Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

Indian Railways (IR), the most vital transportation system of the country, was owned, operated and regulated by the Government of India and was accountable to the Indian Parliament. Since 1853, the IR weaved ‘India into a nation’ and became the lifeline (social, economic and political) of Indian transportation system as the passenger and freight traffic picked steam. However, IR was faced with severe financial crunch, and was on the brink of collapse, despite the efforts of successive governments which had constituted expert committees and appointed consultants, whose recommendations for revival of IR remained only on paper. In 2014, the new government led by Prime Minister Narendra Modi, who believed that the government had no business doing business, had placed IR reforms high on the growth agenda, to put the national transporter back on the track. One of the major initiatives of the new government was to open IR operation for investment, both domestic and foreign, to raise $100 billion in the next 3-4 years to transform the organisation to make it an example of service with high output and efficiency. However, a section of analysts were of the opinion that the government needed to have more clarity on the revenue model for which investment was required and a good business model which can get a good return on investment. While others felt that unless the fundamental purpose and governance of railways in India was made clear, the root cause of most of IR's problems would remain unresolved.
Location:
Other setting(s):
2014

About

Abstract

Indian Railways (IR), the most vital transportation system of the country, was owned, operated and regulated by the Government of India and was accountable to the Indian Parliament. Since 1853, the IR weaved ‘India into a nation’ and became the lifeline (social, economic and political) of Indian transportation system as the passenger and freight traffic picked steam. However, IR was faced with severe financial crunch, and was on the brink of collapse, despite the efforts of successive governments which had constituted expert committees and appointed consultants, whose recommendations for revival of IR remained only on paper. In 2014, the new government led by Prime Minister Narendra Modi, who believed that the government had no business doing business, had placed IR reforms high on the growth agenda, to put the national transporter back on the track. One of the major initiatives of the new government was to open IR operation for investment, both domestic and foreign, to raise $100 billion in the next 3-4 years to transform the organisation to make it an example of service with high output and efficiency. However, a section of analysts were of the opinion that the government needed to have more clarity on the revenue model for which investment was required and a good business model which can get a good return on investment. While others felt that unless the fundamental purpose and governance of railways in India was made clear, the root cause of most of IR's problems would remain unresolved.

Settings

Location:
Other setting(s):
2014

Related