Privatization Of Indian Railways Is Modi Killing Railways Or Making It Better?

privatization to railway indian

Is Modi Killing Railways Or Making It Better?

We have been frequently reading the news about RAILWAY PRIVATISATION for the past few days.
The government sent the proposal of privatization to railway authorities through
Their proposal was to privatize 50 stations and 150 trains. The railway workers union already started huge protests against this. The congress and other left parties are in support of this protest. Then the Indian government tried to explain to them by saying that they are going to corporatize the system but not privatize.


Let us know the difference between privatization and corporatization.

Privatization – is a state where the entire power will be in the hands of the person or company that is the owner of the property.

corporatization – is a state owner will not have the entire power on the property but will have partial power.

indian railway

Indian government thought of making the Indian Railway a profitable venture and so they have set a committee to make necessary changes in the present railway system. So, coming to the concept of privatization the government reforms are like this,

  • The government is aiming to privatize 50 stations as of now.
  • These stations will be having all the amenities like cinema halls, medical shops, hospitals, and world-class infrastructure.
  • All these are done by the private company and in return, the government will give the company a railway land to construct all the infrastructure.
  • This bond will last for 45 years and then a new tender is called.priviatization to railway


-World-class facilities to passengers
-Fewer corruptions (like TCs collecting money)
-As of now Railways is a loss venture but by privatization that could become a profitable venture.


  • The private companies will always run the trains only in profitable routes. For example, private companies will be happy to run trains like RATNACHAL, SATAVAHANA..but not non-profitable trains like passengers or other trains which run in quiet routes.
  • During the Chennai draughts, Indian railways used goods carriers from different places to supply drinking water to Chennai. But the question here is will the private company do those social welfare activities.
  • Around 14 lakh employees are working in Indian Railways and 14 lakh employees are taking pensions.
    And the question here is will the private company give pensions to employees?
    Are those 14 lakh employees working will be treated as government employees?
    Are their jobs secured?

So, these are the questions the government needs to answer before privatizing the Railways.


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