Reforms are needed on multiple fronts to modernise the railways and make it play its role in globalising India’s transport infrastructure.

One, the IR should spend more on safety. It must procure new rolling stock and invest in track renewal, electrification and electronic signalling, especially for high-speed operations. However, investment is a function of railway finances. The IR’s deteriorating financial health, reflected in its operating ratio, can improve only if it raises passenger fares. The practice of freight and upper-class passengers subsidising lower-class fares should end. Even railway unions today want a fare increase, fearing that the IR could go the Air India way.

Two, the IR also needs to break new ground in freight. Keeping freight rates untouched will not fetch the IR a larger share in goods movement. Three, it should involve the private sector in a big way to augment investment and step up freight volume and revenue. Private entrepreneurship must be roped in for projects including modernising stations and freight terminals.