Indian Railways a strategic sector, won't be privatised: Ex-Board Member

Former Railway Board Member M. Jamshed rejected the prospect of railway privatisation, calling it a strategic sector. He said that while private participation is encouraged, full privatisation is 'neither feasible nor desirable' for India.

The Indian Railways remains a strategic sector and it cannot be handed over to private players, former Railway Board Member M. Jamshed said, as he rejected the prospect of railway privatisation in India.

Privatisation vs. Private Participation

Speaking at Railway Conclave 2.0, organised by the Chintan Research Foundation (CRF) on the theme "Possibilities and Quagmire of Privatisation of Railways," Jamshed on Wednesday said that the debate around privatisation resurfaces repeatedly despite clear policy signals over the years. "Successive ministers: Suresh Prabhu, Piyush Goyal and Ashwini Vaishnaw, have categorically said in Parliament that Indian Railways will not be privatised," he noted. He emphasised the need to distinguish between privatisation and private sector participation, saying that the latter has been encouraged for years in various areas such as station redevelopment, rolling stock, and services. "Privatisation per se is neither feasible nor desirable," he said.

'Dual Responsibilities' a Major Hurdle

The former Railway Board Member explained that, unlike civil aviation or highways that work through multiple PSUs and private operators, Indian Railways functions as a department of the Government of India. "It carries dual responsibilities; running commercial operations and fulfilling public service obligations," he said, adding that railways bear nearly Rs. 60,000 crores in annual passenger losses cross-subsidised through freight revenue.

Significant Progress in Last Decade

He pointed to "tremendous progress" in the past decade, with budgetary support rising from Rs. 20,000-30,000 crore earlier to Rs. 2.5 lakh crore, and capital expenditure increasing from ₹3 lakh crore (2004-2014) to Rs. 17 lakh crore in the past 10 years. Freight movement has also surged to over 12,000 million tonnes, he added.

Historical Context of Privatisation Debate

Debates around railway privatisation date back decades, from committee reports recommending restructuring to proposals for private trains. However, concerns around national security, affordability, social obligations, and the scale of operations have consistently stalled full privatisation, with governments instead favouring controlled private participation in select segments. (ANI)

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