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K L Thapar: Railways: Not as terrible as painted

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K L Thapar New Delhi
Last Updated : Jan 28 2013 | 4:21 PM IST
 The strain caused by them on the environment is the least and weight-for-weight, the railway system provides the most efficient mode of surface transport. That, indeed, is why the world over there is a gradual resurgence of the railways.

 But this re-emergence has been made possible by huge rounds of investment. To go no further than China, between 1992 and 2002, China had invested a massive $85 billion in its railway system.

 In the same period, India invested only a little over $17 billion. Not just this. The bulk of Chinese investment went into the creation of fresh capacity. Sadly, this was not the case in India.

 There is no gainsaying that the railways need to reinvent themselves in many areas. But there is also much that could be commended. Indeed, I would say that given the various constraints under which the railways have to operate, their performance, especially in the recent years, has been hugely impressive.

 Since 2002, they have moved, on average, 34 million tonnes of additional freight traffic each year. This would amount to a cumulative increase of 103 million tonnes in just three years ending 2005.

 Compare this with an average of 6-7 million tonnes per year over the previous 50 years, or an average of 17 million tonnes during the decade ending 2002 and you get an idea of how well the railways are performing.

 This suggests that the core strengths of the railways in operation and management are still very strong. It also shows that the management has been responsive to potentials of technological upscaling.

 Otherwise, it would not have been possible to achieve these creditable productivity and output gains. Thanks to the quiet modernisation that has been under way, the railways are confident that, within three years, they will be able to run freight trains at 100 kmph, up from the 40-50 kmph now.

 In the past, the railways gained enormously from the financial and technical inputs provided by multilateral agencies. Sadly, over the years, they chose to give up on the railways in the belief that the reform in the system is not possible.

 This is a mistaken judgment. Reforms may be painfully slow. But what is important is that the process is on and gaining momentum. To strengthen this process, the multilateral agencies need to engage with the system more vigorously.

 The railways are no longer strangers to the process of corporatisation, disinvestment or the setting up of joint ventures with strategic partners.

 A special purpose vehicle (SPV)

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First Published: Feb 25 2005 | 12:00 AM IST

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