Indian Railways at the Crossroads
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Case Code: ECON005 Case Length: 04 Pages Period: 1994 - 2002 Pub Date: 2004 Teaching Note: Available |
Price: Rs.200 Organization : - Industry : - Countries : India, Canada Themes: Economics, Politics and Business Enviornment |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Operations of IR
IR operated as a department of the government with the Minister for Railways being the highest authority. The Minister for Railways held the rank of a Cabinet Minister and was directly answerable to the Indian Parliament. He was assisted by two Ministers of State, who formed a part of the Union Council of Ministers. The general day-to-day administration of IR was taken care of by the Railway Board which consisted of a chairman of the rank of a Secretary to the Government of India and six other specialized advisors (Refer Exhibit-IV for the organization structure of IR). There were also several specialized directorates, which took care of the implementation of the board's policies...
The Issues
Despite the fact that IR played an indispensable role in the transportation sector of India, it was generally acknowledged that there was scope for improvement in its operations. IR suffered from a number of problems, which complicated operations and kept the organization from moving forward with changing times. IR was a relic of the socialist era of India and found it difficult to operate in the changed economic scenario. In the years following independence, the government of India adopted socialism...
Towards a Better IR
Considering the importance of IR to the development of India, it was felt that steps should be taken to improve its operations. Experts suggested several methods by which the operations of IR could be improved. Analysts were of the opinion that privatization, either partial or complete, would be the best solution to the problems of IR. They believed that privatization would relieve IR of the obligations of being a government department, as well as gear its operations to market conditions. They believed that privatization would also ensure greater transparency and accountability...
Exhibits
Exhibit I: Recommendations of the Rakesh Mohan Committee
Exhibit II: Indian Railways Zones
Exhibit III: Railway Network of India
Exhibit IV: Organization Structure of IR
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