Dear Mahesh, I understand your pain. Suggest a solution. How can railways live without hiking fares. Is it possible that your costs remain constant and salary increase. First i don't live in Mumbai. I live in bangalore. We use BMTC bus for commutation. For us the monthly bus pass in normal bus is Rs825. The diesel hike is directly passed on to us. Are we not citizens of India. do u think we have salaries more than Rs20000. I feel its time the people start paying and demand service. this chicken and egg situation cannot go on
We seem to have arrived at a stage where the people want to have everything for free. The fares in Mumbai have remained stagnant for such a long time that one forgets when the increase was allowed to happen last! All those who use the locals are also aware that they have had to pay more and more for everything over the years so why not for their travel? With welfare states collapsing all around, its time we realise that there are no free lunches to be had.
Presenting a one-sided argument does not make a good article. I am sure that the government has to balance the needs of a poor country and a potentially ticked-off voter base against rising deficits. Basic economic theory tells you that rising budget deficits is bad for the country - it leads to higher taxes, possibly higher inflation among other things. However, deficit spending that serves as an investment in future growth is a good thing.
The Railways serves different purposes for different people - transporting essential freight (food etc.), non-essential freight (cars, many types of minerals and ore), commuting workers and students and leisure travellers (there could be other groups as well). In these groups, a solid argument for subsidies can be made for essential freight and commuting passengers. However, the other groups need to pay for themselves. If you look at the situation post the rollback of the price increase on suburban travel, this is what the price increase accomplishes (pretty much).
That said... I understand that we are a poor country, but we do need to understand that subsidising anything except the basic necessities for an extended period of time is dangerous to our economy. Therefore any argument that presents subsidies as pro-people is incredibly short-sighted.
railways can reintroduce the III class for poorer persons and people belonging to middle class and above who not afford the I class can travel by II class!
it is the affordability of the commuters and the means at railway's d that sisposal hould be taken into consideration!
Re: If the Railways is so cash-strapped
by blogger on Jun 27, 2014 08:47 AM
That is called benefit. An employee spend their life time for serving an employer, then employer must takecare the welfare of the employee lifelong. Thats why they have pension and other benefits. You must come out from thirdworld mentality
The public should NOT believe government’s fallacious argument that the fare-hike is imperative because the cost of providing services has increased. The fact is that the OR [Ratio of Expenditure to Earning] in 8 of IR’s 17 zones is more than 100%. If East Coast, SE Central, North-Central and West Central could earn every 1 Re with 45.3, 53.2, 62.3 and 76 pe expense on operations, there is no reason for North Eastern, Eastern, NE Frontier and Kolkata Metro in the same IR system to spend Rs. 1.86, 1.94, 2.06 and 3.66 on every Re they earn! This only goes to prove that a large part of IR is inefficiently run. The public should NOT be made a victim for the government’s inefficiency!
Indian Railways makes daily losses of Rs 900 crore per day?
So, how can it even improve any services when it doesn't even have the money to even maintain services? UPA let it rundown completely to the ground.
Unfortunate part is that Indians are used to subsidy and loss making government enterprises - a soviet concept. Do you think that privatization will solve that because private companies will be able to make losses every day and still provide services?
I think that government should allow private companies to run their own freight and passenger trains in addition to the government trains. Let consumers decide which company they prefer for transporting goods and people. Look what it has done to airport transport and the same can be done in Railways too.
Re: How do you run a loss making enterprise?
by samuel anthony on Jun 24, 2014 12:19 AM
please check your figures.. or go through Indian gvernment psu report on link http://www.oecd.org/daf/ca/corporategovernanceofstate-ownedenterprises/42095406.pdf
