Wednesday, March 25, 2009

Back to Basics in SOE reform

Turnaround Of Indian Railways

Indian Railways is the worlds largest employer and one of the biggest and busiest rail networks in the world, carrying some 17 million people and more than one million tonnes of freight daily. It was, however, until very recently, a loss-making organisation heading for bankruptcy. Starting his term in 2004 with a budget of just $200 million with which to save the national institution, Indian Railways Minister, Lalu Prasad engineered a dramatic turnaround. In 2007, Indian Railways revenues amounted to $6 billion. This impressive success story has also been featured in the textbooks of prestigious academic institutes worldwide as a case study. Minister Lalu Prasad is a key ally of India's governing coalition led by the Congress party. He was also the former Chief Minister of the state of Bihar which his Rashtriya Janata Dal party governed for 13 years until 2005.

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