Indian Railways, the backbone of the country for a long time, was nationalized in 1948. Indian Railways is the second-largest network in the world. For a long time, it has been under the government. While other sectors like banking, healthcare have moved towards privatization, the railways continue to be public.
In today’s time, while the conditions of trains are getting much better, especially the western and southern railways, there is a lot which needs to be done. With the growing population in the country, the demand of the nation has to be met. And India, which majorly depends upon the railways as a mode of transport, a more significant number of trains with modern technologies need to be present. People usually feel that privatization leads to a better quality of things. If you consider the healthcare industry, people who have money would want to get help from the private hospitals because even though they are costly, their quality of service remains good. Thus, privatization of the railway can meet the common issues.
The speed of the trains will increase, with the transit time being reduced. The trains will be punctual and reliable, would be maintained up to date. Privatization will improve the safety and security of not just passengers but also goods. There will be better infrastructure. A private company will ensure that the quality of catering and sanitation gets better. Privatization can meet the supply-demand problems mentioned earlier. It will enable the national transporter to provide the trains on demand.
Most importantly, we can expect several modern technologies to emerge in our country. The entry of private players will encourage the growth and improvement of the Indian Railways. Additionally, it can also increase the revenue which is received from this sector. It can also generate employment.
The privatization will affect the Indian Economy. It is the cheapest mode of transport, and a large section of the poor depends upon it. It transports passengers and freight goods, so a lot of industries are dependent on it. The coordination between different stations has to be just as good as the Indian Railways, which will be a significant task for private companies. It might generate jobs, but there will also be a fear of job security.
With privatization, the fares will increase. Private companies need their profit, and they would aim to run high-income trains, which will increase their profit, but in turn, can lead to losses for Indian Railways. The private sector will mostly run AC trains, which can be suitable for the higher-income people, as they will be getting better services. However, due to immediate competition, the private companies would have to decrease their prices. For example, DMRC had an agreement with Reliance. Where the reliance company fixed its fare at Rs. 150, but it did not get much attention, as its competitor’s fare was Rs. 50. Finally, DMRC had to intervene and had to lower the fare down to Rs 50. So, this might be an excellent opportunity to enjoy better services at the same amount of money for the consumers.
The emotional connection which Indians have from the colonial times might just get lost. The Ex- Railway Minister Mr Piyush Goyal said that Railways will always be for the public of India. Today, private companies have started investing, and it will be a boon for the country. What is needed is a balance between both, one that is a mix of pros of private and government companies. This mix will enhance the image of Indian Railways as it continues to serve our country.
0 Comments