The Indian Railways is perhaps the largest commercial operation in the country. It is also a monopoly except a few privatized trains (Tejas Express) introduced in recent times. So, why should a giant monopoly incur losses or why should the Rail Minister Ashwini Vaishnaw claim the railways is losing money on subsidies. Firstly, everything PM Narendra Modi does has an element of scam in it. Nothing he does is without a scam. The Railways is no exception. It is the largest running scam for many years. First, let us get some unpleasant facts out of our way – the Indian Railways is perhaps the most horrible rail service in the world. It is lawless, there is no value for reserved passengers, there is no crowd-control on trains and to describe it in short, you could call it a “mobile slum”. I can produce hundreds of videos to prove this point but this one should be a good enough sample (Video: 9 secs):
Vaishnaw constantly claims Railways spend a huge amount to subsidize rail tickets. This implies the Railways makes losses. Why should it make losses? In 2017 the Rail Budget was merged with the regular Union Budget and since then people have no way of knowing Railways plans, fare hikes, new routes or what plans are in the offing. It became a totally opaque and corrupt operation than it was earlier. As for the services, you could say it is probably the same as Somalia or Rwanda. In other words, to put it mildly, the Indian Railways is the BIGGEST SCAM currently in operation in India. For FY24, Railways had a turnover of 2.56 lakh crores. That size of operation with a monopoly leaves enough holes for rats to flourish looting the railways in any operation:
Railways makes profits in anything you transact with it. Book a ticket – they profit. Book a freight train – they profit. Cancel a ticket – they profit. Miss a train – they profit. So much, that over a confirmed ticket of 175/- you will lose 120/- as cancellation charges. You cannot cancel after chart is prepared. In fact, the whole system of cancellations in Railways is a SCAM by itself. It is not cancellation charges, it is rather PENALTY for cancellation. In any cancellation, including waitlisted tickets that auto-cancel, the service charges or GST are not reversed. It’s gone! Absurd, idiotic rules that levy a heavy penalty for the inconvenience you cause the automated-clerks:
The biggest scam in recent times has to be the manner in which railways was operated during and after the Covid period. During the lockdown for 2 months from end-March 2020, all trains were also suspended. But as the services slowly returned, the GOI ran the biggest scam that most people completely missed.
# Firstly, the changed all the trains to “Special” and prefixed “0” before the last 4 digits of the train number to give it a new FAKE identity.
# They then increased fares of all classes under the excuse of social-distancing by keeping the middle-berths unsold (although if you issue RAC tickets, MBs will be used anyway).
# They hiked fares of all full-AC trains like Rajdhani/Shatabdi even though they had stopped linen and food services. Covid certificates with Modi’s photo was made mandatory (the GOI later claimed vaccination was never made mandatory). What FRAUDSTERS!
# I had pointed out this entire scam through a thread of tweets and the public also started noticing the scam. So, the GOI stated they will revert the fares to pre-Covid levels. But did they? No, they did not.
In short, the criminals of Modi govt exploited a situation like Covid with falsehoods used to fear-monger to actually loot people:
How in the world does Vaishnaw claim that Railways is subsidizing tickets? It is true that AC classes are charged excessively to partially subsidize the 2nd Class tickets. The subsidy also comes from freight revenue. But that is also an illegitimate loot. AC fares are further subjected to surge pricing and premium Tatkal which have no explanation offered to customers. Any price any day any whim is their rule. So, let us examine this fraudulent claim of subsidy:
If a plane with a capacity of 180 seats flies 360 passengers with 180 standing, they could afford to halve the ticket price. But airlines have to follow international rules and cannot indulge in such stupidity but our Railways can. Do trains run to capacity? They mostly run with passengers far more than their capacity. A regular Express train with a capacity of around 1000 passengers with 800 2nd Class berths/seats carries almost 3000 2nd Class passengers. The unreserved coach or “Gernal” coach or DeenDayal coach carries at least 4 times the capacity on every train. This means a seat for 100/- is sold 4 times, i.e. Rs.400 per seat. So, where in hell is the question of subsidy when the passenger doesn’t get a seat or berth that the train is supposed to give him? This is where the FRAUD is. Like I said earlier, Indian trains are “mobile slums”. A house with one room accommodates dozens of people. This may lead to shortage of water, facilities, garbage dumps – you will find all this in trains too. It’s a simple arithmetical calculation that doesn’t require the brains of Sagarika:
Vaishnaw can argue that the subsidy is over and
above the money collected from excess sales of tickets over and above the
capacity of the trains. But that would compound his moronery of defending a
poor business model, which is what the Railways is.
IRCTC was formed in 1999 and became operative in 2002. It became a listed company. IRCTC handles all the passenger ticketing, catering services and Heritage and Luxury tourism for the Railways. A few years ago it also became a full-fledged travel agent offering air-tickets, bus-tickets, hotel bookings etc. It is fully owned by the GOI (Ministry of Railways). IRCTCs turnover is ONLY computed by the service charges it collects. The fares go to the Railways or the respective operators of the service. It may also get commissions from airlines or other tour operators. In 2024-25, IRCTC’s turnover is likely to be around 1500 crores with a profit of around 350 crores. These are rough estimates. IRCTC has also offered dividends from its profits to its shareholders in the previous years. So, the question is: If IRCTC (practically a “pimp” of the Railways) can regularly make profits, offer dividends and have a good share price in the market – WHY SHOULD RAILWAYS MAKE LOSSES?
The answer to that question of Railways making losses is simple. It is too big a commercial operation handled by one single Ministry and one Lipstick idiot called Ashwini Vaishnaw with no responsibility or accountability at any level or stage. I am not going into a discussion of all the accidents and deaths that Railways cause or the deaths by stampedes or falling of foot-over-bridges – that incompetence compounds their losses. The Railways is like a kitchen-sieve that we use to filter grains and stuff. It is full of holes that leaks from everywhere with everyone looting it in every operation. There is one report where a person gave a job in Railways for 15 lakhs. If you Google for Railways-Scams, it will run about 3-4 pages on your computer.
Over 50% of Railways expenses are on manpower – salaries, benefits, pensions etc. That is a huge amount considering the revenue from transporting humans is a loss-making business for the Railways while the freight revenues compensate partially for the losses. Consequently, Railways have to be regularly funded from the Union Budget for any capital investment or as additional resources to sustain itself. Of the 17 zones of Railways, 9 zones had an operational ratio of over 100% in 2023-24. So, they do know which areas are making the big losses.
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