Privatization of Indian Railways: Boon or Bane?

Recently on 2^nd July, 2020, Government of India has proposed to bid for 151 pairs of new trains to be run in 109 roots of Indian Railways from the private investors in the first phase. This will pave the way for the privatization of 167 years legacy of Indian Railways (1853-2020). It is the oldest railways in Asia and the 4^th biggest in the world. It is India’s largest Public Sector Unit in terms of providing employment. It is providing an employment of around one crore including direct and indirect employment.

According to the government this privatization will likely to attract an investment of around Rs. 30,000 Cr ($4 Billion) to Indian Railways. This will also create more employment opportunities, increase safety of passengers and create world class facilities in the railway system. This will also give a boost to Foreign Direct Investment (FDI) in India.

On the other side it has been feared that it may lead to job lose, lose of job security, fare hike, loosening of government control over railways etc. It may further increase the difference between the rich and the poor in the country. Many railways employee unions have already opposed the move citing these factors.

This development has both positives and negatives. There is need of detailed discussion in this topic in a large scale. The government may need to have a fair discussion with all its stakeholders to get their support. In this regard I request my readers to comment your views in the comment section below.