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Thursday, July 05, 2001

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Destination safety

AT LONG LAST, there is an attempt to put the Indian Railways back on the track to safety. It should not have taken the recent Kadalundi tragedy - which took over 50 lives - to drive home the importance of stepping up financial allocations to ensure rail safety. Yet, the decision by the Prime Minister, Mr. A. B. Vajpayee, to sanction a Rs. 17,000-crore safety fund marks the first step in a long journey that lies ahead for the Railways. The task at hand is immense and could well exceed the five-year period for which the non-lapsable fund has been created. Correcting the mistakes of the past calls for a major effort in the years ahead. Years of skewed decision-making - often dictated by political mileage for the successive Railways Ministers - has resulted in lower allocations for maintenance and, consequently, a consistent erosion of safety. An immediate exercise required to give effect to the well-intentioned decision, ironically, will be in finding the promised resources. Garnering Rs. 17,000 crores, a tall order by itself, is further complicated by the fragile nature of Railway finances. Notwithstanding the difficulties faced by the Union Government on the financial front, it would do Railway finances, and consequently rail safety, a world of good if the public service obligations carried out by the Railways - amounting to over Rs. 1,800 crores annually - are compensated. This could mark a healthy beginning and should be followed up by various Government organisations settling their dues, especially in this time of difficulty.

There is no denying the fact that a part of the finances required would have to be come from within the Railways. The exercises to increase resources from within should be carried out in a clinical manner and no options, including possible restructuring of fares and pruning of avoidable expenses, should be ruled out. However, given the sensitivities involved in effecting fare hikes, it would be in order if the importance of such decisions and their implications for passenger safety are explained to the public. Moreover, in the larger context, earnings from passenger fares constitute but 27 per cent of the total income of the Railways, calling for the need to look at other options as well. Waiving of dividend payments to the Union Government could also be considered if the funds go towards meeting safety requirements. Despite the damp response to recent attempts at raising resources through non-core activities, these should not be abandoned. To the contrary, a one-time sale of select non- performing but commercially valuable assets could be considered. Importantly, there is also the need for a rationalisation of expenses. A crucial corrective required on this count is to do away with the financially draining decisions of the past. The muddling up of Railway finances as a result of the gauge- conversion projects is a case in point.

While the present fund is for five years, there is also the need to look beyond this period. Ensuring that the grave situation of a lack of resources to ensure rail safety does not arise again calls for adept handling of the Railways' finances. It is imperative that decision-making, especially those that require heavy financial outlays, is de-politicised. This calls for putting in place a system of checks and balances that acts as an effective restraint on wasteful and potentially dangerous expenses at the cost of regular maintenance of crucial infrastructure. For, creaking assets do not augur well, either for passenger safety or for the future of the world's second largest rail system. The 12,000 km of over-aged tracks, the thousands of coaches and wagons that call for regular maintenance and the over-aged signalling gear at hundreds of stations are nothing but killers that lie in wait. Above all, there should be the realisation that rail safety is not a wayside station that can be ignored. It is a long haul.

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