 10 years’ average. Besides gross budgetary support, we want resources from extra budgetary sources also,” the minister added.
He said public investment is also crucial and referred to the two mega locomotive factories in Madhepura and Marhora in Bihar. These are two big ticket projects involving Rs 40,000 crore, he said.
Stressing on the need for non fare revenue (NFR), he said, “We are going beyond traditional revenue sources like passenger fares and freight.
“Our expenditure has gone up, including salary and pension. Our freight growth is extremely low,” he added.
Highlighting the potential of advertisement, he said, .
“With six billion footfalls, advertisement is a big resources of revenue. Recently we started a vinyl wrapping train also.”
Referring to reforms, he said now powers have been delegated to General Managers and Divisional Railway Managers.
Empowerment coupled with accountability is being worked out.
He said recently the Rail Vikash Shivir was organised, involving thousands of railway men, and several ideas were generated through crowd sourcing. “Now we are working with those ideas to implement them,” he added.

  
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Dec 18 2016 (11:55)
For Better Managed Indian Railways~   1933 blog posts
Re# 2095058-1            Tags   Past Edits
Indian Railways did suffer from the lack of investment since independence resulting in losing of Market share and there is no doubt about it.
One more fact is equally or even more relevant- that most of the investment made by IR was done without proper financial justification resulting in huge losses, very poor return on the investment which in turn resulted in poor revenue generation/operational surplus which in turn resulted in even lesser investment. This becomes a vicious circle leading to chronic shortage of internal generation of funds leading to grossly inadequate capacity augmentation. In this scenario, even if huge investment were made in past by taking loans, IR would have gone bankrupt due to inability to repay the loans. Many time
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IR want interest free loans from govt to do expansion which can never be justified as in this case govt. of India will take loan which ultimately taxpayers have to repay.
Similarly if the huge investment being done in IR is not properly planned and implemented, it shall lead to much higher loan repayment, higher corruption and quick bankruptcy for IR instead of betterment. Although most of the investments are being channelised in doubling/multipling which are known to give higher financial rate of returns than GC/ new lines, but a lot needs to be done to ensure right prioritization of projects, timely completion, control the cost and to ensure top quality of construction.

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