Fuzzy Logic

ECONOMIC AND POLITICAL WEEKLY Fuzzy Logic Few would deny that the Indian Railways is urgently in need of revitalisation and probably restructuring. Railway finances, to say the least are in a mess, with increasing borrowing and poor resource generation. Borrowing has increased from 19 per cent in the Eighth Plan to 36 per cent last year; and internal revenue generation has fallen to half, from 58 per cent to 29 per cent. Passenger and freight traffic has not been growing as hopefully projected. There are ominous trends already that the freight targets will have to be revised downward for 2004-05. Staff cost account for half of the gross traffic receipts, and wage and pension liabilities have more than doubled since 1997. Budgetary support for the railways has increased from 23 per cent in the Eighth Plan to There has been no dearth of unremunerative projects that