Safety has been one of the biggest concerns in the Indian Railways system.  While the number of accidents have gone down over the last few years, the number still remains over 100 accidents a year.  In light of the recent train accidents in Uttar Pradesh (UP), we present some details around accidents and safety in the Indian Railways.

Causes of rail accidents

The number of rail accidents has declined from 325 in 2003-04 to 106 in 2015-16.[1]  The number of rail accidents as per the cause are shown in the graph below.  In 2015-16, majority of the accidents were caused due to derailments (60%), followed by accidents at level crossings (33%).1  In the last decade, accidents caused due to both these causes have reduced by about half.  According to news reports, the recent railway accidents in UP were caused due to derailment of coaches.

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Derailments

Between 2003-04 and 2015-16, derailments were the second highest reason for casualties.2  The Standing Committee on Railways, when examining the safety in railways, had noted that one of the reasons for derailments is defect in the track or coaches.  Of the total track length of 1,14,907 kms in the country, 4,500 kms should be renewed annually.2  However, in 2015-16, of the 5,000 km of track length due for renewal, only 2,700 km was targeted to be renewed.2  The Committee had recommended that Indian Railways should switch completely to the Linke Hoffman Busch (LHB) coaches as they do not pile upon each other during derailments and hence cause lesser casualties.2

Un-manned level crossings

Un-manned level crossings (UMLCs) continue to be the biggest cause of casualties in rail accidents.  Currently there are 14,440 UMLCs in the railway network.  In 2014-15, about 40% of the accidents occurred at UMLCs, and in 2015-16, about 28%.2  Between 2010 and 2013, the Ministry fell short of meeting their annual targets to eliminate UMLCs.  Further, the target of eliminating 1,352 UMLCs was reduced by about 50% to 730 in 2014-15, and 820 in 2015-16.2  Implementation of audio-visual warnings at level crossings has been recommended to warn road users about approaching trains.2  These may include Approaching Train Warning Systems, and Train Actuated Warning Systems.2  The Union Budget 2017-18 proposes to eliminate all unmanned level crossings on broad gauge lines by 2020.

Casualties and compensation

In the last few years, Railways has paid an average compensation of Rs 3.03 crore every year for accidents (see figure below).[2]

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Note: Compensation paid during a year relates to the cases settled and not to accidents/casualties during that year.

Consequential train accidents

Accidents in railways may or may not have a significant impact on the overall system.  Consequential train accidents are those which have serious repercussions in terms of loss of human life or injury, damage to railway property or interruption to rail traffic.  These include collisions, derailments, fire in trains, and similar accidents that have serious repercussions in terms of casualties and damage to property.  These exclude cases of trespassing at unmanned railway crossings.

As seen in the figure below, the share of failure of railways staff is the biggest cause of consequential rail accidents.  The number of rail accidents due to failure of reasons other than the railway staff (sabotage) has increased in the last few years.

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Accidents due to failure of railway staff

It has been noted that more than half of the accidents are due to lapses on the part of railway staff.2  Such lapses include carelessness in working, poor maintenance, adoption of short-cuts, and non-observance of laid down safety rules and procedures.  To address these issues, conducting a regular refresher course for each category of railway staff has been recommended.2

Accidents due to loco-pilots2,[3]

Accidents also occur due to signalling errors for which loco-pilots (train-operators) are responsible.  With rail traffic increasing, loco-pilots encounter a signal every few kilometres and have to constantly be on high alert.  Further, currently no technological support is available to the loco-pilots and they have to keep a vigilant watch on the signal and control the train accordingly.2 These Loco-pilots are over-worked as they have to be on duty beyond their stipulated working hours.  This work stress and fatigue puts the life of thousands of commuters at risk and affects the safety of train operations.2  It has been recommended that loco-pilots and other related running staff should be provided with sound working conditions, better medical facilities and other amenities to improve their performance.2

Actions taken by Railways with regard to the recent train accident

According to news reports, the recent accident of Utkal Express in UP resulted in 22 casualties and over 150 injuries.[4]  It has also been reported that following this incident, the Railways Ministry initiated action against certain officials (including a senior divisional engineer), and three senior officers (including a General Manager and a Railway Board Member).

The Committee on Restructuring of Railways had noted that currently each Railway zone (headed by a General Manager) is responsible for operation, management, and development of the railway system under its jurisdiction.[5]  However, the power to make financial decisions does not rest with the zones and hence they do not possess enough autonomy to generate their own revenue, or take independent decisions.5

While the zones prepare their annual budget, the Railway Board provides the annual financial budget outlay for each of them.  As a result of such budgetary control, the GM’s powers have been reduced leaving them with little independence in planning their operations.5

The Committee recommended that the General Managers must be fully empowered to take all necessary decisions independent of the Railway Board.5  Zonal Railways should also have full power for expenditure and re-appropriations and sanctions.  This will make each Zonal Railway accountable for its transport output, profitability and safety under its jurisdiction.

Under-investment in railways leading to accidents

In 2012, a Committee headed by Mr. Anil Kakodkar had estimated that the total financial cost of implementing safety measures over the five-year period (2012-17) was likely be around Rs one lakh crore.  In the Union Budget 2017-18, the creation of a Rashtriya Rail Sanraksha Kosh was proposed for passenger safety.  It will have a corpus of Rs one lakh crore, which will be built over a five-year period (Rs 20,000 crore per year).

The Standing Committee on Railways had noted that slow expansion of rail network has put undue burden on the existing infrastructure leading to severe congestion and safety compromises.2  Since independence, while the rail network has increased by 23%, passenger and freight traffic over this network has increased by 1,344% and 1,642% respectively.2  This suggests that railway lines are severely congested.  Further, under-investment in the sector has resulted in congested routes, inability to add new trains, reduction of train speeds, and more rail accidents.2  Therefore, avoiding such accidents in the future would also require significant investments towards capital and maintenance of rail infrastructure.2

Tags: railways, safety, accidents, finances, derailment, casualty, passengers, train

[1] Railways Year Book 2015-16, Ministry of Railways, http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/IRSP_2015-16/Year_Book_Eng/8.pdf.

[2] “12th Report: Safety and security in Railways”, Standing Committee on Railways, December 14, 2016, http://164.100.47.193/lsscommittee/Railways/16_Railways_12.pdf.

[3] Report of High Level Safety Review Committee, Ministry of Railways, February 17, 2012.

[4] “Utkal Express derailment: Four railway officials suspended as death toll rises to 22”, The Indian Express, August 20, 2017, http://indianexpress.com/article/india/utkal-express-train-derailment-four-railway-officers-suspended-suresh-prabhu-muzaffarnagar-22-dead-4805532/.

[5] Report of the Committee for Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board, Ministry of Railways, June 2015, http://www.indianrailways.gov.in/railwayboard/uploads/directorate/HLSRC/FINAL_FILE_Final.pdf.

Minimum Support Price (MSP) is the assured price at which foodgrains are procured from farmers by the central and state governments and their agencies, for the central pool of foodgrains.  The central pool is used for providing foodgrains under the Public Distribution System (PDS) and other welfare schemes, and also kept as reserve in the form of buffer stock.  However, in the past few months, there have been demands to extend MSP to private trade as well and guarantee MSP to farmers on all kinds of trade.  This blogpost looks at the state of public procurement of foodgrains in India and the provision of MSP.

Is MSP applicable for all crops?

The central government notifies MSP for 23 crops every year before the Kharif and Rabi seasons based on the recommendations of the Commission for Agricultural Costs and Prices, an attached office of the Ministry of Agriculture and Farmers’ Welfare.   These crops include foodgrains such as cereals, coarse grains, and pulses.  However, public procurement is largely limited to a few foodgrains such as paddy (rice), wheat, and, to a limited extent, pulses (Figure 1).

Figure 1:  Percentage of crop production that was procured at MSP in 2019-20

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Sources:  Unstarred Question No. 331, Lok Sabha, September 15, 2020; PRS.

Since rice and wheat are the primary foodgrains distributed under PDS and stored for food security, their procurement level is considerably high.  However, the National Food Security Act, 2013 requires the central and state governments to progressively undertake necessary reforms in PDS.  One of the reforms requires them to diversify the commodities distributed under PDS over a period of time.

How does procurement vary across states?

The procurement of foodgrains is largely concentrated in a few states.  Three states (Madhya Pradesh, Punjab, and Haryana) producing 46% of the wheat in the country account for 85% of its procurement (Figure 2).   For rice, six states (Punjab, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and Haryana) with 40% of the production have 74% share in procurement (Figure 3).  The National Food Security Act, 2013 requires the central, state, and local governments to strive to progressively realise certain objectives for advancing food and nutritional security.  One of these objectives involves geographical diversification of the procurement operations.

Figure 2:   85% wheat procurement is from three states (2019-20)

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Sources:  Department of Food and Public Distribution; PRS.

Figure 3:   76% of the rice procured comes from six states (2019-20)

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Sources:  Department of Food and Public Distribution; PRS.

Is MSP mandatory for private trade as well in some states?

MSP is not mandatory for purchase of foodgrains by private traders or companies.  It acts as a reference price at which the government and its agencies procure certain foodgrains from farmers.

In September 2020, the central government enacted a new farm law which allows anyone with a PAN card to buy farmers’ produce in the ‘trade area’ outside the markets notified or run by the state Agricultural Produce Marketing Committees (APMCs).  Buyers do not need to get a license from the state government or APMC, or pay any tax to them for such purchase in the ‘trade area’.  These changes in regulations raised concerns regarding the kind of protections available to farmers in the ‘trade area’ outside APMC markets, particularly in terms of the price discovery and payment.  In October 2020, Punjab passed a Bill in response to the central farm law to prohibit purchase of paddy and wheat below MSP.   Any person or company compelling or pressurising farmers to sell below MSP will be punished with a minimum of three-year imprisonment and a fine.  Note that 72% of the wheat and 92% of the rice produced in Punjab was purchased under public procurement in 2019-20.

Similarly, in November 2020, Rajasthan passed a Bill to declare those contract farming agreements as invalid where the purchase is done below MSP.   Any person or company compelling or pressurising farmers to enter into such an invalid contract will be punished with 3 to 7 years of imprisonment, or a fine of minimum five lakh rupees, or both.   Both these Bills have not been enacted yet as they are awaiting the Governors’ assent.

How has MSP affected the cropping pattern?

According to the central government’s procurement policy, the objective of public procurement is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale.  If farmers get a better price in comparison to MSP, they are free to sell their produce in the open market.  The Economic Survey 2019-20 observed that the regular increase in MSP is seen by farmers as a signal to opt for crops which have an assured procurement system (for example, rice and wheat).  The Economic Survey also noted that this indicates market prices do not offer remunerative options for farmers, and MSP has, in effect, become the maximum price that the farmers are able to realise.

Thus, MSP incentivises farmers to grow crops which are procured by the government.  As wheat and rice are major food grains provided under the PDS, the focus of procurement is on these crops.  This skews the production of crops in favour of wheat and paddy (particularly in states where procurement levels are high), and does not offer an incentive for farmers to produce other items such as pulses.  Further, this puts pressure on the water table as these crops are water-intensive crops.

To encourage crop diversification and thereby reduce the consumption of water, some state governments are taking measures to incentivise farmers to shift away from paddy and wheat.  For example, Haryana has launched a scheme in 2020 to provide Rs 7,000 per acre to those farmers who will use more than 50% of their paddy area (as per the area sown in 2019-20) for other crops.  The farmers can grow maize, bajra, pulses, or cotton in such diversified area.  Further, the crop produce grown in such diversified area under the scheme will be procured by the state government at MSP.