Hike fares to modernise fund-starved Railways: Assocham
Press Trust of India / Bangalore Mar 07, 2012.
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| Mumbai's Local Trains |
Industry body Assocham today advocated increase in rail passenger fares for all classes ranging from Rs 10 to Rs 100 for capacity expansion, modernisation and building infrastructure, which it says will require Rs 14 lakh crore over the next ten years.
The organisational structure of the Railways should be redesigned for customer care and resource generation and it should increasingly become self-sufficient over the next 10 to 15 years and provide good profits to the government, it said.
For this, a three-way split is essential with passenger and freight sections becoming separate entities and operations put under the direct control of the Railway Board, the Associated Chambers of Commerce and Industry of India said in a statement ahead of the Railway Budget on March 14.
"The Railways may consider withdrawing from non- transportation activities through corporatisation and outsourcing to focus on enhancing passenger safety.
"Private companies should be allowed to participate as joint venture partners to bring in substantial funds and improve services," said Secretary General D S Rawat quoting the study titled Railway Challenges -- Restructuring is the Solution.
Services under the private sector could include catering, laundry, cleaning of trains, provision of entertainment and information systems within and outside trains, placing of advertisements, food courts, provision of wheel chairs and medical facilities.
"Due to rapid urbanisation and rising incomes,the huge gap between demand and supply of passenger seats and berths is further widening which could lead to frustration among people.
"The Centre and states must prepare the public to share the burden of rising operating costs", it said.
To meet safety requirements, the Railways need over Rs one lakh crore over the next five years including Rs 20,000 crore for advanced signaling systems on 19,000 kilometres of trunk routes, Rs 50,000 crore for elimination of all level crossings and Rs 10,000 crore for manufacturing coaches with advanced designs, Assocham claimed.
"Our proposal is to let some space in each station be auctioned to private enterprises for various passenger amenities like hotels, food courts and retail outlets," said the Assocham study. "At least 500 of over 7,000 stations will be attractive propositions for entrepreneurs."
At the same time, the Indian Railway Catering Corporation should be converted into a joint venture with a reputed catering service provider.
Rail stations need to be redesigned for easy movement of luggage trolleys on platforms. The work on high speed train corridor should be expedited. Various ongoing projects may be reviewed by a high-level committee to minimise cost over-runs.
"The core problem for Railways is that its losses mount with rising passenger traffic. In 2010-11 the loss was to the tune of Rs 14,000 crore or 18 paise per passenger. There is immediate need to lay down a precise roadmap for private sector collaboration if the objective of raising resources through public private partnership is to be achieved," the study said.
Emphasis should also be laid on developing entrepreneurial and managerial skills that private sector can bring into rail transport with value addition for the end user, it said.
For this, a three-way split is essential with passenger and freight sections becoming separate entities and operations put under the direct control of the Railway Board, the Associated Chambers of Commerce and Industry of India said in a statement ahead of the Railway Budget on March 14.
"The Railways may consider withdrawing from non- transportation activities through corporatisation and outsourcing to focus on enhancing passenger safety.
"Private companies should be allowed to participate as joint venture partners to bring in substantial funds and improve services," said Secretary General D S Rawat quoting the study titled Railway Challenges -- Restructuring is the Solution.
Services under the private sector could include catering, laundry, cleaning of trains, provision of entertainment and information systems within and outside trains, placing of advertisements, food courts, provision of wheel chairs and medical facilities.
"Due to rapid urbanisation and rising incomes,the huge gap between demand and supply of passenger seats and berths is further widening which could lead to frustration among people.
"The Centre and states must prepare the public to share the burden of rising operating costs", it said.
To meet safety requirements, the Railways need over Rs one lakh crore over the next five years including Rs 20,000 crore for advanced signaling systems on 19,000 kilometres of trunk routes, Rs 50,000 crore for elimination of all level crossings and Rs 10,000 crore for manufacturing coaches with advanced designs, Assocham claimed.
"Our proposal is to let some space in each station be auctioned to private enterprises for various passenger amenities like hotels, food courts and retail outlets," said the Assocham study. "At least 500 of over 7,000 stations will be attractive propositions for entrepreneurs."
At the same time, the Indian Railway Catering Corporation should be converted into a joint venture with a reputed catering service provider.
Rail stations need to be redesigned for easy movement of luggage trolleys on platforms. The work on high speed train corridor should be expedited. Various ongoing projects may be reviewed by a high-level committee to minimise cost over-runs.
"The core problem for Railways is that its losses mount with rising passenger traffic. In 2010-11 the loss was to the tune of Rs 14,000 crore or 18 paise per passenger. There is immediate need to lay down a precise roadmap for private sector collaboration if the objective of raising resources through public private partnership is to be achieved," the study said.
Emphasis should also be laid on developing entrepreneurial and managerial skills that private sector can bring into rail transport with value addition for the end user, it said.
Courtesy: The Business Standard
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