The Hindu : Privatisation of Railways ruled out

Online edition of India's National Newspaper
Wednesday, Dec 31, 2003

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Privatisation of Railways ruled out

By Our Special Correspondent

NEW DELHI DEC. 30. S. C. Gupta, Member (Electrical), Railway Board, today categorically ruled out privatisation of the Indian Railways, as recommended by the Rakesh Mohan Committee, but said that the other recommendations were being implemented.

Delivering the special address at the National Conference on `Railways on the growth path', organised by the Confederation of Indian Industry (CII), he said that in a country like India, the Railways plays a `critical role' in the whole gamut of the economy, providing relief to the economically deprived as also linking the not so profitable areas of the country, which is not viable for the industry.

Indian Railways bear the brunt of many unsocial elements and therefore ruled out corporatisation as a viable alternative, Mr. Gupta said adding that competitive cost effective infrastructure base is a key to maintain the economic momentum gained by India and reiterated that Railways would continue to play a key role in maintaining that momentum. He said the Railways would be the backbone of the transport infrastructure of the country but cautioned that its share in the transport sector was slipping and outlined the fact that there was a need for flexibility on the part of Indian Railways to restructure itself, both in terms of internal competitiveness and public/private partnership.

In his special address, Rohitha Bogallagama, Minister of Industries, Government of Sri Lanka, said that his country would like to emulate the role of the Indian Railways for the economic development of his country.

Kishirsagar, Director-Incharge, A. F. Ferguson & Co, in his keynote address, said that the Indian Railways was an integrated organisation with technical, managerial and social aspects to it.

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