Mamta,Lalu and Indian Railways

Lalu was hailed as India's best Railway Minister.His Desi wisdom earned him admirers all over the world.undoubtedly he was the most popular Railway Minister.Indian Railways is the world's largest employer.It employs 1.6 million heads.In 2004 when Lalu took over as Railway Minister ,Indian Railways was almost bankrupt.But in 5 years time Lalu with his ingenuity made it a cash surplus organisation.The turnaround made by Indian Ralways, under Lalu's stewardship was made a case study for its students by IIM,Ahmedabad.Lalu's rustic wisdom said " Milk the cow fully,lest it would fall sick". His out of the box ideas were carried out by competent officers.He increased the wagon loads from 80 Metric tons to 90 Metric tons.This generated additional revenue of over 7500 crores.Delgation of powers was at its best during Lalu's regime.He took calculated risks.He decided a passenger train would be inspected and examined only after 3500 KMs and a freight train after 4500 KMs against the earlier practice of inspection after every trip.This made trains available for longer duration,and generated extra trips and extra revenue.Earlier for every inspection Railways took 16 hours after each trip.Lalu handled the Tatkal scheme in a different perspective.It turned out to be a money spinner for Railways and earned over 1000 crores.When the Tatkal scheme was introduced for the first time , there would be a single separate Tatkal coach per train.In otherwords a small number of berths were earmarked for those who could not reserve in advance and want to travel urgently.But this facility was available at a slightly higher cost.But Lalu changed the Tatkal scheme also.He permitted Tatkal booking in regular coaches also.This means those who can afford to pay more could book on Tatkal quota in regular coaches.He also allowed Tatkal booking 5 days before travel date.Railways charged a premium of RS 150 to Rs 300 on every Tatkal ticket booked.But all this was done at the expense of general quota tickets.It surely was a great disadvantage to the common man.But for railways it was a money spinner.It earned greater revenues for Railways.It was essentially a business decision,but against the common man.Now it seems Mamta is all set to reverse this.She might revert back to the old Tatkal scheme.She might also reduce the number of days permitted for Tatkal booking.In principle,Mamta's perspective is correct and is in the interest of the common man.But Railways would lose a considerable chunk of their income generated from Tatkal.Mamta has already indicated her budget would be pro people.But if implemented Railways earnings would surely drop.It is already reported that there is a drop in the freight earnings of Railways.One fervently hopes the Railways does not become RED again.Those days when the federal budgets are presented Mr.Palkiwala used to give his budget analysis.These speeches were delviered only in big metros.Once he delivered his budget analysis lecture at Lakshmi Sundaram Hall in Madurai.I was fortunate to hear his speech then.I am now reminded of what he said about 'budgets' then.He said 'budget is an annual exercise where economics is defeated at the hands of politics.'