Why Indian Railways needs to evolve new business plan and revisit pricing

The Railways' profitable freight business is losing ground to the competition, while meeting pent-up passenger demand will mean more losses, notes T N Ninan

UP Roadways will take you 550 kilometres from Delhi to Lucknow for Rs 822, or Rs 1.49 per km. The Railways will get you there for barely half the price, Rs 432. Indeed, you could get there in air-conditioned comfort for Rs 755 in a three-tier sleeper coach — less than what the “Volvo” bus service charges: Rs 1,000 upwards for “semi-sleeper” travel. Across the railway system, the passenger fare per kilometre ranges from as little as 21 paise for “ordinary” second-class travel to Rs 1.75 for a seat in an air-conditioned chair car, and more for greater comfort or