That’s the normal method of privatization: Defund, make certain things don’t work, people get angry, you hand it over to personal funds.
Harold brown
In the late 19th and early 20th ages, public transport – particularly energy busses – formed the backbone of American locations, with over 17, 000 km of subway lines operating in major urban centers. For years, these techniques were considered essential to urban existence.
Public transport system has a lot of benefits, including reducing traffic congestion, improving air quality, and maintaining sustainability, but the idea of using public funds is frequently viewed as communist by the National right.
But, by the mid-20th era, this open system was dismantled. A commonly debated conspiracy theory claims that General Motor purposefully purchased and shut down subway lines in an effort to encourage vehicle dependency, leading to a system of private transportation based on automobile dependency.
Statistics support the extent of this shift: 90 % of US households own at least one car each, with 25 % owning three or more ( as of 2021 ). Travel expenses are the fourth-highest household expenses in US people, totaling$ 1.6 trillion annually. Comparatively, European families spend 5 % less on transportation due to effective public transport systems, many of which still use subways now.
India under Narendra Modi seems to be following an American-style rulebook.
American Railways: A federal asset in decline
Indian Railways, a 171 -year-old organisation, is a core of India’s communication and flexibility. With 24 million regular customers, 19, 000 carriages, and 7, 112 facilities, IR is Asia’s second-largest and the nation’s fourth-largest rail system. It plays a vital role in India’s economic and social development, fostering regional communication, member freedom and business activity. As India’s largest firm, it supports 1.6 million work, including 400, 000 contract employees.
The Modi authorities established the Bibek Debroy Committee in September 2014 to overhaul Indian Railways. The Committee recommended 40 steps, including pulling out the individual Rail Budget, restructuring management and encouraging exclusive participation. In November 2016, the 92-year-old Rail Budget was merged with the Union Budget. However, this maneuver overlooked the complexities of railroad operations – such as equipment, safety and development – that require focused interest. Indian Railways has struggled in terms of passenger safety over the past ten years as a result of this decision. The stats don’t lie. In an earlier article, I covered this in more detail.
The Railway Board chairman was appointed CEO in September 2020, introducing a new corporate governance structure. With the launch of the Lucknow-New Delhi Tejas Express on October 4, 2019, India’s first privately operated train managed by the Indian Railway Catering and Tourism Corporation, the Modi government began gradual railway privatization. By July 2020, plans were announced for private players to operate 151 trains on 109 routes, covering 5 % of Express and Mail services. While locomotive pilots and guards remain railway employees, other staff will be private. Instead of complete privatization, the Government’s intention was to make Railways go through a piece-by-piece privatization.
Privatization plans faced strong opposition. On July 3, 2020, a nationwide protest saw 1.2 million workers participating, followed by further protests on July 16-17, 2020. In response, the government halted the tender for private train operations.
Meanwhile, rail accidents have sharply increased over the past decade. One of the causes of it is that there is less manpower.  , About 30, 000 to 40, 000 recruitments used to take place in railways annually. The Modi government has been stumbling upon these appointments for ten years, and there are now more than 300,000 unfilled positions. Modi Government policies of delayed appointments, ignored safety measures and rising fares have undermined the railway’s reputation as a safe, affordable, and reliable mode of transport.
 , Aviation vs rail: a strategic shift
Indian Railways, a key public transport system, carried 8.5 billion passengers in FY 2023–2024, generating the rupee equivalent of$ 30.76 billion in revenue, with$ 8.77 billion from passenger services – a 9 % increase from the previous year. Even transferring 10 % of the railroad’s operations to the private sector presents a significant business and revenue opportunity for both government and private players given its monopoly on transportation in India. However, it is politically sensitive as Railways is India’s largest employer. A direct approach for Modi could cause both short- and long-term political backlash. The government has used an indirect approach to promote aviation as a way to break up the railroads ‘ monopoly to navigate these difficulties.  ,
Modi’s , multi-billion-dollar vision for private transportation ,
The UDAN ( Ude Desh Ka Aam Nagrik ) scheme, which was launched in June 2016, aims to reduce costs of air travel by encouraging regional connectivity, providing low-cost airlines, and building infrastructure as an alternative to railroads. Recently, the aviation minister announced the scheme’s 10-year extension and plans to build 350–400 airports over the next 20–25 years. However, building such a large number of airports requires significant land and infrastructure.
Indian Railways owns 486, 000 hectares of land, making it the second-largest landowner in India after the defense sector. This land is increasingly being used for non-railway projects, such as the Adani-led Dharavi Redevelopment project, which involved the transfer of railroad land for Matunga and Mahim for slum rehabilitation. The transfer proceeded despite the railroads ‘ opposition to sub-leasing prime land.  , Interestingly, On September 8, 2022, the Modi cabinet reduced the license fee on rail land from 6 % to 1.5 % for certain uses and extended lease periods from 5 to 35 years.
By 2025, the Adani Group intends to privatize 20-25 airports, according to the Airports Authority of India’s ( ADA)-managed airports. Despite lacking experience, the Adani group won bids for six airports in 2019. It is now India’s largest private airport operator. The key question remains: who benefits from this privatization – citizens, the state, or others? ”  ,
How can airlines provide the most affordable modes of transportation for the most underdeveloped nation, which imports 80 % of its energy needs? State expenses are bound to increase as the currency is at all time lows against the dollar.
Promoting air travel conflicts with India’s goal of having a Net Zero Carbon Emission by 2070.  , Modi’s dream of aviation inclusive of 1.4 billion Indians has a very high price. But who will foot the bill?