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22 February, 2013

Safety

Have a great day.

February 22, 2013
ASSOCHAM demands for safety and modernization on passenger trains

Virtually 65 per cent out of 7,000 people representing all sections interviewed in 20 cities by ASSOCHAM team have voted in favour of moratorium on new passenger trains and wants Railway Budget to focus on safety and modernization, improving existing track and rolling stock and separation of passenger and freight train lines.

The passengers want trains to run at much higher speed even at 180 to 200 kms per hour and heavy investment in safety related areas like more efficient signaling, GPS based train control, and making serious attempt in implementing the corporate culture in running the largest transportation system.

Releasing the findings of the interviews, the chamber president Rajkumar Dhoot said, “we have 63,974 route kms, 1,31,206 bridges 9000 locomotives, 51,000 passenger coaches, 2,19,931 freight cars operating 19,000 trains each day transporting over two million tons of freight and 23 million passengers every day touching 7,083 railway stations across the length and breadth of this vast country and yet sadly lack the corporate culture”.

Majority of the respondents feel that the large private sector participation in railways will be possible if investors are convinced that government is committed to run it as profitable entity.

There has been widespread public acceptance of recent modernization Delhi, Mumbai, Bangalore and Hyderabad airports despite the huge costs involved and the private sector participation in their construction and running. 

ASSOCHAM strongly feel that the country as a whole cannot ignore the huge demand that rapid urbanization and immigration of people from villages and small towns to metros and mini-metros would create for more transportation.  Though roads would also share this burden long distance travel could only be comfortable and possible on mass scale with railways. Mumbai that in 2011 had a population of 18.14 million would in just 2015 grow to 25 million, Delhi and Kolkata from 14.11 million to 16 million,   and Bangalore, Hyderabad, Chennai, and other mini-metros cross 10 million. By 2030, some 40. 76 per cent of our people, that is 500 million, would be living in urban areas against 31.16 per cent in 2011.

This urban bulge would give us an idea of what would be the size of the long distance travelling public in the immediate future.  There is therefore no escape from building a most modern scientifically designed and ICT based railway system. 

As this will take at least a decade to implement in full, there is also no escape from starting the process right now itself.  Also it is self-evident that such a system has costs and cannot be run as a social service at a huge discount to the travelling public forever.  ASSOCHAM wants this imperative to sink in the public discourse.

Accepting that as a public utility catering to the needs of a people with wide variation in socio-economic capability, the railways could not always apply economic viability to every service it provides, most people would like to suggest that the transport major must be compensated for social service obligation from general revenues.

ASSOCHAM suggest an annual grant of Rs 15,000 crores for now to the railways from the general budge. This would be in addition to the one time grant of Rs 20,000 crores the chamber has earlier suggested for safety related investments and preparing the railways for transformation to the new responsibilities.

ASSOCHAM has suggested a three-way split of the undertaking with the passenger and freight sections becoming separate entities and the operations alone under the direct control of the Railway Board. The board itself will have member each from these two separate entities and will concentrate on planning and monitoring and will have overall authority to issue directives to the two separate entities from time to time.

This arrangement would also ensure that the well knit structure of the railways at present is focused on implementation of operation directly under the board which can set efficiency and economy norms.  The Zonal Managers should be given more autonomy and financial powers and made accountable for pre-set operational indices. The financial arrangement could be worked out with the assets being owned by the Railway Board and treated as leased out to the two corporations dealing with passenger and freight customers. 

(ASSOCHAM)


20 February, 2013

ASSOCHAM

Have a great day.

Bandh proves more damaging to economy, losses may mount to Rs 26,000 cr., says ASSOCHAM

With the BANDH turning violent in some parts of the country and bringing sense of insecurity among the industry and the workforce, the ASSOCHAM fears that the loss to the GDP would be more than its initial estimates as almost 50 per cent of the economic activity has been hampered by the strike.

Against its initial estimates of Rs 15,000-20,000 crore, the GDP may be eroded by about Rs 26,000 crore, it is apprehended based on the damaging effect of the Bandh on the industrial activity and the services sector like banking, finance. The financial capital of Mumbai has been hit badly. 

In most of the industrial states and enclaves the attendance was poor leading to curtailing of productions shifts.  With city transport being affected adversely, the footfalls in the retail trading markets also considerably declined, even though some of the markets remained opened.

“In the wake of more than expected disruption, we estimate the loss to the GDP in today and tomorrow’s Bandh to be in the region of Rs 25,000- Rs 26,000 crore – near 50 per cent of the economic activity,” said head of the ASSOCHAM Economic Analysts Team.

Expressing concern over incidents of violence and torching of public and private property, the chamber appealed to the union leaders to prevail upon their rank and file and ensure that the ugly incidents do not take place. “Such incidents completely shake confidence of the industry and the market for which security and peace is of paramount importance. Besides, the retail customers choose to stay indoors leading to considerable fall in the trading business – the lifeline of the country’s economy” said chamber President Rajkumar Dhoot.

The ASSOCHAM analysis apprehends the loss to the country’s GDP would work out to about 13,000 or more today itself.

The economy at this point of time is battling local and global slowdown cannot afford disruption. The strike would dent the market confidence as well, said the chamber president.

ASSOCHAM reports from different parts of the country suggested that the banking sector was the worst hit followed by local transport. The small and big retail trade had less of footfalls.

The situation in the vegetable mandis would be worse tomorrow and it is feared the prices of fresh eatable items like vegetables, milk, bread, eggs and meat may increase hitting the common-man who is already reeling under inflation.

The ASSOCHAM had earlier estimated the national loss figures based on the daily erosion of about 30-40 per cent to the country’s Gross Domestic Production (GDP) for two days. The disruption may go up to 50 per cent, it is feared.

As per the Advanced estimates of the CSO, the national GDP for the current financial year is projected to be about Rs 95 lakh crore. In other words, it is Rs 26,000 crore per day and Rs 52,000 crore for two days.  Of this, the strike may now  take its toll on at least 45-50 per cent to Rs 25,000 – Rs 26,000 crore.



(ASSOCHAM)