New Delhi: The Indian Railways is facing an “existential crisis" because it was systematically ignored for a long time, railways minister Suresh Prabhu said but ruled out the stock market route by making it a listed PSU like ONGC to raise funds.

“Railways lost traffic to road. It is because you make investment three to four times higher in road than railways. You have systematically ignored rail. If you want to increase the share of traffic to rail from road, you have to invest more in rail," Prabhu said in an interview to PTI.

Prabhu added that railways cannot handle even if free goods transportation was allowed to increase the traffic share as it does not have the capacity. “For argument’s sake even if you decide to allow people to have free freight transportation, can railways handle it? Railways’ ability to handle today is determined by the ability to carry. Where is the capacity to carry? So, therefore, you must make investment," he said.

According to the latest CAG report on Railways, the Indian Railways was unable to meet its operational cost of passenger and other coach services and there was a loss of ₹ 23,643 crore in the same during 2011-12.

“Railways is a ministry like the petroleum and natural gas ministry. ONGC is a corporate body. Railways is a department enterprise. Therefore, we cannot ... think about that [going public] and it is not advisable also to think about it because the railways has a very unique characteristic. It has a social responsibility," Prabhu said.

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