The right thing to do

A FREEZE ON new projects appears to be the only solution to the financial problems plaguing the Railways. If the Railway Board, and more important, the Minister, Ms. Mamata Banerjee, maintain this reported decision not to include any new project for some time, it could help in completing some of the on-going projects which are dragging on for want of funds. Though the board may have prioritised the list of on-going projects, it has not been successful in striking the right balance in the allocation of resources to finish those which are nearer completion. At least now, the officials must be able to identify the list of projects which, if given enough funds, could be commissioned in, say, two or three years and the benefits realised. At the other end of the spectrum, recently included projects, whose feasibility or commercial viability is doubtful, must be put on hold, without unnecessarily sinking precious resources in them. When he was the Railway Minister, Mr. Nitish Kumar came out with a white paper on railway finances and a status paper on on-going projects. He made it clear that the Railways required close to Rs. 35,000 crores just for completing the projects that it had already taken up. Where can the Railways find such resources?

Over the years, successive Ministers have added to the list of projects by announcing new ones. It means little when they are allocated a paltry Rs. 50 lakhs just to keep them on the books. Projects must be chosen on the basis of an identifiable need, viability and returns on the investment. At least now, there must be a realisation that there are no funds to take up so many new ventures in every budget. Whether intentional or not, the present trend is for the Railways to reach an agreement with the State Governments for joint funding of critical projects which need to be expedited. Even at the cost of becoming unpopular with members of Parliament who have specialised in the art of campaigning for projects in their States and pressuring the Minister to include new ventures or enhance allocations, Ms. Banerjee must be able to say a polite, but firm `no'. She must also set an example by cutting down on the not-so-important projects in West Bengal.

The Indian Railway Officers Association recently voiced its

concern at the inflated orders for 40 more locomotives and 5,000 wagons more than the requirement, that too when the finances were tight. Even if they cannot reverse the decision, the officers did the right thing to expose the squandering of resources. Without having to take on the Minister or the political establishment, senior officers must have the courage to pinpoint the problems and mistakes in a bid to correct them. Ministers and officials must realise that they are the `custodians' of public funds and are therefore accountable for the errors of omission and commission. Ms. Banerjee is stretching the finances of the Railways too far by both absorbing input costs and announcing more projects. The Railways has not been able to generate adequate resources to fund so many projects. It takes time to mop up funds from non-traditional avenues, but the board had exaggerated the projections from these sources to better balance the budget. When there is a revenue shortfall mid-year, pruning of the annual plan becomes inevitable. The Railways is in need of more drastic and even surgical treatment to sort out its financial problems once and for all. To do that, it needs a more professional, not political, management.

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