New Delhi: Management schools, both in India and overseas, are making a beeline to study the secrets of Lalu Prasad's success in turning the Indian Railways around.
After Harvard University and the Indian Institute of Management, Ahmedabad (IIM-A), it is now the turn of the renowned Paris-based HEC School of Management to prepare a case study on the maverick railway minister.
Calling on Lalu Prasad, Karine Le Joly, executive (education) at HEC School of Management on Tuesday, expressed keenness to have a case study done of Indian Railways, which ended fiscal 2005-06 with a healthy cash reserve of Rs 110 billion ($2.63 billion).
The turnaround in the financial health of one of the largest railway networks around the globe has come about in less than a decade of being considered a loss-making organisation that was focusing more on its social obligations rather than business aspects.
When complimented by the French academician, the railway minister said: "The secret of my success is the dedication of the 1.45 million railwaymen, officials and staff who work like military on war-footing. I introduce innovative ideas to generate extra income without increasing freight and passenger fare despite the increase in diesel prices."
Officials admitted the oil prices were definitely having an impact with every one-rupee rise in diesel prices adding Rs 2.11 billion to the fuel bill of the railways.
Asked about some of his future projects, the railway minister disclosed that on Oct 2 the railways would be launching his dream of offering affordable air-conditioned travel to the common man with the commencement of the first Garib Rath Express that would have fares 25 per cent lower than the present ones.
"We are playing on volumes and after reducing the unit cost, our operational ratio has also come down. The same principle will also be applied for the Garib Rath and this will also give us a 20 per cent margin despite the lower fare," the minister said.
Joly said she had learnt about Indian Railway's success story during an interaction with some officials and had been keen to hear his views first hand. Describing the interaction as very useful, she said the visit had been to "better understand the charisma of the minister".
Several other luminaries including GE CEO Jeffrey R Immelt have over the last few months called on Lalu Prasad to commend his efforts in not only managing the huge network that operates over 15 million trains daily but also striving to improve the services without any additional fares.
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