Wednesday, February 19, 2014

Labyrinth of Rail Tariff Authrity


LABYRINTH OF RAIL TARIFF AUTHORITY The proposed rail tariff authority is a complex institutional phenomenon; the more it is worked out, the greater is the complication, intricacy and confusion involved in it. One is sure to be lost in its incompatibility and impracticality of thought process and action. The idea was first mooted to establish Indian Railways Regulatory Authority (IRRA) by The Rakesh Mohan Committee Report (2001) along with other innovative recommendations. But it was not taken up seriously because the committee stood for corporatization of the railways and almost proposed to dismantle the Ministry and the Railway Board. Not knowing about the consequences, the idea was reopened by Dinesh Trivedi (2012), although the railways’ professionals and think tank did not consider it a welcome step. Later on, other ministers - Pawan Kumar Bansal and Mallikarjun Kharge - under the pressure of the Planning Commission - took up the cause for establishing Rail Tariff Authority. Though Bansal had to leave the railways, it was Kharge who ultimately succeeded in getting the proposal of Tariff Authority passed by the Cabinet. It is at present lying with the Ministry of Law. The tragedy with Indian Railways is that it is molested, time and again, by its own mentor for personal and party pleasure. Who is to check the top brass? And how is it possible to bell the cat? When it comes to Railways Budget Session, the minister feels elevated – a time for bounty distribution – mostly unplanned expenditure is added year after year. And the back log grows so heavily that no amount of Vision 2020 or any other such Vision would suffice to end this process. The past experience shows that the malady lies somewhere within the ministry of railways. It is the minister who needs to be checked, controlled and stopped from making imprudent and whimsical decisions. But what is the way out? Is there any authority over him? Is there any regulatory body to mend his ways? Constitutionally none, except the Parliament to which the minister is answerable. For the past several years, the railways has shown unprecedented ways of bringing the department to near bankruptcy. It seems to be the fall out of insensible decisions taken by the ministers like popular schemes of no hike in tariffs, unplanned expenditure, unfeasible projects and adding up limitlessly new trains and new programmes every year without any financial provisions for the same. It is perhaps for this reason that a consensus was created to establish Rail Tariff Authority. It sounds good to have such an authority provided it is feasible. Perhaps neither the Planning Commission nor the Cabinet has given a second thought to it about its impracticability. The idea of Rail Tariff Authority (RTA) is unrealistic, inappropriate and disruptive because of the duplicity of the authority and other related factors involved in it. It seems like creating an authority over the final authority. What type of power structure does it envisage? The most experienced financial cadre of Indian Railways and academics engaged in research studies at various rail study centres like Rail Transport Institute, Delhi, and Railways’ Staff College, Varodara, have opined that the set of players involved in railways are different than those in other tariff authorities like the Tele-Communication Sector (from where this idea is borrowed). The players of the Tele-Communication Sector are outsiders and cannot be equated with the railways. A. V. Polouse, an authority on railway finance, and former member Railway Board, has never welcomed the idea of Rail Tariff Authority. He is of the opinion that tariff authority like the Tele-Communication is working only because this sector is multi-operator-service-sector, unlike railways which is single-operator-service-sector. The railways is a single player business unit. Whom will the RTA regulate? An authority to regulate an authority! Should one regulate the Minister for Railways or for that matter the Prime Minister if he keeps the railways portfolio with him? The Rail Tariff Authority is a mismatch proposition and does not conform to the railways setup and its operative pattern. The railways as a department, and the government at the centre – both seem to be rather confused over the setting up of the Rail Tariff Authority. Perhaps it is on the basis of such a scenario that the proposed RTA has yet not taken a concrete shape and though it has got a nod from the Cabinet, the proposal is still languishing in cold storage or perhaps lying somnolent with the law ministry. The doubts regarding feasibility of the Tarff Authority have come home to the roost. The protagonists now say that if RTA has to be adopted, it must go through both ways i.e., executive and legislative. Though it is easy to establish RTA through executive order but it would remain in that case a subordinate and weak institution. Its recommendations would never be mandatory. The railways by nature and authority cannot digest any super body dominating it. It is not practically possible to do so without recourse to legislative process. It, therefore, needs an amendment in the Railways Act 1989. It is here that the conflicting opinions prevail. The nature, role and practicability of RTA have to be ascertained first. The purpose of tariff authority has to be well defined. Its functioning has to be made clear. The feasibility aspect must be judged properly. The railway ministry wants it to be an advisory body where as the government at centre thinks it to be much stronger an institution whose recommendations would be mandatory. The Cabinet Committee though in principle has accepted the establishment of a regulatory body but it has different versions of the proposed authority. The minister for railways, Mallikarjun Kharge, has said that the Cabinet has approved the proposal of establishing RTA but there are some points which are still to be clarified. What are those points are not clear. In fact, a stronger RTA needs amendment in the Railway Act. The Act should provide fine teeth to RTA to enable it to regulate railways tariffs with power, grace and dignity. In this case it would have authority to fix fares and freights binding on the railways. And, perhaps the railway administration would not accept this process on technical grounds and in the long run the Rail Tariff Authority would become useless. The railways on the other hand, has an authority to submit budget to the Parliament - an authority - which is superior to any other department functioning within the government except the Ex-Chequer, the Ministry of Finance. How can a third party intervene the functioning of the railways and the Parliament? Does the RTA want to make this power of the railways redundant? There seems to be a tussle of power being exercised between RTA’s advisory and mandatory role. This situation, in any case, should be avoided in the general interest of the railways and the people. What is use of submitting separate budget by the railways if it cannot fix fares and freights on its own? The aspect of fare and freight policy governs the gamut of railways system and functioning. If this process is changed, the railways cannot survive as a dignified department. The setting up of an intermediary body would disturb the whole power structure of the railways. A common acceptable solution has to be found so that the RTA would fix the brackets of increase or decrease of rail fares and freights taking into account input costs like fixed and variable costs, marginal and average costs and other expenditures and market conditions of demand and supply including elasticity and sensitivity aspect of passengers and consignors. However, the final authority must remain with the railways. This requires executive and legislative changes and amendments. Only the time will tell what shape the RTA takes if the government is keen to establish it. If Indian railways has to be saved from the political clutches and unrestricted power being exercised by the ministers to promote their private and party interests, the RTA with fine teeth should emerge as a solution to the present deteriorating situation or else the railways would be driven into doldrums. The railways has already experienced a damaging effect due to ministers uncontrolled behavior during the recent past and the ministry of Railways needs a shock therapy to bring it on the right track.

Raiways and Corruption


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 part of a deeper conspiracy 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 are not hermits. 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 it. He has an extended family closely woven into a commercially planned empire furthering business and political interests. The family includes sisters, brothers, nephews, sister-in-laws, son-in-laws including sons and their wives wife. They live in the same sector of Chandigarh and conduct their family businesses and activities almost in an interlocking manner. The patriarch of the family – Pawan Bansal – visits them on weekends to look after their interest. 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 a 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 remote controlled politics and influences people indirectly or in other sense the business gets promoted itself as his graph of political clout increases. There is party- wise, political and ministerial help; there is family-wise, friendly and partnership help; there is business-wise, trading oriented and organizational help. The Bansal clan gets it all collectively. There is support for him 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 his political manager of election. 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 as a hostage of 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 with greater intensity, spread and effectiveness.

Meaning of Arvind kejriwal's Resignation

Meaning of Kejriwal’s resignation Why did Arvind Kejriwal resign? This is the question which every conscientious citizen of Delhi should ask himself and try to find out answer from within. It was Kejriwal’s Act 1, Scene1 of the political theatre where in he was deceived and ‘stabbed’ like Julius Caesar by his confident Brutus. ‘Et Tu Brut…then falls Caesar’… and the scene ends. But Kejri’s theatre is continuing, Act by Act; Scene by Scene, even more intensely. Just about two months earlier to this tragic scene, the congress leadership on its own tried to woo Kejriwal by promising unconditional support to him. Not that he was eager to capture the office of chief minister, but a kind of challenge was thrown to him. Kejriwal does not play his cards with the shrewdness of a poker faced politician because he is at heart pure and simple and a man of conscience without any malice, but intelligent enough to understand the tricks played by others. At that time he had several options which a cunning and crafty politician might have chosen. But he did not indulge in debased politics for a wider and solid support and contended himself with only eight votes more as a good gesture from the Congress, but on his own terms. Kejriwal is a straight forward man and knows his way and the mission well, unlike other politicians who play with tricks and numbers only. His guiding force is the ‘Aam Admi’and his one point agenda is to exterminate corruption from administrative set up at every level; other things are subsidiary to him – the politics, party and position. AAP is not a party but a political revolution and anybody joining him is aware of the fact that he has to sacrifice all - money, power and position in order to achieve the mission of eradicating corruption. He has made it clear to all – join us or not – but service to the nation is the only ambition which one has to aspire. It is the second war of independence and in absence of Gandhi one has to model himself as Gandhi and sacrifice the same way as he did. It was with this intent that he had to sit a Dharna before Rail Bhavan. He was protesting against the police which disobeyed him. Everybody has a right to protest peacefully. One cannot dictate the methods, the places and the ways of protest. There is nothing theatrical about it. He considered himself a common man (even as CM) and behaved like a common man. Gandhi never wished to rise above common man. He lived and died as such. Since we have forgot the Mahatma, his way of life and the methods of his protest, we see oddity in Kejriwal’s action. The Congress had forgot Gandhi long back. It never revived those values which were very dear to him. It had been converted into a shrewd political force and had established a system that thrived on corruption. Other parties too learned the same lesson, more or less, because it was a built-in process and difficult to avoid unless you set to change the system. If you achieve power the motto becomes simple; ‘Live (In corruption) and let live (In corruption)’; ‘Do scams and allow others to do’. And the concealed cunningness of the system should never be exposed. The same story of corruption runs from Boforce to Coalgate – from one PM to another. Just think it deeply. When did the Congress support Chandra Shekhar or Charan Singh whole heartedly? It was a political game. It seems good in a bad politics. Shrewdness is it’s another name. Scoundrels govern the whole system and we have become a part of it. But it was a different proposition when Kejriwal accepted the support of the congress. He was very clear in his mind. He had no ambition to be CM (Or PM). He is a rebel and a revolutionary in his own way. One cannot cheat him - not even politically. If one does, he will revolt because he has nothing to lose. This is what he has done while resigning as CM. But by doing this, he exhibits the courage of a crusader, the strength of a rising rebellion and moral force of a Mahatma. One has not to go into the technicalities of constitutional procedure or democratic way of getting passed the Jan Lokpal Bill for Delhi (Or for the country). Politics in India has de-generated our institutions and methods which support legal framework. Our laws are obsolete and ineffective, system is inefficient and corrupt, the policies and programmes are widely used to support corporates in the name of liberalization and free economy. Money governs the government. The common man is left to reconcile to his fate. There are instances to prove this – be it is Gas-Price –Scam, dilution of Jan Lokpal Bill or taxing common man in the name of higher fuel or water cost. If Delhi Legislative Assembly cannot pass or present Jan Lokpal bill on its own, what type of government it is? Is it a municipality or a village Panchayat – always to seek permission from above? Delhi government must assert its power. The opposition – especially the Congress, should have allowed passing or presenting the bill as promised. If it was unconstitutional, there was every possibility of its being rejected at President Level. But why it was obstructed in the midway? There are cooperative ways of supporting a coalition government. With Anna Hazare’s movement, and Kajriwal’s coming to the forefront, a new polity is being generated. If one misses this point, one has to suffer. Constitution is the same, but new players are coming up with new values, mindset and awakening, and giving priority to the cause of empowering common man. Even Rahul Gandhi has changed his ways due to Anna or Kejri effect. The members of Delhi Legislative Assembly must rise to the occasion. They have to shed their old values. It is a final call to the Young legislators. They should be clear hearted and must not adopt the old political tricks or gimmicks to run or defeat a government on technicalities. The people are watching them. They have little time at their disposal. The Delhi government has to fight many a battle in future where there will be clash between the Centre and the State power. The centre government should not reduce Delhi government to the level of a district or a village Panchayat. The net result is: Kejriwal is now posing a great threat to the Congress and BJP in Delhi (and elsewhere). The trick thrown has boomeranged. Kejri has evolved into a great moral force. This fact should not be ignored. He has not fallen: he has risen higher as a crusader to finish corruption. This image of his would remain in the minds of the voters for long. If one discards Gandhian values and does not keep promises, one has to lose not only power, but solidarity of the party and the unity of the country.