{"id":2095,"date":"2025-11-20T17:15:36","date_gmt":"2025-11-20T17:15:36","guid":{"rendered":"https:\/\/debcubspark.com\/?p=2095"},"modified":"2025-11-20T17:20:58","modified_gmt":"2025-11-20T17:20:58","slug":"railway-conclave-2-0-calls-for-calibrated-privatisation-stronger-governance-and-holistic-planning-in-indian-railways","status":"publish","type":"post","link":"https:\/\/debcubspark.com\/index.php\/2025\/11\/20\/railway-conclave-2-0-calls-for-calibrated-privatisation-stronger-governance-and-holistic-planning-in-indian-railways\/","title":{"rendered":"Railway Conclave 2.0 calls for calibrated privatisation, stronger governance and holistic planning in Indian Railways"},"content":{"rendered":"\n

While Indian Railways remains a strategic lifeline and the country\u2019s largest public service provider, sustaining its growth will require a shift from tight state-controlled operations towards more market-oriented governance and innovative partnerships for ensuring its financial sustainability. This was the central message emerging from Railway Conclave 2.0<\/em> on the theme \u201cGovernment has No Business to Be in Business: Possibilities and Quagmire of Privatisation in Railways\u201d<\/strong>, organised by the Chintan Research Foundation (CRF)<\/strong> at the India Habitat Centre, New Delhi.<\/p>\n\n\n\n

The high-level dialogue brought together policymakers, former railway leaders, industry representatives, and infrastructure experts to deliberate on how Indian Railways can transition into a financially robust, technologically modern and socially inclusive transport enterprise. The event featured a special address by Mr Suresh Prabhu, former Union Minister of Railways, and a welcome address by Mr Shishir Priyadarshi, President, CRF<\/strong>. The sessions were chaired by Mr M. Jamshed, Distinguished Fellow, CRF and former Member (Traffic), Railway Board<\/strong>.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In his Special address, Mr Suresh Prabhu<\/strong> underlined both the scale of India\u2019s dependence on railways and the complexity of reform. \u201cIndia\u2019s large population is dependent on railways,\u201d he noted, emphasising that any reform agenda must protect accessibility and affordability.<\/p>\n\n\n\n

He stressed that capacity creation is the bedrock of any serious privatisation or partnership strategy: \u201cIndian Railways can function only when there is track capacity. For the stock to roll, more and more tracks should be built so that private companies can come in and work.\u201d<\/em> At the same time, he cautioned against ideological approaches: \u201cRailways privatisation shouldn\u2019t be for the sake of privatisation. First, we must identify the problem, then we should move towards privatisation. I am not against privatisation or for privatisation; I work towards making the system work in whichever way is practical, not ideologically.\u201d<\/em><\/p>\n\n\n\n

Mr Prabhu highlighted how technology and management reforms can transform service delivery. \u201cLakhs of complaints were solved through online grievance redressal systerm. Unless we focus on holistic planning, it won\u2019t work as a long-term strategy,\u201d he said, urging Indian Railways to look beyond fares and freight as its only revenue streams and to leverage data monetisation and non-fare revenue<\/strong> in a structured manner.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Keynote address, Mr Shishir Priyadarshi<\/strong>, president of Chintan Research Foundation, situated the debate within India\u2019s broader economic transition. \u201cIn the last three decades, we have moved from a state-controlled economy to a market-led growth model guided by one of the most important principles\u2014that the government\u2019s role is to govern and not run business,\u201d<\/em> he said. This shift, he argued, is about recalibrating the relationship between the state, the market and the citizen<\/strong>.<\/p>\n\n\n\n

\u201cRailways is not only the artery of our connectivity; on one side it is our emblem of public purpose, but it is also absolutely intertwined with enterprise,\u201d he observed. Stressing its ubiquitous impact, he added, \u201cThere is practically no person in India not affected by the railways, no economic sector untouched by it. Railway stands at a crossroads\u2014it needs to maintain its social mission while enhancing its operational efficiency.\u201d<\/em><\/p>\n\n\n\n

Chairing the proceedings, Mr M. Jamshed<\/strong> framed the core policy dilemma as a choice between private-sector participation and outright privatisation<\/strong>. \u201cThis is a business being run and managed by the Government of India. In other transport modes, such as civil aviation, PPP is much easier to implement. Railways, however, carry a dual responsibility: to undertake operations and business development, and at the same time to shoulder a vast public service obligation,\u201d<\/em> he stated.<\/p>\n\n\n\n

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Drawing attention to the financial stress in the system, he noted that around \u20b960,000 crore of passenger losses are effectively cross subsidised through freight revenues each year<\/strong>, contributing to an operating ratio that hovers near or above 98%. This, he warned, leaves little room for sustained investment in modernisation and expansion. Any move towards privatisation, he emphasised, must therefore be anchored in robust regulatory institutions and clear public safeguards rather than narrow fiscal considerations.<\/p>\n\n\n\n

The first session, \u201cViews from Within: Railway Transport Business and its Myriad Challenges \u2013 Business, Sustainability and Policy Imperatives of a Strategic Sector, and the Possibilities of its Privatisation\/Corporatisation\u201d<\/strong>, brought together former railway officials and sector experts. Panellists underscored that while core track infrastructure<\/strong> would remain primarily state-owned, a wide range of services\u2014such as housekeeping and catering\u2014already involve private entities, demonstrating that calibrated partnerships are feasible without diluting public control.<\/p>\n\n\n\n

Speakers highlighted that, during the COVID-19 pandemic, migrant and oxygen trains demonstrated why government stewardship of railways remains indispensable for welfare and crisis response. They also underlined India\u2019s emergence as the third-largest exporter of railway products<\/strong>, suggesting that domestic reforms can dovetail with manufacturing and export opportunities.<\/p>\n\n\n\n

A recurring theme in Session 1 was the weakness of contract management<\/strong> in the rail ecosystem. One speaker pointed out that there can be as many as 84 distinct risk elements in a typical railway contract<\/strong>, with inadequate risk-sharing between public and private partners. Studies show significant scope for cost savings through better risk allocation. The panel stressed the need for stronger regulatory mechanisms for fair pricing, safety, and dispute resolution<\/strong>, warning that poorly designed privatisation could derail necessary regulatory reforms and undermine inclusivity.<\/p>\n\n\n\n

Concerns were also raised about the risk of exclusion<\/strong> if profit-maximising private operators dominate key segments without adequate safeguards for low-income passengers and essential goods. The panellists urged a mindset shift that treats regulation, public safeguards, and oversight capacity as preconditions<\/strong>\u2014not afterthoughts\u2014to any privatisation or corporatisation agenda.<\/p>\n\n\n\n

The second session, \u201cStakeholders\u2019 Perspective: Growing Role of FBOs, Joint Ventures, PPPs and the Private Sector in Rail Transportation Business and Infrastructure \u2013 Prospects\u201d<\/strong>, brought in perspectives from logistics operators, infrastructure companies and policy practitioners.<\/p>\n\n\n\n

Participants argued that while government involvement is indispensable for inclusive growth, national integration, cultural conservation and equitable tourism<\/strong>, private capital and innovation are critical for expanding capacity and improving service quality. Rail-linked tourism and heritage conservation were cited as areas where the state must remain actively engaged, with one speaker remarking that \u201cgovernment has all the more business to be in the tourism business connected through rails\u201d<\/em> to safeguard public goods and cultural assets.<\/p>\n\n\n\n

The Container Corporation of India (CONCOR)<\/strong> was cited as a leading example of effective synergy between public ownership and private sector\u2013style efficiency. Panellists argued that dedicated freight corridors<\/strong>, certain routes, and specific logistics pathways offer clear opportunities for private participation, provided risk-sharing, accountability, and competition frameworks<\/strong> are well designed.<\/p>\n\n\n\n

At the same time, the discussion acknowledged that FDI inflows into the railway sector have not materialised at the scale envisaged<\/strong>, despite overarching frameworks like the PM Gati Shakti National Master Plan<\/strong>, the National Rail Plan<\/strong>, and the National Logistics Policy<\/strong>. Panellists attributed this to gaps in digitisation, institutional support, pricing and taxation structures<\/strong>, and to the fact that schemes such as the General-Purpose Wagon Investment Scheme (GPWIS) and the Liberalised Special Freight Train Operator (LSFTO) have not fully realised their potential.<\/p>\n\n\n\n

International experience\u2014especially the United Kingdom\u2019s experiment with rail privatisation<\/strong>, which saw initial successes followed by challenges related to pensions and service obligations\u2014was cited as a cautionary case. Speakers stressed that India must avoid both the extremes of unchecked privatisation and rigid state monopoly and instead work towards a balanced PPP model<\/strong> that keeps public interest at its core.<\/p>\n\n\n\n

The conclave saw robust participation from key stakeholders, including representatives from the Ministry of Railways<\/strong>, NITI Aayog<\/strong>, DFCCIL<\/strong>, CONCOR<\/strong>, and private-sector leaders from the Adani Group, JSW Ports, and other logistics and infrastructure firms.<\/p>\n\n\n\n

Summing up the day\u2019s deliberations, the broad consensus was that privatisation and corporatisation are not ends in themselves<\/strong>, but potential pathways<\/strong> to make Indian Railways financially sustainable, technologically modern, and more responsive to users\u2019 needs. A carefully sequenced approach\u2014retaining strategic control with the state, while liberalising commercial operations and crowding in private efficiency and investment<\/strong>\u2014was seen as the most viable way forward.<\/p>\n\n\n\n

As one participant put it, the real challenge is to ensure that the government increasingly acts as an enabler rather than an entrepreneur<\/strong>, while remaining firmly accountable for equity, safety, and national integration. In doing so, Indian Railways can continue to serve as both an emblem of public purpose and a dynamic engine of enterprise in India\u2019s journey towards Viksit Bharat 2047<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Railway Conclave 2.0 on the theme \u201cGovernment has No Business to Be in Business: Possibilities and Quagmire of Privatisation in Railways\u201d, organised by the Chintan Research Foundation (CRF) at the India Habitat Centre, New Delhi<\/p>\n","protected":false},"author":1,"featured_media":2096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,27,161,26,325],"tags":[],"class_list":["post-2095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-governance-policy","category-india","category-infrastructure","category-news","category-press-release"],"yoast_head":"\nRailway Conclave 2.0 calls for calibrated privatisation, stronger governance and holistic planning in Indian Railways - DigiTIMES.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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