Government announced the withdrawal of international bilateral traffic rights, domestic slots of Kingfisher Airlines with immediate effect.
Officially grounded. The government has announced withdrawal of international bilateral traffic rights, domestic slots of Kingfisher Airlines with immediate effect according to the aviation ministry.
While the airline’s slow death makes global headlines, it appears its flamboyant owner couldn’t care less. There has been no word from Vijay Mallya on the future of what was once India’s second largest air carrier.
Evidently liquor baron Vijay Mallya’s airline has had no takers despite the entire buzz around finding investors to save it. Mallya himself has kept away from it like plague as the airline has dented his brand significantly. Many had anticipated a string of global big birds to come for easy and cheap prey and get an entry into the Indian aviation space. That didn’t happen and ironically things have to come to a situation that no one wants to resuscitate the carrier.
Mallya is also faced with a criminal case for failing to remit to the income-tax authorities TDS (tax deducted at source) on employees’ salaries. The cash-strapped airline hasn’t paid its entire staff for over eight months though PTI reported recently that some employees did get salaries.
The airline has never posted a profit in its eight years of operations and has lost over Rs 3,000 crore in the last year alone. The airline’s latest financial results posted a loss of Rs 755 crore for the third quarter ended 31st December 2012, even though it did not operate flights during this period.
Kingfisher Airlines flew to eight countries including Bangladesh, Hong Kong, Nepal, Singapore, Sri Lanka, Thailand, Dubai in the United Arab Emirates and the UK. These traffic rights were allocated to the firm between 2008 and 2011.
“Whatever assets it has will likely be carved up and any leased jets will be returned to lessors and the airline will cease to look like an airline. It has already been grounded and lost its operating license – there really isn’t a fat lot left of it to even call it an airline,” says Saj Ahmed of London based Strategic Aero Research.
“It’s cheaper to start a new airline than restart KFA,” says Kapil Kaul, CEO of Centre for Asia Pacific Aviation. The aviation industry has long wanted to see Mallya spend his own money towards recapitalising the airline. “He could have stepped in earlier with his own money, rather than wait for a third party to invest which to date has still failed to materialise,” says Ahmed. According to experts $600 million or more would be required to put KFA back into the air, but now with a complete withdrawal of slots, it’s clear that even regulatory authorities don’t believe in reviving the carrier or taking responsibility of its disintegration.
“There is no sale happening,” says a banker who has worked on potential deals for the now defunct airline. Having taken many foreign carrier reps to the ministry, he asserts, “Even the aviation ministry is not urging investors to take up the KFA case.”
So why aren’t investors coming in? For many reasons. One, it ‘s not an operating airline and buyers have the option of better-run SpiceJet, Go or even Jet Airways that are wiling to sell stake. Two, the massive debt of Rs 15000 crore is hanging like a Damocles’ sword. Employee morale is low, many human resource linked issues are stuck in court cases and the pilot base too has shrunk. And importantly, Vijay Mallya himself doesn’t care.
In recent trouble, state-run Airports Authority of India (AAI) said it will not go by the “empty promises” of the airline management and insisted on being paid up for its dues. At this rate if the planes keep standing at airports, the quality of aircraft will come under question. “I just find it difficult to see a situation where that airline can ever fly again,” says Ahmed.
Kingfisher has remained grounded since October 1 and its flying licence expired on December 31.
Wednesday, February 27, 2013
'Jagan Mohan Reddy Will Become CM in six months'
Is it heights of optimism or absurdity? How can YS Jaganmohan Reddy become Chief Minister in six months? His sister Sharmila, the arrow shot by Jagan himself, is moving about every village on foot as part of her ‘maro praja prasthanam padayatra’and telling every one that Jagan would become Chief Minister within six months.
But the charming young lady, who is the daughter of a tall political leader the late YS Rajasekhara Reddy, would have to bear in mind that her statements and observations are taken seriously by people. Can she logically explain how can her brother become the Chief Minister within six months?
Well, she will have to substantiate as to how Jagan would become the Chief Minister in six months. The leader in question is right now languishing in Chanchalguda central prison. Considering the legal and political maze he is caught in, it doesn’t appear to be easy for him to secure a bail in the near future. He also doesn’t belong to the ruling party. Who will elect him as the Chief Minister? There is hardly any doubt that he is enjoying mass support in different parts of the State. But, how far will he and his party be able to garner support from the voters in Telangana region becomes interesting in general elections.
Unless his party manages to secure a majority seats in all three regions and also he is released at least on bail, his becoming the Chief Minister becomes well-nigh impossible Meanwhile, Sharmila is talking about the prospect of her only brother becoming the Chief Minister. Ironically, what the YSR supporters and the family don’t remember is that they are sailing against the current. They are waging a war against the mighty State, ruling party and also the main opposition, which enjoys enormous clout among media houses in Andhra Pradesh.
Against these odds, the family has an add-on nuisance in the form of YS Vijayalakshmi’s brother and former Mayor of Kadapa Ravindranath Reddy. He was accused of forgery charge and is charged with appending wrong signatures and enumerating names of non-existing persons in the electoral rolls of the recently-held cooperative elections.
After the courts of law rejected his anticipatory bail plea, he had no alternative but to surrender before the court. Therefore, he surrendered before the court in Kadapa on Tuesday and he was remanded to judicial custody until March 11. The police sought custody of the former mayor for interrogation and the court is likely to pronounce its decision before the end of Tuesday.
The bravado of YSR’s supporters that corruption charges and other criminal offences seems a bit surprising, for the people would take these things also into account before exercising their franchise. While the star campaigners of the family can allege that the cases against Jagan were foisted and politically motivated, but how would the answer the criminal cases against Ravindranath Reddy becomes interesting, if not awful.
Another pain in the neck for the family is the slew of charges of abuse of funds and also corruption in the veil of religion by Sharmila’s husband Anil Kumar and the vituperative launched against him by some BJP leaders and, of course, the proverbial thorn in the YSR family’s flesh, V Hanumantha Rao, a Congress Rajya Sabha member.
But the charming young lady, who is the daughter of a tall political leader the late YS Rajasekhara Reddy, would have to bear in mind that her statements and observations are taken seriously by people. Can she logically explain how can her brother become the Chief Minister within six months?
Well, she will have to substantiate as to how Jagan would become the Chief Minister in six months. The leader in question is right now languishing in Chanchalguda central prison. Considering the legal and political maze he is caught in, it doesn’t appear to be easy for him to secure a bail in the near future. He also doesn’t belong to the ruling party. Who will elect him as the Chief Minister? There is hardly any doubt that he is enjoying mass support in different parts of the State. But, how far will he and his party be able to garner support from the voters in Telangana region becomes interesting in general elections.
Unless his party manages to secure a majority seats in all three regions and also he is released at least on bail, his becoming the Chief Minister becomes well-nigh impossible Meanwhile, Sharmila is talking about the prospect of her only brother becoming the Chief Minister. Ironically, what the YSR supporters and the family don’t remember is that they are sailing against the current. They are waging a war against the mighty State, ruling party and also the main opposition, which enjoys enormous clout among media houses in Andhra Pradesh.
Against these odds, the family has an add-on nuisance in the form of YS Vijayalakshmi’s brother and former Mayor of Kadapa Ravindranath Reddy. He was accused of forgery charge and is charged with appending wrong signatures and enumerating names of non-existing persons in the electoral rolls of the recently-held cooperative elections.
After the courts of law rejected his anticipatory bail plea, he had no alternative but to surrender before the court. Therefore, he surrendered before the court in Kadapa on Tuesday and he was remanded to judicial custody until March 11. The police sought custody of the former mayor for interrogation and the court is likely to pronounce its decision before the end of Tuesday.
The bravado of YSR’s supporters that corruption charges and other criminal offences seems a bit surprising, for the people would take these things also into account before exercising their franchise. While the star campaigners of the family can allege that the cases against Jagan were foisted and politically motivated, but how would the answer the criminal cases against Ravindranath Reddy becomes interesting, if not awful.
Another pain in the neck for the family is the slew of charges of abuse of funds and also corruption in the veil of religion by Sharmila’s husband Anil Kumar and the vituperative launched against him by some BJP leaders and, of course, the proverbial thorn in the YSR family’s flesh, V Hanumantha Rao, a Congress Rajya Sabha member.
The Great Laundry Sham: Railways And 5-Star Resorts Have The Same Washerman
Adding the spice to the declared railway budget for this year, the laundry services is being handled and outsourced to the same people who are doing job for 5-star hospitality concerns and railways. This is a sheer example for the defaulted mechanism of maintaining the hygiene and healthiness towards passengers.
With quality of passenger services finding many a mention in the Railway Budget today, here are some of the services, with respect to linen, that you are entitled to:
There’s more on the cleanliness front you miss. You are entitled to passenger feedback, which, according to the railways, is the ‘essence’ of the linen services. According to the policy guidelines issued by the railway board, the contractor who handles railway linen shall make arrangements for making feedback forms available to the passengers. Such feedback forms need to be obtained from at least five passengers per AC coach in each direction.
How many of you remember being handed a feedback form?
If during sampling checks conducted by railway authorities it is detected that the quality of washing/ironing of the linen is not satisfactory, a penalty of Rs 3 per such article of linen may be imposed on the contractor. Also, there won’t be payment of washing charges.
Further in the event of rejection of more than two percent of the linen provided on account of poor washing/ironing, the quantity of that particular lot of linen shall have to be washed again, for which no additional payment shall be made. If you register a complaint about unsatisfactory quality of washing, cleaning or ironing of linen, and the complain is found to be true, a penalty of Rs. 2,000 per occasion shall be imposed on the contractor.
Interestingly, one of the companies that manages laundry services for the Indian Railways is an American engineering company – Wotek. This company also provides laundry services to five star resorts that include The Trident, The Leelas, JW Marriott and Le-Meridien.
So have you ever experienced such quality services? hmmm.
With quality of passenger services finding many a mention in the Railway Budget today, here are some of the services, with respect to linen, that you are entitled to:
- The linen you are provided in the train needs to be free of tough stains caused by spillage of food, misuse etc.
- The linen provided to you needs to be packed in environment friendly bags
- The linen kit provided to you has to have a minimum level of 75% whiteness index
- The washed linen should be hygienic, bacteria free, stain free and odourless.
- Railways needs to ensure there is enough buffer stock to cater to requirements of at least 2 to 3 days so that train services are not effected in case of delayed/short supply.
- Random test checks conducted by railway authorities to ensure the washed linen kits are in conformity with the guidelines
There’s more on the cleanliness front you miss. You are entitled to passenger feedback, which, according to the railways, is the ‘essence’ of the linen services. According to the policy guidelines issued by the railway board, the contractor who handles railway linen shall make arrangements for making feedback forms available to the passengers. Such feedback forms need to be obtained from at least five passengers per AC coach in each direction.
How many of you remember being handed a feedback form?
If during sampling checks conducted by railway authorities it is detected that the quality of washing/ironing of the linen is not satisfactory, a penalty of Rs 3 per such article of linen may be imposed on the contractor. Also, there won’t be payment of washing charges.
Further in the event of rejection of more than two percent of the linen provided on account of poor washing/ironing, the quantity of that particular lot of linen shall have to be washed again, for which no additional payment shall be made. If you register a complaint about unsatisfactory quality of washing, cleaning or ironing of linen, and the complain is found to be true, a penalty of Rs. 2,000 per occasion shall be imposed on the contractor.
Interestingly, one of the companies that manages laundry services for the Indian Railways is an American engineering company – Wotek. This company also provides laundry services to five star resorts that include The Trident, The Leelas, JW Marriott and Le-Meridien.
So have you ever experienced such quality services? hmmm.
Tuesday, February 26, 2013
'Negligence Towards Children Welfare Is Not Tolerable'
A High Court judge G. Rohini narrated the way two mentally challenged girls were exposed to an “extremely dangerous situation” when they were moved from one observation home to another in the city which ultimately led to their escape and surfacing at Nampally railway station in November. Addressing to a gathering in AP Judicial Academy premises on the occasion of releasing the report on functioning of the child welfare committees in Andhra Pradesh.
As a member of the juvenile justice committee, Justice Rohini said she had received a complaint in this regard from the child welfare committee (CWC) of Ranga Reddy district and the casual reaction of the staff of these homes. When she sought a report, the director of the department of juvenile welfare confirmed serious lapses by the homes in taking care of the children.
She said the two girls were rescued from different places and handed over to Child Line Staff and Government girls’ observation home respectively. The Child Line Staff was reported to have accommodated one of them at children’s home near Nimboliadda but its superintendent denied receiving the girl. The girl was actually given to Child Guidance Centre who returned her to Child Line Staff later. She was then given temporary shelter in the transit home of Divya Disha.
“Thereafter, what happened was not known but the girl was found in Nampally railway station on November 22. It is strange that no complaint was made by Divya Disha or Child Line about the missing girl”. Justice Rohini also said the other girl was taken from Government girls home to Child Guidance Centre and then to the school for mentally handicapped run by Asha Jyothi at Miryalguda. She was missing within three days of arrival at the school and finally traced at the railway station here after nine days. The Child Guidance Centre and Asha Jyothi got annual grants from the government ranging from Rs. 10 lakh to 36 lakh, she added.
Justice Rohini is the active member of Juvenile Justice Board and Judge in AP High Court. She said, children constitute more than 42% of India’s population. However, for various reasons, children constitute the most vulnerable section of society. This is evident from the continued prevalence of vulnerable groups like street children, trafficked children, abused children, children from family at risk, abandoned children, destitute children, orphaned children, mentally ill children, missing children, children engaging in substance abuse, children affected by conflict and disasters, working children, differently-abled children, HIV/AIDS affected/infected children etc,. Realizing their rights to care and protection continues to be a distant dream for millions of children in India. This has also been evident from well researched studies and reports of the government and other agencies/individuals, she added.
She stressed the need of more improvement in existing developing techniques tacking the CWCS. She has revealed the two-case incidents of child negligence in CWCs and sheer outcry of the concern authorities.
Justice Rohini said, mixed methodology approach has been chosen for the planned study. Thus, the study will be carried out using the frameworks of both qualitative and quantitative methodologies. Key data sources for the study would be both primary and secondary. Primary data will be mainly gathered through interviews, observations, focused group discussions, analyses of files and records, documents, CWC members, CWC sitting process, official representatives of CHs, the district and the state officials of DWCD, Child Line members, NGO representatives, network representatives, subject experts and, identified practitioners and judiciary, who are involved or supportive in the implementation of JJS.
The Supreme Court judge Madan B. Lokur said dealing with children who were runaways from home or exposed to other dangers was a big problem.
Justice Madan B Lokur is the patron of JJB and Supreme Cour Judge taking care of AP CWCs and JJB activities. He advised the CWCs to identify the problem and find the solution to make a good progress in their efforts despite relying on the government or any others. Further, he suggested to precedence checking, initiate the solutions, introspect and become proactive towards implementation of CWC strategies. He pointed out to get support, involve government and elected representatives after exercising their efforts and finding solutions.
In a process of delivering the justice, pick up the policing system and keep on action with proper approach to become an agents of change. To speed of the change, work on Act framework, take the ownership of the program, find the alternatives for systematic solution provision, he advised.
He analyzed the personal profile of the respondents it is observed that there is a gender imbalance. The members are well educated and hold respectable positions in various forums and networks within the districts. However, each one’s interest in getting involved as a member or chairperson of the CWC varied according to the different positions they hold and the networks they are involved.
He assured the best possible way to curb the irregularities and streamline the systematic discipline of the entire working process. He asked the AP Judicial Academy to study the lacunae of the working system and provide proper training.
As a member of the juvenile justice committee, Justice Rohini said she had received a complaint in this regard from the child welfare committee (CWC) of Ranga Reddy district and the casual reaction of the staff of these homes. When she sought a report, the director of the department of juvenile welfare confirmed serious lapses by the homes in taking care of the children.
She said the two girls were rescued from different places and handed over to Child Line Staff and Government girls’ observation home respectively. The Child Line Staff was reported to have accommodated one of them at children’s home near Nimboliadda but its superintendent denied receiving the girl. The girl was actually given to Child Guidance Centre who returned her to Child Line Staff later. She was then given temporary shelter in the transit home of Divya Disha.
“Thereafter, what happened was not known but the girl was found in Nampally railway station on November 22. It is strange that no complaint was made by Divya Disha or Child Line about the missing girl”. Justice Rohini also said the other girl was taken from Government girls home to Child Guidance Centre and then to the school for mentally handicapped run by Asha Jyothi at Miryalguda. She was missing within three days of arrival at the school and finally traced at the railway station here after nine days. The Child Guidance Centre and Asha Jyothi got annual grants from the government ranging from Rs. 10 lakh to 36 lakh, she added.
Justice Rohini is the active member of Juvenile Justice Board and Judge in AP High Court. She said, children constitute more than 42% of India’s population. However, for various reasons, children constitute the most vulnerable section of society. This is evident from the continued prevalence of vulnerable groups like street children, trafficked children, abused children, children from family at risk, abandoned children, destitute children, orphaned children, mentally ill children, missing children, children engaging in substance abuse, children affected by conflict and disasters, working children, differently-abled children, HIV/AIDS affected/infected children etc,. Realizing their rights to care and protection continues to be a distant dream for millions of children in India. This has also been evident from well researched studies and reports of the government and other agencies/individuals, she added.
She stressed the need of more improvement in existing developing techniques tacking the CWCS. She has revealed the two-case incidents of child negligence in CWCs and sheer outcry of the concern authorities.
Justice Rohini said, mixed methodology approach has been chosen for the planned study. Thus, the study will be carried out using the frameworks of both qualitative and quantitative methodologies. Key data sources for the study would be both primary and secondary. Primary data will be mainly gathered through interviews, observations, focused group discussions, analyses of files and records, documents, CWC members, CWC sitting process, official representatives of CHs, the district and the state officials of DWCD, Child Line members, NGO representatives, network representatives, subject experts and, identified practitioners and judiciary, who are involved or supportive in the implementation of JJS.
The Supreme Court judge Madan B. Lokur said dealing with children who were runaways from home or exposed to other dangers was a big problem.
Justice Madan B Lokur is the patron of JJB and Supreme Cour Judge taking care of AP CWCs and JJB activities. He advised the CWCs to identify the problem and find the solution to make a good progress in their efforts despite relying on the government or any others. Further, he suggested to precedence checking, initiate the solutions, introspect and become proactive towards implementation of CWC strategies. He pointed out to get support, involve government and elected representatives after exercising their efforts and finding solutions.
In a process of delivering the justice, pick up the policing system and keep on action with proper approach to become an agents of change. To speed of the change, work on Act framework, take the ownership of the program, find the alternatives for systematic solution provision, he advised.
He analyzed the personal profile of the respondents it is observed that there is a gender imbalance. The members are well educated and hold respectable positions in various forums and networks within the districts. However, each one’s interest in getting involved as a member or chairperson of the CWC varied according to the different positions they hold and the networks they are involved.
He assured the best possible way to curb the irregularities and streamline the systematic discipline of the entire working process. He asked the AP Judicial Academy to study the lacunae of the working system and provide proper training.
Earlier, Ramesh Shekar Reddy, Convenor of AP Alliance for Child Rights, explained the Audio Visual briefing of the released report and shared the vital information and recommendations made in the report. He stressed the fact finding information of CWCs, JJB’s role and AP Judicial Academy guidance efforts, government agencies coordination during the remote executions and the analysis with proper recommendations were presented.
He shared the presentation with Phillips, the chairperson of CWC Hyderabad. Phillips made more elaboration on the report. He showcased the basic need of the hour and clarified the actual situation of ground reality. Earlier Mr. Ramesh showed the thrust areas of the study on training, documentation, counseling, mediating, infrastructure, awareness, security and communication network. Earlier, Phillips said, it is generally observed that majority of the members have undergone an orientation on the CWC and their roles and responsibilities.
However, in practice there seems to be little effort to improve the situation and find opportunities to further enhance their knowledge to strengthen the system. External support to enhance the capacities is found lacking in a majority of the cases. The members, chairpersons have visited Children’s Homes and interacted with the officials. They have also participated in various orientation programs organized by the NGOs and the government departments, but the extent to which they are practiced is a question mark.
They underlined to get early action on lack of support system, lack of financial provisions, lack of infrastructure etc, were challenges faced by the respondents. Unable to deal with trafficked children due to lack of external support, lack of awareness on CWC by the government officials, difficulties in coordination, interference by political leaders while taking custody of street children and placing them in welfare homes, children unable to give details causing difficulties in making home investigations, lack of medical support from the health department, police not providing escorts for children referred by stating that they do not have sufficient staff, rehabilitation for several cases of orphans who are above 18 years, lack of awareness at the community on child rights were the prominent challenges.
In the opening speech and welcome to the dignitories, AP Judicial Academy Director, Avadhani described the AP Judicial Academy role in JJB & CWCs operations in the state and explained the possibilities of error free functions. He emphasizes the need of the hour and made cooperative module of functioning, training and coordination processes. He informed the successful completion of ten training workshops by the academy across the state and assured the best possible coordination with the CWCs.
Sonykutty George is the officiating Chief of UNICEF Andhra Pradesh & Karnataka described the UNICEF role in CWCs development and association with APACR. He is confident to share the socio-financial mechanism and stressed the point of further development in grass root level functionaries and he applauded the services rendered by the CWCs.
Justice N V Ramana is the president of AP Judicial Academy applauds the report presenters and contents highlighted. He informed the opening of regional units of AP Judicial Academy in the state to facilitate the support and assured the best possible ways to streamline the system soon.
Prudence Is Key For India's Bank Hopefuls
Will a severely under-banked country like India, where financial inclusion has been more of a utopia (what with virtually half of India's population not having any bank accounts), see a change for the better? Don't count on it now, though the Reserve Bank of India (RBI) has, after years of deliberations, laid down norms for granting new banking licenses. However, what is important to note here is that pragmatic policy making (I would resist myself from calling every policy initiative as reform) is finally back in the limelight.
India's banking sector is dominated by as many as 27 state-run banks, which control approximately 75% of the country's gross credit. Only recently have some foreign banks and a handful of private banks, like ICICI Bank, HDFC Bank and Axis Bank, emerged as important players in the segment, as RBI continued to be extra cautious in providing entry to the private sector so as to ensure stability of the financial system.
Over the past two decades, the RBI has allowed only 12 new banks, and that in two phases, with the most recent license being issued to Yes Bank Ltd in May 2004.
Last Friday, RBI came out with its much-awaited final guidelines on the New Banking License, approximately three years after the announcement in this regard made in the Budget speech of 2010-2011 by the then Finance Minister, Pranab Mukherjee.
Some of the key final guidelines for the licensing of new banks in the private sector are as follows:
Clearly, the RBI seems to believe that there should be level playing field for any aspirant, irrespective of their current line of business. Interestingly, in January, the International Monetary Fund in its report on India, "Financial System Stability Assessment Update", felt that India, given the international experience, would be better off not allowing industrial houses from promoting and owning banks.
Even the RBI's final guideline differed from the draft guideline circulated by it in August 2011 when it said that it was not in favor of allowing companies that earned at least 10% of their revenues from real estate and broking business to apply for new bank licenses.
The final guideline issued by the RBI should be lauded, as it is practical, non-discriminatory (ie any existing business can get the license if it adheres to all the laid down norms) and has enough checks and balances in place to ensure prudence. This guideline will ensure that the financial services businesses of the banks and their promoters are shielded from the risks emanating from the group entities of promoters.
It is also important to note that although the guidelines have been laid down, granting of licenses will still remain subjective and not every corporate entity that follows the guidelines will get a license. In fact, the final guidelines mention that, "promoter/promoter groups' business model and business culture should not be misaligned with the banking model and their business should not potentially put the bank and the banking system at risk on account of group activities such as those which are speculative in nature or subject to high asset price volatility".
This means that the RBI is well aware of the systemic ricks involved and would prefer to play it safe. The entry criteria, as laid down by them, which include the number of years of existence with a financially sound and successful track record along with the capital structure to be followed, would mean that not many aspirants can meet the criteria. And, even if they do, the check on the business model and culture would further help in narrowing down the list.
The government has for long been nudging the RBI to allow new entrants to the banking system. The primary goal is to push for financial inclusion as the success of the government's cash transfer scheme crucially hinges on financial inclusion. The cash transfer scheme allows direct transfer of cash directly to the subsidy beneficiaries (that is, those who are entitled to the subsidized products) rather than supplying subsidized products. Selling subsidized products leads to leakage due to faulty targeting as well as corruption in delivering the subsidized goods.
However, instant and widespread banking sector penetration should not be expected in the wake of this guideline. With the rumblings of the global financial crisis still reverberating across the world, the RBI (which must be complemented for being able to shield India's banking sector admirably from being impacted by the crisis) is justified in being cautious to the point of being paranoid. It is better to be safe than sorry.
India's banking sector is dominated by as many as 27 state-run banks, which control approximately 75% of the country's gross credit. Only recently have some foreign banks and a handful of private banks, like ICICI Bank, HDFC Bank and Axis Bank, emerged as important players in the segment, as RBI continued to be extra cautious in providing entry to the private sector so as to ensure stability of the financial system.
Over the past two decades, the RBI has allowed only 12 new banks, and that in two phases, with the most recent license being issued to Yes Bank Ltd in May 2004.
Last Friday, RBI came out with its much-awaited final guidelines on the New Banking License, approximately three years after the announcement in this regard made in the Budget speech of 2010-2011 by the then Finance Minister, Pranab Mukherjee.
Some of the key final guidelines for the licensing of new banks in the private sector are as follows:
- All companies or groups, whether private or public sector entities, are eligible to set up a bank, though only through a wholly owned non-operative financial holding company (NOFHC). With this provision, the bank's business would not be impacted by the company's or group's existing business.
- The entity or group should have a past record of sound credentials and integrity. The company should also have a healthy financial track record of 10 years. Further, the RBI may also investigate the above matter and check the veracity of the claims. With this, only companies that have a good financial track record, excellent management team and good corporate governance would be eligible for a license.
- The minimum capital required to start up is 5 billion rupees (US$93 million), of which the NOFHC shall hold a minimum voting stake of 40% of the paid-up equity capital that will be locked in for a period of 5 years. Going ahead, its stake shall be bought down to 15% within 12 years. Also, the aggregate foreign holding in the new bank shall not exceed 49% in the first five years. Further, the bank's shares should be listed on the stock exchange within three years of the commencement of its business. This clause would result in better efficiency in the management's working and their decision-making abilities.
- At least 50% of the bank's board should be independent directors. And, if a promoter and its group were from a non-banking background, then the independent directors would serve as the most important people on the board.
- The NOFHC and the bank should not have any exposure to the promoter group and its other entities. This would insulate the bank from various other risks that are associated with other businesses and check the practice of giving concessions or incentives to the promoter group in case they are in need of funds. This is the crucial part of the guideline.
- The bank shall open at least 25% of its branches in unbanked areas (population of up to 9,999 as per the latest census data) and comply with the priority sector lending targets (40% of total advances) and respective sub-targets (agriculture, small and medium-sized enterprises etc) as applicable to the existing domestic banks. This would further strengthen the overall aim of financial inclusion in the country.
- Existing non-banking financial companies, if eligible, may be permitted to promote new banks or convert themselves into banks. Similarly, state-owned enterprises can also apply for banking licenses.
Clearly, the RBI seems to believe that there should be level playing field for any aspirant, irrespective of their current line of business. Interestingly, in January, the International Monetary Fund in its report on India, "Financial System Stability Assessment Update", felt that India, given the international experience, would be better off not allowing industrial houses from promoting and owning banks.
Even the RBI's final guideline differed from the draft guideline circulated by it in August 2011 when it said that it was not in favor of allowing companies that earned at least 10% of their revenues from real estate and broking business to apply for new bank licenses.
The final guideline issued by the RBI should be lauded, as it is practical, non-discriminatory (ie any existing business can get the license if it adheres to all the laid down norms) and has enough checks and balances in place to ensure prudence. This guideline will ensure that the financial services businesses of the banks and their promoters are shielded from the risks emanating from the group entities of promoters.
It is also important to note that although the guidelines have been laid down, granting of licenses will still remain subjective and not every corporate entity that follows the guidelines will get a license. In fact, the final guidelines mention that, "promoter/promoter groups' business model and business culture should not be misaligned with the banking model and their business should not potentially put the bank and the banking system at risk on account of group activities such as those which are speculative in nature or subject to high asset price volatility".
This means that the RBI is well aware of the systemic ricks involved and would prefer to play it safe. The entry criteria, as laid down by them, which include the number of years of existence with a financially sound and successful track record along with the capital structure to be followed, would mean that not many aspirants can meet the criteria. And, even if they do, the check on the business model and culture would further help in narrowing down the list.
The government has for long been nudging the RBI to allow new entrants to the banking system. The primary goal is to push for financial inclusion as the success of the government's cash transfer scheme crucially hinges on financial inclusion. The cash transfer scheme allows direct transfer of cash directly to the subsidy beneficiaries (that is, those who are entitled to the subsidized products) rather than supplying subsidized products. Selling subsidized products leads to leakage due to faulty targeting as well as corruption in delivering the subsidized goods.
However, instant and widespread banking sector penetration should not be expected in the wake of this guideline. With the rumblings of the global financial crisis still reverberating across the world, the RBI (which must be complemented for being able to shield India's banking sector admirably from being impacted by the crisis) is justified in being cautious to the point of being paranoid. It is better to be safe than sorry.
Analysis: Bansal’s Railway Budget Falls Between Two Stools
If the Congress party got hold of the Railway Ministry after 17 years, its nominee Pawan Kumar Bansal did not do enough justice to the opportunity. In fact, it would be fair to say that the Congress half-fumbled its chance, with one eye on sensible economics, and another on good politics.
In the process, Railway Budget 2013-14 has fallen between two stools. The budget is neither economically bold, nor does it do enough to tilt popular perceptions about the Congress party.
The plus point of the budget is the absence of a general pandering to populism – a hallmark of budgets ever since Lalu Yadav got into the engine in 2004 – but the right diagnosis failed to bring forth the right corrective action.
Bansal made all the right noises in the beginning about how passengers were being hugely subsidised by freight earnings, with the losses on passenger traffic totaling Rs 24,600 crore in 2012-13. But all he proposed as a remedy was some increases in reservation charges for superfast trains and tatkal tickets.
The burden of carrying the railways forward fell again on freight traffic once more, where rates will rise around 5 percent on an average, levied through a fuel adjustment charge (FAC).
Given the huge investments needed for modernisation, track safety and creating fresh capacity for freight and passenger traffic, Bansal’s budget failed to raise enough resources for growth.
On the other hand, he may have been a trifle optimistic in his projections. Given that the economy is not scheduled to grow by more than 5-6 percent in 2013-14 even on the most optimistic forecasts, Bansal has still assumed a 9 percent increase in freight traffic (1,047 million tonnes of originating traffic) to earn Rs 93,554 crore. Passengers are supposed to bring in an additional Rs 42,210 crore – an even more unbelievable figure given that this is nearly 30 percent higher than the projected figures for 2012-13.
Quite obviously, Bansal expects revenue increases to come in largely from freight and the January increase in passenger fares.
The only area where the ministry’s return to the Congress fold has borne fruit is in the negative direction: Bansal seems to have wangled a lower dividend payout obligation from the finance minister. The railways now have to pay only 4 percent dividend to the general exchequer, down 1 percent from the earlier figure, and lower than the minimum earlier requirement of 6 percent. The railways are clearly becoming less and less of a commercial organisation, despite the change in freight and fares in 2012-13 and this year.
An interesting emphasis shift, though not very pronounced, is the belated recognition that rail travel is no more about mere basics. Increasing incomes have made more people part of the aspiring classes.
In 2004 and 2009, the Congress party saw the rural aam aadmi as its natural constituency. But as the Anna Hazare and Delhi gangrape protests shows, the middle class is increasingly getting assertive.
This is why Bansal’s budget made references to providing wifi services on some trains, the launch of Anubhuti luxury coaches, and an improved online ticketing experience. If the earlier focus of rail budgets was on keeping second class fares as low as possible, this time the emphasis is less on fares and more on amenities. This will make rail travel better, since people have moved on from just basic facilities. They want a better experience, beyond cattle class.
But, unfortunately, since Bansal failed to raise passenger fares, he could not really walk the talk on wooing the khas aadmi, at a time when the new middle classes that may be looking for a clearer articulation of their travel demands.
The only big change that Bansal made was a shift to automatic increases in freight charges based on fuel prices. But even here, he has pulled his punches, by temporarily leaving passenger fares out of the fuel adjustment charge (FAC). That, presumably, will happen only after the next general elections.
Clearly, Bansal took a leaf out of Dinesh Trivedi’s budget speech last year but applied it to freight, not fares. Trivedi had said then: “I wish to share with the august House that I am contemplating a system of segregating fuel component in the cost associated with passenger services and call it FAC (fuel adjustment component). The FAC will be dynamic in nature and will change in either direction with the change of fuel cost. I must also be forthright and take the House into confidence in mentioning that in the event of any further increase in input costs of railways, it will not be possible for us to keep the passengers cushioned from the impact of such increases.”
In short, Bansal has not applied FAC where it should, and instead stuck it to freight, where the consequences are inflationary, and where political resistance is lower. He has taken the easy way out.
Bansal could have done more, but he hasn’t due to electoral considerations.
If Bansal’s performance is any pointer to Congress party thinking on the main budget, it would mean this: expect no major fireworks or big-bang changes to upset the electorate.
Good economics cannot be avoided, but populism cannot be lost sight of. The markets may have nothing to drool over on 28 February.
In the process, Railway Budget 2013-14 has fallen between two stools. The budget is neither economically bold, nor does it do enough to tilt popular perceptions about the Congress party.
The plus point of the budget is the absence of a general pandering to populism – a hallmark of budgets ever since Lalu Yadav got into the engine in 2004 – but the right diagnosis failed to bring forth the right corrective action.
Bansal made all the right noises in the beginning about how passengers were being hugely subsidised by freight earnings, with the losses on passenger traffic totaling Rs 24,600 crore in 2012-13. But all he proposed as a remedy was some increases in reservation charges for superfast trains and tatkal tickets.
The burden of carrying the railways forward fell again on freight traffic once more, where rates will rise around 5 percent on an average, levied through a fuel adjustment charge (FAC).
Given the huge investments needed for modernisation, track safety and creating fresh capacity for freight and passenger traffic, Bansal’s budget failed to raise enough resources for growth.
On the other hand, he may have been a trifle optimistic in his projections. Given that the economy is not scheduled to grow by more than 5-6 percent in 2013-14 even on the most optimistic forecasts, Bansal has still assumed a 9 percent increase in freight traffic (1,047 million tonnes of originating traffic) to earn Rs 93,554 crore. Passengers are supposed to bring in an additional Rs 42,210 crore – an even more unbelievable figure given that this is nearly 30 percent higher than the projected figures for 2012-13.
Quite obviously, Bansal expects revenue increases to come in largely from freight and the January increase in passenger fares.
The only area where the ministry’s return to the Congress fold has borne fruit is in the negative direction: Bansal seems to have wangled a lower dividend payout obligation from the finance minister. The railways now have to pay only 4 percent dividend to the general exchequer, down 1 percent from the earlier figure, and lower than the minimum earlier requirement of 6 percent. The railways are clearly becoming less and less of a commercial organisation, despite the change in freight and fares in 2012-13 and this year.
An interesting emphasis shift, though not very pronounced, is the belated recognition that rail travel is no more about mere basics. Increasing incomes have made more people part of the aspiring classes.
In 2004 and 2009, the Congress party saw the rural aam aadmi as its natural constituency. But as the Anna Hazare and Delhi gangrape protests shows, the middle class is increasingly getting assertive.
This is why Bansal’s budget made references to providing wifi services on some trains, the launch of Anubhuti luxury coaches, and an improved online ticketing experience. If the earlier focus of rail budgets was on keeping second class fares as low as possible, this time the emphasis is less on fares and more on amenities. This will make rail travel better, since people have moved on from just basic facilities. They want a better experience, beyond cattle class.
But, unfortunately, since Bansal failed to raise passenger fares, he could not really walk the talk on wooing the khas aadmi, at a time when the new middle classes that may be looking for a clearer articulation of their travel demands.
The only big change that Bansal made was a shift to automatic increases in freight charges based on fuel prices. But even here, he has pulled his punches, by temporarily leaving passenger fares out of the fuel adjustment charge (FAC). That, presumably, will happen only after the next general elections.
Clearly, Bansal took a leaf out of Dinesh Trivedi’s budget speech last year but applied it to freight, not fares. Trivedi had said then: “I wish to share with the august House that I am contemplating a system of segregating fuel component in the cost associated with passenger services and call it FAC (fuel adjustment component). The FAC will be dynamic in nature and will change in either direction with the change of fuel cost. I must also be forthright and take the House into confidence in mentioning that in the event of any further increase in input costs of railways, it will not be possible for us to keep the passengers cushioned from the impact of such increases.”
In short, Bansal has not applied FAC where it should, and instead stuck it to freight, where the consequences are inflationary, and where political resistance is lower. He has taken the easy way out.
Bansal could have done more, but he hasn’t due to electoral considerations.
If Bansal’s performance is any pointer to Congress party thinking on the main budget, it would mean this: expect no major fireworks or big-bang changes to upset the electorate.
Good economics cannot be avoided, but populism cannot be lost sight of. The markets may have nothing to drool over on 28 February.
Will Curbing The Sale Of Acid Alone Protect Women From Attacks?
The corrosive deaths of two girls in succession in Chennai has finally prompted some action on the supply of cleaning acid, a cheap but strong weapon for violence against women in the sub-continent.
The Madras High Court on a PIL on Monday has asked the Centre and the state for its views on regulating the supply of acid as well as prosecuting unlicensed vendors. A liquid as dangerous as this should not be freely available.
Last November, Vinodhini, a sprightly young girl from Pondicherry was attacked with acid by a man because she refused his marital advances, and died in a terrible condition in Chennai three months later even as the state rose in outrage. Last week, another girl Vidya, who suffered acid injuries inflicted on her died in similar conditions, which further raised the pitch of the anger. Probably, the lingering resentment over the Delhi gangrape has amplified the public voice in the state.
However, the outrage was strangely more against the free availability of acid rather than the practice of acid-attacks against women, and the latter’s general vulnerability to violence. Some call the liquid hydrochloric acid, some say it is nitric acid. It doesn’t matter, because it is only a tool of violence. Acid (called “dravakam” locally) is a highly feared weapon of violence, particularly against women because it completely disfigures them. As the cases of Vinodhini and Vidya showed, survival is difficult and is fraught with endless surgeries and medical expenses.
Its history as a tool of violence in the state, mostly against women, is in fact quite old. Although it has been in practice, the first prominent victim of the liquid was a charming IAS officer, Chandralekha, who was targeted by a hired criminal in 1992. She was a victim of planned political violence and the purpose was clearly to disfigure and humiliate her. Despite immediate medical attention and several surgeries, she still bears the scars of the attack and is a rare icon of survival.
As elsewhere in the world, in Tamil Nadu too acid-attacks don’t occur in a cultural vacuum. In the state, it has a context of violence and gender inequality. The threat of throwing “dravakam” is quite common in the lexicon of violence. Years ago, a prominent political party leader threw acid on another leader from his own party in a bitter public fight. The victim, who managed to escape with his life, sports severe scars on his face. An acid attack was also central to a critically acclaimed Tamil movie (Vazhakku Enn 18/9) recently.
In Bangladesh and Pakistan, where acid attacks on women are like epidemics, availability of the liquid is only one part of the story. That the attacks continue unabated and the lives of women continue to be blighted point to the ham-handedness of the governments and the culture of violence against women.
In both the countries, several steps have been taken to limit the availability of acid and punish the perpetrators of violence, but it hasn’t dramatically changed the outcome because the underlying factors that sanction the violence haven’t changed. In a lawless situation, the curbs on the availability of acid do not necessarily work.
In Bangladesh, the phenomenon is so pervasive and threatening to women that the country has dedicated NGOs working on the issue. There is an Acid Survivors’ Foundation and an Acid Survivors International. Despite several efforts, both by NGOs and the governments, Bangladesh still recorded 90 cases in 2011, excluding all unrecorded incidents. The pervasiveness is the same in Pakistan as well, where in 2011 alone, there were 150 reported cases.
Fortunately in India, we don’t keep a record and are blissfully unaware of our own record of such violence. However, the stories of severely disfigured survivors such as Sonali Mukherjee, who appeared on KBC with Amitabh Bachchan, and Shirin Juwale, and reports from different parts of the country certainly point to a dreary case that has not been appropriately accounted for.
Just as cameras in vehicles and more police on the roads haven’t deterred rapists from attacking women since the Delhi outrage, curtailing the supply of acid alone will not help because the real issue is the politically and culturally sanctioned violence against women, and the overall culture of violence and lawlessness of our societies. Political expediency breeds this culture.
As a HNN article argued earlier, at the heart of the problem is also the lower status of women in our society and their vulnerability to violence. Acid is a symbol of male dominance because the intent is to “prove a lesson” and “show the woman her place.” In Bangladesh and India, it is mostly by the men who want to control women, while in Pakistan, it is commonly within families for whom women are symbols of honour.
As we noted earlier, for generations, women in the region have been attacked, raped, killed, maimed and banished from public life. And it is being perpetrated by current societies as well. As indicated by its pathetic Gender Inequality Index (GII), which is the worst in south Asia, India is a horrendous place for women. Unless this situation changes, even the most sincere curbs will only work as ineffective short cuts.
The free flow of this dangerous liquid has to definitely stop. As in the argument against gun culture goes, limited availability of the weapon will certainly curtail its use. But, stopping with it will be yet another opportunity lost to curb violence against women.
The Madras High Court on a PIL on Monday has asked the Centre and the state for its views on regulating the supply of acid as well as prosecuting unlicensed vendors. A liquid as dangerous as this should not be freely available.
Last November, Vinodhini, a sprightly young girl from Pondicherry was attacked with acid by a man because she refused his marital advances, and died in a terrible condition in Chennai three months later even as the state rose in outrage. Last week, another girl Vidya, who suffered acid injuries inflicted on her died in similar conditions, which further raised the pitch of the anger. Probably, the lingering resentment over the Delhi gangrape has amplified the public voice in the state.
However, the outrage was strangely more against the free availability of acid rather than the practice of acid-attacks against women, and the latter’s general vulnerability to violence. Some call the liquid hydrochloric acid, some say it is nitric acid. It doesn’t matter, because it is only a tool of violence. Acid (called “dravakam” locally) is a highly feared weapon of violence, particularly against women because it completely disfigures them. As the cases of Vinodhini and Vidya showed, survival is difficult and is fraught with endless surgeries and medical expenses.
Its history as a tool of violence in the state, mostly against women, is in fact quite old. Although it has been in practice, the first prominent victim of the liquid was a charming IAS officer, Chandralekha, who was targeted by a hired criminal in 1992. She was a victim of planned political violence and the purpose was clearly to disfigure and humiliate her. Despite immediate medical attention and several surgeries, she still bears the scars of the attack and is a rare icon of survival.
As elsewhere in the world, in Tamil Nadu too acid-attacks don’t occur in a cultural vacuum. In the state, it has a context of violence and gender inequality. The threat of throwing “dravakam” is quite common in the lexicon of violence. Years ago, a prominent political party leader threw acid on another leader from his own party in a bitter public fight. The victim, who managed to escape with his life, sports severe scars on his face. An acid attack was also central to a critically acclaimed Tamil movie (Vazhakku Enn 18/9) recently.
In Bangladesh and Pakistan, where acid attacks on women are like epidemics, availability of the liquid is only one part of the story. That the attacks continue unabated and the lives of women continue to be blighted point to the ham-handedness of the governments and the culture of violence against women.
In both the countries, several steps have been taken to limit the availability of acid and punish the perpetrators of violence, but it hasn’t dramatically changed the outcome because the underlying factors that sanction the violence haven’t changed. In a lawless situation, the curbs on the availability of acid do not necessarily work.
In Bangladesh, the phenomenon is so pervasive and threatening to women that the country has dedicated NGOs working on the issue. There is an Acid Survivors’ Foundation and an Acid Survivors International. Despite several efforts, both by NGOs and the governments, Bangladesh still recorded 90 cases in 2011, excluding all unrecorded incidents. The pervasiveness is the same in Pakistan as well, where in 2011 alone, there were 150 reported cases.
Fortunately in India, we don’t keep a record and are blissfully unaware of our own record of such violence. However, the stories of severely disfigured survivors such as Sonali Mukherjee, who appeared on KBC with Amitabh Bachchan, and Shirin Juwale, and reports from different parts of the country certainly point to a dreary case that has not been appropriately accounted for.
Just as cameras in vehicles and more police on the roads haven’t deterred rapists from attacking women since the Delhi outrage, curtailing the supply of acid alone will not help because the real issue is the politically and culturally sanctioned violence against women, and the overall culture of violence and lawlessness of our societies. Political expediency breeds this culture.
As a HNN article argued earlier, at the heart of the problem is also the lower status of women in our society and their vulnerability to violence. Acid is a symbol of male dominance because the intent is to “prove a lesson” and “show the woman her place.” In Bangladesh and India, it is mostly by the men who want to control women, while in Pakistan, it is commonly within families for whom women are symbols of honour.
As we noted earlier, for generations, women in the region have been attacked, raped, killed, maimed and banished from public life. And it is being perpetrated by current societies as well. As indicated by its pathetic Gender Inequality Index (GII), which is the worst in south Asia, India is a horrendous place for women. Unless this situation changes, even the most sincere curbs will only work as ineffective short cuts.
The free flow of this dangerous liquid has to definitely stop. As in the argument against gun culture goes, limited availability of the weapon will certainly curtail its use. But, stopping with it will be yet another opportunity lost to curb violence against women.
Why Railway Budget 2013 Is Important For 1.2 bn Indians?
I’m from that in-between generation that has spent the first half my life being completely dependent on trains for medium and long-distance travel and the second half on using airlines to get from place to place.
I miss the trains more than I care about the trains. Train journeys were an education, they were entertainment, they were exciting, they were fun. Memories of the spectacular views, of the countryside, of great tunnels, of spectacular curves, of quaint stations, of a variety of cuisine. Train journeys became memories.
The trains haven’t disappeared; they’re still around. Yet, wild horses wouldn’t drag me to CST to board a train, say, to Chennai. Because the trains aren’t the same as they used to be. They’re dirty, overcrowded, unsafe, unreliable. The food is unhygienic, the toilets unusable, the staff rude and harried, the stations and the infrastructure at the stations bursting at the seams. You have no clue when your train will arrive, when it will leave.
Yet, there were a whopping 8,900 million passengers ferried by the Indian Railways in 2011. That’s 8,900 million passengers who had no choice but to use the railways because, unlike those more fortunate, they cannot afford other modes of transport. In comparison, air passengers in India (in 2010) were a miniscule 64 million.
Yet we see spanking new airports coming up each year. Some of our metros have two airports, even as they are building the third. The airports have all the creature comforts one could think of from the moment you each the airport – trolleys that work, escalators and elevators, shopping, restaurants, bars, medical centres – even smoking areas. The air-conditioning works, the seats in the departure lounges are plush and comfortable, the taxi and bus services at arrival are regular, reliable and trustworthy, the policemen and other security staff are diligent and alert. That’s for the 64 million. And no one cares about the 8,900 million.
Imagine an India where stations looked like airports and the railways was as reliable as an airline. Imagine if the food was wholesome and clean, if the loos worked and arrivals and departures were largely predictable. Imagine if there was no problem getting public transport to go to and fro the railway stations. Imagine if there was no overcrowding on the trains, there were no beggars and illegal hawkers. Imagine that the security was up to scratch. I’d go back to the trains. And I’d pay more for the privilege.
There are less than 150 airports while there are more than 7500 railway stations. Yet, all energies are focused on the airlines, giving the railways short shrift. What could we see if resources and focus go into making the railways a reliable and comfortable mode of transport?
As I said, 8,900 million passengers were ferried by Indian Railways in 2011. In the same year, in Japan, a mind-boggling 22,600 million passengers used the railways. We could see the same here – if the government realized that, while airports and airlines have a role to play in development, it’s the railways and the trains that move the people of India.
I miss the trains more than I care about the trains. Train journeys were an education, they were entertainment, they were exciting, they were fun. Memories of the spectacular views, of the countryside, of great tunnels, of spectacular curves, of quaint stations, of a variety of cuisine. Train journeys became memories.
The trains haven’t disappeared; they’re still around. Yet, wild horses wouldn’t drag me to CST to board a train, say, to Chennai. Because the trains aren’t the same as they used to be. They’re dirty, overcrowded, unsafe, unreliable. The food is unhygienic, the toilets unusable, the staff rude and harried, the stations and the infrastructure at the stations bursting at the seams. You have no clue when your train will arrive, when it will leave.
Yet, there were a whopping 8,900 million passengers ferried by the Indian Railways in 2011. That’s 8,900 million passengers who had no choice but to use the railways because, unlike those more fortunate, they cannot afford other modes of transport. In comparison, air passengers in India (in 2010) were a miniscule 64 million.
Yet we see spanking new airports coming up each year. Some of our metros have two airports, even as they are building the third. The airports have all the creature comforts one could think of from the moment you each the airport – trolleys that work, escalators and elevators, shopping, restaurants, bars, medical centres – even smoking areas. The air-conditioning works, the seats in the departure lounges are plush and comfortable, the taxi and bus services at arrival are regular, reliable and trustworthy, the policemen and other security staff are diligent and alert. That’s for the 64 million. And no one cares about the 8,900 million.
Imagine an India where stations looked like airports and the railways was as reliable as an airline. Imagine if the food was wholesome and clean, if the loos worked and arrivals and departures were largely predictable. Imagine if there was no problem getting public transport to go to and fro the railway stations. Imagine if there was no overcrowding on the trains, there were no beggars and illegal hawkers. Imagine that the security was up to scratch. I’d go back to the trains. And I’d pay more for the privilege.
There are less than 150 airports while there are more than 7500 railway stations. Yet, all energies are focused on the airlines, giving the railways short shrift. What could we see if resources and focus go into making the railways a reliable and comfortable mode of transport?
As I said, 8,900 million passengers were ferried by Indian Railways in 2011. In the same year, in Japan, a mind-boggling 22,600 million passengers used the railways. We could see the same here – if the government realized that, while airports and airlines have a role to play in development, it’s the railways and the trains that move the people of India.
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