Railways: What After Bansal?

Railways: What after Bansal? Two successive regimes of Mamata Banerjee and P K Bansal have hurt and wounded the railways so much that it is now gasping for life. While Mamata has made it financially crippled, Bansal has been instrumental in demoralizing it to the extent that it feels ashamed of its own existence. It was like gang raping the railways. And the government allowed this ordeal of the railways to bear for a week unabated. Mamata’s reckless spending on non-plan activities and transferring money for unapproved, unworkable and visionless projects is no less a misappropriation of railways funds than Bansal’s silently approving of his nephew’s nefarious activities inside Rail Bhavan. It is perhaps for this reason that the CBI has extended the scope of their investigation to Mamata Banerjee’s stint also. What has been the real political intent of the government, in first retaining for a week and then removing Bansal, is best known to the PM and Sonia Gandhi, but the financial and economic exigency demands that the government must start taking immediate measures for railways recovery from the trauma it is suffering. On administrative and moral grounds the railways has to be devotedly and carefully looked after. Like a humming bird the railways has been shot in the mid air by its master. It has fallen and bleeding. It requires love, care and affection of insiders and out siders of the railways who are honest, sincere and sacrificing, to safe guard its honour. The workers and the officers of the railways have shown their anguish in tackling the bribery case and removing Bansal too late. They have shown their resentment towards adopting double standard in corruption cases. If a worker is suspended for taking Rs. 10 as bribe immediately, why so much delay has been done in case of a higher up? The association of officers has distanced itself from Mahesh Kumar who has brought bad name to the cadre. This is perhaps for the first time in the history of railways that such a scandal at the high level has been created. The railways at present is facing the threat of passengers safety. When the corruption is so deep rooted at the high level, who care to take responsibility for the safety of the passengers? Moreover, when the money is channelized in bribery through contractors, the cost of purchasing real equipments for the railways would increase manifold. Poor quality construction work will be done and low category material be used if contractors are made to pay bribe. The railways therefore needs overhauling of the whole system. A war like action has to be taken. The Railway Board must immediately be dissolved for building trust: three posts of members are already vacant and the rest would just be clear within a month or two. In such a situation keeping even the old members would create suspicion. What the Chairman of the Board was doing when such a scandal prevailed in the railways? The Chairman, IRB, be removed on moral ground as has been done in case of Bansal and also because he was catapulted to the post out of turn. A new order must prevail displacing the old that is vitiating the railways. Other financial and administrative changes be bought about so as to set the railways economy in motion. At least preceding four- year period must come under scanner and statutory bodies which can control the minister should be established. The basic problem of the railways is how to control the minister? The railways Ministers from Lalu to Mamata and to Bansal all have worked like autocrats. It seems that only a National Railway Commission for checking corruption, if established, can possibly change the face of the railways. With Bansal now sacked for his alleged role relating to his nephew’s corrupt practices, the railways is in damage-control mode. All India Railwaymen Federation and Association of Railway Officers have shown their solidarity to take steps to check corruption at all levels so that the lost prestige of the railways may be regained. It was shocking for them to learn that such a scandal at the top level was hatched that rocked the railways and shook the spirit of the workers, the staff and the high ups, all alike. The new railway minister C.P. Joshi has stressed on transparency in discharging duties at every level and seeks to build up trust among the 14 Lakh employees of the railways.

The Uphill Task for C.B.I. to Implicate Bansal in Bribery Case

The Uphill Task for CBI to Implicate Bansal in Bribery Case The railways’ bribery case seems to have broken out prematurely. It is a tough task to link Bansal to the top sensational scam. The CBI officers are now working day in and day out to find some fault of Bansal which can undoubtedly be related to the bribery case, but they see it to be an uphill task. Technically, the bribe money did not touch Bansal’s hand and promises made for providing additional charge of G M Westrn Railway, and Signal and Telecommunication did not materialize when money was captured red handed. The posting of Mahesh Kumar as member (Staff), Railway Board, was done on May 1 in regular process on correct lines. The CBI has to find out if any such order of keeping double posts has been issued by the minister or his staff. There are two sides of this episode. First, the money meant for ‘work to be done’ has been passed on and second, the actual work as promised has been done or not. The CBI Director, Ranjit Sinha, who was DG, GRP, Indian railways, prior to his present assignment as CBI Director was familiar with the inside working of the Railway Board and a few of disgruntled officers had earlier told him of the corrupt practices being adopted in promotion to the top posts in the railways. Curiously enough, Mahesh Kumar had informed Sinha regarding such activities being practiced at the top level. Perhaps this might have prompted Mahesh Kumar to have the advantage if work is ‘done’ so normally and he put his step to risk. CBI is a cruel department. The trick was played on Mahesh Kumar himself. Equipped with information received by ‘insiders’, Sinha started working much earlier to the present incident of capturing the money being ‘transferred ’ form one party to another. The ex-minister Bansal may have a strong defence in his favour by debunking CBI’s claim to have enough evidence to nail the minister. Although it is difficult to prove the bribery case against Bansal, but the probe is still on and something new may come up. The missing link in the case is that CBI has no phone intercepts of Bansal whose nephew Vijay Singla has been arrested for promising to fix the appointment of Mahesh Kumar as member (electrical), Railway Board. Singla bragging in the phone conversation about Bansal’s influence does not prove that Bansal was on board. With the resignation of Bansal as minister, a general perception prevailed that he might have presided over a series of scam of the same nature. The CBI has to go through deeply into the files which were forwarded to Bansal for promoting officers in various other fields. The CBI would question Bansal for his relationship with Singla and his activities at Rail Bhavan, but Bansal has a strong plea in his favour because the raids and arrests took place before Kumar’s appointment as member (electrical). When the crime has not been committed, how can one be implicated in the case? The railway minister is the deciding authority in such promotion cases and Mahesh Kumar’s promotion to member (staff) is a clear affair. The CBI thus had a tough job in deciding whether to swoop in or wait for the appointment to happen. ”we could have either let the bribe amount be exchanged and Kumar’s appointment be done …or catch the bribe money being exchanged red handed. For us laying the trap and seizing the money was most important” said Sinha. Now Bansal involvement has to be proved in the court. The CBI believed that Mahesh Kumar had a good reason to rely on Singla because he had seen Singla at the minister’s residence and in the office of minister’s personal secretary, Rahul Bhandari. Kumar had apparently checked that Singla in the past had got certain railway appointments fixed

The Ex-Minister Bansal Retaliates,"Should I Explain the definition of my family"?

The Ex-Minister Bansal Retaliates, “should I explain the definition of my family”? It is really difficult to define an Indian family, more so a business family, in common parlance. As Bansal’s sons and daughters are adults and have their separate occupations and line of business, the real family of Bansal would consist of himself and his wife only. This is Bansal’s micro family and no bribe scam can be assigned to him in true sense of the term of a family. But how Bansal would define a household? His concept of a household would consist of the number of Kitchens he allows to run under a roof or as he has been registered along with the members of family in the register of the national census 2011. Again, what is Bansal’s concept of his Undivided Hindu Family? How will he legally define it? Certainly, he must come forward to explain it in business terms as the people of India would like to know it. He is a public man and the nation needs to know about him in details. The fact is that Bansal does not belong to the modern micro family. He neither believes it nor does he practice it. He belongs to a clan, a member of an extended family which includes brothers, sisters, daughters, daughter-in-laws, sons, son-in-laws, nephew, nephew’s nephew, and many more relatives. There is nothing wrong in belonging to such an extended family. It represents the true spirit of Indian culture of unity and solidarity. But politics does recognize Bansal’s family as a clan which might have in possession not less than fifty members including children. This clan is an asset to Bansal who helps in his constituency for election campaigning. It is true that this clan as such has nothing to do with ‘bribe scandal’. However, a few members of this extended family have come close, closer and closest to Bansal in dealing with railways affairs. Bansal may or may not be aware of this fact, but if OSD is related to him, even distantly, it creates suspicion. The CBI deals with individuals not family. Individual cases are framed and individual charge sheet is submitted. It is only in relation to social and political atmosphere that people link Bansal to his extended family. If Bansal needs to define his family, he must explain the various concepts of Indian family, extended family, household, Hindu undivided family, including the concept of Bansal-clan of which he is a well recognized patriarch.

Indian Railways and Corruption There is no option for Pawan Kumar Bansal but to resign as the railway minister. Explaining his position and distancing from his nephew would not absolve him of the act so directly or indirectly committed. A top most member of railway board is alleged to be a culprit and a witness of the most sensational bribery case came to light in the annals of the Indian Railways who has day to day access to the minister. It is unbelievable that the minister is unaware of his nephew’s nefarious activities concerning the railways affairs. Bansal’s close relationship with his nephew is well known as an insider of the family as well as the manager of Bansal’s election campaign for Lok Sabha seat from Chandigarh . Bansal’s residence at Chandigarh is in the neighbourhood of his nephew’s residence and both the families meet almost daily. Bansal was instantly informed of the raid which CBI officials conducted in the night of Friday. The frequent visits of Bansal’s nephew to Rail Bhavan along with railways contractors as well as his visits to Delhi hotels with them and their associates confirms his motives to influence people and take advantage of it. It is helping indirectly the party to which the minister belongs through individual and material power. Ministers are not there for nothing. They have to serve the party and their personal interests. The service for the nation comes much afterwards. Gone are the days when patriot like Bhagat Singh laid his life for the cause of the country. It is certainly disgusting to know that a person representing Chandigarh, which is the home town of the Prime Minister also, was neither afraid of God nor his own boss and does not show any respect to save the honour of the railways and the ministry. Why does he not resign to protect UPA’s dignity and his own self respect? P.K.Bansal does not belong to the generation of micro family of recent times. He neither believes nor practices that. He has an extended family closely woven into a commercially panned empire furthering business and political interests. The family includes sisters, brothers, nephews, sister-in-laws, son-in-laws including sons and wife. They live in the same sector of Chandigarh and conduct their family business and activities almost in an interlocking manner. The patriarch of the family – Pawan Bansal – visits them on weekends to look after their interests. This Bansal clan has more than fifty members including children. The more prominent adults are named as: Madhu Bansal (wife), Amit Bansal and Manish Bansal (sons), Monika and Shiana (daughter-in-laws), Madan Mohan Singla, Mithan Lal Singla, Vijay Singla, Rajesh Singla, Vikram Bansal, Punit Bansal (all nephews), Sunaina Bansal (Vikram’s wife), Shalini Bansal (Rajeshe’s wife),Chetan Singla (Vijay Singla’s nephew) and Anshul Bansal (Punit’s wife). One-time Congress small functionary and a man of humble beginnings, Bansal rose to the level of a patriarch of a multi-crore empire run by his extended family. His proximity to Manmohan Singh is well known as both belong to the same state; same city of Chandigarh. During his thirty years of long political career Bansal has carved out a safe place for himself through his softness of speech, meaningful smile demeanor and clever persuasive style of handling people, problems and politics. His exterior is so much camouflaged that it is difficult to decipher who is art work - a detached man of unimpeachable integrity or an attached man of large crony and greedy family empire? Lalu Prasad supports him as a man of great moral values and honesty. Bansal says, “Nothing can influence my decision – neither my sons nor my wife; nephews are too remote and distant relations”. Just wait for court verdict, if any prima-face case exists against him. But the problem still remains unsolved. How officers at the top have developed a perception that the job of such a high position can be acquired through money? The answer lies in railways deep rooted mismanagement. Since past few years the bosses at Rail Bhavan have added to their own miseries. The top bribery charisma and its fall out are of recent origin. B. S. Ghosh Dastidar, a former member (Traffic), Railway Board, has expressed his extreme anguish and pain over the incident and added that for the past thirty eight years of his service to the railways, he had never heard of such top bribery case. Banasal may or may not be a party to this so called scam but the way this sensational case came to limelight, he has to bear the brunt of this sudden volcanic erupltion. Bansal seems to have misled the people having said that he (or his family) has no business links with his nephews. It is open documentary evidence that his sons, wife and daughter-in-laws along with his nephews are the directors of Bansal Raunaq Energy Group Ltd., ISIS Packing Pvt. Ltd., IV Health Pvt. Ltd., Theon Pharmaceuticals Ltd. Etc (details are available on Indian Express Website). It has also made clear that ‘Rail Neer’ and railways catering contracts are given to this extended family. Apart from this, Bansal’s family – his wife and sons - have borrowed Lakhs of rupees as ‘soft loans’ from the companies managed by their extended family to which his nephew Vijay singla (one of the main accused) belongs. How can Bansal keep himself aloof from such scenarios of family and money influences? Bansal plays safe not to be directly involved in any of his family business activities. He promotes business through his political influence indirectly or in other sense business gets promoted itself as his graph of political clout increases. There is party, political and ministerial help; there is family, friend and partner help; there is business, trading and organizational help. The Bansal clan gets it all collectively. There is support from inside and outside. He supports others and gets supported by them. It works smoothly, regularly and automatically even without his knowledge. His son Amit and his nephew Vijay Singla are his left and right eyes – if one is hurt the other has to feel the impact; if one rejoices, other can’t resist feeling happy sensation. The minister Bansal, where ever he is, uses his authority softly just in a whispering way – what his right hand does the left hand can’t sense it. He helps those who in turn help him. It is pure and simple professional and business relationship. As a MoS Finance, he got appointed Sunil Gupta as government nominee to Canara Bank, who in turn arranged a soft loan of Rs. 35 crore to his sons and nephews companies. Sunil was an auditor in Bansal’s empire and ultimately became a share holder of the bank. One can’t see any wrong doing in such activities. These are legally acceptable ways except where the ‘use of official power for self interest’ is involved. One has yet to see if the clauses of prevention of corruption Act and misuse of authority are applied in such cases and if he can be questioned for all this? The next step is that the PM must save railways from getting into doldrums. In that case he has to ask the minister to resign. The bribery case is directly a threat to passengers’ safety. When there is ‘zero morality syndrome’, the threat perception for safety multiplies exponentially. The PM must ask Bansal to quit. If the PM really wants to reform the railways he should immediately dissolve the Railway Board and reconstitute it as the bold Indira Gandhi did in 1980. In this respect no aspiring member or Chairman would adopt wrong ways to capture the post and the railways would be purged of the present higher ups who might have acquired the posts through foul means. But it requires strong decision and guts to do so. The railways is gasping for life and it seems its days are over. What a peculiar way of expressing by a member of the ruling party that this ‘small act’ is being much hyped. If this is small thing, what worse can happen to the railways? With what justification Sharad Yadav comes to the rescue of P K Bansal? Ministers do have several relatives, but not so close as Bansal’s naphew is. He is Bansal’s political manager of election campaign. He is to Bansal what Sanjay Gandhi was to Indira in political matters. The top body’s (Railway Board’s) member is involved. All the circumstantial and real evidences so far available show that the malady lies at the top. The head therefore must come to scanner. Bansal will create greater problems for himself and the party if he does not resign immediately. The case is not confined to the subject of top promotional level only. It relates to more sanctioning of the projects and the money involved in it not of Bansal’s regime alone but Mamata’s stint also. Dinesh Trivedi advocates much of honesty but only CAG report will tell how much he or his boss were right in dealing with and sanctioning the projects and transferring the money out of way. The corrupt practices so far kept hidden in railways have suddenly erupted which will certainly enfold the top bosses serving the railways at least for the past one decade. A free hand to these authorities was given by the government at centre and the PM with the result they acted in an autocratic style. The railways was almost held hostage by Trinamool Congress for more than three years. Mamata is a glaring example of an autocrat who still dreams to have railways portfolio. Just think why? The railways is the only department of the government of India which has the budget greater than any of States governments’ budget and comprises more than one tenth of the general budget of the nation. A ten crore alleged deal by a member of the railway board forms just a fringe of the greater deals which might be waiting to be burst out. Let CBI and CAG together make an enquiry for the past one decade and bring facts to the public. If PM does not cooperate in this process, history will not forgive him for tolerating corruption at the top level. The worst scenario of the railways is that it is totally minister driven. He is the monarch of what he surveys. There is no body, no committee and no group to oppose him. He never waits for suggestions. This process creates many loopholes in the administrative system. It was for this reason that it has become much sought after ministry. The department of railways is so vast that it gives an impression that you are ruling a nation. The Prime Minister has yet to set this rotten system right. Instead of showing his inability due to coalition compulsions, he must now rise to the occasion and operate the cancerous disease vitiating the body- railways. The Fare and Freight Regulatory Body has to be set up to intervene if the minister’s actions are getting autocratic. The Project Sanctioning Authority – an independent body – must be established to control the minister. The railways must have its separate Five Year Plan (rather than a part of the general FYP) and no unplanned projects or expenses be allowed unless approved by Finance Ministry and The Planning Commission. If no timely check on the working of the minister for railways is imposed and the powers of the minister are pruned, the cases like recent bribery at the top level will continue.

MAMATA BANERJEE EXPOSED: STATUS PAPER TO BE ISSUED

Mamata Banerjee Exposed of Railways Unrealistic and Visionless Projects for West Bengal. At least ten major projects out of a plethora of projects announced by the railways during Mamata's regime are either unworkable or purposeless. The projects seem to be devoid of financial prudence and lacked vision. They play negative role for the railways' economy too. The point in question, for example, is a Diesel Multiple Unit factory in Haldia, West Bengal, which is not a coach factory but simply a fixing of wheels unit to the already constructed rakes at Chennai. The rakes are to be transported from Chennai and wheeled in at Haldia. What an idiotic scheme it seems to be? According to an expert's view it will not only take away a part of existing job from Chennai factory but also add to the expenditure by 800 Km of transporting the rakes for wheeling in. Apart from this, the wheeling process requires technical knowledge and hence the projection of employment benefit for the local population is false. There are other such unrealistic projects which are unworkable or escalate cost unnecessarily. The money to such projects as sanctioned was lying unutilized with the zonal railway. The detailed exposure of projects would be made when the railway brings out a status paper on it soon. The stage is set to show how allocation of railways finances have been skewed distributed without any prudence, desirability and feasibility of projects with Mamata Banerjee keeping the lion’s share. With 92 projects in hand, 17 major projects were kept by Trinamool trio (Mamata-Dinesh-Mukul) to promote their party’s prospects in West Bengal. This trio has been adding on the new projects according to their whims. Adhir Ranjan Chowdhury, the minister of state for Railways has now decided to write a new CV of Mamata Banerjee indicating the lapses which have been found in sanctioning these projects. Most of the projects are just paper work to befool the people of West Bengal. These projects are conjured out of thin air with no roadmap on whether the railways needed them at all. Previously known as Mamata’s baiter, Mr. Chowdhury was instrumental in bringing Ms. Banerjee to UPA fold and provided her a politically exalted status. However, he now feels deceived by her in distributing the railway projects. According to Adhir Ranjan, the forth coming staus paper will reveal that much of the money allocated to the state of West Bengal – at least half of it – could not be spent till date because either the state government was unable to ensure land acquisition or zonal railways concerned were stretched thin beyond capacity. There are plenty of such instances where the money send for the projects could not be utilized more than 15 percent due to imperfect or flawed projects given to West Bengal. Mr. Chowdhury has emphasized that this time no hired consultant would be appointed as Mamata Banerjee had done in the case of bringing out White Paper against Lalu Prasad. The matter is mostly internal and the railways professionals are competent enough to write it. The Proposed White Paper will contain the period of three and a half years – the period occupied clearly by Mamata Banerjee, Dinesh Trivedi and Mukul Roy. It will go through all the projects and proposals sanctioned during that period and the money spend on them. It will also go into the causes why the projects could not be completed or remained only on papers. If the projects were unworkable and technically not feasible why the announcement to such projects were made? Why the people of West Bengal were kept in dark about the fact? The new status paper will also look into the skewed distribution of such projects on national Level. One should not forget to note that a Parliament Committee has criticized Mamata Banerjee for “misleading the people” by announcing a scheme without any basis and support in the railway budget for 2011-12. In its report tabled in the Rajya Sabha, the railway Convention Committee disapproved of the manner in which Ms. Banerjee as Railway Minister, announced the Pradhan Mantri Rail Vikas Yojna for developing backward areas. Under the scheme, she promised to execute 114 socially desirable projects that would require Rs. 5 Lakh crore in additional funding. The Planning Commission informed the Committee that the railways never discussed the scheme with it. And the Finance Ministry opposed it because it was unrealistic and at variance with ground realities. “Ms. Banerjee should have discussed the scheme with both the Planning Commission and the Finance Ministry before formulating and announcing it” the panel said. The committee also criticized Ms. Banerjee for proposing of fund Rs. 5 Lakh crore over the next 10 years from the Accelerated Rail Development Fund (ARDF) which had not been constituted. The ARDF was not even proposed when Ms. Banerjee decided to fund Rs. one Lakh core through it to execute part of the socially desirable projects. It was surprising that the Railways did not refer the issue to the Sam Pitroda Committee of experts set up later. It suggested that a committee be appointed to examine the issue. It is a known fact that CAG will not spare Mamata Banerjee for such grave financial pitfalls and lapses which run only in air and for which Lakhs of money has been granted by the railways during her time as railway minister. She will directly be held responsible for imaginary schemes and real transfer of funds. It was loot of the railways for political and party’s advantage. The minister of state for the railways, Mr. Chowdhury has reviewed all the rail projects in West Bengal announced during the last three years for the state during the Trinmool Congress representatives at the helm of the railways ministry. Since only a little more than a year now is left for the next Lok Sabha election, the minister is keen to prioritize the projects so that some concrete results may be delivered before the polls. Mr. Adhir Ranjan Chowdhury had a meeting with officials of Eastern and South Eastern railways which lasted for Two hours as the minister was briefed about the status of each rail project in West Bengal. Mr. Chowdhury had emphasized that no project would be derailed because these are the part of UPA projects, but given the railways financial conditions he would like to prioritize the projects so that some tangible results could be shown. The Projects which were impractical and senseless had to be brought to public notice so that visionless and deceptive ways adopted during that period might be seen by the public at large. The Cat will ultimately fix the last nail on the coffin of those dead projects given by Mamata Banerjee to fool the innocent people of W. Bengal. Mr. Chowdhury had explained that the railway projects would suffer if land is not made available for them by the state government. He also said that it would not be possible to give employment to people giving land as a rule. It will hamper rail projects in their totality. Only in special cases some employment may be provided, but not to every person. If such formula of giving the employment to all who give land is accepted, it will require around two Lakh jobs only in Eastern Railway zone. It will pose impediment to railways development. However, the minister emphatically announced that railway projects would not suffer. “No one should think that West Bengal will be deprived by the railways. We will see how those railways projects and factories can be implemented. It will be our priority. But we have to strike a balance between resources and projects”, the minister added. During the last three years – 2010 - 11, 2011 – 12, 2012 – 13 – about 135 projects were sanctioned by the trio of Trinamool Congress to Eastern Railways including 28 rail infra structure projects, newlines, gauge conversion, and doubling. While South East Coast, Western and West Central railways got only five projects each. The North Central and North Eastern railways received only two projects each. Northern and South Eastern Railways got 16 and 13 projects respectively. Such has been the skewed distribution of projects during Trinamool Tenure of the railways. In monetary terms it is quite a disastrous distribution. The minister of state for the railways said that there were 347 ongoing new line, gauge conversion and doubling projects in the country as on April 2012. They will be completed depending upon the availability of resources. Efforts are being made to generate extra budgetary financing through state plarticipation – PPP, defence funding, declaring some projects as national projects, and implementing of bankable projects through Rail Vikas Nigam Limited to expedite completion of ongoing projects. While indicating to issue a Status Paper on about 18 rail projects announced for West Bengal during Trinamool tenure Mr. Chaowdhury said that little perceptible progress has been made because the state government is not doing its bit. In spite of huge funds infusion no progress is seen to be achieved. These projects were announced without any feasibility report and statutory clearance. The MoS alleged that they were announced for the sake of announcement only to fool the people of Bengal. These projects have been shortlisted for a detailed study and an exhaustive paper would be soon prepared for the nation in general and the people of Bengal in particular. Reacting sharply to the prophecy made by Mamata Banerjee, Mr. Chokwdhury asked Mamata to be very specific about her loyality towards NDA or UPA. Will she support Narendra Modi in the event of BJP coming to power? It is disappointing to note that Mamata Banerjee threatens to stage a comeback to the Railways by hook or by crook within two three months as according to her prophesy the elections to 16th Lok Sabha would be held shortly and no party would be able to stop her coming back to Railways when again she would try to rule (or ruin) the railways to her full satisfaction. May God save the Railways from plundering and looting! The minister for Railways P. K. Bansal had already announced that 98% funds would in no way be allotted to West Bengal. Mamata had already made mess of the railways' finances and no further concession be given to her to create a skewed distribution of funds. People of the country have right to ask her why she unevenly allotted rail projects during her stewardship? Her pronouncement to opt for railways again smacks lack of political sense and sobriety. It means the government at the center is meaningless to her and She can support any party irrespective of ideological base to have an axe to grind. It was a political miscalculation done by Mamata Banerjee when she withdrew from UPA II with an intention to topple the government. She had always been blackmailing the government on one or the other issue and trying to keep her upper hand in decision making - be it Teesta water dispute, land acquisition bill. roll back of rail fares, petrol or diesel prices or gas cylinder quota. Mamata makes the political clock stand still on the issues like NCTC, multi-brand retail trade and industial policy. It is better that the government at centre has got rid of her. She plays the political game with tricks and myopic vision. And this time her strategy failed in convincing Mulayam Singh to cooperate her in dislodging the government. The leader of Samajwadi Party, on the other hand, came much nearer to the government. Mamata has lost the game and so West Bengal too has lost the future by electing her as its leader.

Indian Railways Financial Meltdown

Indian Railways Financial Meltdown: When Dinesh Trivedi, ex-minister, announced that the Indian Railways was in ICU, it did not come as a surprise to the nation. Ever since the publication of the White Paper on Indian Railways and bringing to lime light its faulty findings, it was clear that the railways internal structure had crumbled down. The foremost cause was the coming of the new incumbent who remained in office during 2009-11 and who actually had no time to think about the railways. She was preoccupied with West Bengal affairs and the PM also gave her free hand to rule the railways. He never tried to correct her when she was wrong. This non-interference was meaningful – it was coalition compulsion – the theory which was meant to degenerate Indian governance from its very roots. Lalu Prasad left the railways with much hyped achievement of turnaround. He had set high benchmark for the new comer - Mamata Banerjee. She therefore issued White Paper so that her achievements should not be compared with her predecessor as and when she might leave the office. She was sure that her real place was in West Bengal and she did not waste time to attend Rail Bhavan regularly. When the cat is away mice play. The railways thus started deteriorating and she could manage the lowest cash balance in the history of the Indian Railways – a paltry sum of Rs. 75 Lakh only in the first year of her stewardship. The book, very courageously and passionately written by Dr.R.N.Misra, is an exhaustive critique of White Paper on Indian Railways and exposes the reality behind the nature and causes of the railways crises regarding finances and management and presents a diagnostic analysis of the syndrome relating to their meltdown and failing health. It contains 12 chapters including conclusion. Starting from Turnaround to White Paper and gradually covering details of the White Paper as a flawed report, it goes on analyzing financial and managerial syndrome and pointing out that the railways need reforms not White Paper. It also includes the drama of Roll Back or Resign – played at Rail Bhavan, directed through a remote control by the party chief with the role of a tragic hero played by Dinesh Trivedi who ultimately surrendered to the wishes of the director. The whole nation silently witnessed this perfect Shakespearian tragedy with political catharsis of a high order. The book is worth reading by people in general and the railways staff, the workers and the policy makers in particular.

Trinmool Tenure Proved to be Disastrous for the Indian Railways

Trinamool Tenure Proved Disastrous for the Railways The last three years, 2009-10 to 2011-12, seemed to be a desperate attempt by the railways ministers belonging to Trinamool Congress – Mamata Banerjee, Dinesh Trivedi and Mukul Roy – to channelize and divert the activities of the monolith from its basic business of transportation to route its resources to their home state – West Bengal. Their attempt could not succeed much but the railways suffered a lot due to such diversions and many ad hoc schemes got preference over the planned activities of the railways. The non-planned projects such as opening of medical colleges and nursing schools and MoU signed between the ministry of health and the railways and also between human resource development minister and the railways were the clear indications of diversifying the railways resources to non-core activities to slow their pace of development. There were many irrelevant committees set up under Trinamool tenure for providing advice or consultation. They seem to be of no use in the present context and better if they are scrapped. The railway ministry had provided solid support to Trinamool Congress in establishing railway based projects in West Bengal. The West Bengal is best connected by the railways with 4151.98 km of railways tracks of which 2227.3 km run on electricity. A new railway link from West Bengal to Sikkim has been proposed. A new rail axle manufacturing factory has been finally set up at Jalpaiguri for Box N wagons. An AC Container and Bogie manufacturing factory has been established at Budge Budge (near Kolkata). It is all “advantage west Bengal” because Trinamool Congress chief has strived hard to retain the railways portfolio with her. With the withdrawal of support by Mamata Banerjee, she now fears that West Bengal railway projects may die their slow death. The trio of Trinamool Congress have added railway projects worth Rs. 65000 crore to West Bengal. Besides 17 major projects including the EMU coach factory, wagon manufacturing and electric loco assembling units and East West Metro in Kolkata, worth Rs.40,000 crore, Ms. Banerjee as railway minister and her two successor s had cleared 63 schemes relating to construction of new lines, gauge conversion and doubling of tracks worth Rs. 25000 crore. This has been perhaps the most uneven distribution of railway related projects after Independence. It has been all “advantage Mamata” as if no other leader exists in this country. Is this the way to fight for the cause of the common man when she herself keeps the lion’s share of the booty depriving rest of the states for their stake in railways? However, as far the core activities of the railways were concerned, the years 2010, 2011, 2012 were the years of great neglect. These years have shown remarkably high political impact on the railways and have degenerated their functioning at all the levels. The railway politics has made it possible to divert various railway related schemes to West Bengal and syphon off the funds for using them in their completion. Mamata Banerjee issued White Paper (2009) on Indian railways; it was a negative approach which led her to prepare budget estimates by fixing traffic targets at a lower level. She pursued benchmarks much below than the business-as-usual practice which ultimately brought the railways to financial meltdown. When she took over the charge in May 2009, the first step she took was to terminate the process of turnaround. This disturbed the financial progressive ways and tempo of the railways working which was meticulously adopted by the earlier regime. Once you disturb the rhythm and the momentum, it is hard to regain it. It was this reason that she could earn all time lowest surplus in her first year as a minister and was never able to reach nearer the earlier figures. She started to reduce budget estimates out of intrinsic fear that she might not achieve higher targets. She was not ready to put up a fight against the forces hindering the growth and take the railways on the fast track. This pushed railways in back gear, and fund balances started declining much faster than the revenue earned. Three main budget studies may be cited as examples of such a deteriorating condition. The main railway budget 2009-10 has shown that a deliberate effort was made for a final showdown to the cause of turnaround and in doing so the estimates of almost all the head of items were reduced. Two years later, when actual performance of the year 2009-10 came to light, all the estimates (budgeted and revised) were reduced to a terrible state. There was no surplus/excess generated worth mentioning. The railways could earn only 0.75 crore net revenue as against an estimated figures of Rs. 2642.26 crore. This increased the operating ratio to the tune of 95.3 per cent. In this way, railways cash reserves fell from Rs. 13431 crore to Rs. 75 lakh. The minister of this period – 2009-10 – literally left the railways in a state of financial meltdown as from Rs.13431 crore in 2008, their cash reserves fell to a paltry sum of Rs. 0.75 crore or Rs. 75 lakh in 2011. This means between 2008 and 2011 the railways lost a whopping of Rs. 550 crore every month or an average of Rs. 18 crore per day. A down spiral that began towards the end of the year 2009 accelerated during the new regime (2009-11). This decline could be touted as the biggest fall in finances for the railways since Independence. When one goes through the details of the railway budgets 2010-11 and 2011-12, one finds the same story of downfall. The main factor which brought this financial meltdown was the lack of will to pursue higher targets of revenue to achieve and generating more loading capacity to increase freight earnings. On the other hand, loading target was reduced by 20 million tonnes to 924 million tonnes in 2010-11. However, goods earnings were retained on the basis of trends of higher yield per NTKM. Total gross earning was fixed to Rs. 94742 crore which was Rs. 1277 crore higher than the budget. With the reduced traffic suspense clearance of Rs. 98 crore, gross traffic receipt was a little higher than the budget target of Rs. 75 crore at Rs. 94840 crore (revised estimate). But the actual situation was somewhat different. The railways could attain only Rs. 94535.63 crore as actual gross total receipt which was less by Rs. 304.81 crore than the revised estimate. As regards total receipts, the actual figures fell by Rs. 1040.53 crore from budget estimates. The surplus/excess was only Rs. 1404.89 crore (actual) which could be appropriated to development fund and no funds were transferred to capital or railway safety funds. Net revenue fell by Rs. 3435.41 crore at the level of Rs. 6346.14 crore as against the budget estimate of Rs. 9781.55 crore. Out of gross revenue earned, the dividend payment to Rs. 4941.35 crore was made, leaving just Rs. 1404.89 crore actual surplus or excess. The budget 2011-12 which provides the figures relating to budget estimates and revised estimates does not give a rosy picture. It has not generated surplus/excess more than the previous year. The revised estimate of surplus shows just Rs. 1492.15 crore i.e., only Rs. 87.26 crore extra. If trends set any example, the actual excess would be even less than the previous year or in no case cross the revised figures as estimated. When there is no or little surplus, what else can one think of development or capital fund? According to estimate of Rs. 106239.00 crore for financial year 2011-12 under the head Gross Traffic Receipts, the revised estimate have fallen by Rs. 2322 crore at the level of Rs. 103917.00 crore. The total receipt thus fell by Rs 2746.35 crore at the level of Rs. 106646.78 crore. It seems that the railway is moving at a snail’s pace ultimately to come to a grinding halt. The situation of fund balances has become precarious. The depleting fund balances and shortfall in surplus/excess have shown the trend as follows: Depleting Fund Balances (Rs. in crore) Years Balance 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 opening 16694.35 Actual 20483.21 BE 15661.26 BE 7698.39 BE 3102.55 BE 2005.93 BE 16529.78 RE 26027.90 RE 15654.71 RE 5032.06 RE 342.51 RE - Closing 22279.35 Actual 19706.76 BE 8360.88 BE 5063.73 BE 1367.64 BE - 20483.21 RE 15661.26 RE 7698.39 RE 3102.55 RE 2005.93 RE - In the same continuation the successive shortfall in surplus/excess and deteriorating operating ratio have been shown as follows: Successive Shortfall in Surplus/Excess and Increasing Operating Ratio (Rs. in crore) Years 2007-08 2008-09 2009-10 2010-11 2011-12 Surplus/ Excess 11449.45 BE 11786.74 BE 2642.26 BE 3173.09 BE 5258.41 BE 13534.08 RE 6355.56 RE 551.03 RE 4104.50 RE 1492.15 RE 13431.09 Actual 4456.78 Actual 0.75 Actual 1404 .89 Actual - Operating Ratio 75.9% 90.5% 95.3% 94..6% 95% During Trinamool tenure the railways demonstrated a disastrous trend. The fund balances were rapidly receded year after year. Since the last year of turnaround, this phenomenon has been quite visible. But three years which have lapsed after the new minister in May 2009 has taken over the charge have shown the deterioration on regular basis. The opening balance of the funds has depleted from Rs. 15661 crore to Rs. 7698 crore and Rs. 3103 crore in the years 2009, 2010 and 2011 respectively. There have taken place more withdrawals than appropriation to the funds with the result closing balance have come down from Rs. 7698 crore, Rs.3103 crore and Rs. 2006 crore in the years 2009, 2010 and 2011 respectively. The same story relates to the successive shortfall in surplus/excess in the revenue earned from the years 2008-09 to 2010-11 onwards and the worst year has been 2009-10 when only negligible amount of Rs. 0.75 has been added. How can investment be made without surplus or excess? The operating ratio which is the best to judge the efficiency and performance has been unfavourable and has increased from the best situation of 75.9 per cent in 2007-08 to its worst situation of 95 in 2011-12.

A New Book on Indian Railways

A New Book on Indian Railways A book as a critique of White Paper on Indian Railways has been recently published (2013) under the title “Indian Railways Financial Meltdown”. The White Paper On Indian Railways was issued in December, 2009, by Mamata Banerjee in retaliation against the achievements of Lalu Prasad and his regime (2004-5 – 2008-9)as minister for the Railways. This created an impression that the turnaround process of the railways was much hyped than real. This also raised a controversy rather disbelief in the minds of the people in general and the railways staff in particular about the earlier achievement of Lalu Prasad. The book presents a situation where an analytical study has been made to provide an answer to the faulty findings of the white paper of the White Paper and has established an anti-thesis of the same. This study thus protects the concept of turnaround of Indian Railways and its transformation from loss bearing to profit generating organization. The Book is indispensable for inquisitive readers, academicians, railways staff and the policy makers. For further details please contact Gyan Books Pvt. Ltd., 23 Main Ansari Road, Daryaganj, New Delhi – 110002. E-Mail: www.books@gyanbooks.com