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Privatization of Indian Railways - Coggle Diagram
Privatization of Indian Railways
Context
Indian Railways recently initiated the process to allow private firms to operate passenger trains on its network through 151 new trains
The privatization of Indian railways has been recommended for many decades
Why privatize Railways?
Boost job creation
Provide enhanced safety
Reduce transit time
Provide a world-class travel experience to passengers
To introduce modern technology rolling stock with reduced maintenance
About Indian Railways
It is plying 23 million travellers and 3 million tonnes (MT) of freight daily from 7,349 stations
India’s railway network is the 4th largest railway network in the world and 2nd largest in Asia
Spread over 1,23,236 km, with 13,452 passenger trains and 9,141 freight trains
It contributes in the national growth and economic integration of the country
Indian Railways is among the world’s largest rail networks
Problems faced by Indian Railways
Safety and poor quality of service delivery
Efficiency of terminals
Internal generation of resources
Increased Competition from the Aviation Industry
Congested networks
Constraints faced by Southern zones
Lower budget allocation due to a lower contribution to revenue shares
Demographic variations
Pros and Cons of Privatization
Cons
Fares affordability issues
Issue of Cross-Subsidisation
Coverage Limited to Lucrative Sectors
Conflict of Interest, Social Welfare Concerns
Pros
Improved Quality of Services
Technology Infusion
Improved Infrastructure
Way Forward
Expedite the process of establishing the Rail Development Authority
Modernization of Railways
Independent Regulator
Implement the recommendations of the Bibek Debroy committee
Expansion of the Indian Railways manufacturing company
Corporatization of core functions of railways, etc.
Sustainable Pricing