Corporatize Indian Railways

ABKI BAAR TAX FREE SARKAR

India shall become Tax Free when Ministries owning huge assets start earning from them and contributing to Budget. The person who can optimize revenue from National Assets is a top of the line CEO from Commercial arena who should be appointed as National Assets Advisor (NAA) to PM Sir similar to NSA

Open Letter to Hon’ble Prime Minister of India Shriman Narendra Modi ji

Respected Sir,

This is my 4^th letter to you on the subject India can be the first totally tax free country and a trend setter for the entire world. Taxes take away a sizeable portion of everyone’s hard earned income including of those who govern the country. Though people have become accustomed to paying taxes but it is the biggest agony for everybody.

Governments have to collect taxes in order to meet the administrative cost of the country and for providing welfare support to poorer section of society. In my small wisdom as a retired CEO I have found Government can earn huge income from the vast kinds of natural resources, concrete and financial assets and various Intangible powers at its disposal and do away with earning from taxes.

I have made deep research on the vacuum in working of government with respect to earning from its assets.  And the vacuum is of absence of a CEO who can advise you for earning optimum revenue from National Assets.  I have started conveying the same to you sir in the sincere hope that my letters shall provoke a thought and a satisfactory solution benefitting the people may be found one day. I am working on the simple logic that if every Ministry starts earning from assets at its disposal to meet its operational and development cost then the Ministry shall not need budgetary support. I feel right person for making that earning is a CEO from commercial arena as explained in detail in my letter under file No. ‘PM Sir3’ dated 20 June 2019. I on my part have undertaken to analyze working of every Ministry of Government of India and shall convey to you my finding so long you do not appoint a competent CEO to be your National Assets Adviser similar to the NSA. I have already conveyed you my finding for MOEF in my letter dated 20 June 2019 under file No. PM Sir-2.  My finding is that presently Ministry is drawing some Rs. 3200 crore from budget whereas the Ministry can contribute some Rs. 25000 crore to it annually. Trees are renewable natural resource. We can cut and replant trees in 5% of the whole area under forests – a humongous 8 lakh sq km! That shall give impetus to GDP and create massive employment.

In this letter I convey my finding for Railway Ministry. This Ministry is drawing a huge amount of some 60-65000 Rupees per annum (more than 3% of budget) whereas it can contribute a sizable amount to the budget. The Assets value of Indian Railways is some RS 5,37,670 crores. In private sector a return of 10% on assets value is the minimum norm. Therefore, Indian Railways should contribute some Rs. 53,767 crore to Exchequer instead of drawing from it. Elimination of Drawl and contribution to the budget can make a sizable difference of some 7-10% to the total budget. This contribution shall help in reducing deficit financing in the first stage and in later years repayment of loans, reduction in interest burden and ultimately reduction and elimination of taxes.

As for Railways my finding is that following two steps can turn the table and I explain them in detail in Annexure ‘A’ and ‘B’. I again say right and competent person to advise you is the CEO who should be appointed as soon as possible. My submission is only to provoke a discussion on the subject by competent authorities in Railway Ministry.

1.     Corporatize Indian Railways (Annexure ‘A’) that shall make huge public finance available for major expansion projects like Bullet Trains.

2.    Open up Railways for public participation like Airways, Communications, etc. (Annexure ‘B’) to augment capacity substantially and generate additional employment. From reports it is heartening to note that Indian Railways have already started working in this direction. This needs to be taken forward in substantial way to bridge the gap in supply and prepare for burgeoning demand.

With most respectful regards,

Sincerely,

Mr M.K. Agarwal

Retd. CEO

Twitter handle :  @Ramsewak

Mumbai, India

Please ask for Annexure A and B by email at mkagarwal42@gmail.com

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