LAL BAHADUR SHASTRI INSTITUTE OF

MANAGEMENT AND TECHNOLOGY

,BAREILLY
Seminar
On
Privatization of Indian Railways

Pawandeep Mishra
PG-1
• Introduction
• Basic information of
Indian Railway
• Railway sector statistics
• Origin of Privatization
• Privatization of Indian
Railway
• Needs of Privatization
• Advantages
• Disadvantages
• Global Experience
• Conclusion
Privatization is the transfer of publicly
owned or publicly operated means of
production to private ownership or
operation. 
 Basic information of Indian Railway
1. Indian railway is the 4th largest railway network in the world.

2. Railway network in India comprises 1.21 lakh kmof track.

3. It transports 8107 bn passenger & 1.108 tons of freight annually.

 Railway Sector Statistics

• Market Size

• IBEF REPORT – AUGUST 2021

• Sector Composition

IBEF REPORT- AUGUST 2021

• Key Trends

IBEF REPORT - AUGUST 2021

Origin of Privatization

LPG- Model
Privatization of Indian Railways
This article is based on “Railway privatisation: India must
hasten slowly” that was published on 16/10/2019 in The Hindu
Business Line. It talks about the privatisation of Indian
railways.
After privatisation of the Tejas Express (to be run by the
IRCTC), the government is currently in the process of forming a
task force to draw a blueprint for handing over operations of
as many as 150 trains and a total of 50 railway stations to
private operators.
LOW QUALITY OF SERVICE

LOW REVENUE

INCREASING NO. OF ACCIDENT

ADVANTAGE OF PRIVATIZATION-
Improved Infrastructure

Normalization of price due competition

Improved Security
Better Technology Inovation
DISADVANTAGES OF PRIVATIZATION

LIMITED COVERAGE

ISSUE OF ACCOUNTABILITY

LESSER INCLUSIVE
IMPACT ON ECONOMY

MONOPOLY
GLOBAL EXPERIENCE
1. High Fares
BRITAIN
2. Passengers
Dissatisfaction
3. Govt. Control Increased
4. More Delays
5. Safety Improved
JAPAN 1. Improvement in the
services

2. Increased Efficiency
 Conclusion/ Remarks
Equipped with resources and decades of experience,the inefficiency
of the government  remains a concern. Therefore, there is doubt that
private companies will be able to benefit the railway.
It is true that after privaitazation the number of passengers will
increase and travel will become easier but all this will be possible
only on the heavy rail fares, which will affect India’s economy in a
big way.
Therefore, it is also important that before taking this big step, there
should be a wide public discussion.