Wednesday, February 27, 2008

Indian Railways posts record $6.3bn surplus

Giant state run Indian railways which was once on the track to bankruptcy posted a record cash surplus of 250 billion rupees or $6.3 billion this year. wow.......

When the railway minister Laloo Prasad Yadav took over the railway, one of the world's largest which carries 18.5 million people daily, it was burdened with huge losses. But he transformed its finances by expanding freight capacity and building new lines, leasing out ad spaces, introducing competitive bidding and other innovations. It is now one of the best cash generators in the public sector.

All in all the new budget seems to be good as its been presented with steps to boost freight operations, cut freight and passenger fares and improve services such as reservations and toilet both often an ordeal on Indian trains.

Yadav is now being invited by business schools to pass on his management tricks.

2 comments:

--xh-- said...

when lalu took over railway, lot of ppl where really skeptic (me too) but he transformed railways from a white elephent to a cash cow... itz really amazing how he did it...

Enigma said...

@ xh

ya true even i was skeptical and wondering wat would happen to India...but its amazing...