Privatization of Indian Railways: Advantages and Disadvantages

Privatization of Indian Railways: Advantages and Disadvantages : DipuTony.in

 

  • The government of India, taking steps towards the privatization of Indian Railways.
  • It has invited private parties to run passenger trains on 109 routes.
  • The trains running on these routes will have a minimum of 16 coaches and their maximum speed will be 160 km / h.
  • Indian Railways manages the world’s fourth largest railway network in size with a route length of 67,415 km as of March 2019.

 

Indian Railways (IR) is the national railway system of India operated by the Ministry of RailwaysThe Central Government runs Indian Railways to increase public welfare and not as an objective of making profit. Indian Railways manages the world’s fourth largest railway network in size with a route length of 67,415 km as of March 2019.

According to the government’s data, Indian Railways will need Rs 50 lakh crore for the next 12 yearsWhile the government does not have that much money to spend only on this sector.

The running of the railways in India is due to the British and Indian Railways, one of the largest rail services in the world, has been in the hands of the government since 1853. But now the government is also involving the private sector in it.

How will the railway be privatized?

Currently, 13 thousand trains are running in the country and to bring equality between demand and supply, 7 thousand more trains will be run. Presently the regulation and management of these trains are done by the Indian Railways but now the management work will go into the hands of private players.

Taking steps in this direction, the Government of India, taking steps towards the privatization of Indian Railways, has invited private parties to run 151 passenger trains on 109 routes. The trains running on these routes will have a minimum of 16 coaches and their maximum speed will be 160 km / h.

Indian Railways has said that it will give these projects to private companies for 35 years. However, the drivers and guards in all these trains will be from the Indian Railways.
Private players will pay the Indian Railways a share in the gross revenue determined through the Transparent Revenue Process, the prescribed transportation charges, energy charges as per actual consumption.

The objective behind this privatization is to rid the Railways of late, increase passenger safety, provide world class travel experience to passengers and provide confirmed tickets to all passengers.

Advantages and disadvantages of railway privatization:

1. The government argues that all trains built under private participation will be built under the ‘Make in India’ project, which will create employment, which is a very small argument because the trains are ‘Make in India’ project without giving it to the private sector.

2.  Maintenance of trains will be done by the private sector, so that there will be cleanliness in them.

3. Trains will arrive on time by going to private sector. This argument is also not very strong because the government can overcome the shortcomings due to which trains are late. What will the private players do so that the trains will not be late? If the private players can stop the trains from getting late, then why not the government?

4. Passengers will be able to get better security because private players will spend more money and bring new technology. This argument has some power because the government’s fiscal deficit is increasing and the government does not have any more money.

5. It will help to bridge the gap between demand and supply between tickets. Because the number of trains will increase.

6. These trains will be made in such a way that their maximum speed can be kept 160 km. This will save people’s time.

7. The biggest disadvantage of railway privatization is that it will end a large number of government jobs because private players will like to maximize profit by getting more people to work.

8. There is also a possibility that private trains should be given a clear signal, so that those trains will arrive on time and the government trains will keep waiting outside the station.

9. The most severe effect of privatization will be the increase in railway fares, which the poor and middle class will not be able to afford.

In a nutshell, it can be said that the privatization of railways will bring about the same results as between government and private schools. Government schools do not have education and fees of private schools are so high that not everyone can afford it.

 


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