Fast-Track reform

Sam Pitroda, adviser to the Prime Minister, has reportedly recommended raising passenger fares and linking rail tariffs to inflation from next year. The first part is wholly welcome, the second, not so much. Fares and freight must reflect costs and productivity, which are affected by competition, managerial efficiency and investment in technology and modernisation. Frequent revisions of fare and freight are warranted, not removing pricing freedom by fixed linkage to an index like the wholesale price index. 

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