Indian Railways and the federal shackles - time for a break up

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Written By silkboard - 14 January, 2013

Bangalore SWR Reforms Complaint Infrastructure Indian Railways federal

There are state highways, and national highways, who builds and maintains what is pretty clear. Viability analysis and rate of return on investment is not the top consinderation when state, such as Karnataka decides to upgrade a state highway, or just build a new road to connect a new district.

Central Government (through national highway act, 1956) and now NHAI (through NHAI Act, 1988) does the job of:

... development, maintenance and management of national highways and for matters connected therewith or incidental thereto ...

Then, you have Karnataka government (through Karnataka Highways Act, 1964) doing the job of:

—The State Government may, by notification in the official Gazette, declare any road, way or land to be a highway  and classify it as,—
    (i) a State highway (Special);
    (ii) a State highway;
    (iii) a major district road;
    (iv) other district road; or
    (v) a village road.

and 

The State Government may ... appoint ... any person or any authority to be a Highway Authority for all highways in the State or in parts of the State, or for any particular highway or highways in the State ...

Contrast this with Indian Railways, and its geographically arranged, and seemingly administrative purpose only sub-parts like South Western Railway. There is no "mapping" of SWR to Karnataka, or any other state for that matter. There is no autonomy of decision making either with SWR, or state of Karnataka or both of them together.

  • What benefit do we get by waiting on Central Railway Minister's speech to get a completely in-state train like Kolar Karwar Express or Chamrajnagar Bijapur express?
  • When the central government takes on the additional burden of decision making by propagating even the local rail transportation needs all the way back to itself, we get neither efficiency nor speed.
  • A local politician at Karnataka just can NOT make things like a Hubli-Bangalore high speed rail corridor his main election plank. This line of promise-making is plain and simple closed for us.
  • Why can two states, say state of Karnataka and Tamilnadu not join hands to develop a faster rail corridor between Bangalore and Chennai, and execute the project with no decision making dependency on the central government?

Rail, Road and Air are the three main modes for connectivity infrastructure. Air not being as practical for spread (cost), rail and road are key. In here, state has the authority to develop and manage only one - "Decade long delay in double line between Bangalore and Mysore, okay, we will do our own 4 lane highway!"

To keep the inter state connectivity hassle free and smooth, designated tracks could be owned by a central entity. Or "slots" on marked and designated lines connecting state capital with each other could be handed over to a central authority to plan and operate longer distance cross-state goods and people movements.

But one doesn't see much merit in the Indian Railways staying the way it is today. It can be argued that it is hurting public interest now, poor people (and small businesses - for moving goods) are being denied the cheaper (in most cases) and faster connectivity (that rails offer) and are instead being lured towards fossil fuel based and more expensive (air, private vehicles) options.

It would seem that a central authority is required only to

  • Issue and certify technology and safety standards
  • Safeguard cross-state and through-state corridors in the national interests (so that in-state legislations, say at MP don't impact connectivity of states beyond it, say Karnataka and Northern states)
  • Offer consultancy in designing and executing projects, as Indian Railways has built that expertise over the years
  • Regulate fares to keep the option of control in case few states decide to outsource operations to third/private parties, and they go berserk on fares

Let the states decide for themselves where and where not lay tracks, and what to do with and on those tracks. Its time, and it could be hurting public interest as we see here today ourselves through delays and decision making unclarity on Commuter Rail Service and ever-pending simple-sounding projects like Mysore track doubling or a straight line to Hassan.

I am posting this to check around on the sentiments on this thought. This thread originated after our recent discussions on whether and when to pursue that PIL for Namma Railu. A PIL to ask for dissolution of bodies like SWR and replace them with autnomous state government controlled bodies - that would be attacking the very reason we have to live with unclarity on who to go plead with for Namma Railu :)

PS: Thoughts are mainly from passenger angle, I don't understand the commercial/goods side well enough.
PPS: Railway map of Karnataka, courtesy SBC_YPR, he sketched this here a few years ago. And not much has changed in the two years ;)

[flickr-photo:id=3294054885,size=o]

COMMENTS


Most politicized ministry!

kbsyed61 - 16 January, 2013 - 22:13

There is too much at stake for everybody to let go Railways of political importance it has today. Real chance will be when it becomes like any other ministry, not politicized and allows autonomy at state level functioning.

It is politicized to such an extent that, even getting a stop at your village/town is considered to be a tangible political achievement and is considered a political capital during next elections. Therefore the near term reforms of railways has to be dismantling this over political importance.

Do we know why this is such a politically important ministry? Have we ever see any MP walking out or making a Dharna in both houses when other ministerial budgets presented or discussed?

Here is a video where present Railway minister Shri. Pawan Kumar Bansal Explains why Railways is so much politicized.

Railway Minister with Shekhar Gupta - Source NDTV

Railway Budget

The annual ritual of presenting 'Railway Budget' is the first cause of political importance. There is no constitutional requirement for presenting budget in Parliament. Have we ever wondered why no other ministry budget is presented like Railways? Telecom doesn't present it? Defense don't do it? Though a very important subject to know and let people know. Health Ministry doesn't present it either? No body know how this ritual came about.

Since it gets some slot in parliament, these days it has become more an opportunity for optics and theatrics to drive some points to home constituencies. The live telecast of its proceedings makes it more attractive to politicians to garner the attention to drive home a point.

First reform agenda would be to stop this ritual for Railway Budget presentation in Parliament. Let it follow the same procedure as other ministries follow. They all roll their estimates into 'Consolidated Fund of India' and gets the Parliament approval during Finance Bill approval process. Individual ministry budgets are discussed during each ministry's expenditure proposals, and is known as demand for grants.

With the theatrics and optics opportunity out of the hands, we will see ministry and its officials getting its space needed for real planning based on supply & demand.

Dismantling of Zone System

A lot has been said about this zonal systems and truth is it has not benefited the masses. It is time to replace it with working models like zones based on states and state circle having complete autonomy to develop the works inside state. This model has been making wonders in other central ministries like Telecom, Post. Has anybody seen someone even rhetorically making an accusation that P&T department is discriminatory towards the state? I haven't heard a one.

We all know performance of telecom with change in times and demands. Imagine IT boom without telecom infrastructure being not there?

 

K-RIDE - Current Status & Future Role

yantraka - 21 January, 2013 - 10:38

Managed to find the Annual Report (2011-2012) for K-RIDE - 

http://www.hmrdc.com/wp-content/uploads/2012/07/K-RIDE.pptx

It exists, but seems to be at loggerheads with Ministry Of Railways (see the last slide).

Railway reforms have been talked about, on and off. Main stream media brings the subject up only after accidents, with shallow coverage as usual.

English language business newspapers have a one track way of describing reforms. Corporatize, or privatize. That is a separate debate, to me, getting away from the federal structure comes first. then let the state (or a set of states together) do whatever they want with cast iron and rails.

Indian Express: Reforms railways the china way

Guardian (UK) : Break up railways to boost safety (but focus is privatisation)

ET: Time to reform (one of those reactive articles after an accident)

Dsimantle the current Zone System

kbsyed61 - 14 January, 2013 - 16:31

SB,

You are bang on. Central Government has little incentive to plan for development at local levels. One biggest reform that should happen in Railways is dismantle this zone systems that has not worked the way it should. Every state should be allowed to plan their own Railway network and services like other central departments do - Telecom, Postal etc. Though they are central departments but have the state imprints.

We did had this conversation on Praja.

http://praja.in/en/blog/kbsyed61/2009/02/16/karnataka-and-railways-game-praja-initiative

http://praja.in/en/gyan/railways-karnataka-game-vision-plan

Based on this conversation, we even had given these inputs in the form of high level vision plan to a known politician.

A Vision Plan for Railways in Karnataka.

It is time this discussion is refined and a detailed vision plan is brought out. This time we should go further with much more debate and discussion in public forums other than social media.

The revival of Indian Railways is one of the lynchpins in the strategy of the Modi Sarkar to deliver Achhe Din. The idea is backed by political logic—the Railways connect India and Bharat. It also has sound economic rationale—the Economic Survey reveals increasing railway output by Rs 1, boosts output in the economy by Rs 3.3. 
 
- - - - The Bibek Debroy Committee has dealt with the issues and prescribed viable solutions. It has recommended: decentralisation, commercial accounting, cleaner sharing of social costs between Railways and state and Union Government, splitting of policy, regulation and operations, a new cast for the board, a railway regulatory authority, an SPV to host all the PSUs, bifurcation of infrastructure and services, corporatisation, liberalisation to enable private players, service standards, shifting of suburban and metro to state governments as JVs etc. It has also given a time-frame for the migration.
 
All this is good. The danger is that governments tend to cherry-pick convenient solutions. Since 1947, there have been 20 committees—11 since 2001. Many of these issues have been “solved” by past committees. As many as 144 recommendations by earlier committees languish—in process or on shelves. There is no room for another committee.
 
The transformation of the Railways demands political will and divine intervention. 
 
To read the full text of the column by the noted economist, Mr Shankkar Aiyar, click here
 
Says it all. All hopes lie on Suresh Prabhu now. 
 

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