Railway has to perform its dual role of commercial organization and vehicle for fulfillment of social obligations. Railway Minister Suresh Prabhu has emphasized that and said that if we run it as a commercial enterprise, we cannot fulfill social obligations and if we fulfill the social obligations, we cannot run it as a commercial enterprise. But we have to fulfill our social obligations while running this as a commercial enterprise.
Suresh Prabhu said that constant efforts should be on to find ways to increase passenger and freight traffic and also the share of non-fare revenue as railways is facing challenges. Minister said that “If we do not think about competition, we cannot improve. At the micro level, we should see how the competition is faring. We therefore, have to properly make our pricing policy for both passenger and freight traffic. And at the same time we have to keep long term interest of the railways in mind”.
Emphasizing on station redevelopment through PPP route, he said it is a priority for us because Railways cannot work only with our own resources. Joint ventures with states are very much necessary Hence PPP route should be explored wherever possible to benefit the states and to fund the joint venture projects. He said railways needs to strike a balance between Japanese and Chinese railway financial models as China invests heavily for the development of their railways. Extra Budgetary resources are necessary for the development of railways.