Railways Stops Colonial-Era Practice of Using Dak Messengers to Cut Costs

With most communication taking place over email, Dak messengers had largely been running personal errands.

New Delhi: Faced with the necessity to cut costs, the Railways has decided to do away with a colonial-era practice of sending confidential documents through personal messengers. Such communication will now take place through video links, according to official instructions.

The personal messengers are usually picked from among peons. They are given the job of carrying files and documents of sensitive nature across the Railways’ network, i.e. from the Railway Board to its various departments, across its zones and divisions. This practice was started by the British and such messengers are known popularly as ‘dak messengers’.

Indian Express has reported officials as having said that the system became obsolete with the advent of emails and was instead given to rampant misuse. Dak messengers, these days, were mostly made to run personal errands.

“As a measure to reduce cost and improve savings on establishment related expenditure, the Board has desired that all discussions amongst officials of Railways PSU/Railway Board should invariably be held over video conferencing accordingly booking of personal messenger/Dak messenger should be stopped immediately.

“Compliance of the above should be ensured, as it would lead significant savings in allowances, stationery, Fax etc.,” the Railways’ order dated July 24 to the zones stated.

Also read: Indian Railways Sees ‘Alarming’ Shortfall in Expected Freight Traffic Revenue

It also advised the zones to control expenditure by reducing staff cost and rationalising staff. It also called for making staff members “perform multiple tasks.”

It further asked the zones to review contracts, reduce energy consumption and cut cost in administrative and other areas.

Earlier, the Railways had called for a freeze in the creation of new posts, rationalisation of manpower at workshops, shifting outsourced work to CSR, and moving ceremonial functions to digital platforms.

As part of the effort to make running the service viable, the Railways had, through last year, announced campaigns like ‘Give it up’ through which it attempted to inspire comparatively well-off passengers to pay between 26% and 71% more, depending on the ticket category, and give up their subsidy.

Last year, the Railways were running at losses of over Rs 42,000 crore in the passenger segment. Faced with mounting losses, it announced a fare hike at the start of the year.

The Railways also instructed that all file work be moved to the digital sphere and advised that all correspondence must be done through secure e-mails and asked them to reduce the use of stationery articles, cartridges and other items by at least 50%.

It asked the zones to review and close all uneconomic branches of the ministry.

(With PTI inputs)

Fact Check: No, the Centre Isn’t Paying for Migrant Workers’ Train Journeys Home

Lav Agarwal gave a rather cryptic – and misleading – explanation on Monday.

New Delhi: As the Centre faced heat from the opposition over the Indian Railways asking migrant labourers making their way home to pay for train tickets, the Union health ministry’s joint secretary Lav Agarwal gave a cryptic explanation on Monday.

“Be it the government of India or the Railways, we have not talked about charging from workers. Eighty-five percent of the transportation cost is borne by the Railways, while states have to bear 15% of the cost,” he told reporters.

Supporters of the Bharatiya Janata Party and the Narendra Modi government at the Centre, understandably, latched on to Agarwal’s statement to attack opposition parties. Many of them pedalled the notion that migrant workers were not being charged at all, even as many reports showed that those who boarded the special “Shramik Special” trains to ferry the workers to their native states had already paid for their tickets.

Many others, too, took Agarwal’s statement at face value and thought that the raging political row was blown out of proportion.

Soon BJP leaders like B.L. Santosh and Sambit Patra, and some television channels, almost simultaneously, accused Kerala, Maharashtra and Rajasthan – and other states which were governed by opposition parties – of charging rail fare from the migrants.

What is the reality? Why were the migrant labourers being charged for their rail journey if, as Agarwal said, the Centre and the state governments were already footing the bill? What was the 85:15 formula that Agarwal spoke of?

The Wire breaks it down.

How did the matter come to light?

Lakhs of migrant workers have been stranded without work or proper shelter ever since the nationwide lockdown was imposed. There was a stream of visuals of desperate workers walking several hundred kilometres towards their homes. The Union government was criticised by many for not arranging travel facilities for these informal sector workers before imposing a lockdown.

On May 1, the government finally buckled under pressure from state governments and opposition parties, and allowed the movement of migrant workers by organising special trains for them.

However, the Indian Railways released travel guidelines soon after the decision, inviting further criticism.  The guidelines made the following points:

“Railways shall print tickets to the specified destination, as per number of passengers indicated by the originating state and hand them over to the local state government authority. The local state government authority shall handover the tickets to the passengers cleared by them and collect the ticket fare and hand over the total amount to the Railways.”

The railway guidelines.

That the Centre was charging the migrant workers, even as it had brought back many stranded tourists from abroad for free, generated much flak. The opposition parties labelled the union government for being “insensitive and inhuman” for making the workers pay despite having known that a majority of them had absolutely no money left after somehow sustaining through the lockdown.

The Centre’s explanation: ’85:15 formula’

Caught on the back foot, the Centre attempted to do some damage control. This is when Agarwal gave his cryptic clarification.

Did it mean that the Indian Railways ran the “Shramik Special” trains for free? No.

There has been no clarification from the Indian Railways or the Centre ever since Agarwal gave his statement. What the 85:15 formula meant, as can be inferred from BJP leader Sambit Patra who defended the government on the issue in a television show, is that the notional subsidy that the Indian Railways gave to the “Shramik Special” passengers was 85% of the total cost of travel.

For regular train journeys, the Railways recovers around 53% of the total money spent through sleeper class ticket fares, which means the subsidy given to the passengers is 47% of the total cost involved.

100-Day Action Plan of the … by The Wire on Scribd

In this context, Patra had an explanation how the Centre bore 85% of the travel costs in the case of Shramik Special trains. Since these special trains for migrant workers were supposed to carry not more than 1,200 passengers, as had been mandated by the Indian Railways guidelines to maintain social distancing norms, and were supposed to come back to their originating stations empty, the subsidy it gave to the passengers was calculated to be around 85%.

This means that the printed fares on the tickets reflected 15% of the total cost incurred by the Railways, and the state governments are supposed to reimburse that amount to the Railways in the due course of time. It doesn’t mean that the Centre is paying 85% of the ticket price

Who pays for the tickets?

As is clear, despite claiming that the Centre is bearing 85% of the unsubsidised ticket costs, it is not shelling out an extra penny from its reserves. It has not committed to paying anything upfront at the moment.

The Centre, has in fact, shifted the burden entirely to the state governments, who had been requesting the Union government to arrange for transportation of migrant workers.

Also read: Understanding the Implications of the COVID-19 Lockdown on Migrant Workers’ Children

Patra said that the state governments were free to reimburse the Railways by either charging the distressed migrant workers or by digging into their own pockets. He said that UP, Tripura and other BJP-ruled states have already announced that they would foot the bill, and attacked Congress-ruled states for not doing so. However, even this decision by the BJP-ruled states came as an afterthought, a day after the Congress announced that its state units will pay for the migrant workers’ tickets.

By the time the BJP-ruled states announced their decision, non-BJP ruled states like Jharkhand and Chhattisgarh had already said that they won’t charge the workers and were ready to reimburse the Railways from their state budget.

Moreover, contrary to Patra’s claim, the Gujarat government had been charging migrant workers the rail fare.

Thus, irrespective of what Agarwal attempted to project, the rail travel allowed for migrant workers is anything but free.

Is the ticket fare for Shramik Special lower than usual?

No. In fact, most reports suggest that the ticket fares are higher than usual, as the Railways has imposed an additional Rs 50 on the normal sleeper class fares. The additional charge is now being informally called as the “corona surcharge” by many.

Speaking on the same show in which Patra was a panelist, Swaraj Abhiyan leader Yogendra Yadav gave a concrete example. The socialist leader showed a copy of the ticket for a special train that transported workers from Vasai near Mumbai to Gorakhpur in Uttar Pradesh. He said the usual sleeper class fare charged by the Railways is anywhere between Rs 660 to Rs 680. However, the workers were charged Rs 740 for travelling in the special train.

Yadav said had “the 85% story was true, as was being told through the day”, then the fare would have been only 15% of Rs 680, the normal fare in this case. “So, a worker would have paid a little over Rs 100. But what is being charged now – Rs 740,” he explained.

Similarly, while the normal fare from Kerala to Jharkhand is around Rs 800, the workers were asked to pay Rs 850. In the case of the train that ran from Nashik to Bhopal, workers were charged Rs 350, as against Rs 300 during normal times.

Also read: Odisha Govt Ill-Prepared to Handle the Lakhs of Migrant Workers Coming Home

The Centre has passed the buck to the state governments cleverly without giving a straightforward answer to the questions raised. Its supporters on social media and elsewhere used Agarwal’s statement to mislead the public.

The Centre’s indecisiveness and largely passive responses to the sufferings of the migrant workers came to the fore even after it allowed rail and bus travel for them. Even as the Railways organised the first lot of special trains,  the union home secretary Ajay Bhalla, on May 3, wrote to chief secretaries of all states that only those workers who are stranded somewhere between their workplaces and home will be allowed to board the special trains, creating further confusion. What will those workers who abided by the lockdown measures but have been driven to abject penury in the last few days do? All of them have expressed their wish to be taken back to their villages. Does the Modi government have a plan for them?

The Modi government’s attempt to hoodwink the Indian public on the issue of rail fare reflects a similar inattentiveness, if not indifference.

Faced With Mounting Losses, Indian Railways Starts New Year With a Fare Hike

Currently, the railways operating ratio is hovering over 120%, a situation that is indicative of its poor financial health.

New Delhi: The Indian Railways has hiked fares for AC and non-AC segments across the board, in a move that attempts to shore up the national transporter’s weak passenger revenue.

This development, which excludes only suburban services and will be effective from January 1, comes just one month ahead of the Union Budget.

Aiming to mop up about Rs 2,300 crore in a year, the ordinary non-AC, non-suburban fares have been hiked by 1 paise per km of journey. The hike is 2 paise per km for mail/express non-AC trains and 4 paise per km for AC classes.

The decision to hike fares has been inevitable – losses in the national transporter’s passenger segment is over Rs 35,000 crore a year. Despite introducing many special trains like Vande Bharat, Tejas and Gatimaan with increased fares, the Indian Railways has not been able to stem the loss.

Premium trains like Shatabdi, Rajdhani and Duronto trains are also included in the fare hike, even though passengers travelling on these lines already pay up to 40% more than the basic fare under the ‘flexi-fare scheme’. The railways had introduced ‘flexi-fares’ for premier trains in 2016 during railway minister Suresh Prabhu’s regime.

This January 2020 hike by the Narendra Modi government is the first hike in nearly six years. The state-run transporter had increased passenger fares by 14.3% and freight rates by 6.5% in June 2014 when D.V. Sadananda Gowda was the railway minister.

The then railway minister P.K. Bansal had also effected a fare hike across the board in 2013.

Also read: What Piyush Goyal’s Claim of ‘Zero’ Railway Passenger Deaths in FY’20 Leaves Out

Other fare rationalisations have also proven controversial: the fare hike effected by Trinamool Congress leader and then railway minister Dinesh Trivedi in 2012 was reversed by his party supremo Mamata Banerjee.

By the end of November 2019, passenger earnings were behind internal targets by Rs 1,983.22 crore and the shortfall in freight revenue was Rs 17,641.91 crore.

Acknowledging the difficult situation, chairman Railway Board V.K. Yadav has said there was less earning during this period which has resulted in shooting up the operating ratio beyond 100%.

Currently, the railways operating ratio is hovering over 120%, a situation that is indicative of its poor financial health.

Yadav, however, said that earnings were expected to grow in the coming three months and hoped that the operating ratio would be under control.

However, despite facing a nearly Rs 18,000-crore shortfall in the freight business, railways is unlikely to increase the goods rate. The freight rate is already on the higher side and any further increase will drive away goods from rail to road.

In fact, the railways has given concessions in goods loading by waiving off the busy surcharge, which is otherwise applicable during this period.

According to the order issued by the Railways on Tuesday, there will not be any change in the reservation fee and superfast charges. The hike in fares will also not be applicable to tickets already booked. The increase in fare will be on tickets bought on or after January 1, 2020 and no excess fare will be charged from passengers who have booked tickets before January 1, 2020.

The Railways Budget, which has been merged with the Union Budget, is slated to be presented on February 1, 2020 and with the fare hike, the government is expecting some respite from the downslide in earnings.

However, insiders maintain that the further increase in fares in premier trains like Rajdhani will not be beneficial for railways as it would be almost at par with the fares offered by a few airlines.

Also read: Indian Railways Sees ‘Alarming’ Shortfall in Expected Freight Traffic Revenue

Despite the onset of the festive season, passenger booking has not increased as expected and a further fare hike can harm its business.

The fare hike in January is likely to be followed by floating of tenders for private train operations. The national transporter has decided to offer 150 trains to private players in different routes across the country.

Besides this, the second IRCTC-operated Tejas Express will be launched on January 17 between Mumbai and Ahmedabad. The first Tejas is currently running between Lucknow and New Delhi.

Arun Kumar Das is a senior journalist who covers the Indian Railways and can be contacted at akdas2005@gmail.com.