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A commendable exercise

Lalu Prasad, the new management guru for turning round losing public sector undertakings, has presented his fourth consecutive no-tears Railway budget. In fact, there has been a marginal reduction in fares across the board, and a selective lowering of freight tariff on sensitive commodities such as petrol, diesel, and iron ore, which can also have an anti-inflationary effect. The Indian Railways have turned in another excellent performance in 2006-07, enabling the Minister to move beyond consolidation. Mr. Prasad has not only pleased the passengers and trade, but also looked at expansion and competition in a new light. The move to focus on container operations, with the licensing of some operators, and the announcement on freight corridor augur well for the future and for revenue generation. After scrupulously avoiding any increase in passenger fares in the last three years, he has gone ahead and lowered the fares for air-conditioned and sleeper classes and cut by 20 per cent the surcharge applicable for superfast trains. Mr. Prasad has hinted at some avenues of privatisation, not just in container operations, but also perhaps in specific projects and new lines. The Indian Railway Construction Corporation (IRCON) will explore these possibilities, though the move may run into opposition from trade unions and political parties.

The Minister started literally on a high pitch as he tried to drown the opposition protests on the Quattrocchi issue. In his characteristic style, he lampooned the slogan-shouting MPs, and went on to announce 32 new trains, eight Garib Raths, a 50 per cent concession for students taking the UPSC examinations, and special coaches for milk, vegetable and other vendors in trains by which they travel frequently. If there was one disappointment, it was on the safety and security front where a great deal was expected but not much was on offer — except for measures such as installation of closed circuit television, smart video cameras, and metal detectors at sensitive railway stations. About 8,000 posts in the Railway Protection Force are to be filled. Mr. Prasad promised an additional 800 coaches in popular trains. Further, all unreserved compartments will have cushioned seats. E-ticketing and ticket vending machines will mark the next phase of expansion of the reservation system. For the trade, the Minister has offered a 40 per cent discount on incremental loading, and an enhanced rebate in the freight on rakes that return empty after offloading at the destination. Mr. Lalu Prasad and the Railways need to be commended for coming up with a budget that combines sensitivity to popular needs and sentiments with efficiency and performance.

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