privatization of railways..!

It appears that time has come for government to consider the privatization of railways. Its not hidden from anybody that railways are being operated below the actual potential. The railways have huge assets with them but the lack of proper incentives and competitive framework is responsible for dismal show by this sector. Moreover, the quality of service and security cover leave a lot to be desired. The problem cant be solved by just pumping money in this sector and a change of policy is required.

The government can allow private corporations to operate different divisions on a revenue sharing basis. The competition between different operators may keep the fares low with improved quality of service. A regulator can be appointed to ensure fair play among various players and and thereby preventing cartelization. Moreover, a penalty can be imposed if the service level falls below a certain benchmank. This will help the government to generate huge revenues from the sale of licences through bidding and subsequent sharing of revenues . The improved quality of service will benefit everybody and the presence of competition will ensure new innovations in this sector. Thus , it can be a win-win situation for everybody.