3 reforms to put railways on fast track
Indian Railways: Lifeline of the Nation” — runs the bold title of a 2015 government white paper. The Indian Railways lost ground as it got mired in its own corrosive image of a government entity focused on social objectives — providing cheap, even free, travel. But the Indian Railways lost the freight business due to a monopolistic tariff policy for bulk freight, such as for coal, iron ore, cement and foodgrains. But clarity on the Indian Railways’ core mission is missing, that has to be, first and foremost, the movement of freight and increasing the railways’ marketshare in the city and suburban passenger traffic. Investing to make freight move four times faster at 100 km per hour instead of 25 km per hour makes sense as there is room to reduce tariffs and expand business.
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