With 22,000 trains and 8,000 stations spread over 17 zones across the country, Indian Railways is a giant of world’s rail networks. Since 1853, the trains have been carrying people at reasonable rates. For the last few years, the government has been talking of removing the subsidy to make the Railways profitable.

According to latest statistics, there is a burden of Rs 40,000 crore losses. Should Railways be looked as a profit making venture or a social venture? Was not the Railways meant to help the vast majority of poor who cannot afford other means of travel, especially long distance. These are the questions that are being raised.

Successive governments have been trying to do away with the social component. For the first time in history, Railways introduced surge pricing in some trains which means tickets bought early would cost less and the fare would keep increasing as available seats reduce as demand increases. As is the case with airline tickets.

As of now, the Railways is still holding on to the social component as was evident by ferrying 22 lakh migrants (labour) in 1,813 Shramik Special trains since May 1. How long the Indian Railways would continue to subsidise is a question.

Niti Aayog, the think tank of the Government of India suggested in its report for an overall of the system. Towards this end, 50 railway stations in India are to be redeveloped by corporate houses and the space would be used for generating revenue. In simple terms, the space in and around the railway stations would be developed on the lines of malls.

In the long run, the railways is planning to gradually remove subsidies on passenger tickets and concessions on tickets. Presently, there are concessions ranging from 10 to 50 % concessions given to freedom fighters, heart patients travelling for surgery, Thalassemia patients, research scholars, press correspondents and many more.

Will the poor be able to afford higher cost? Isn’t it the duty of Indian Railway to ferry people at low cost? Why is the Government planning for a bullet train? Do we need one or should we first make the present system robust, clean and efficient? The answer is in the question.

Watch this space for a follow up story.