Track to efficiency: On creating a Rail Development Authority (दक्षता का ट्रैक: रेल विकास प्राधिकरण बनाने पर) APRIL 08, 2017

The Hindu Editorial

Track to efficiency: On creating a Rail Development Authority (दक्षता का ट्रैक: रेल विकास प्राधिकरण बनाने पर)

A Rail Development Authority is more than a bold reform move, it’s a paradigm shift Creating a Rail Development Authority (प्राधिकरण) for India is among the most significant reforms (महत्वपूर्ण सुधार) to an infrastructure (आधारभूत) system (प्रणाली) undertaken by the government. The railways connect the country’s far corners and act as a driver of the economy. High rates of economic growth have raised the demand for travel, but this remains largely unmet (आवश्यक). The popular aspiration (अभिलाषा) is for a modern system that offers high-quality travel with low risk of accidents, while industry wants smooth freight (माल ) transfer (ढुलाई). An independent, empowered (सशक्त) regulator could be the paradigm shift (प्रतिमान विस्थापन) that is needed. The proposed (प्रस्तावित) Authority (प्राधिकरण) would have to ensure (सुनिश्चित करना) that the resources (संसाधन) of the system are optimally utilised, (बेहतर उपयोग,) overcoming existing inefficiencies (मौजूदा अक्षमताओं) that arise from the fact that policy, regulatory and management functions of the railways are intertwined. As the National Transport Development Policy Committee noted in 2014, the centralisation (केंद्रीकरण) of all functions in the Railway Board has proved detrimental (हानिकारक) to the organisation’s (संगठन) growth, particularly (विशेष रूप से) a time when there is a need for massive (बहुत बड़े पैमाने पे) investment in infrastructure (आधारिक संरचना) for 7%-plus GDP growth. Conversely, robust economic expansion (आर्थिक विस्तार ) further raises the demand for railway services. To reconcile (समाधान करना) this, the regulator has to identify sectors that can support higher tariffs and also produce greater volumes of traffic. Such accurate interventions (सटीक हस्तक्षेप) are critical if the trend of declining rates (गिरावट दर) of growth in railway freight revenues ( भाड़ा राजस्व ) and volumes, which set in during 2011-12, is to be reversed.

One of the big challenges (चुनौतियां) before the Centre is to facilitate (सुविधा प्रदान करना) higher non-budgetary investment in the railways. The Bibek Debroy Committee found the private sector is discouraged (हतोउत्साहित) from participating (भाग लेने वाले) more effectively (प्रभावकारी) due to a monopolistic (एकाधिकार) framework. Coming up with a system that de-risks private investment and creates a level playing field are among the major challenges before the Rail Development Authority. In the area of passenger services, this offers several possibilities; the railways cater to some 23 million passengers a day in a network of about 8,000 stations. The experience of consumers in cities shows that use of information technology to deliver traditional services can lead to higher levels of efficiency and lower costs, besides adding jobs. While regulation  (विनियमन) of tariffs matching the quality of travel can help raise revenues (राजस्व), the system should be able to move both people and freight (भाड़ा) faster in order to grow. Inducting faster, (तेजी से शामिल करना) more comfortable trains on 500 km-plus inter-city routes would attract new traffic, and help operate cheaper passenger (सस्ता यात्री) trains to interior areas, (आंतरिक क्षेत्रों) as part of the government’s social obligation.(सामाजिक दायित्व) Technology upgrades are essential (आवश्यक) to raise carrying capacity, (क्षमता ) service frequency and speeds. Rail reform is complex and what was undertaken in Europe during the 1990s, separating  infrastructure from operations, is an interesting model: sequential measures (अनुक्रमिक उपाय) achieved sustainable (सतत) results, rather than a package of changes introduced at once.