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Industry observers opined that under Yadav's leadership, IR had not only become
profitable but had also been able to generate surplus funds of Rs. 215 billion,
according to the FY 2007-2008 IR budget presented by Yadav.
Analysts expected Yadav to announce a populist FY 2008-2009 IR budget as well.
They felt that there was still ample slack in the system that Yadav could use to
rake in the profits for IR without hiking the fares. However, critics contended
that IR was still facing some tough challenges and was yet to fully come out of
the red.
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They pointed out that the passenger fare was being
subsidized by freight earnings. And after incurring costs of 40 percent
of the budget for payment of its large workforce, 20 percent on fuel,
paying of dividends, etc., IR was left with only 7 percent for capital
fund and 4 percent for development work, they said.
Additional Readings & References
1. "Review on Passenger Revenue Management in Indian Railways," www.cag.nic.in, 2005.
2. "Lalu to Teach Management at IIM-A," www.in.rediff.com, August 30,
2006.
3. "UPDATE 1-Indian Railways Makes $4.5 Bln Profit in 2006/07," www.reuters.com, February 26, 2007.
4. G.Raghuram, "Turnaround of Indian Railways: A Critical Appraisal of
Strategies and Processes," www.iimahd.ernet.in, February, 2007.
5. V Sridhar, "Feel-good Train," www.frontline.in, March 10-23, 2007.
6. Rajat Guha and Ratna Bhushan, "Railways May Earn Rs.1800 Crores by
Offering 300 Trains for Advertisement," www.economictimes.com, December
13, 2007.
7. Rajat Guha, "Lalu's Gravy Train Eyes the Vote Bank," www.economictimes.indiatimescom, December 25, 2007.
8. "Indian Railway's Strides of Progress in 2007," www.inrnews.com,
December 27, 2007.
9. Rajat Guha, "Lalu Likely to Drive in Freight Cuts to Help Inflation
Busters," www.economictimes.indiatimes.com, December 28, 2007.
10. Karan Kumar, "Public-Private Partnership in Indian Railways," www.ccsindia.org, 2007.
11. P R Sanjai, "Tata, Ambani, DLF Interested in Modernizing Railway
Stations," www.hindustantimes.com, January 4, 2008.
12. Bisheshwar Mishra, "Lalu to Continue with His Turnaround Story," www.timesofindia.indiatimes.com, February 26, 2008.
13. "Indian Railways...on the Right Track?" www.gobartimes.org.
Cases on Related Topics
1.
Indian Railways at the Crossroads
2.
The Turnaround of Srilankan Airlines
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