Did Lalu Yadav Actually Transform the Indian Railways?

The transformation of Indian Railways, often credited to Lalu Yadav, is a topic surrounded by both accolades and criticisms. This article explores the reality behind the transformation of Indian Railways during Lalu Yadav’s tenure, delving into the management practices, effectiveness, and the challenges that came with his leadership.

Improvement and Technological Advancement

The improvement and technological advancement in the Indian Railways are part of an ongoing process irrespective of the party in power or the Railway Minister. Since Bihar is a significant part of the Indian Railway network, the improvement in the railway infrastructure in Bihar is crucial. Despite having the maximum Railway Ministers from Bihar, the state still lags behind in comparison to other parts of India.

Was Lalu Yadav Responsible?

Lalu Yadav's tenure as the Railway Minister did see significant improvements in the Indian Railways. However, a closer look at the events suggests that much of the transformation was not due to his direct efforts. The real story is more nuanced.

Behind the Scenes

Key Observations: Lalu Yadav was primarily focused on Bihar at the time of his term. With elections looming, he had limited time to ponder over the wider transformation of Indian Railways. Instead, policies and proposals were largely driven by the officers who worked within the ministry. Lalu appointed an adviser to guide him on what to sign and what to avoid.

Counter-arguments

Ravi Prakashs' Answer: Yes, the ministry of railways did implement these changes, but Lalu's role was minimal. His prescription was more for Bihar than the national railways. Lalu's influence was primarily within the state of Bihar, and the transformation of the railways during his ministerial role was more due to the efforts of officers within the ministry rather than his personal vision or initiative.

Reforms and Turnaround

Before Lalu's Tenure

When Lalu assumed the role of Railway Minister in 2004, the 156-year-old Indian Railways was plagued by numerous issues. It was perceived as a loss-making organization with inadequate revenues, numerous problems, and an overstaffed workforce. Indian Railways was spending 91% of its income on salaries and maintaining an aging infrastructure, leading to a massive debt of Rs 61,000 crore (approximately 12.3 billion USD), with predictions of a fatal bankruptcy by 2015.

Management Strategies

Lalu's management strategies included refusing to hike passenger fares, increasing cargo capacity, and enhancing the efficiency of operations.

Increase in Cargo Volume

By increasing the weight carried by goods wagons from 81 tonnes to 90 tonnes, Lalu managed to generate an additional revenue of Rs 7,200 crore.

Adaptive Ticketing

Lalu introduced adaptive ticketing methods, where tickets could be upgraded if upper-class seats were vacant, ensuring maximum utilization of resources.

Seasonal Adjustments

Lalu maintained a passenger profile, allowing for the addition or removal of bogies according to the seasonal demand of the railway network.

Financial Turnaround

During his tenure, Lalu managed to turn the Indian Railways into a cumulative cash surplus of Rs 68,778 crore (approximately 13.9 billion USD) before dividends. Out of this, Rs 15,898 crore was paid as dividends, Rs 39,215 crore was invested in rail infrastructure, and Rs 13,665 crore was added to fund balances, ultimately reaching Rs 20,483 crore.

Management Lessons

Key Management Principles: Choose the Right People: Lalu insisted on selecting the right individuals to manage various aspects of the railway network. Delegate and Take Risks: Effective delegation and taking calculated risks were crucial for managing the heavy workload. Utilize Resources: The principle of not underutilizing resources (e.g., not fully milking the cow or buffalo until it falls sick) was pivotal in managing resources efficiently. Think Out of the Box: Innovation and unconventional thinking were at the heart of Lalu's approach. Value Information: Proper utilization of information was seen as a valuable asset.

While Lalu's tenure brought significant improvements, it is important to note his involvement in corruption cases. He was declared convicted in the Fodder Scam, and this led to immediate disqualification as a Lok Sabha member.