‘Faulty financial model led to poor railway infra’

As former Railway Ministers in the last decade, Lalu Prasad of the Rashtriya Janata Dal (RJD) and Mamata Banerjee of the Trinamool Congress refrained from any rational hikes in fares, the railways has reached the level of bankruptcy, the officials said. Former Railway Board Chairman JP Batra said that the minimal hike in railway fares in the last decade has taken its toll on the infrastructure. 

“It is acceptable to give subsidy at certain places like in the fare of second class tickets. However, we will have to compensate the cost of travel through other channels. We need to arrange funds to improve the infrastructure. And you need political will to that,” Batra said. 

If the government wants to achieve a zero-accident goal then it will have to organise required resources to adopt the suggestions given by the Kakodkar committee, which include advance technological inputs, said Batra. 

Former Railway Minister Dinesh Trivedi said the railways’ financing model was at fault and subsequent governments failed to acknowledge it. Trivedi also said that railways should not be used as political tool. 

“Railways’ entire financing model is at fault and it is close to financial bankruptcy. It is running at deficit of Rs 20,000 crore. Subsequent governments, not just this, has not understood it,” Trivedi said. 

Trivedi was forced to resign as Railway Minister a fortnight after he proposed an across-the-board increase in rail fares in the annual rail budget for 2012-13. Trivedi added that the railways operation ratio means that it spends Rs 130 to earn Rs 100. 

Asking for changes in the investment model to bring about changes in the long term, Trivedi said “If you invest and demand interest (immediately), it does not work. Your returns will come after 20 years. There has to be a long-term goal,” Trivedi said. A former GM of the North  East Frontier Railway said the delay in procuring equipment and material and their delivery contribute to ill-maintenance of infrastructure.