Railways' existential dilemma: Fare hike, rejig proposal spark fresh debate

A fare hike and restructuring proposal have raised afresh the debate over whether this state-owned transport utility is a service or a business

During his tenure as Union Railways Minister, Lalu Prasad used to refer to the freight business as “Railway ka kamau ghora” (or cash cow). A decade after his stint in Rail Bhavan, this descriptor still applies. The state-owned carrier charges passengers recovers a little under half its cost on passenger service — charging about 36 paise per 10 km and spending 73 paise — with the freight business making up the difference. 

This New Year’s Eve, the issue came into stark focus again when a rise in passenger fares prompted talk about restructuring the Railways, raising private sector participation and focusing