Railways in existential crisis but no stock market route: Suresh Prabhu

Source:  www.dnaindia.com

Railways is facing an “existential crisis” because it was systematically ignored for long by favouring the road sector, Railways minister Suresh Prabhu said but ruled out the stock market route by making it a listed PSU like ONGC to raise funds.

“Railways lost traffic to road. It is because you make investment three to four times higher in road than railways. You have systematically ignored rail favouring road. Now it has become an existential crisis for railways.

“If you want to increase the share of traffic to rail from road, you have to invest more in rail,” Prabhu said in an interview to PTI. The minister was responding to as to why despite the best efforts, Railways have failed to share the road traffic. He further added that railways cannot handle even if free goods transportation was allowed to increase the traffic share as it does not have the capacity. More info

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