Laloo looks to IIM-B to address railway finance

After shooting down a proposal to increase train fares in the wake of the latest hike in prices of diesel, Railway Minister Laloo Prasad Yadav has instead come forward to set up a Chair on railway finance at the prestigious Indian Institute of Management, Bangalore (IIM-B).

Laloo, who is believed to be exploring the option of electrification of all train routes to reduce the impact of frequent fuel price hike, had himself come forward to set up the Chair at IIM-B, which already has several Chairs set up by the public and private sector.

Laloo Prasad Yadav’s plans to set up a Chair in railway finance at IIM-B comes close on the heels of his decision to entrust the Indian Institute of Management, Ahmedabad (IIM-A) with the job of carrying out a case study on Indian Railways’ turnaround.

The Chair on railway finance at IIM-B will focus on research and academic work in the field of railway finance and address the crucial issues relating to railway accountancy, infrastructure and business policy. Laloo is looking for a viable business module for the railways to make investment and a sustainable plan of action to address railway accounting in a bid to get rid of the debt trap.

According to sources, IIM-B has begun hunting for the Chair professor, who will work closely with the Railway Ministry.

Laloo Prasad Yadav’s move is significant for the railways to sustain its impressive growth, specially after he took over the Ministry. Indian Railways earned an additional Rs 150 billion last year, making it the country’s second largest public sector profit-maker.