Saturday, August 9, 2014



SAVE RAILWAY SAVE PEOPLE SAVE RAILWAY MEN
Indian Railways is earning profit every year. It is paying dividend to central Govt. It meets social cost of about Rs. 21000 crores.  If central Govt does not take dividend and pays back the social cost to Railways Railways’ profit will be much more.

MORE PROFIT
If more lines are laid, doubling and quadrupling is done, gauge conversation is done, safety concerns are met, facilitates are improved, more coach , engine, wagon factories are constructed, Railways can run more trains and transport more people and goods and earn profit still more. 
HUGE INVESTMENT NEEDED
It needs huge investments for ongoing projects like new lines, gauge conversion, doubling etc., it needs Rs. 1.82 Lakhs crores. For coach, engine and wagon factories it needs Rs. 1 Lakh crores. For eastern and western dedicated freight corridors it needs Rs. 1 Lakh crores. For high speed corridors it needs Rs. 12 Lakh crores. For modernization as per Sam Pitroda   committee it needs Rs. 5.69 lakh crores. For implementation of Dr. Anil Kakodkar’s High Level  Safety Review Committee’s recommendations Railway needs another Rs. 1 Lakh crores .For 12th plan it needs Rs. 5.19 Lakh crores.
This cannot be met by Railways from its limited resources. It is therefore raising funds through market borrowing. This is also limited.
PPP/FDI
It was therefore proposed that the PPP or FDI  route only can save railways.
Experience of Privatization in Argentina
But, Argentina a developing country like ours privatised the railways and met with total failure.  35000 km came down to mere 8000 km, 95000 employees came down to 15000. Many lines were closed as not making enough profit.
British Experience
British Govt in India had allowed private to invest in Railways and operate. They were allowed 5% assured return. They obtained double benefit by inflating the investment as we have seen through Reliance in KG basin. They did not show interest to expand railways. The private interest conflicted with the national interest. Therefore British Govt. nationalized Railways. Then only large expansion took place after 1924.
Experience of PPP and FDI in Railways
Indian Railways with its resources crunch to expand railways opened it for Private and FDI. PPP and FDI was the route. Dedicated freight corridors, east and west, Raibareily coach factory, Madhepura electric engine factory all were opened for PPP and even FDI. Global tender met with failure. Dedicated freight corridor is now built with railways own money and loan from World Bank and Japan agency. Various other coach and engine factories have not grown over ground. Now a coach factory through PPP has been proposed for Kolar in Karnataka.
X five year plan could secure PPP only to the extent of 0.62% of total investment. XI Plan expected 36% from PPP. But not even 4% came through PPP.
Therefore the PPP or FDI are an escape route for the Govt. to refrain from Govt. Investment.
Now BJP Govt. wants to liberalize the PPP and FDI norms to attract PPP and FDI  so that they can make profit if invested in Railways.
In the Indian conditions where 82 crore people are living with an expenditure less than Rs. 20 per day private cannot see windfall profit as they see in other areas. Even if they come now they will close down lines as in Argentina.
Therefore the only solution is Govt. investment.
OPTIMUM UTILISATION
Instead of Govt. investing in areas of augmenting capacity, improving safety, Railway is adopting a policy of optimum utilization of rolling stock, tracks and man power, squeezing maximum from minimum, non filling up of even safety category vacancies , non creation of posts extracting work for more than  eight hours, contractorisation etc. It affects safety, we therefore demand for Govt. investment in Railways, non opening of Railways to private or FDI to save railways to save people and to save railway men.
SEMINAR
 A SEMINAR ON THIS THEME HAS BEEN DECIDED TO BE HELD  
At Door No. 3, Jawaharlal Street, Sheshadripuram ( Residence of Com. BCS. Murthy, Mail GD SBC)
Near Hotel SWATHY, Opposite to Mantri Mall.
On  17.08.14 Sunday from 15.00 hrs.
Com. R Elangovan, Working President DREU Present the paper.
Organised by by NREU, AILRSA, AIGC & AISMA
ALL ARE WELCOME.                  WORKING CLASS UNITY ZINDABAD.

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