Railway Budget 2014: Expect rail minister to put reforms on track

Photo by TOI

NEW DELHI: For railway minister D V Sadanand Gowda, it will be a tightrope walk between populism and tough reform measures as it presents the Modi government's first railway budget on Tuesday at a time when the cash-strapped transporter is gasping for survival.

Prime Minister Narendra Modi, who makes no bones about his humble beginnings as a tea vendor at railway stations, has promised to modernize the railways and build high-speed networks across the country.


The pre-budget hike in fares and freight as made Gowda's job a tad easier. The minister is likely to announce a slew of measures to garner funds such as tapping foreign investments, encouraging private players and outlining public-private partnership models to revamp rail infrastructure.

With promise of high-speed trains gathering dust for years, Gowda may announce plans to accelerate the project relating to running bullet trains (300 kmph) on Mumbai-Ahmedabad corridors and increasing the speed of elite Rajdhani and Shatabdi trains to 160-200 kmph.

The budget may announce injecting fundamental reforms as the Modi administration has recognized that turning railways into an engine of growth is critical for accelerating country's economic growth.

Last week, Modi hinted at an increased role of the private sector in development of railways while flagging off the new train service to Katra.
The minister, who had shown his keenness in modernizing and technical upgradation of the railways, is expected to outline Modi government's policy framework relating to private investment in the sector.

The BJP-led government has already shown its intention to allow FDI in high-speed corridors, dedicated freight routes and private participation in modernization of stations.
There is a view that multilateral agencies and foreign players are ready to invest in railways, but the state-run transporter has so far failed in tapping these resources.

The minister is expected to desist from populism and focus on streamlining the system and announce measures to enhance safety and passenger amenities.

Railways, faced with financial crunch, have failed to manage funds for modernization and expansion plans after paying salaries, pensions and fuel bills. Safety has taken a back seat.

Fresh measures to improve cleanliness and hygiene inside trains, on platforms and along tracks are set to resonate in Gowda's speech.

Unlike his predecessors, the minister may not announce large number of new rail line projects as he is already working on rationalizing pending projects to make them economically unviable.

By Times of India