The core activity that acts as a single entity and effects the life of every common man is Indian Railway , that touches the public life of all and so it is best to be a Public Good. Indian railways is on their way to have a drastic changes with the entry of the private sector. Government had made a move to have conversation with the private sector over running of the passenger trains.
A panel set by Narendra Modi government , is going to present a report to the government on Friday. Also separate budget is to be scrapped for Railways.
The report made by the panel is to switch railway accounting to commercial accounting, and also effecting the manufacturing of coaches , wagons of the railways production units.
Privatization results on Indain Railways:
Zones are to made rational and brought under single umbrella.
Each division muct act as an Independent Business Unit (IBU).
Decisions within policy framework without the interference of Railway board.
Financial independent zones.
Separate budget to (RRAI)Railway Regulatory Authority of India , independent of rail ministry.
According to the ruling government, the decision made by the Prime Minister Narendra Modi on privatizing the Indian Railway will require a huge investment that will finally result in a great boost to nation’s economic growth and development.
In our common knowledge the financial development of Indian Railway has been struggling from a very long time. The public and private partnership route for this sector seems to be a failure for Indian Railway.
Due to the privatization , the jobs will get effect to a great extend. Over this difficult period of time faced by the Railway to provide the facilities to the common man of the country, the privatization on the other hand will result in a great increase in the prices to get the profit.
That will result in the snatching from the common man’s pocket. At the end it is the common man that will pay for this whole change or so called modernization.