FRIDAY, 18 SEPTEMBER 2026

On the right track

The Indian Railways needs to improve their abysmal record, from quality of services to finances. With an experienced minister at the helm, this just might happen

On the right track
Captured by : EDIT MAIN

I had a very interesting experience recently. It wasn’t getting stuck somewhere deep inside a dense forest at the dead of the night with a flat tyre. It was far worse. A Goa to Mumbai by train “guaranteed lock-in for a flat 18 hours in a so-called “super fast train”!

There are no arrangements for catering, you are completely at the mercy of sundry vendors where the word hygiene is alien, the linen supplied is wet and it stinks. The less said of the washrooms the better. Finally, you get stuck for hours just before the station in Mumbai without the slightest apology for a communication. If you have something important “ keep off trains.

If you take a look at the micros “ an unbeaten track record of 12 accidents in the last six months, cockroaches in casserole dinners in the Rajdhani and Duronto Express trains, a series of retiring rooms perpetually full and the services there are better not commented on. All this when even the upper classes are practically at market rates now.

The political side

For the last six decades the Indian Railways have served as the political fiefdoms of the concerned minister. Viewed as fit for accommodating cronies, awarding contracts, a huge prime land bank under your thumb, form new zones with a blatant eye on future electoral prospects “ finances and viabilities be damned. So you had the spectacle of the railways entering into theatres, football stadia, multi-speciality hospitals and educational institutions. In short everything but running efficiently passenger and freight traffic. The only silver lining however was that 80 percent of the foundation stones actually never took off. In the bargain, safety, efficiencies and productivity suffered. Further in this very bargain Goa constantly lost out “ it pitifully lacks proper passenger and freight infrastructure and services.

The plans of the government

For probably the first time we have a railway minister who is the professional who understands the impacts of executive decisions. We have now a clear approach on paper. What we however miss is the wherewithal as also the stress on sweating the existing capacities - human, equipment and financial resources.

The human resources angle

The railways earn around Rs 1.6 lakh crores a year of which more than half, around Rs 81 thousand crores, goes towards staff costs and pensions. I do appreciate the good things achieved however, say the passenger and freight reservation systems “ but how are they reflected in optimalisation of human resources “ instead there are growths of around five percent each year in real terms. The railways competitive edge over road has diminished over the last five years and there are slow shrinkages in major areas.

Railways have to be cost competitive to stay the leader. This means a close appraisal of the organisation “ the numbers and the core competencies “ and finally decisions on outsourcing passenger upscale trains are important.

Major thrust areas

All of the thrust areas spelt out are really the ones which the industry and the travelling public have been crying hoarse for decades. Although there is a mention of skilling “ I would suppose “ there has to be serious initiatives for reskilling, training and innovations. The RDSO and the RITES have more or less become commercial regulatory bodies. I think the railways have to do much more.

Services

Although there is a whole thrust area on “quality of life on journeys”, what I miss is the task ahead in providing efficient honourable and dignified travelling experience to the common man “in the unreserved second class coaches.

I think this is abysmal ironically when we aim to clock double digits growth figures. It is a shame “ if you happen to look inside these compartments in a train standing at the Margao station depression is bound to get the better of you. I already described the quality of service in the so called upper classes. I think the railways should first set itself on improving existing services and bring them to an acceptable level.

But 35 percent of the railway revenues - Rs 56 thousand crores - go towards operational expenses like fuel and stores etc, the operating ratio (the expenses on the income) is as high as 95 percent.

Safety

In an accident “ appoint a committee and allow them years to report “ when the report comes if at all “ shelve it. There can always be a coalmines-license-sale-file-missing to bail you out. That seems to be the current mantra. Blame the unseen and make a statement next day - we require a lakh crores from Japan for our safety. Why do we not start with rudimentary things like unmanned crossings, fencings, signalling “ the things which are within our powers?

The plan expenditures are around Rs 67 thousand crores, 60 percent of which are for wagons and coaches, and a meagre four percent is kept for safety. Nothing could be more ludicrous I think.

Important indicator to governance

Railways serve as a visible indicator of the quality of governance and accountability in different countries. It is important that the improvements are planned in time bound small steps rather than something huge and leave it for another 68 years in perpetual cold storages “ the signs do raise serious concerns.

- Binayak Datta is a senior Chartered Accountant and a Corporate Consultant. He is also a visiting lecturer at prestigious educational institutions across Goa

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