AfPassengers on superfast trains like the Rajdhani and the Shatabdi will now hear only instrumental music appropriate to the season and time of the day. In his fourth railway budget-the annual ritual that dictates the travel plans of most Indians-Nitish Kumar, the railway minister, has changed tune. Elections are round the corner. Populist railway ministers-and there has been no dearth of them-have always viewed the budget as a means to keep their electorate happy. So each year saw more trains being introduced (even though the tracks remained by and large the same) and passenger fares stayed unchanged and, thus, below cost. The result: Indian industry had to bear the brunt by paying high freight charges. Worse, the high-value clients were forced to cough up more to ensure that passengers could travel by paying less than the cost of the journey. In his first avatar as a minister in 1998 and 1999, Kumar viewed himself as the CEO of the Indian Railways. He hiked passenger fares and left freight charges more or less untouched. In his second stint, Kumar hiked passenger fares and marginally increased freight rates. This year's railway budget has seen the CEO don the politician's garb yet again. No hike in passenger fares and marginal cuts in freight cost. It is no surprise, therefore, that both industry and passengers have welcomed the budget. At a time when corporates are shedding flab, Kumar wants to add another 20,000 employees to the already bloated Indian Railways.

It is nobody's case that Kumar's latest budget lacks a positive element. The innovative fare changes and the renewed focus on safety are to be commended. But these are piecemeal changes. The Indian Railways is a commercial entity and ministers must ensure that it is run like one. While it remains dependent on budgetary support-and increasingly on market borrowings-it has accumulated huge pension liabilities and needs investments to upgrade tracks and ensure commuters get the service they pay for. This cannot happen as long as cross subsidy continues. With expressways coming up, more and more people are opting for road travel. Freight too will take the same route, particularly as the Golden Quadrilateral nears completion. In the age of competition, the falling profits of several PSUs should be a wake-up call for the Indian Railways. Kumar's budget is proof that he has not heard the call.