SURESH Prabhu’s railway budget is on the whole satisfactory and may be considered populist because after periodic rises in passenger fare, this time there has not been any across the board. It was only to be expected as it is a period of steep decline in the cost of diesel and coal. That has necessitated lowering the operating cost below 90%. Freight has been hiked but the spread of freight classes has been shrunk. It has been generally welcomed. The thrust of the budget has been in converting the largest public sector enterprise into a commercial entity. No big bang reform has been attempted such as corporatizing the behemoth. However, the Railways are intended to be a driver behind globalization of India’s transport backbone instead of being a minor player. With increase in the share of cargo moved by rail, cost of transport will go down making Indian business competitive.
Of course, the Railways look to a five year horizon. What is welcome is financing of capacity expansion through new corporate bodies, joint ventures with the public as well as state governments and sucking in private, Indian and foreign collaborators. It would draw extra-budgetary capital. The budget proposes to invest Rs. 8,51,200 crore over the next few years. That would mean a compound growth in investment by 51% next year. There will be no strain on the fiscal receipts and along with it there will be enforcement of commercial discipline. Above all, the emphasis should be on sprucing up of railway stations, leveraging other railway land, full utilization of advertising potential and cutting costs of power procurement. Bullet trains will open up new vistas of growth. But what matter more are safety of travel, passenger comfort and good catering. One hopes that Prabhu will deliver.
