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The improvement was met with considerable disbelief. After all,in Bihar,Lalu had wasted his 15 long years at the helm. But Lalu’s basic approach stemmed from his profound political acumen combined with sturdy commonsense: an expensive milch cow should be fully milked. This provided a clear direction for IR,to optimise utilisation of costly assets. With ministerial authority in place,the senior technocrats who had dithered over and delayed for years permitting even a selective increase in axle-load of wagons came on board. The permission for “extra” loading of some bulk cargoes in wagons proved to be a most significant strategic move: it allowed freight cars on high density traffic circuits to carry additional cargo like,say,metallic ores. Of course,the massive special safety fund contribution of Rs 17,000 crore sanctioned by the NDA government immensely helped; tracks and rolling stock could be prepared for heavier loads.

Lalu saw quick gains yielding from this simple step. Those,in turn,gave rise to the second ancillary measure: “faster,longer and heavier trains”. Faster trains required better turn-round of wagons and locomotives by reducing delays in transit and at terminals. IR’s freight volumes thus grew 9 per cent a year in 2004-08,and productivity grew at twice the ’90s rate. An important spin-off was reduction in unit costs,allowing IR to tinker with differential pricing of freight services and other revenue-raising initiatives.

The Lalu years saw a few other revenue-enhancing tactics. He often claimed not to believe in freight and fare hikes; but there were a large number of surreptitious increases effected in freight rates,through reclassification and myriad surcharges and levies on most commodities — except some like petroleum and steel,which had already been overpriced. Without any appreciable change in the product mix and pattern,IR’s earnings from freight increased by 98 per cent during the period,while the total freight output rose only by 42 per cent; clearly,substantial increases in freight rates took place.

Likewise,passenger kilometres clocked by IR increased by 59 per cent while earnings went up 68 per cent. IR obviously imposed additional charges on the sly — while ostensibly even making a symbolic reduction in passenger fares. How? Apart from an irrationally large number of seats/ berths being put in the Tatkal quota,leading to artificial shortage of accommodation for general categories and imposing additional cost,more than 370 trains were arbitrarily redefined as “super-fast” although their speed had not increased.

What Lalu did was required. But he could have,as well,done it in an open and transparent manner. Passengers will take in their stride some increases in fares; so explain to them the logic and need. Lalu Prasad’s revenue enhancement was in good faith,in the interest of the organisation. But proclaiming that increases in income accrued without raising fare or freight rates would be a travesty.

Lalu eventually rose above his circumstances. Take his first rail budget,for 2004: he unveiled his penchant for mattha and lassi,kulhars and khadi,policy for bookstalls and coolies. In contrast,his 2008 budget showed he realised the need for a long-term grid for IR. With a measure of confidence and a clear perspective,he charted a path towards IR’s modernisation,delineating new genre rolling stock,track structure,signalling,developing high density routes,

IT-enabled facilities and strategic business units involving major sector users.

While he failed to ensure timely and effective implementation and ignored several tough issues especially about rationalising fares and workforce,there was much hype generated around his persona — now possibly detrimental to his interests. People resent the pernicious practice of ministers squandering crores of public money on pages and pages of media advertisements. Actions speak louder than words. Yet,in the end,he claimed he had “zero tolerance” for political interference with IR’s daily operations. In today’s governance in the country,that itself is no small gesture.

The writer was the first MD of the Container Corporation of India express@expressindia.com