A wake-up call for railway industry
Discussion on deteriorating financial health of Indian Railways(IR) is passé and maybe, even irrelevant. Comptroller & Accountant General(CAG) may go on calling out that IR’s finances are window-dressed and it camouflages the reality by excluding pension payments and other jugglery but the government has made up its mind. It is not a question any more whether the plethora of infrastructure projects make sense in the background of lacklustre performance of IR and the competition it faces from road and air. Surely the government is aware of the financial health but it has gone firm in its belief that rail infrastructure is needed for the country’s base of logistics in the economy as a whole and viewing IR’s financial health in isolation in not important, at least in short term. Large-scale Capex, which has mounted steadily since 2014, almost five times from around 50000 cr. to as much as 2.45 lakh cr., is here to stay. IR has moved at breakneck speed to acqui...