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Indian Railways
#54
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Railways asked to cut staff by 1/3rd </b>
Rajeev Ranjan Roy | New Delhi
... set to lose World's Largest Employer status
The Indian Railway is about to lose the distinction of being the world's biggest employer. Department of Personnel and Training (DoPT) has asked the Railway Ministry to cut down the staff strength by nearly one-third of the existing strength of around 14.22 lakh.

As per DoPT direction, the Ministry is struggling hard to bring down the staff strength to nine lakh by 2010.<b> "It is a saddening fact that the Ministry has to cut down the staff strength to nine lakh. DoPT has instructed the Ministry to surrender two posts for filling up every vacancy," </b>Basudeb Acharia, chairman, Parliamentary Standing Committee on Indian Railways, said.

The downsizing of Railway staff would hit hard the populist image of Railway Minister Lalu Prasad. Despite Prasad's tall claims to the contrary, the Ministry is rapidly outsourcing several peripheral services to private players, significantly bringing down the staff strength.

"Ministry is outsourcing many services to the private players, which is nothing but privatisation. From sanitation to catering, passenger conveniences at junctions and stations to bedrolls in air-conditioned coaches, everything is being outsourced," Acharia said.

The drastic cutting in the staff strength of Indian railway is in direct conflict with what Yadav claims to have effected a 'turnaround' in the country's largest but ailing service provider.<b> At the moment, there are over 1.66-lakh vacancies in Group C and D categories. A major chunk of entrants in these categories are from the reserved categories of SC, ST and OBCs. </b>

Former Railway Minister and now chief minister of Bihar Nitish Kumar in his status paper in 2002 had proposed to bring down the staff strength to 11.8 lakh by 2010 against the then figure of 15.45 lakh. According to Ministry officials, Kumar's suggestion to cut down the staff strength was based on the fact that 'staff costs account for around 50 per cent of the gross traffic receipts.'

Acharia said the process of filling up Group C and D vacancies are going on. All the zones have been instructed to fill up Group D vacancies on their own, while the railway board would fill up Group C category vacancies. "Since a large number of vacancies belong to the safety category, the Ministry would not like to downsize the safety staff strength. There are nearly 90,000 vacancies in the safety category that is being filled up too," Acharia said.

With approximately 65,000-km rail route and over 7,151 stations, the railway network in India is the third biggest in the world after Russia and China. As the principal constituent of the nation's transport system, Indian Railway owns a fleet of nearly 2,22,379 wagons, 42441 coaches and 7910 number of locomotives. Indian Railway runs 160251 trains daily including 9550 passenger trains, carrying about 1.6 million tonnes of freight traffic and about 15 million passengers daily.

Acharia said staff reduction in Indian Railway was in tune with the recommendations of Rakesh Mohan Committee report. "DoPT's recommendation is the outcome of Rakesh Mohan Committee's report," Acharia added. Rakesh Mohan Committee had recommended that 'in any set of financial projections, a substantial net reduction in employee strength, at least 20 per cent of the total has to be provided for," Rakesh Mohan, an economist, stated in the report.

"Retention of current strength would rule out any upturn in IR's performance, even in a high traffic growth scenario. Going by the conclusions of a diagnostic study on the problem carried out by RITES for the Railway Board, the excess manpower could be more than 25 per cent of the total. On a very conservative basis therefore, a reduction of 20 per cent of the present overall strength should be targeted over the next five to seven years," he said in his report submitted in 2001.

"Along with the achievement of higher revenue growth, Indian Railway will have to explore every avenue of cost reduction. Among the cost reductions to be implemented staff cost reduction will be crucial. If IR is to become a truly modern transportation system offering services that could face up to the emerging competition, the issue of an accelerated reduction in manpower has to be addressed without delay," he added.
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