HIGHLIGHTS

There will be competition as long as each mode has capacity to compete with each other. Government intervention through the right regulatory framework and commercial incentivisation should be the right approach. The share of road transport in respect of freight has increased from 11 per cent in 1950-51 to 58 per cent in 1985-86 and then declined to 40 per cent in 1992. But the share of railways in respect of freight has come down from 89 per cent in 1950-51 to 42 per cent in 1985-86 and then again increased to 60 per cent in 1992 and then remained almost the same in 2005-06. Such competition has enhanced the level of efficiency and productivity but it has also generated various problems in the transportation system. To remove wasteful competition, there should be proper rail-road coordination in the country. It is not only competition but insecurity of business also that comes into play until government does not makes any stable policy to define the terms with participation from the fraternity. Competition happens when similar services are catered at similar prices which is not the case in India for modes available i.e surface/ train and train. This can only be done with transparent collaboration of all stake holders in business with a ‘to do’ approach. A modal shift involves the demand augmentation of a transport mode at the cost of another, although a modal shift can involve an absolute growth in both of the concerned modes.