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Indian Railways Case Study: (Laloo's Role, Privatization and Other Issues)
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Re: Indian Railways Case Study: (Laloo's Role, Privatization and Other Issues) - 10-04-2007, 11:26 PM

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Originally Posted by subodh_iit View Post
Accusing Govt. of conspiracy theories ..... Am I right?

So Laloo has created another fodder scam

ROS, the actual thing is the operating ratio of 0.78 is indeed a reality rather than cooked up. Second thing is, Private sector is eager to participate in the exercise now. I am not aware about IMF, and other agencies so will choose not to comment. But surely this is not the correct way to reason things out..

There are so many organizations that are making healthy profits and still IMF and other agencies are not running forward to finance them.

ENRON/WOrldcom is a diff story altogether. They gulped private money. Here public money is involved. And the results are mostly shown not on the +ve side but on the -ve side only..
Subodh...agreed that the operating ratio is high and all..But wat i am actually worried about is that who is deciding al this?
Is it the people? is it the private parties?
No its the govt....Its the govt that brings out all its reports and all the facts...
The auditing in the Govt sector is done by govt agencies...
Agreed enron used private money...But money is money...public or private..and we all know that Govt money is easier to swindle...


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Re: Indian Railways Case Study: (Laloo's Role, Privatization and Other Issues) - 10-04-2007, 11:56 PM

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Originally Posted by ringsofsaturn View Post
Subodh...agreed that the operating ratio is high and all..But wat i am actually worried about is that who is deciding al this?
Is it the people? is it the private parties?
No its the govt....Its the govt that brings out all its reports and all the facts...

The auditing in the Govt sector is done by govt agencies...
Agreed enron used private money...But money is money...public or private..and we all know that Govt money is easier to swindle...
If they actually are showing more profits than have been made, then they are actually contributing money out of their own pockets. And they never do that, Hence I said, profits as well as projections are shown on -ve side only.

Second thing is you are worried about authenticity of Auditing. As far as I know, Auditing is done by CAT and it is an autonomous Agency. Besides, no government can afford to show false profits.. It is criminal act my frind and can at later stages backfire..


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Re: Should indian railways be privatised? or it is ok - 11-04-2007, 12:10 AM

well one of the point thats often missed by ppl is that the concept of continued journey being abolished by lalu...It has added to the profits of railways to a good margin however the student class n other frequent traveller knws whats the dirt deal beneath it...
Due to this now there is no concession if we book tickets for continued journey and the price is equivalent to individual cost..so overall the fare increases..



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Re: Should indian railways be privatised? or it is ok - 11-04-2007, 09:44 PM

I guess we need to rework the theory of this howing profits by lalu..obviously its not the false stuff...somehow the other we do miss small points which covers the max profits...e.g en engineer knws that how theses computer vendors are showing cheap prices of computers n luring innocent ppl by hiding intricate details...

eg 120 gb hard disk but dear where is the rpm speed huh, 1 gb ram where is the FSB speed....like that only
we are missing finer points of the outcome shown by gr8 lalu ji king of con...well no doubt the conditions have improved n the facilities increased with increase in freq of trains...but dont u think all of a sudden a loss suffering industry seems to glide like jumbo jet towards profit...



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Re: Should indian railways be privatised? or it is ok - 11-04-2007, 09:44 PM

I guess we need to rework the theory of this howing profits by lalu..obviously its not the false stuff...somehow the other we do miss small points which covers the max profits...e.g en engineer knws that how theses computer vendors are showing cheap prices of computers n luring innocent ppl by hiding intricate details...

eg 120 gb hard disk but dear where is the rpm speed huh, 1 gb ram where is the FSB speed....like that only
we are missing finer points of the outcome shown by gr8 lalu ji king of con...well no doubt the conditions have improved n the facilities increased with increase in freq of trains...but dont u think all of a sudden a loss suffering industry seems to glide like jumbo jet towards profit...



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Re: Indian Railways Case Study: (Laloo's Role, Privatization and Other Issues) - 13-04-2007, 03:37 PM

Though certain improvements have taken place in the day to day workings of railways and their related processes, but it is really unfair for laloo to take credit for all of this, simply because these things are controlled by railways' top brass and not by the minister, the minister do take and approve some strategical decisions..and these are the very decisions that I am going to assess very closely.
As far as I understand the things, there are two major reasons of these increased revenues:-
1. Restructuring of passenger fare and related rules-it is a well known fact that the railways have not increased the fare for sleeper class in the last two years and infact it decreased the fare for AC class, but we need to understand that this is basically because of market pressure(because of aviation industy) and not because of some kind hearted policies.
Before the railways introduced ticket upgradation policy(which is a very genuine and user oriented policy) ..the avg occupancy in AC coaches was very low. Prior to the implementation of this policy in 2005, the occupancy rate was 45 per cent for the AC-I category and 62 per cent for the AC-II category. AC-III had 79 per cent occupancy rate.


Now the profits were booked by –
(a)Additional coaches were added to the existing busy trains that generated lots of extra revenues.
(b) Profits were booked on the back of some backdoor/hidden charges. Like increasing the cancellation charges(by upto 100%) and scrapping the continuous/ongoing journey concept(though i think later it was taken back), another interesting thing is that the share of tatkal reservation increased due to the fact that now it can be booked 5 days in advance(so now it can hardly be called tatkal..and the benefit is going to agents rather than the ones who desperately need it). Tatkal tickets are costlier than the regular tickets ,so this also helps in generating moremoney for the IR.

While point(b) shows that the money is actually being milked from the users while on the surface the fares are not increased. I will come back point(a) which is actually very serious, after providing some related sources.

2. Increase in freight revenues- freight traffic was increased by increasing the axle-load, now just recently the results of a pilot project showed the negative impact of this myopic policy –
Results of a pilot project run by zonal railways over 30,000 km indicate that carrying a 22.9-tonne load against the earlier 20.3 tonne weaken rail tracks leading to a deterioration in running quality. At places, track formations have shown fatigue that, if not addressed, could lead to fractures. The report notes that higher axle-loads lead to greater wear and tear and flattening of rails along steep curves. The results are harsh on tracks carrying iron ore where it has adversely affected their resilience.
Read the full story - Finance News on Yahoo! India
There are chances of some accident happening because of these weakened tracks, I can’t believe that the govt went ahead with this plan before a proper study of its side effects.

So guys this is the truth behind this turnaround. The foundation of this growth story, that is being projected as a management charisma(which in turn should suggest better operations, increased efficiency and employee productivity) are really not that strong.
I am specially worried about this axle-load increase and adding additional coaches beyond the specifications(that may result in quick worn out of not only the tracks but the engines as well. These measures are too pedestrian and desperate.
I would like to end this post by an analogy(its not a pleasant example and i am sorry if it disturbs you) – in many parts of our country, labourers consume cheap desi liquor in limited quantity as it helps them to work more than there capacity and kills the urge to eat and also helps them to sleep by reducing the feeling of pain(coz of aching bodies). In short term it helps them to earn more(by working more)and spend less, but in the long term it takes its toll heavily on their bodies, resulting in fatigue..making their condition miserable after they cross the age of 30-35. It also affects them by considerably reducing their life span.
By opting for measures like increasing axle-load and adding more coaches, Indian railways seems to be doing something like this.



We need real improvements , efficiency of operations(supported by the data of how many trains are moving as per schedule) , user friendliness, pro-poor policies(can you believe that the so called Gareeb rath has its cheapest ticket priced at 500Rs for patna-delhi.. isn't it a bad joke with the ones for whoom it is intended), who will ensure better connectivity, reduced accident rate , implementing better technologies etc?
Too many questions are still unanswered and a lot many new ones are getting raised!!
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Re: Should indian railways be privatised? or it is ok - 16-04-2007, 08:31 AM

Quote:
Originally Posted by diablorulez View Post
well one of the point thats often missed by ppl is that the concept of continued journey being abolished by lalu...It has added to the profits of railways to a good margin however the student class n other frequent traveller knws whats the dirt deal beneath it...
Due to this now there is no concession if we book tickets for continued journey and the price is equivalent to individual cost..so overall the fare increases..

the following information igot from the interview of ex Railaway boar by Aaj tak after lalu presented Budget.
he gave information about how railway profit arises
If we look at changes lalu has made is

1.Increase in Cancellation charges from 20Rs. to 40 Rs.
2.Increase in tatkal charges from 50Rs to 150 Rs.
3.advance booking period from 60 days to 90 days
4.Increase in no. of tatkal seat from 72 to 94

All this make changes to the money in hands of railway
if we look this way then lalu has looted junta's money and i think railway is for services he should first look for providing services to public.

Another things lalu made is increases the capacity of wagon
but the thing is that Does our 100yr old bridges are ready to handle this capacity
i think first he should look for the improving the basic infrastructure rather than showing profit to public .


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It is my fate and perhaps my temperament to sign agreements with fools.....
Always do what you are afraid to do....
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fultoo_bakar fultoo_bakar is offline
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Re: Should indian railways be privatised? or it is ok - 16-04-2007, 09:10 AM

Quote:
Originally Posted by raj_chopada2001 View Post
the following information igot from the interview of ex Railaway boar by Aaj tak after lalu presented Budget.
he gave information about how railway profit arises
If we look at changes lalu has made is

1.Increase in Cancellation charges from 20Rs. to 40 Rs.
2.Increase in tatkal charges from 50Rs to 150 Rs.
3.advance booking period from 60 days to 90 days
4.Increase in no. of tatkal seat from 72 to 94

All this make changes to the money in hands of railway
if we look this way then lalu has looted junta's money and i think railway is for services he should first look for providing services to public.

Another things lalu made is increases the capacity of wagon
but the thing is that Does our 100yr old bridges are ready to handle this capacity
i think first he should look for the improving the basic infrastructure rather than showing profit to public .
I agree.
A person is known by his past deeds. The recent gung-ho about the profits of railways
may all be falacious. What all the posts on this thread are hinting may be biased by the balance sheets of the last fiscal but if we go by the precedents of the minister, he has glorious past of keeping the civilians of poorest state in a hope that ONE day the times will change.

The final verdict may have not come on multicrore "fodder scam", but is there anyone who is actually waiting for the results, because its writing on the wall: does our system has power to implicate railway minister of india".

The few points in the quote above strongly support that he may be misleading the people of india. The popular concept of "milking the cow" may sound as logical but has he actually milked the cow (before getting the superb balance sheet) or has he merely strained the healthy cow to milk much above its potential.

It maybe possible that Mr Laloo prasad mired in humiliation of electoral defeat might have chosen to reposition himself with hyped results, afterall we all know he has sound business knowledge.


PS: I may be wrong but this is what i think, I can never trust a chap who has been always involved in conroversies. It is his moral duty to resign and become a saint and redeem himself otherwise he sure be headed towards hell.


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Re: Should indian railways be privatised? or it is ok - 16-04-2007, 09:20 AM

Quote:
Originally Posted by fultoo_bakar View Post
I agree.
A person is known by his past deeds. The recent gung-ho about the profits of railways
may all be falacious. What all the posts on this thread are hinting may be biased by the balance sheets of the last fiscal but if we go by the precedents of the minister, he has glorious past of keeping the civilians of poorest state in a hope that ONE day the times will change.

The final verdict may have not come on multicrore "fodder scam", but is there anyone who is actually waiting for the results, because its writing on the wall: does our system has power to implicate railway minister of india".

The few points in the quote above strongly support that he may be misleading the people of india. The popular concept of "milking the cow" may sound as logical but has he actually milked the cow (before getting the superb balance sheet) or has he merely strained the healthy cow to milk much above its potential.

It maybe possible that Mr Laloo prasad mired in humiliation of electoral defeat might have chosen to reposition himself with hyped results, afterall we all know he has sound business knowledge.


PS: I may be wrong but this is what i think, I can never trust a chap who has been always involved in controversies. It is his moral duty to resign and become a saint and redeem himself otherwise he sure be headed towards hell.
totally agreeable point ..we cant trust this man..n the analysis by hillview is an eye opener..wish the common junta can understand the point..I am surprised that even media is not able to look on this...seems they are just busy making some yucky round the gali stories instead of being concerned whats being projected..:(



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Re: Indian Railways Case Study: (Laloo's Role, Privatization and Other Issues) - 16-04-2007, 11:34 AM

Hi All

It was really nice to read views of ppl.
Here are my views on the issue.

* I don't think the so called turnaround of IR is fake. Profits of 20K crores can't be fake. Though i don't give full credits of turaround to Lalu as there are lot of people behind turn around of IR. I think lalu was lucky to be Railway Minister when this turnaround happens.

*For Railways Freight Transport is bread while Passenger Tranport is butter. So major reason of turnaround was due to increase in load of Iron ore, Cement and others. Iron ore & cement accounts for major share. They increased the load in each bogie. Currently railways is building new axles which can carry more load. So in future we i can see more profits in this area.

* For passenger trains, 3 coaches were added in some trains. This is what lalu says "milking of cow". But this addition of extra coaches were done after seeing the capacity of engines as they were capable to pull extra coaches. Now with same cost for train ralways was able to earn more because of extra coaches.

* A number of trains were upgraded to Super fast. This helps in charging more from passengers. Due to this travel time was reduced & thus coaches of these trains were used as extra coaches(which helped in reducing cost for extra coaches...refer my previous point).

* Currenlty railways are building new type of AC Coaches which will have more seats in AC 2 tier & 3 tier. Hence in future they will be able to carry more passangers.


Cheers!!
nisha
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