How Lalu changed Railways to profit making industry?

After the parliamentary election there was big fight between Lalu yadav and Paswan for the post of railway Minister but the former succeeded in getting the minsitry. Paswan was fuming and helped in defeating Lalu and his party in the next assembly election in Bihar. The people of India were very worried that Indian Railway which is the biggest public sector industry in India will be run by a corrupt leader like Lalu yadav. But somehow Lalu in just a year or so has turned the face of Indian Railways the same industry which was making loss every year is now making profit. Many experts still cannot believe and are really struggling to find out how he could do this which noone else has done in the past. His contribution has been acknowledged by institutions like IIM and have requested Lalu to give a lecture on this subject. To add to his fans now the Lal Bahadur Shastri Academy for Administration in Mussoorie has invited Lalu Yadav to give a lecture on the same subject to IAS and IPS probationers. His critics are really finding it hard to catch a flaw in his policies and in secret even admire his decisions. What is the Lalu mantra that has made  spectacular financial success of the Indian Railways during last financial year which has prompted the railways to set a target Rs 20,000 crore as profit for the year 2007-08. This has also resulted in Lalu being acknowledged as the new ‘Management Guru’ with some leading management institutes requesting him to deliver lectures to their faculty and students alike. But the sad news is that while his graph as a successful railway minister was going up, his political fortunes in his home state had taken a dip. I really do not know what could be the reason is Nitish better than Lalu but if that is the case when he was the Railway minster why he could not any passenger friendly schemes like Lalu and still manage to make profit for the industry. Hats off to Lalu and his Lalu Mantra’s. We want you to share your secret with other public sectors as well.

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20 Responses to “How Lalu changed Railways to profit making industry?”

  1. jeetendra kumar Says:

    i am a management student. so i appreciate laloo approach.it is really a big achievement for the history of modern india.i thank him and i want to say please give trains jamalpur to south like bangalore , chennai etc

  2. SRIKANT KUMAR Says:

    hi,
    this is srikant from jharkhand. well,i don’t think that lalu changed the history of indian railway. renaissance never happened in one or two year.it is a process which takes so many years to give its outcome. i think the ground of the boom in indian railway was founded by nitish kumar and it is the lalu who build the infrastructure. AS nitish kumar rightly told that ‘agar pedh paanchwe saal phal dena suru kare or paanchwe saal hi koi naya maali aa jaye to iska matlab ye nahi ki sara credit us maali ko de diya jaye.’
    so we should think on this direction also.

  3. jeetendra kalwani Says:

    i am student preparingfor mba entrance exam,i am thankful to mr.lalu trough his control in railwys.but he is lacking somewere in yhe constrution in single line area due to which tere is lot of distruption and delays of train and i knew he is doing work n will be sucessful.

  4. Balachandran Says:

    I think it is the personality trait of Lalu which made Railways to turn around. Lalu is an ambitious politician who want to become the next PM of India. You can watch him appear wirh all good personalities and he do not miss a chance to boost his public appearances, and his news making events.

    With this background we have to analyse the turnaround of railways. He wanted to be noted by everybody, and he had put his mind in it and might have motivated continuosly his railway babus on all his briefings. Once they are motivated they came up with solutions to make railways profitable and Lalu immediately took the decisions and implementation happened immediately. What I find is the Lalu’s great ambitions, his quick decisions and the analysis of the situations with common senses and jokes mixed made the railways turnaround.

  5. y.v.n .rao Says:

    LALU IS MESSAIAH FOR INDIAN DOWNTRODEN.VESTED INTERESTS FRAMED CHARGES AGAINST HIM.SO MANY PEOPLE LIKE ME WILL ADMIRE ONLY ONE PERSON THAT IS LALU

  6. soniya lohiya Says:

    I am a management student. I am really happy about Laloo”s management strategies, that he really made railway a profitable department which was never happened before.

  7. Bhavesh S Bhide Says:

    I am a college student & in 12th
    I don’t think that becoause of Laloo the Inidan Railways is making profit.
    Only becouse of he has got an efficient managers & skilled workers at the time of his goverment, the I.R. is making profit.

  8. manju Says:

    i agree with m. srikan kumar. mr. lalu has done good work but whole credit doesnt go to him only. i think managrs & upervisors hav also succeeded

  9. MOhan Says:

    please do not forget 15 years of rule by Lalu who has converted Bihar into most under developed state in India.Not only thta Biharis are equated as goondas and crimanls in India. What Lalu had done for Bihar?.Nothing .He only looted the social assets. Can he convert Indian agriculture in to positve growth. Maybe he has studied his lessons while in jail. The trickle down effect in railways is part of the Indian economic growth

  10. Chris John Says:

    First thing i agree with Mr. Srikant Kumar, that wonder are not done in just a year or two. Secondly to turn a Company (Indian Railways) running in loss to profit with such a short span of time is not possible. If one wants to change companies economy from Loss to Profit, he has to either increase selling price or to reduce its running cost (cutting of jobs, increase in ticket price, etc.). But I think none of this steps were taken. Rest we should think over it.

  11. raja tadvai Says:

    Was Indian Railways a Loss making organization?
    By Pritis Chandra Majumdar
    Now and then, particularly when Mr. Laloo Prasad Yadav took over the Indian Railways charge as Railway Minister, some regional and national news paper started to propagate the incorrect message about Indian Railways buttering the minister concerned. Such latest news they published (Bengali and English news paper) is: Indian Railways were running on loss so far and Mr. Laloo made it profit maker with thousands of crores surplus. It is not understood where from this type of unauthentic information the news paper reporters got and what is the authorized source of generation of such desperate incorrect information.
    Let us look back and just go through the statistical statements and financial accounts since 1950 to 1997 – 98. There was no year in the past since 1950 as the loosing year except in 1970 – 71 and 1980 – 81 when the losses were19.84 crores and 197.87 crores respectively and the operating ratio in 1970 – 71 and 1980 – 81 were 84.13% and 96.07% respectively. In the last four years from 1994 – 95, 1995 -96, 1996 – 97 and 1997 – 98 the excess were Rs 2,445.40 crores, Rs. 2,870.63 crores, Rs.2,117.06 crores and Rs. 1,535.22 crores respectively. These figures are available in the Annual Reports and Accounts of Indian Railways. It was also seen in the same report that in 1950 – 51 and 1960 – 61 the excess were Rs. 15.05 crores and Rs. 32.01 crores when operating ratio was 81.00% and 78.75% respectively.
    I (Pritis Chandra Majumdar)personally was involved directly with the railways for about 40 years and as such I got opportunity to share all ups and downs of the railways since 1964. But fortunately, I never saw minister like Mr. Laloo who increased expenditure desperately breaking all rules and policies of the railways like violation of reduction of manpower @ 3% per year, introducing free pass for traveling in trains to PORTERS who are not railway employees and take over-charges than that of actual rate of railways from every passengers taking their assistance for carrying luggage. Besides, additional recurring expenditure was forced upon the railways after creation of new seven railway zones for new infrastructure and additional posts of man power from General Manager to downwards, creating additional recruitment of Railway Protection Forces etc.
    Over and above these huge additional expenditure, he did not raise passengers’ fare during his tenure of office. I travelled in trains and found that nothing passengers’ amenities and facilities were offered after his claim of huge surplus in revenues rather he introduced unhygienic earthen pot for tea and passengers drastically rejected those earthen pot. These earthen cups cost also more than conventional synthetic tea-cup and glass. From the above we can realize that Indian Railways were never running on loss except those two years mentioned above.
    Then why reporters are buttering Mr. Laloo publishing incorrect information? This is a question of billion dollars These reporters never referred any authentic reference of railways except Ministers’ verbal press reporting –cum-advertisement with photo session posing as managent guru. What I feel is that actual financial health of Indian Railways will be unearthed after Laloo’s departure from Rail-Mnistership, if not another scam of fodder and other court cases during his Chief Ministership may engulf him. Thus the myth of loss making railway should happily be ignored as the reason might be the his political rival ex-rail minister.
    CONCLUSION
    Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround from a low performing organisation to a high performing one in about five years. The foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the present Railway Minister, Mr Yadav, implicitly accepted in his first budget speech.
    Who else made ‘LALU YADAV’ a HERO ? …Suprime Court & Nitish Kumar report who else..buddy.. READ out?
    Environmental factors
    Change in the macro-economic conditions. The general improvement in Indian macro-economic conditions helped the IR turnaround. ‘This growth environment offered an opportunity for the IR and had a significant impact on the turnaround’ (Raghuram, 2007: 10). As can be seen from Table 7, the average growth rate of the Indian economy in the years since Mr Yadav took over as Railway Minister was 8.5 percent — more than that recorded for the preceding four years. This heightened growth in the economy raised the demand for freight and passenger services which is reflected in the higher revenue earned by the IR as already indicated above. road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.
    Change in the legal position. One of the major changes that have impacted positively for the IR was the Supreme Court Ruling in November 2005 which banned overloading of road transport vehicles. According to the KPMG (2007:7) this was a ‘shot in the arm for the Railways as the road transporters traditionally over loaded 1.5 – 2 times the rated capacity on trucks’. The average road freight rate for transportation ‘shot up by about 25 to 30 percent in the short run increasing the difference between
    road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.

  12. raja tadvai Says:

    who made Hero LALU YADAV think about truth
    Was Indian Railways a Loss making organization?
    By Pritis Chandra Majumdar
    Now and then, particularly when Mr. Laloo Prasad Yadav took over the Indian Railways charge as Railway Minister, some regional and national news paper started to propagate the incorrect message about Indian Railways buttering the minister concerned. Such latest news they published (Bengali and English news paper) is: Indian Railways were running on loss so far and Mr. Laloo made it profit maker with thousands of crores surplus. It is not understood where from this type of unauthentic information the news paper reporters got and what is the authorized source of generation of such desperate incorrect information.
    Let us look back and just go through the statistical statements and financial accounts since 1950 to 1997 – 98. There was no year in the past since 1950 as the loosing year except in 1970 – 71 and 1980 – 81 when the losses were19.84 crores and 197.87 crores respectively and the operating ratio in 1970 – 71 and 1980 – 81 were 84.13% and 96.07% respectively. In the last four years from 1994 – 95, 1995 -96, 1996 – 97 and 1997 – 98 the excess were Rs 2,445.40 crores, Rs. 2,870.63 crores, Rs.2,117.06 crores and Rs. 1,535.22 crores respectively. These figures are available in the Annual Reports and Accounts of Indian Railways. It was also seen in the same report that in 1950 – 51 and 1960 – 61 the excess were Rs. 15.05 crores and Rs. 32.01 crores when operating ratio was 81.00% and 78.75% respectively.
    I (Pritis Chandra Majumdar)personally was involved directly with the railways for about 40 years and as such I got opportunity to share all ups and downs of the railways since 1964. But fortunately, I never saw minister like Mr. Laloo who increased expenditure desperately breaking all rules and policies of the railways like violation of reduction of manpower @ 3% per year, introducing free pass for traveling in trains to PORTERS who are not railway employees and take over-charges than that of actual rate of railways from every passengers taking their assistance for carrying luggage. Besides, additional recurring expenditure was forced upon the railways after creation of new seven railway zones for new infrastructure and additional posts of man power from General Manager to downwards, creating additional recruitment of Railway Protection Forces etc.
    Over and above these huge additional expenditure, he did not raise passengers’ fare during his tenure of office. I travelled in trains and found that nothing passengers’ amenities and facilities were offered after his claim of huge surplus in revenues rather he introduced unhygienic earthen pot for tea and passengers drastically rejected those earthen pot. These earthen cups cost also more than conventional synthetic tea-cup and glass. From the above we can realize that Indian Railways were never running on loss except those two years mentioned above.
    Then why reporters are buttering Mr. Laloo publishing incorrect information? This is a question of billion dollars These reporters never referred any authentic reference of railways except Ministers’ verbal press reporting –cum-advertisement with photo session posing as managent guru. What I feel is that actual financial health of Indian Railways will be unearthed after Laloo’s departure from Rail-Mnistership, if not another scam of fodder and other court cases during his Chief Ministership may engulf him. Thus the myth of loss making railway should happily be ignored as the reason might be the his political rival ex-rail minister.
    CONCLUSION
    Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround from a low performing organisation to a high performing one in about five years. The foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the present Railway Minister, Mr Yadav, implicitly accepted in his first budget speech.
    Who else made ‘LALU YADAV’ a HERO ? …Suprime Court & Nitish Kumar report who else..buddy.. READ out?
    Environmental factors
    Change in the macro-economic conditions. The general improvement in Indian macro-economic conditions helped the IR turnaround. ‘This growth environment offered an opportunity for the IR and had a significant impact on the turnaround’ (Raghuram, 2007: 10). As can be seen from Table 7, the average growth rate of the Indian economy in the years since Mr Yadav took over as Railway Minister was 8.5 percent — more than that recorded for the preceding four years. This heightened growth in the economy raised the demand for freight and passenger services which is reflected in the higher revenue earned by the IR as already indicated above. road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.
    Change in the legal position. One of the major changes that have impacted positively for the IR was the Supreme Court Ruling in November 2005 which banned overloading of road transport vehicles. According to the KPMG (2007:7) this was a ‘shot in the arm for the Railways as the road transporters traditionally over loaded 1.5 – 2 times the rated capacity on trucks’. The average road freight rate for transportation ‘shot up by about 25 to 30 percent in the short run increasing the difference between
    road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.

  13. raja tadvai Says:

    lalu prasad yadav hero made by iim ahmedabad professor and now he might know profit behind the railways,70 percent profits on coal called an “profit on weakness” – indian railways making profits on weakness,suprime court banned over load size of trucks then fuelled profits on indian railways and nitish kumars presented future growth of indian railways and lalu implimented and iim-a made him hero and world doesnt know what is behind the profit and charging too much on coal and making money and in his first budget speech he agreed nitish kumar was behind this success and nitish kumar was the master plan for the indian railways please note lalu is lucky man all the times and indians must know the proofs before welcoming such a persons and making them world famous those who dont know commonsense and business sense and economics and ethics

  14. akhils Says:

    I am appreciating MR.Lalu Prasad for taking necessary steps which others failed to make Indian Railways to profit. But remember that this was attained by the combined effort of all the empolyees on indian railways, although we cannot avoid the efforts done by lalu. Railways is the biggest enterprise in India. one cannot change the structure of the organisation. So i congratulates all hands behind the success of railways.

    I am interested to know the steps adopted to make indian railways to profit so plz avail it to public

  15. raja tadvai Says:

    Understanding railway’s miracle
    Vinayak Chatterjee
    April 30, 2009

    Drawing room chatterati had been quite dismissive about Lalu Prasad Yadav being appointed as Railway Minister. He was not a PLU (“people like us”), and with a fodder-scam cum Bihardown-the-tube personal history-sheet, it seemed hardly likely to do any good.

    As the turnaround story started gathering momentum and successive rail budgets began presenting glowing financials and operating ratios, the skepticism started getting replaced with grudging acceptance that something good was indeed happening. But this feeling was also laced with a degree of suspicion that the turnaround was no “real” improvement but an astute play on increased axle-loads and clever rejigging of commodity freight rates.

    The raison d’être for this book, Bankruptcy to Billions, is that the Indian Railways (IR) did transform from near bankruptcy to post a Rs 25,000-crore annual cash surplus in 2008. Considering that the Railways is one of the world’s largest state-owned enterprises with around 1.4 million employees, over 63,000 kms of network that operate 13,000 trains every day, this is a phenomenal achievement. One also has to take into account that it was achieved in just four years— between 2005 and 2008.

    Seven clear interventions emerge as vital reasons for this turnaround success: thorough analysis revealed that room for reform was extensive; realisation that profits and social obligations were not necessarily in conflict; the minister gave the Railway Board significant autonomy thus fostering mutual trust between the bureaucracy and political leadership; an awareness that the Railways was not a monopoly, but was clearly losing out to alternative modes of transport like airlines, and roadways; the team capitalised on the global commodity boom, increasing freight rates and added Rs 9,000 crore in profits over four years; management employed a scale-driven strategy to increase freightvolumes, reduce unit costs, gain market share and ultimately profit; focus shifted from pricing per passenger or per tonne to maximising profits through yield and margins per train.

    The authors suggest that this model of “inclusive reforms” can be applied to other public sector services like water supply or energy. One would tend to agree with this view, subject to recognising that some fertile ground conditions need to exist as it did in the case of the Railways turnaround. First, the operational upswing was facilitated by a particular phase of India’s economic history characterised by high growth and low inflation. Thus, an aggressive “scale-driven” strategy could work on a hitherto listless organisation with capacity in place.

    Secondly, IR has always been characterised by a well-knit cadre of recognised technocrats who have been fiercely loyal to the institution even amidst the worst of times. Not all public systems have this advantage. Finally, there needs to be a very special “bridge” between the political and bureaucratic establishments that genuinely fosters two-way appreciation of points of view. This task was admirably performed by Sudhir Kumar, an IAS Officer on Special Duty to the Minister of Railways.

    An economic historian reflecting on this turnaround story is likely to concede that while this is indeed a commendable phenomenon, it still hasn’t tackled issues related to institutional and structural reform. Much of this was dealt with in the epochal Rakesh Mohan Committee Report on Railways submitted in February 2002. While the railway establishment has distanced itself from it, few can argue against its recommendations which call for a separation of roles—into policy, regulatory and management functions. Nevertheless, read this book. It will redeem your faith in politicians and bureaucrats. More importantly, it will make you feel good as an Indian.

    — Vinayak Chatterjee is Co-founder of Feedback Ventures and a leading infrastructure expert. business today report on may 10 2009 thank you raja tadvai

  16. raja tadvai Says:

    who made Hero LALU YADAV ,find the truth!
    Was Indian Railways a Loss making organization?
    By Pritis Chandra Majumdar
    Now and then, particularly when Mr. Laloo Prasad Yadav took over the Indian Railways charge as Railway Minister, some regional and national news paper started to propagate the incorrect message about Indian Railways buttering the minister concerned. Such latest news they published (Bengali and English news paper) is: Indian Railways were running on loss so far and Mr. Laloo made it profit maker with thousands of crores surplus. It is not understood where from this type of unauthentic information the news paper reporters got and what is the authorized source of generation of such desperate incorrect information.

    ANNUAL REPORT :

    Let us look back and just go through the statistical statements and financial accounts since 1950 to 1997 – 98. There was no year in the past since 1950 as the loosing year except in 1970 – 71 and 1980 – 81 when the losses were19.84 crores and 197.87 crores respectively and the operating ratio in 1970 – 71 and 1980 – 81 were 84.13% and 96.07% respectively. In the last four years from 1994 – 95, 1995 -96, 1996 – 97 and 1997 – 98 the excess were Rs 2,445.40 crores, Rs. 2,870.63 crores, Rs.2,117.06 crores and Rs. 1,535.22 crores respectively. These figures are available in the Annual Reports and Accounts of Indian Railways.

    It was also seen in the same report that in 1950 – 51 and 1960 – 61 the excess were Rs. 15.05 crores and Rs. 32.01 crores when operating ratio was 81.00% and 78.75% respectively.

    Dictator or Actor :
    I (Pritis Chandra Majumdar)personally was involved directly with the railways for about 40 years and as such I got opportunity to share all ups and downs of the railways since 1964. But fortunately, I never saw minister like Mr. Laloo who increased expenditure desperately breaking all rules and policies of the railways like violation of reduction of manpower @ 3% per year, introducing free pass for traveling in trains to PORTERS who are not railway employees and take over-charges than that of actual rate of railways from every passengers taking their assistance for carrying luggage. Besides, additional recurring expenditure was forced upon the railways after creation of new seven railway zones for new infrastructure and additional posts of man power from General Manager to downwards, creating additional recruitment of Railway Protection Forces etc.
    Over and above these huge additional expenditure, he did not raise passengers’ fare during his tenure of office.

    Earthen pot : Matti Kunda in Telugu. story:

    I travelled in trains and found that nothing passengers’ amenities and facilities were offered after his claim of huge surplus in revenues rather he introduced unhygienic earthen pot for tea and passengers drastically rejected those earthen pot. These earthen cups cost also more than conventional synthetic tea-cup and glass. From the above we can realize that Indian Railways were never running on loss except those two years mentioned above.

    Then why reporters are buttering Mr. Laloo & publishing incorrect information? This is a question of billion dollars .

    These reporters never referred any authentic reference of railways except Ministers’ verbal press reporting –cum-advertisement with photo session posing as managent guru. What I feel is that actual financial health of Indian Railways will be unearthed after Laloo’s departure from Rail-Mnistership, if not another scam of fodder and other court cases during his Chief Ministership may engulf him. Thus the myth of loss making railway should happily be ignored as the reason might be the his political rival ex-rail minister.

    CONCLUSION

    Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround from a low performing organisation to a high performing one in about five years. The foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the present Railway Minister, Mr Yadav, implicitly accepted in his first budget speech.

    Who else made ‘LALU YADAV’ a HERO ? …Suprime Court & Nitish Kumar report ? or both ?yes says report .

    Read out Trugh ?
    Environmental factors

    Change in the macro-economic conditions. The general improvement in Indian macro-economic conditions helped the IR turnaround. ‘This growth environment offered an opportunity for the IR and had a significant impact on the turnaround’ (Raghuram, 2007: 10). As can be seen from Table 7, the average growth rate of the Indian economy in the years since Mr Yadav took over as Railway Minister was 8.5 percent — more than that recorded for the preceding four years. This heightened growth in the economy raised the demand for freight and passenger services which is reflected in the higher revenue earned by the IR as already indicated above. road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.

    SUPREME COURT RULE MADE TOTAL CHANGE the Face of ” Indian Railway”:

    Change in the legal position. One of the major changes that have impacted positively for the IR was the Supreme Court Ruling in November 2005 which banned overloading of road transport vehicles. According to the KPMG (2007:7) this was a ‘shot in the arm for the Railways as the road transporters traditionally over loaded 1.5 – 2 times the rated capacity on trucks’. The average road freight rate for transportation ‘shot up by about 25 to 30 percent in the short run increasing the difference between
    road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR. also added thousends of crores called “Profit on Weakness”.

  17. raja tadvai Says:

    Fodder scam Now IR Hero LALU YADAV ,find the truth!
    Was Indian Railways a Loss making organization?
    By Pritis Chandra Majumdar
    Now and then, particularly when Mr. Laloo Prasad Yadav took over the Indian Railways charge as Railway Minister, some regional and national news paper started to propagate the incorrect message about Indian Railways buttering the minister concerned. Such latest news they published (Bengali and English news paper) is: Indian Railways were running on loss so far and Mr. Laloo made it profit maker with thousands of crores surplus. It is not understood where from this type of unauthentic information the news paper reporters got and what is the authorized source of generation of such desperate incorrect information.

    ANNUAL REPORT :

    Let us look back and just go through the statistical statements and financial accounts since 1950 to 1997 – 98. There was no year in the past since 1950 as the loosing year except in 1970 – 71 and 1980 – 81 when the losses were19.84 crores and 197.87 crores respectively and the operating ratio in 1970 – 71 and 1980 – 81 were 84.13% and 96.07% respectively. In the last four years from 1994 – 95, 1995 -96, 1996 – 97 and 1997 – 98 the excess were Rs 2,445.40 crores, Rs. 2,870.63 crores, Rs.2,117.06 crores and Rs. 1,535.22 crores respectively. These figures are available in the Annual Reports and Accounts of Indian Railways.

    It was also seen in the same report that in 1950 – 51 and 1960 – 61 the excess were Rs. 15.05 crores and Rs. 32.01 crores when operating ratio was 81.00% and 78.75% respectively.

    Dictator or Actor :
    I (Pritis Chandra Majumdar)personally was involved directly with the railways for about 40 years and as such I got opportunity to share all ups and downs of the railways since 1964. But fortunately, I never saw minister like Mr. Laloo who increased expenditure desperately breaking all rules and policies of the railways like violation of reduction of manpower @ 3% per year, introducing free pass for traveling in trains to PORTERS who are not railway employees and take over-charges than that of actual rate of railways from every passengers taking their assistance for carrying luggage. Besides, additional recurring expenditure was forced upon the railways after creation of new seven railway zones for new infrastructure and additional posts of man power from General Manager to downwards, creating additional recruitment of Railway Protection Forces etc.
    Over and above these huge additional expenditure, he did not raise passengers’ fare during his tenure of office.

    Earthen pot : Matti Kunda in Telugu. story:

    I travelled in trains and found that nothing passengers’ amenities and facilities were offered after his claim of huge surplus in revenues rather he introduced unhygienic earthen pot for tea and passengers drastically rejected those earthen pot. These earthen cups cost also more than conventional synthetic tea-cup and glass. From the above we can realize that Indian Railways were never running on loss except those two years mentioned above.

    Then why reporters are buttering Mr. Laloo & publishing incorrect information? This is a question of billion dollars .

    These reporters never referred any authentic reference of railways except Ministers’ verbal press reporting –cum-advertisement with photo session posing as managent guru. What I feel is that actual financial health of Indian Railways will be unearthed after Laloo’s departure from Rail-Mnistership, if not another scam of fodder and other court cases during his Chief Ministership may engulf him. Thus the myth of loss making railway should happily be ignored as the reason might be the his political rival ex-rail minister.

    CONCLUSION

    Both ‘good management’ and ‘good luck’ helped the Indian Railways turnaround from a low performing organisation to a high performing one in about five years. The foundation for the turnaround was laid during the tenure of Mr Nitish Kumar, which the present Railway Minister, Mr Yadav, implicitly accepted in his first budget speech.

    Who else made ‘LALU YADAV’ a HERO ? …Suprime Court & Nitish Kumar report ? or both ?yes says report .

    Read out Trugh ?
    Environmental factors

    Change in the macro-economic conditions. The general improvement in Indian macro-economic conditions helped the IR turnaround. ‘This growth environment offered an opportunity for the IR and had a significant impact on the turnaround’ (Raghuram, 2007: 10). As can be seen from Table 7, the average growth rate of the Indian economy in the years since Mr Yadav took over as Railway Minister was 8.5 percent — more than that recorded for the preceding four years. This heightened growth in the economy raised the demand for freight and passenger services which is reflected in the higher revenue earned by the IR as already indicated above. road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR.

    SUPREME COURT RULE MADE TOTAL CHANGE the Face of ” Indian Railway”:

    Change in the legal position. One of the major changes that have impacted positively for the IR was the Supreme Court Ruling in November 2005 which banned overloading of road transport vehicles. According to the KPMG (2007:7) this was a ‘shot in the arm for the Railways as the road transporters traditionally over loaded 1.5 – 2 times the rated capacity on trucks’. The average road freight rate for transportation ‘shot up by about 25 to 30 percent in the short run increasing the difference between
    road and rail freight cost’ (Mathur, 2006:1). It shifted the freight business –more specifically of cement and steel — to the IR and is reflected in the sharp rise in freight revenue of the IR in the years 2006 and 2007. This played a part in the turnaround of the IR. also added thousends of crores called “Profit on Weakness”.

  18. Ravi Ranjan Says:

    Railway not made for profit making company,then it is better make a private company.Railway made for social accountability with satisfaction.No profit no loss policy.It is good idea to make all the train super-fast,50 % seat for tatkal ,make 8 to 9 seat compartment.Laloo is not a management guru.He was just cheat the passenger without any satisfaction of them.If all management student think ,he is management guru then railway make it private and lifetime CEO post given to the Laloo Prasad Yadav.

  19. sonika Says:

    can i talk lalu parsad ji

  20. rajan Pandey Says:

    I wants to know how changed railway sector by lalu prasad yadav…???
    plz give me the reply


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