* First and foremost duty of Indian Railways is to operate, maintain, modernize and expand to meet the freight and passenger transportation needs of the country. Since IR has been bestowed monopoly over the most important, environment-friendly and cost-effective mode of transport, i.e. the railway operation, its duty becomes very important and serious for the growth of our nation & its economy.
* It is very unfortunate that IR has very badly failed to discharge the above duty towards India & the Indians. It has failed to operate efficiently, to modernize and to expand, in order to meet the needs of fast developing Indian economy. As a result, its market share in passenger and freight segments has dropped from about 90% to...
more... 30% and 75% to 15% respectively since independence. The traffic which should have been carried by IR at very low cost and in an environment-friendly manner is being carried by Road vehicles which are costing our nation very badly in terms of finances as well as environmental degradation. As a result of the failure of IR to augment its capacity, the logistics cost incurred by India for transportation is continuously increasing which is about 16-18% of its GDP (2018-Rs 180 Lac Crores) against the global benchmark of 8-10%. As a result, imported goods are costlier to the Indian consumers and Indian exports are costlier to foreign importers, thereby making it in-competitive as compared to the countries with lower logistics cost. It means inefficient IR has become a drag on Indian Economy which is costing our nation about 7-8% of its GDP, i.e. a cost of Rs. 12-14 lac crores per annum, a whopping amount.
* DFCs are the only tools which can help IR regain its market share lost to roadways. Unfortunately, the only RM who appreciated this fact and did a marvellous job by putting DFC projects on super fast track has been unceremoniously removed from Railway Ministry.