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Discuss in detail the issues related to Privatization of Indian Railways while suggesting solutions to address the same.

Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

6. Discuss in detail the issues related to Privatization of Indian Railways while suggesting solutions to address the same. (250 words)

Reference:  India Express

Why the question:

The article goes into the depth of why India has failed to attract private participation in railway sector.

Key Demand of the question:

Discuss in detail the issues related to Privatization of Indian Railways while suggesting solutions to address the same.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

On July 1, 2020, the Indian Railways launched the formal process of inviting private parties to run trains on the Indian railway system. However, hopes of a large participation were dashed as there were no bids for nine clusters and only two bids for three clusters.

Body:

The answer body must have the following aspects covered:

Explain that Indian railway wants capital and technology infusion but it doesn’t want to give up control. The private players have to invest in huge proportions with a huge risk of uncertain returns.

India needs to align three strategies- design state of the art stock, have private investment and generate profits. Specifically for technology, India will have to build capacity at research, university and incubator levels to develop sufficient base in the domain.

Discuss in detail the underlying reasons.

Present suggestions to address the issue.

Conclusion:

Conclude with way forward.