Abstract

The dramatic turnaround of the Indian Railways (IR) continued through 2007 with IR registering total earnings of Rs. 444.7 billion between April and November 2007. IR was in deep financial trouble in the 1990s. However, IR achieved a turnaround from a loss-making entity into a profitable one after Laloo Prasad Yadav (Yadav) became the Minister of Railways in May 2004. While some analysts attributed the turnaround to Yadav leadership qualities and good management, others felt that IR was still to come out of the red fully and the turnaround was in part due to accounting ingenuity rather than good management.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Indian Railways, turnaround, leadership, management, public sector undertaking, PSU, freight, Oil and Natural Gas Corporation, ONGC, accounting