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Will he make his budget more political (new trains, no fare hikes) than practical (cut overspending, no populist schemes)?

In November 2014, Suresh Prabhu ended a long but unconvincing association with the Shiv Sena and joined the BJP, landing the railway minister's job. The transition was closely followed by Prime Minister Narendra Modi who viewed the banker-politician, with a good track record in the Vajpayee government, as the right man to fix the railways.

On January 22 this year, Modi flagged off the superfast Mahanama Express from Varanasi without his prudent railway minister, who has stubbornly resisted demands from party MPs for new trains and has proposed raising fares - a politically untenable position. It's rare for the prime minister to launch a train service without the railway minister by his side. The signal was clear.

Nearly a year after Prabhu presented a no-frills rail budget with the famous "Hey Prabhu!" speech in Parliament, there is a growing perception in Delhi corridors that the Prime Minister's Office (PMO) has lost faith in him. And it's not just Prabhu's unpopular proposals to resuscitate the railways, which he has likened to an "ICU patient", that have raised doubts over his stint. Many in the NDA government think he has failed to deliver tangible results quickly, attract private investment and come up with high-profile projects that complement Modi's aggressive infrastructure push, MPs, former ministers and senior railway officials (current and retired) told Mirror.

That the passenger bookings and freight traffic are behind their targets by 5 per cent and 7 per cent, respectively, has added to Prabhu's woes.

In September last year, Nripendra Misra, the principal secretary to the prime minister, wrote to Prabhu asking him to speed up key projects such as development of new stations and high-speed services. The letter also questioned the slow pace of railway spending. "The government has enhanced the allocation of public funding. The government has also been liberal in allowing the railways to leverage its resources from financial institution," it said.

But Misra added that he was confident 62-year-old Prabhu, a former Rajapur MP, would live up to his expectations. Prabhu's staff and supporters insist that the PMO has not expressed any displeasure over his performance and that Misra's letter was routine communication.

But days after the note, Prabhu was removed as the prime minister's sherpa (emissary) for the 2015 G-20 summit. A senior official in Prabhu's team said he was only filling in till a formal appointment was made for the post. "Traditionally, the chief of Planning Commission [now Niti Ayog] is selected as the sherpa," the official said.

Mixed signals

But there have been other indications that Prabhu is falling out of favour. He started off with an ambitious rail budget of over Rs 1 lakh crore, nearly double the allocation of previous years. But in January this year, the finance ministry headed by Arun Jaitley slashed the budgetary support by Rs 12,000 crore citing "poor pace of work". After several trips to the North Block by railway ministry officials, the budgetary support was partially restored.

Prabhu's attempt to reduce privileges enjoyed by ministers and officials has been undermined, which critics say is another sign of his failure to stamp his authority. A few months before the Bihar assembly elections last year, Prabhu tried to limit the number of daily emergency quota seats granted to Manoj Sinha, the minister of state for railways. The order was withdrawn after the PMO's intervention. "He is a good planner, but does not know how to execute ideas," said a junior minister in the Modi cabinet.

In his maiden rail budget, Prabhu won praise for not announcing new trains and routes while old proposals are still stuck because of a severe funds shortage. Party leaders Mirror spoke to the NDA government cannot continue with the approach for long.

"The Indian Railways' finances are in a shambles and cannot be fixed overnight. Certain decisions are necessary to improve its financial health, but you also have to consider voters' concerns," the leader said. Another said: "Even if you announced only one new train, it pays off rich poll dividends."

At the Rail Bhavan, the common complaint is that Prabhu "does not think on his feet", and his decision to delegate "purchasing powers" to general managers in zones has been particularly criticised. "My only question is, has it improved the delivery of projects? You are simply passing on the responsibility to your subordinates," said former financial commissioner Samar Jha. He added that asking each zone to make separate purchases would cost the railways more.

The railway minister's supporters reject suggestions that he has no major achievements to show. Under Prabhu, the ministry has started e-catering services; signed an agreement with Japan for the proposed Mumbai-Ahmedabad bullet train; converted 2,442 km of tracks to broad gauge; and has improved ticket booking services and online connect with passengers. He has tried to tackle the stubborn bureaucracy and set up committees, including one headed by Ratan Tata, to recommend reforms.

Cash crunch

Obtaining adequate funds has been the biggest hurdle for Prabhu and his team. The ministry needs an estimated Rs 8,50,000 crore to modernise its trains and networks. The railway ministry has approached the North Block for more financial support several times, but the request has been turned down.

At a recent meeting, railway and finance ministry officials had a serious disagreement over the issue and they threatened to walk out. Railway ministry officials later complained to Prabhu that the finance team was simply not ready to listen to their "realistic demands for funds".

Prabhu's attempt to persuade business houses to invest has also not paid off so far. The railways has secured a loan of Rs 1.25 lakh crore from LIC, but critics say the financing has come at an interest of 9 per cent. "With this loan, the Indian Railways is entering a debt-cycle much like Air India's. Which project has a return of more than 9 per cent? You will not be able to pay either the interest or the principle," said former railway minister Dinesh Trivedi.

Former Railway Board member Satish K Vij said the railways was staring at a massive deficit. In the passenger sector, it has spent Rs 75,000 crore and earned Rs 45,000 crore. "So who will fill the gap of Rs 30,000 crore when the railways is not keen to raise fares," he asked.

It's not just his performance that is being scrutinised. Even Prabhu's fashion sense is. During a trip abroad, he received some sartorial advice from the imageconscious prime minister.

There is speculation that Prabhu may be moved to the rural development ministry. Under pressure, he has reportedly sought advice from the RSS.

http://www.mumbaimirror.c...

One-time confidant of Prime Minster Narendra Modi, the Union Railway Minister Suresh Prabhu has failed to withstand the test for which was chosen, and he has disappointed the BJP government’s claim of providing passenger-oriented better services by Indian railways, said media reports.

He has been served a letter by Prime Minister’s Office which reminds Prabhu of what should have been done in railways in the name of Modi’s much acclaimed slogan  ‘vikas’ (development), but has not been done to satisfaction. It was Principal Secretary Nripendra Misra from PMO who dashed Rail Bhavan, the Railway Minister’s office to hand him over a to-the-point letter of PMO enlisting the needed improvements in railways under PMO’s 15-point agenda. But as Prabhu was not found at his office, the letter was handed over to another official in the Rail Bhavan, A K Sharma. The letter is said to be particularly highlighting Railway Minister’s failure and accountability in terms of accidents in railways this year.

Reports say that the letter has shaken the Railway Ministry, and the next cabinet reshuffle might decide the fate of Suresh Prabhu. The knowledgeable sources claim that Prabhu may be dropped in the next reshuffle.

Principal Secretary to PMO, Misra in the letter clearly underlines Modi government’s objective, as, “Improvement of railways is an important agenda of the government.” Quoting PM, he has said in the letter, as, “The PM has time and again emphasized efficiency in railway system.”

Further, the letter points out that the Railway Ministry’s budgetary allocation this year is Rs One lakh crore and there is a “need to organize machinery.” The quarterly expenditure is only Rs 17,000 crore, Misra says, and it has to be expedited.

The letter nudges Suresh Prabhu with the reminder that “quarterly targets of various activities of railways have not been achieved” and says while quarterly performance is better than the previous year, it is not enough.

Misra also writes that it had been discussed several times to structure PPP (Public Private Partnership) projects like “high speed trains which require a high degree of project structuring”.

However, the Railway Ministry denied that it had been reprimanded by the PM’s office. “It is part of routine assessment. Our performance is expected to improve in the next quarter,” said the Ministry spokesperson.

http://www.nagpurtoday.in...