The Hindu Business Line : Integrated approach, quality audits

The Railways have to follow up on such basics as on-time arrival of trains, cleanliness at stations, display of correct information and other normally neglected minute details that improve the passenger’s travel experience.

K. Balakesari

The Railway Minister, Mr Lalu Prasad’s opening remarks about a cash surplus of Rs 25,000 crore before dividend seems a rather meaningless figure. The surplus after payment of all dues, including dividend, to the general exchequer is only Rs 13,534 crore. This is what can be invested.

Gross traffic revenues are expected to be 2 per cent higher than the budget estimates. It remains to be seen in what measure the various factors have contributed to this impressive performance — freight volumes, effective increases in freight tariff , increase in number of passengers segment-wise, etc.

The improvement in operating ratio is commendable. However, in the absence of detailed figures, it is not possible to comment how far the increase in earnings/control on expenditure has contributed to this record low figure.

It also needs to be remembered that, with effect from 2005-06, the method of calculation of operating ratio is slightly different from earlier years and so is not strictly comparable to pre 2005-06 figures.

Budget Estimates 2008-09

The freight loading target of 850 million tonnes is marginally less than the 8 per cent growth rate target of 858 million tonnes projected for the Ninth Plan by the Railways. It needs to be seen whether there has been a deliberate scaling down because of the impact of anticipated slowdown in global economy.

An ad hoc provision of Rs 5,000 crore for expenditure arising from anticipated recommendations of the Sixth Pay Commission would appear to be less than the 30 per cent increase experienced at the time of implementation of the Fifth Pay Commission recommendations. It is to be hoped that this figure will not be wide of the mark.

Annual Plan 2008-09

The allotment of only Rs 600 crore for bridges, as compared to Rs 700 crore for ROBs/RUBs seems inadequate considering that a large number of bridges even now require attention, being more than 100 years old and particularly considering the increased axle loads being permitted/proposed to be introduced.

The budget is silent about any plans to isolate parcel traffic from passenger platforms, which today poses a serious impediment to passengers.

The target of gauge conversion (2,150 km) being almost double that of doubling (1,000 km) seems anomalous, considering that the major focus of the Railways should now be on capacity expansion.

Passenger services

The budget has the usual quota of new trains, extension of services, increase in frequencies, etc. These are probably unavoidable, particularly with the general elections approaching, but the consequent pressure on line capacity and its effect on punctuality need to be kept in view.

Amenities

While the introduction of various measures is welcome, there would appear to be no integrated approach to enhance the quality of service to the passengers.

The time has come to have quality audits, at least at important stations, to evaluate the reactions of passengers and take appropriate remedial measures.

The Railways have to concentrate on basic things, such as actual, on-time arrivals at terminals and at important intermediate stations, cleanliness in stations and on trains, correctness of information displayed, promptness in placing an empty train on platform for passengers to board, promptness in pasting of reservation charts in time and so many other minute details that normally tend to get neglected and which make up the whole travel experience for the average passenger.

Freight rates

Reduction in passenger fares was only expected. But it remains to be seen how far passenger services are being subsidised by indirect increases in freight rates.

Past experience shows that even though no increases are announced in freight rates in the budget, effectively rates are increased either by reclassification of commodities or by levy of indirect charges.

This is borne out by the steady increase in yields of most commodities for the past few years, despite levelling off /reduction of lead.

Safety and Security

The reduction in the accident rate is commendable. But the Railways need to undertake a cost-benefit analysis to know how this improvement has been achieved, so that investments can be better directed.

Future Vision

With each change of government, a new vision document is prepared. This leads nowhere. As an institution, irrespective of the ruling dispensation at the top, the Railways should have a long-term vision and plan. This, of course, seems highly unlikely.

There is no mention of high-speed / ‘bullet’ trains, etc. Does this mean this programme has been shelved?

Development of old Railway maintenance workshops should not mean their expansion. The aim should also be to close down at least a few of them. Improved reliability and not more maintenance should be the aim for a 21st Century Railway.

(The author is a former Member, Staff, Railway Board.)

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