The railway board wants a regulatory body for all modes of transport. A catch-all regulatory authority will ostensibly provide a level playing field for the railways vis-a-vis road transport. But independent truck operators, numbering thousands, cannot be brought under the umbrella of an integrated regulatory authority. In any case, if the field is not level, the railways are to blame, not truckers.

For distances above 500 km, freight haulage costs the railways a sixth or so of what it costs the road operators. But the railways fritter away their advantage. Rail tariff is just about 30 per cent less than by road. (Truckers are by no means under-cutting the railways). Rail freight could be 70 per cent below truck freight.

The 30 per cent rail freight advantage does not attract enough goods traffic to the railways. Bulk long distance traffic is shifting from rail to road. An estimated 40 per cent of even petroleum products is said to be going by road. Movement by rail is slow. Railways move goods from station to station. Trucks freight them from door to door, and fast. The 30 per cent premium charged by trucks is worth it for business.

The railways obviously want an all-transport regulator to raise road tariffs; but market logic requires lower rail tariff. The railways have tied themselves up in knots by raising freight tariffs to cross-subsidise passenger fares. Losses on passenger travel are recovered from freight. The railways have overdone the cross-subsidy to passenger fares: they have pushed themselves out of goods movement. Railways have become unviable in consequence, unable to generate resources for modernisation and expansion. While rakes idle, passenger trains are over-crowded: this hard fact should dictate fare and tariff reform.

There is a rush for air-conditioned travel: thus, there is scope for raising AC fares. There is a scramble for non-AC (second class) berths; their fares should be raised, moderated by using cross-subsidy from AC fare premium. Season-tickets for commuter travel must bear a hike. Employers, not railways, should lighten the commuter's burden. Ticketless travel (analogous to power theft) must be zeroed. Cross-subsidy from freight to passenger traffic must be rolled back: in phases, but the first one should be deep enough to wean back bulk traffic.

The railway board has neglected fare and tariff reform. The railway ministry is politically sensitive to popular reaction. This is precisely the reason why fares and tariffs should be taken out of the railway board's domain. More importantly, an independent rail tariff regulatory authority should be able to scrutinise costs and expenses, and haul the railway board over the coals. There is method in the railway board's dog in the manger policy.