Modi Wants Indian Railways to be Better Than Airports, Calls for Private Sector Role

[Rahul9090]

Prime Minister Narendra Modi on Friday called for railways to have better facilities than airports and asked "private parties" to be ready to invest in the project, during the inauguration of the Udhampur-Katra rail line project in Jammu.

This comes as an indication of the Modi government's willingness to increase private investment in the Railways just a few days ahead of the presentation of the Railway Budget.

"We want the railway stations to have better facilities than airports. This is our dream and it is not a difficult thing to do and this is economically viable too, Modi said, reported Press Trust of India. "Private parties would also be ready to invest because this is a good project economically and will benefit everyone. This would be a win-win situation project and we want to move ahead in this direction in the coming days."

Modi also said that he has already given a detailed layout of the project to improve railway facilities to Railway Minister Sadananda Gowda that will bring a "change in the near future". Gowda will be presenting the Rail Budget in the Parliament on 8 July.

The Indian Railways is expected to see a major overhaul under the new government, with Modi promising bullet trains and diamond quadrilateral projects to connect high speed trains.

"Seeing the recent trend and level of activities, I am sure that the government of today will come up with several innovative and out-of-the-box ideas and policy announcements to achieve a quantum jump in freight traffic as well as introduce modern, safe and comfortable passenger services," Umesh Chowdhary, Vice Chairman & Managing Director of Titagarh Wagons told The Economic Times. Meanwhile, Railway-related stocks gained up to 3 percent just a few days ahead of the Rail Budget.

Modi has already created expectations of bringing in a bigger private sector role in several sectors, especially opening of defence to foreign direct investment, to ensure that India goes from being the world's largest importer to become a major manufacturer of arms.

The changing economic scenario under the Modi government prompted Nitin Nohria, dean of Harvard Business School to say that India has "suddenly become a promising investment destination."

During a session in New Delhi a few days ago, the India-born Nohria said that "Better leadership inspires others." He also said that the country has an "amazing moment of opportunity in terms of international business sentiment," according to Business Standard.

"People will wait for six months to see if the initial excitement translates into direct action. It is guarded optimism," he added.

Modi Wants Indian Railways to be Better Than Airports, Calls for Private Sector Role

 

[Abotani]

But who will bell the cat that is the indian public and its addiction to subsidies?

 

[Mr.S.Singh]

But who will bell the cat that is the indian public and its addiction to subsidies?

this means we are coming close to ending of subsidies or they will add station maintenance charges/tax to your tickets

 

[Screambowl]

The budget will now be used to the fullest.

 

[Abotani]

this means we are coming close to ending of subsidies or they will add station maintenance charges/tax to your tickets

I hope so,we Indians need to learn to live without subsidies.It's disappointing to see economic growth being sacrificed for populous policies.

 

[Mr.S.Singh]

I hope so,we Indians need to learn to live without subsidies.It's disappointing to see economic growth being sacrificed for populous policies.

subsidy exist because a staggering amount of our population is poor

 

[Abotani]

subsidy exist because a staggering amount of our population is poor

Which does not help when those subsidies and policies are the things keeping them where they are.Blatant misuse of such populous scheme is widespread in India.One only needs to take a look at the BPL system to know just how counter-productive it is.

 

[Mr.S.Singh]

Which does not help when those subsidies and policies are the things keeping them where they are.Blatant misuse of such populous scheme is widespread in India.One only needs to take a look at the BPL system to know just how counter-productive it is.

subsidy is a problem, but it has been over-exaggerated, inefficiency and mismanagement of funds with corruption is the bigger leach
lots of nation subsidies, hell even US and EU subsidies for their poor

 

[Android]

I hope so,we Indians need to learn to live without subsidies.It's disappointing to see economic growth being sacrificed for populous policies.

one of the drawbacks of Democracy in a developing country.

 

[Abotani]

subsidy is a problem, but it has been over-exaggerated, inefficiency and mismanagement of funds with corruption is the bigger leach
lots of nation subsidies, hell even US and EU subsidies for their poor

That is the point,we are not a developed,prosperous nation which can afford subsidies unlike EU or US.Heck even they find it difficult to keep up the subsidy system.The problems with corruption and mismanagement will remain,like it does everywhere although there is much we can do to reduce it drastically.
Even this will does not address the issue that populist measures actually hurt economic growth and impoverish the very ones it is meant to benefit.

 

[Mr.S.Singh]

That is the point,we are not a developed,prosperous nation which can afford subsidies unlike EU or US.Heck even they find it difficult to keep up the subsidy system.The problems with corruption and mismanagement will remain,like it does everywhere although there is much we can do to reduce it drastically.
Even this will does not address the issue that populist measures actually hurt economic growth and impoverish the very ones it is meant to benefit.

subsidy isnt that bad, it actually helps economy in the long run

Subsidize health care ?? = healthy Indians, increases productivity in the long run

no govt in India can afford to stop populist measures 100%, that would actually be criminal, remember there are 600 million poor also that live in India

 

[Bang Galore]

subsidy isnt that bad, it actually helps economy in the long run

Subsidize health care ?? = healthy Indians, increases productivity in the long run

no govt in India can afford to stop populist measures 100%, that would actually be criminal, remember there are 600 million poor also that live in India

Lousy point. Our heath care is in shambles. However that is not what is being discussed, one assumes that things like health, water , sanitation are not going to be charged at market rates. It is about other things in subsidised LPG(poor aren't the ones benefiting), subsidised diesel cars, MNREGA etc. Subsidies where required have to managed much more smartly, Aadhar was an excellent idea

 

[Abotani]

subsidy isnt that bad, it actually helps economy in the long run

Subsidize health care ?? = healthy Indians, increases productivity in the long run

no govt in India can afford to stop populist measures 100%, that would actually be criminal, remember there are 600 million poor also that live in India

But is it as you and I want it?No.It's all useless subsidies for laptops and every short term populism.The recent railway fare fiasco is just so typical of where we Indians demand our subsidies.
Do we demand it in public education sector to improve its quality so that the poor can hope to climb the social and economic ladder via education and empowerment or as you pointed out a decent public health care system?Or do we demand it for our railway fares,LPG cylinders,diesel prices and all manners of trivial things that actually pander to people of better economic disposition instead of the deprived Indian masses?

 

[Mr.S.Singh]

Lousy point. Our heath care is in shambles.

Mismanagement has a large part to play here

It is about other things in subsidised LPG(poor aren't the ones benefiting)

LPG subsidies are basically for lower middle and lower class, who clearly can't afford a cylinder at 1000-1200 bucks agreed, aadhar would have played a role here

, subsidised diesel cars, MNREGA etc. Subsidies where required have to managed much more smartly, Aadhar was an excellent idea

here is the twist, we are basically a economy that runs of diesel, transportation would take a hit with heavy deregulation, its not only diesel that hikes food prices, its routin unwanted challans that the trasnport industry pays both legal and illegal

But is it as you and I want it?No.It's all useless subsidies for laptops and every short term populism.

laptops are poll politics, do you and me use ration card ? even though we have it, it has been ages since he have actually gone to a shakari bhandaar

The recent railway fare fiasco is just so typical of where we Indians demand our subsidies.

My main contentions are medical & food subsidy and bit in railways (mass transport)

Do we demand it in public education sector to improve its quality so that the poor can hope to climb the social and economic ladder via education and empowerment or as you pointed out a decent public health care system?Or do we demand it for our railway fares,LPG cylinders,diesel prices and all manners of trivial things that actually pander to people of better economic disposition instead of the deprived Indian masses?

Education is difficult, you see ... education levels will improve with private university and colleges not govt once
LPG i am not sure, it does hit the lower class, to be fair we cant expect them to use chullas or kerosine chullas

 

[Chronos]

Mismanagement has a large part to play here


LPG subsidies are basically for lower middle and lower class, who clearly can't afford a cylinder at 1000-1200 bucks agreed, aadhar would have played a role here



here is the twist, we are basically a economy that runs of diesel, transportation would take a hit with heavy deregulation, its not only diesel that hikes food prices, its routin unwanted challans that the trasnport industry pays both legal and illegal

Also something people haven't touched here.

A lot of people do not pay for train tickets, I want to know how much that hits the pockets of the Indian railways.

Same as with electricity theft. And corruption within the system that overrun the projects.

The subsidies have to be managed smartly.