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Showing posts with label Railway. Show all posts
Showing posts with label Railway. Show all posts

Thursday, March 22, 2012

Clock is ticking for India's railway network, a vital but broken asset

Kanpur:  As the Kalka Mail train pulls into Delhi railway station at dawn, it is every man, woman and child for themselves.

Before the train has stopped, crowds elbow and jostle into packed compartments destined for Kolkata, 1,500 km and 25 hours away on one of the largest, most decrepit and dangerous rail networks in the world.

Bare-footed women with children shout to be let into carriages while an old woman in an orange saree shuffles along the platform, bent over a walking frame. Above the melee, suitcases glide toward the train, borne aloft on the heads of porters.

Some passengers pause to brush their teeth on the platform, which stinks of excrement. Near a "No Spitting" sign, an infant squats in the open, defecating as her mother watches over her.

Another day on Indian Railways has begun - another day on which the nation's aspirations to become a wealthy economy risk being derailed by a neglected asset whose potential remains to be unlocked by bold political leadership and fresh capital.

Indeed, if that potential was unleashed, estimates suggest it could add as much as 2 per cent to India's flagging economic growth.

By the end of the day, about 40 people on average will have died somewhere on the network of 64,000 km (39,800 miles) of track. Many will be slum-dwellers and poor villagers who live near the lines and use them as places to wash and as open toilets. Some will have fallen off overcrowded commuter trains.

Of the 20 million people who travel daily on the network, many will arrive hours, even a day, behind schedule, having clattered along tracks and been guided by signalling systems built before Independence.

Businesses, including foreign firms and exporters, will be exasperated, as their freight is obliged to give way to the slow-running and congested passenger services. Country-wide, trains hauling goods and raw materials such as coal will have to wait in sidings for hours until given the all-clear.

Last week, after many false dawns, the railways appeared to have finally found the political will to tackle the problem head-on, announcing the first rise in rail fares in eight years as part of a plan to improve network safety and efficiency.

The government's resolve did not last long -- Railway Minister Dinesh Trivedi was forced to quit within days because of opposition to the move within the ruling coalition, raising expectations his decision on fares will soon be reversed.

"I'm worried about safety. I did what I did because of safety," Trivedi said almost apologetically in announcing his resignation.

In a paradox familiar to reform-minded Indians and foreign investors, the most hostile reaction to the planned fare hike came from Trivedi's own party boss, Mamata Banerjee, who only three years earlier had called for bold action when she was railways minister.

West Bengal's 90 million people rely on Indian Railways' extraordinarily cheap tickets to find work in more affluent regions. She opposes higher fares for the masses.

Not a hopeless case
The Kalka Mail is crowded with poor people from across the sweep of northern India's Gangetic plains, including Minar, a 30-year-old cycle-rickshaw driver who works in the old part of New Delhi and heads home every three months to Kolkata, the 19th century colonial capital also known as Calcutta.

His face framed by a shock of black hair and a moustache, Minar wears a cream shirt and dirty brown trousers and sits hunched on the floor inside a hot and crowded general-class carriage where a fare costs just 200 rupees.

Although his ticket is among the cheapest in the world, thanks to heavy cross-subsidies from the network's freight operations, it is still worth at least half of the 300 to 400 rupees he has saved from pedalling people around the capital.

"What can I do if they raise the fares?" Minar said, as nearby six people crammed onto a hard wooden bench meant to accommodate three or four. "I want them to go down."

But even here, in a cramped carriage cut off from the other classes of travel by iron shutters, there is some support for a hike, provided the money is invested in a safer network.

"Dinesh Trivedi is a good man," West Bengali fish trader M.B. Zia ul-Haq says of the ex-railway minister who is his local member of federal parliament.

"He raised prices for the sake of the railways."

Arvinder Agnihotri, who owns an electronics business in Kanpur, a faded industrial city in Uttar Pradesh state about halfway along the route to Kolkata, is like-minded: "Why shouldn't they increase fares, if they improve the services?"

In second class, which ferries more than 90 percent of Indian Railways' passengers at prices that are also unprofitable for the state-owned network, the view is even more supportive - offering hope to the few optimists who believe India will soon be forced to drag its railway into the 21st century.

"The railways need money," says J.N. Shukla, a portly, bespectacled India Railways official who is travelling as a passenger this day. He is one of some 1.36 million employees of Indian Railways, a number that makes it one of the top 10 employers in the world.

"Every year they are increasing the number of trains, but not the number of tracks. That's why there are so many accidents and why the trains take so long."

Shocking crash
In July last year, the Kalka Mail never made it to its final destination. Its engine suddenly stopped, derailing more than a dozen carriages, killing 71 people. It shocked an increasingly affluent India, though it had followed a long list of rail disasters, including several more deadly ones, since the 1980s.

For many Indians, who have seen their nation develop rapidly since the late 1990s to become Asia's third-largest economy with sophisticated high-tech, drugs and telecoms industries, the ramshackle state of Indian Railways has become an embarrassment.

That is felt especially keenly when comparisons are made with neighbouring China, where bullet trains zip across the country at around 300 km (186 miles) per hour and safety concerns stem from overly rapid development rather than too little. By contrast, India's fastest train runs - on just one stretch - at a top speed of 161 km (100 miles) per hour.

Critics regard Indian Railways as emblematic of the nation's problems overall: stifling bureaucracy, inefficiency and most importantly a lack of public funding and a political unwillingness to open up to abundant private capital.

A recent report submitted to the government concluded that modernising the rail system could potentially add 1.5-2.0 percent to economic growth, creating new jobs, saving energy, improving the environment and moving people and goods more efficiently around the country.

The Congress party-led government has not stood completely idle - it has announced a $90 billion freight corridor between New Delhi and Mumbai - but critics say policy implementation is slow to non-existent, even though local and foreign investors are quietly queued up, waiting for a signal.

"India hasn't gone fast enough," says Pratyush Kumar, head of the India transportation business of General Electric, maker of diesel-electric locomotives and signalling systems.

"If you look at the track record of what has been implemented from what has been talked about, that's not a very pretty picture. They have to move away from talking to doing."

Wanted: $20-30 billion a year
At least $200 billion will need to be spent on Indian rail over the next decade alone, according to consultancy McKinsey, though it suggests closer to $300 billion should be spent, including the creation of five high-density freight corridors.

With India heading for a budget deficit of 5 percent of gross domestic product in 2012/13, and economic growth slowing, investors hope New Delhi will have no choice but to fully embrace public-private partnerships and open the network wider to foreign capital - or risk the economy decelerating further.

Indian media have speculated that wily U.S. investor Warren Buffett - whose penchant for railroad investments led his Berkshire Hathaway Inc. to pay $26.5 billion for Burlington Northern Santa Fe Corp in 2010 - may be interested in buying Indian railway investment bonds.

Buffett's office has so far declined to comment on the reports, though it is more likely that foreign capital will come from infrastructure firms in the form of direct investment.

British private-equity firm 3i Group Plc has already launched a $1.2 billion India infrastructure fund, though railways is not listed for now as one of its major focuses.

"There is a lot of scope to come in and a huge amount of investments can come in from the private sector but the railways have to open up. Till now the Indian railways had been very closed," says Hemant Kanoria, chairman and managing director of India's Srei Infrastructure Finance Ltd.

Opening up, though, may require a new mindset among ruling classes - a matter of politicians no longer treating rail as a crowd-pleasing form of ultra-cheap state transport, and of lifelong railway bureaucrats giving way to the private sector.

"The bureaucracy of the organisation is lacking business sense," a senior civil servant in the railways ministry said on condition of anonymity, just before minister Trivedi quit, to be replaced by another of Banerjee's West Bengal politicians.

"The political leadership has (also) not taken a business-like outlook. That is why the railways are suffering."

Many Indians are fed up with Prime Minister Manmohan Singh's coalition, so fragile it is unable to push through critical reforms - not even a modest increase in rail fares - before the next election due in 2014. Indeed, speculation is mounting the government will collapse before its term is up.

As if to underline the sense of paralysis, hours before the government installed another of Banerjee's West Bengal politicians, Mukul Roy, as its new railways minister on Tuesday, a train crashed into a van at a level crossing in Uttar Pradesh state, killing 15 people.

The clock is ticking for the railway network, a vital but broken asset that could yet help put the Indian economy back on track - if only there was the political will.

But there is little sign of that inside Delhi's old railway station, a red fort-like building built by the British at the turn of the last century, whose overcrowded platforms now reek of multiple odours.

A train returning from Kolkata is running five hours late. "The inconvenience caused is deeply regretted," announces a voice from loudspeakers.

Copyright Thompson Reuters 2012

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Sunday, March 18, 2012

Five railway unions write to PM in support of Dinesh Trivedi

New Delhi:  His party, the Trinamool Congress, may not want him as the Railways Minister anymore but Dinesh Trivedi has found some much-needed backing from the behemoth that he is currently in charge of. Five railway unions have written to Prime Minister Manmohan Singh expressing support for Mr Trivedi, urging him to "not allow the politicisation of the Indian Railways".

The unions have, in their letter, threatened to agitate if there is a rollback in hike in passenger fares. The rise in fares, which was announced in the Railways Budget presented by Mr Trivedi on Wednesday, had triggered a political storm with Trinamool Congress chief Mamata Banerjee throwing a fit. But this time, it wasn't the Congress but her own party man Mr Trivedi, who was at the receiving end of her anger. Ms Banerjee promptly shot off a letter to the Prime Minister, demanding Mr Trivedi's immediate removal as the Railways Minister. That was not all. She also asked all her leaders to go their respective constituencies to explain the "betrayal" by Mr Trivedi. Her party also wants the government the reverse the rise in fares.  

The unions, though, have made it clear that a rollback isn't acceptable to them if it is not met with a corresponding increase in support from the government exchequer. Mr Trivedi, who is facing flak from the Trinamool, has justified his decision to increase fares as one that would help raise funds for the development and modernisation of Railways. "If you roll back the fares, you have to roll back safety too," he has said. The fare hike he has announced is nominal - two paise per km for the cheapest tickets and 30 paise per kilometre for the most expensive ones.

Mamata Banerjee has already sounded out the government that she isn't willing to wait any further for Mr Trivedi's removal, reflecting in her announcement of the minister's replacement, Mukul Roy. "Mukul Roy will be next Railways Minister. He has been a Trinamool MP for six years already. He has been re-nominated to the Rajya Sabha this time. He is a good worker. Now the government will have to decide," she said in Kolkata today. With her party bringing in 19 crucial MPs to the table, the Congress which heads the UPA coalition, is also avoiding a fresh confrontation with Ms Banerjee and a resultant deterioration of the already-strained ties with her party. Dinesh Trivedi, who has defiantly stayed on as the Railways Minister so far, today made it clear that he would step down only in the event of Ms Banerjee putting down her order in writing. "Till the time the matter is absolutely clear, I have suggested I do not want to take anything verbal. For me, Parliament has more sanctity than anything. So, I suggested let Mamata write me a letter so that there is no confusion...I will perform my duty as a Railway Minister," Mr Trivedi told reporters in New Delhi today. (Read: Dinesh Trivedi wants marching orders in writing from Mamata) With the railway unions rallying around him, the beleaguered minister may finally have some hope.

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Mamata was aware of the fare hike before Railway Budget: Sources

New Delhi/Kolkata:  In the midst of all the noise that she has made over demanding the removal of party man Dinesh Trivedi as Railways Minister over the hike in passenger fares, it has now emerged that Trinamool Congress chief Mamata Banerjee was reportedly aware of the proposed increase in rates before the Railways Budget.

Sources have told NDTV that Ms Banerjee, the Chief Minister of West Bengal, and Gautam Sanyal, who is her Special Secretary were in the loop of the politically-sensitive decision. Not just that, leaders from the Opposition, sources say, were also asked for their views on the Budget before the hike in fares was finalised. Most leaders, cutting across party lines, admitted that an increase in fares was inevitable, sources add.

The revelation would come as a huge embarrassment for Ms Banerjee, who has been stinging in her criticism of Mr Trivedi and is adamant over his removal as the Railways Minister over the hike in fares. Her accusations of "betrayal" levelled against Mr Trivedi could also fall flat given the fact that she had reportedly been consulted over the hike - a bold move and the first in nine years that has put Mr Trivedi in the eye of a storm after he presented his maiden Railways Budget on Wednesday.

But the minister seems unfazed. As the government contemplates over Ms Banerjee's demand for his ouster, Mr Trivedi said, ""I expect the PM to do what the PM should do". He has also refused to resign as Railways Minister till he receives orders in writing from his party chief, Ms Banerjee. "Till the time the matter is absolutely clear, I have suggested I do not want to take anything verbal. For me, Parliament has more sanctity than anything. So, I suggested let Mamata write me a letter so that there is no confusion...I will perform my duty as a Railway Minister," Mr Trivedi told reporters in New Delhi today.

Acting on Ms Banerjee's behalf, party colleague Kalyan Banerjee, earlier in the day, reportedly told Mr Trivedi that when he was made Railways Minister, he did not receive written notice; hence it was not required now. Something that was reiterated by senior party leader Sudip Bandyopadhyay who said that there will be nothing in writing to Dinesh Trivedi. 

Since Ms Banerjee wrote to the PM asking for Mr Trivedi's removal, he has defied her repeatedly. He has attended Parliament and refused to rollback the hike in passenger fares that led to her demanding his dismissal. On record, he has been deferential, stating that he will quit as soon as Ms Banerjee requests. The two have reportedly not spoken directly since Mr Trivedi presented his Rail Budget on Wednesday.

Ms Banerjee has said repeatedly that she wants Mukul Roy, also from her party, to be made the new Railways Minister. The Congress had asked her to wait till March 30 when Parliament breaks to make the change. She has allegedly indicated that is not acceptable. Today in Kolkata she said, "Mukul Roy will be next Railways Minister. He has been a Trinamool MP for six years already. He has been re-nominated to the Rajya Sabha this time. He is a good worker. Now the government will have to decide."

However last night, it appeared that Ms Banerjee had lifted that deadline. "It is nothing to be hurried, nothing to be worried. The issue is being dealt with by the PM and Mamata," said Sudip Bandhopadhyay, who is from the Trinamool Congress (TMC). He added that the Prime Minister and Ms Banerjee spoke on Thursday night.

The lifting of the deadline for Mr Trivedi's removal suggested that Ms Banerjee was not immune to reports that the Congress has been considering replacing her in the ruling coalition at the Centre with Mulayam Singh Yadav and his Samajwadi Party MPs.

Sources in both the Congress and Ms Banerjee's party say that both sides are also close to resolving another large dispute. On Monday, in Parliament, the Prime Minister will address some of the concerns raised by Ms Banerjee to the new National Counter Terror Centre or NCTC. Ms Banerjee has said the NCTC's powers violate the autonomy of state governments and federalism. Her party moved amendments to the President's address to Parliament earlier this week, asking for a reference to the NCTC to be deleted. The President's address outlines the government's agenda; allies rarely ask for amendments. The BJP has moved similar amendments on the NCTC, and is likely to press for a vote. That could put Ms Banerjee's MPs in the awkward position of voting with the BJP and against the government. The PM, in his reply to the motion of thanks to the President's address on Monday, is expected to assuage Ms Banerjee's fears about the NCTC. That could help diffuse at least some of the tension between the political partners.

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Thursday, March 15, 2012

Full text of Dinesh Trivedi speech on Railway Budget 2012

New Delhi:  Dinesh Trivedi, presenting his first rail budget, had his task cut out. His focus, he said, was three-pronged: "Safety, safety, safety."  Following very closely behind were consolidation, decongestion and modernisation.

Here's the full text of his speech:

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