Structural reforms are not on track, yet

Organisational reforms, an accounting system based on GAAP, creation of enhanced system capacity, higher budgetary support from the Government, greater financial prudence and some control over expenditure were in the wish-list of the Rail Budget. Customer orientation was an essential change and only that has been addressed.

A key concern has been the archaic organisational structure of the Railways. One hoped for a road map for structural reforms, but there was only a token mention of separating the overlapping roles of policy formulation and implementation.

For years, the Railways has evaded the introduction of an accounting system based on commercially-acceptable lines. The Railway Rates Authority needs accurate figures to recommend passenger and freight fares. The data provided by the Government accounting system is only approximate. Now that the Government wants greater private investment in railway projects, obscure Government accounts will not do. This major drawback has not been addressed.

Prioritising completion of ongoing projects by framing timelines is welcome, but the setting up of a project management group, comprising professionals and State Government officials to expedite the process, is an untested concept. ongoing projects.

The Government’s recognition of the fall in freight share points to a weakness of both the Government and the system. The remedies provided in the Budget are not clear apart from the decision to push for early completion of the freight corridors. There are the same old promises of providing private freight terminals and logistics parks. There is no indication of a long-term plan to increase rail freight by moving it off the roads.

Resource generation is again a rehash of earlier Budgets. The measures stated in this Budget are already being implemented without substantial private money flowing into railway projects. The much-awaited high-speed announcement is more of intent than action. Once again, the Budget has promises of more passenger trains. One welcome aspect has been plans for upgradation of technology in trains, signalling, track safety, management areas, ticketing, passenger information and so on. The Budget is good news for passengers but does little to revamp the system.

The writer is Director (International relations), Asian Institute of Transport Development

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