An open letter to Suresh Prabhu on privatisation of stations

Dear Suresh Prabhu ji,

Indian Railways, I hear, is privatising railway stations first. The stations occupy prime land, attract thousands of footfalls, have been developed by the tax payers’ money. But surely private capital could provide better amenities to the passengers and spare Indian Railways from bleeding more.

Brilliant idea. In fact, you have already taken the first step by handing over the Habibganj station in Bhopal to the Bansals for a reported lease rent of ₹1 lakh a year for the next 45 years. Why GMR and Ahluwalias, who have better experience of developing airports and infrastructure, backed out of the bid is a different story with which I do not want to embarrass you.

But I am puzzled because Bansals say they are going to develop the railway station like an airport. World class facilities that include free wi-fi, luxury lounge, coffee-book shops, and separate entry-exit point with pick-up facilities and ample parking space would be provided, a spokesman for the Bansals has assured us.

There will eventually be six lifts, 11 escalators, subways etc for the passengers. There will also be a commercial-cum-office space of course. And if the artist’s impressions are to be believed, there will also be fancy apartments for obviously people who can afford them. Sound-proof glasses will undoubtedly be used to keep out the noise level and security would take care of the hoi polloi.

So, if the idea was to turn the railway station into an airport, perhaps GMR would have done a better job? But then the Government does believe in ‘Sabka Saath, Sabka Vikas’ and may have decided that local boys Bansals should also get a slice of the cake. Actually you see, Bansals in Bhopal, I was told, were better known for their educational institutions!

But my nature is to worry and get assailed by doubts. Why would the Indian Railways, I thought to myself, decide to privatise a station like Habibganj, which happens to be one of the best, spacious, clean and decongested stations of the Railways? And certified by the ISO as one of the most beautiful railway stations? Why not privatise stations that really require a face-lift? But then one of your officials explained that no private business would like to take over congested stations. After all it is the land they are going to develop, silly

I was chastened. But as is my nature, soon another thought assailed me. With 80% of the passengers travelling in sleeper classes and general compartments, will they really feel comfortable with ‘world class facilities’? But once again the official set my mind to rest. World class facilities would be restricted to passengers of Bullet trains and air-conditioned trains, he explained. The other trains would be shifted outside the city so that the aam janta do not cause any inconvenience to the first class passengers.

But then I discovered that I alone did not have a suspicious mind. An old resident of Bhopal, a former colleague, said over the phone, “Habibganj station is already well maintained, neat and clean. If the government wants redevelopment and modernisation, it should have selected other stations. Jo achha hai use kya achha banana? Habibganj Railway Station is known for a pleasant environment and hygienic conditions. Handing over the station to a private company means there is something fishy about it.”

Since it was mandatory for applicants to have construction experience, the Bansals formed a consortium with Prakash Asphalting & Toll Highways (India) Limited to participate in the bid. Being a construction company, Prakash Asphalting & Toll Highways (India) fulfilled the criterion and it helped the group win the bid. After clearing the initial process, the two companies formed a Special Purpose Vehicle “Bansal Pathways Habibganj Private Limited” for the financial bidding.

According to information available with the Registrar of Companies Bansal Pathways Habibganj Private Limited was registered on March 22, 2016 at Gwalior, with head office in Bhopal with authorised capital of ₹10 lakhs and a paid up capital of ₹1 lakh.

Your privatisation plan will extend to over 400 stations eventually and involve several thousand acres of prime land across 100 cities of the country. But if Habibganj is an indication, Indian Railways is unlikely to benefit much.

Make no mistake, sir. I admire Indian Railways. Getting a berth may still be a nightmare, trains may run late, the cleanliness may not be all that good, the journey may not be all that safe, service may sometimes slag, rats and roaches may bite off more than they can chew, fares may have gone up; but you know what? Passengers like me just love travelling in overcrowded trains. It is like an adventure sport. No risk, no gain, right?

Wishing you loads of luck, sir,

Vishwa Deepak.