This refers to the article “Putting the Railways on profit track” (Business Line, March 2). The suggestion that the revenue loss incurred from subsidising fares for the sleeper and second-class passengers must be compensated by charging a higher fare for the AC passengers is too simplistic.
When it is said that a fourth of the total passenger revenue is derived from the air-conditioned class, it should be remembered that much of this comes from the fully air-conditioned trains such as the Rajdhani which have a separate rate structure.
In normal trains, there are only two or three air-conditioned coaches as against 9-10 sleeper coaches and three-four unreserved second-class coaches. How can AC passengers can compensate the revenue loss incurred on account of second-class passengers?
This refers to the speech of the RBI Governor at the Kanpur IIT alumni meet, where he stated that 5-6 per cent growth was not enough. He had detailed the requirements for a double-digit growth (Business Line, March 4) — stable macro-economic environment, removal of infrastructure deficit, etc. He, however, omitted policy paralysis.