Privatization of Indian Railways

Topics: Privatization, Government, Public ownership Pages: 3 (382 words) Published: April 2, 2011
Business Communication
Should Indian Railways be Privatized?

As regular travellers, we all have invariably come across situations when we would have very strongly feel “why should railways not be privatized?” or “Why can’t they just manage thing here?”. Whenever we stand on a railway platform and see the state of affairs, the feeling grows stronger. But, the loyal citizen inside us will never truly like to see Indian railways going in to in the hands of a private company or a foreign MNC. Why? The aim of this study is to discuss the issues necessitating privatization of Indian railways and options available for improving efficiency without letting the national resource go out of the hands of the government. A quick Overview

* World’s second largest railway network
* Worlds biggest civil employer(1.4 mn employees)
* World’s Max no of passengers (18mn passengers daily) * Country’s second biggest land owner after defence
* Backbone of the nation’s transportation system

Issues necessitating privatization
* Poor quality of services
* Catering
* Delays
* Hygiene & sanitation
* Safety & Security
* Outdated technology
* Poor and outdated infrastructure
* Inefficiency- under utilization of resources and manpower

Why not fully privatize?
* Most valuable asset of the nation .
* Means of cheap and fast transportation for masses
* Backbone of the nation
* National security
* Subsidies

Options Recommended
* Privatize at 40:60 ratio of private to Govt equity and be restructured * Station management – civic amenities and allied services * Manufacturing units-electric and diesel loco, coaches, axle, wheel etc * Maintenance workshops

* R & D
* Printing press

Benefits Expected
* Govt control on the valuable national asset will be retained * Affordable...
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