Karmayogi: A Biography of E. Sreedharan

by M.S. Ashokan

Sreedharan had always been quite candid about his views on the viability of private participation in public transportation projects like the metro. As the patriarch of metro projects in the country, Sreedharan’s unyielding stand had often led to controversy and heated debate. He stood by his position that the government should underwrite projects that required thousands of crores of rupees in investment. In the short term, he said, these projects, typically, would not be able to make any profits. To incentivize private investors, governments would be forced to give away huge discounts. Investors usually expect access to and ownership of key public real estate, as well as tax reductions in lieu of immediate returns on investments. This would be detrimental in the long term, as the government’s revenue sources would be depleted in the bargain. Metros are expected to operate in the public space and had to be within reach of the common man in terms of affordability. Profit-based companies would not be able to operate in this sector without jacking up commuter tariffs.