Invest in rail

Successive Union governments have only themselves to blame for bringing the Indian Railways to the state of despair it is in now. Rail is not the preferred mode of transport for most goods except for bulk goods. And, it underpeforms the economy. As upgradation and expansion of the railways was ignored, its share of freight plunged to 30% in 2007-08 from 89% in 1950-51 .

In contrast, the share of road transport rose to 61% from mere 11% over the same period. In the 62 years since Independence, India added only 10,000 km of rail track to the 54,000 route km it inherited, an abysmal rate of 161 km a year! Compare this with China. In 1950, it had 21,800 km of railway lines, and by end 2007, this was expanded to 78,000 km (and 86,000 km by 2009 end).

Between 2004-05 and 2008-09 , while India added just about 220 km a year, China added 1,000 km annually. India plans to expand its rail network to 89,000 km by 2020, China will expand its to 120,000 km by 2020. Clearly, China has figured out that a booming economy needs an efficient transport system, with rail playing a key role, to sustain growth and enable movement of people and goods.

India recognises the need, but politics of regional appeasement overtakes economic consideration, and we have a backlog of 11,985 km of sanctioned lines in various stages of completion.

Rail needs the thrust the current UPA government’s predecessor, the NDA, gave highway development. Projects need to be speeded up, even if some lines would remain uneconomical for many years. Freight and passenger fares need regular revision to enable the railways to generate enough surplus to finance its projects.

The transformation of the railways under rail minister Lalu Prasad Yadav hinged on fully utilising existing slack in the system , and then some. The point is to build new capacity. Projects such as the dedicated freight corridor can prove to be a game-changer for the railways as well as the economy , and must be accorded due priority. So should highspeed trains between commercial capitals.

The railways cannot complete these projects on its own and, therefore, has to rope in the private sector. Funds are no constraint, only political will and imagination are.