What are the advantages of Privatization of Railways i Improved Infrastructure ii Normalization of p...........

Economic and Social Issues Liberalization, Privatization and Globalisation

India’s first private train, Tejas Express, was recently flagged off on the Lucknow-Delhi-Lucknow corridor. Ministry of Railways (MoR) has taken initiatives in various areas viz. network expansion, setting up of locomotive factories, induction of railway wagons, Station Re-Development etc. to attract private investment and participation. MoR has also set up two locomotive factories (one electric and one diesel) in Joint Venture with private players. Indian Railways has also inducted 150 rakes through incentive schemes by associating freight customers. In addition, 63 private freight terminals have also been commissioned to augment terminal infrastructure with private participation.Five Public Private Partnership (PPP) models of Participative Policy of MoR, namely Non-Government Railway (NGR), Joint Venture (JV), Customer Funded model, Built-Operate-Transfer (BOT) and BOT Annuity models have been formulated to attract private investment in Rail connectivity Projects. MoR has also planned private participation in operation of passenger trains by introducing around 150 modern rakes with the objective to induct ‘state of the art’ rolling stock to provide world class travel experience to passengers.

What are the advantages of Privatization of Railways?

i Improved Infrastructure

ii Normalization of prices due to the competition

iii Improved Security

iv Better Technological Innovation

Select the correct answer using the code given below

i. ii and iii only

ii, iii and iv only

i. ii and iv only

all of the above

none of these

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Explanation:

Advantages of Privatisation of Railways

Improved Infrastructure: Privatisation will lead to better infrastructure which in turn would result in improved amenities for travelers.

Currently, Indian Railways is marred by mismanagement in the form of stinking washrooms, lack of water supply and dirty platforms, it is expected that a private company will ensure better amenities.

Normalization of prices due to the competition: Improvement in quality of services has to be matched up by a rise in charges paid by the travelers.

However, the issue of price rise will be solved when private players are allowed to enter the sector since the move would foster competition and hence lead to overall betterment in the quality of services.

Improved Security: Private participation can lead to better accountability and monitoring, which can keep a check on rising accidents in railways.

Better Technological Innovation: Private participation can lead to the infusion of modern technology and capacity building of Indian railways.