What is the need for the privatisation of Indian Railways i Low Quality of Service Catering and Punc...........

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 is the need for the privatisation of Indian Railways?

i Low Quality of Service, Catering and Punctuality

ii Low Internal Revenue

iii Increasing Number of Accidents

Select the correct answer using the code given below

i. and ii only

ii and iii only

i. and iii only

All of the above

none of these

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Explanation:

Need for the Privatisation of Railways

Low Quality of Service, Catering and Punctuality: Indian Railways deserves the credit for serving the largest democracy in the world, but it faces criticism, particularly in case of aspects like service, catering, and punctuality.

Low Internal Revenue: The problem of cross-subsidization has severely affected the internal revenue generation of the Indian Railways.

Cross subsidization: Money earned through freight traffic is diverted to meet the shortfalls in passenger revenue, and thus the development of freight traffic infrastructure suffers.

Increasing Number of Accidents: Repeated railway accidents have further raised questions on government ownership of railways.

Therefore, for long privatisation of railways has been projected as a possible solution to these issues.