Vaishnaw factor the challenge for new minister for rail telecom it is to bring change in three reform starved portfolios

Vaishnaw factor the challenge for new minister for rail telecom it is to bring change in three reform starved portfolios

New railways, telecom and IT minister Ashwini Vaishnaw has donned many hats in a remarkable career. And he is now a Cabinet minister handling three super important and reform-starved portfolios. Past holders of these berths, especially railways and telecom, have struggled to breathe fresh life into these critical sectors. This, despite many former ministers being party notables, some with long administrative experiences. And some other choices, brought in for their can-do reputation, also didn’t quite succeed. Suresh Prabhu in railways is an example.

So, can an ex-IAS-turned-entrepreneur deliver the goods where many career politicians failed? Equally important, how will Vaishnaw devote his finite working hours between ministries with differing functions, challenges and turnaround plans? Since 2014, railways operating expenses have risen at twice the pace of revenue receipts. Revenues for 2020-21 were nearly Rs 80,000 crore short of budget estimates, prompting borrowings to cover the pension bill. Meanwhile, the 2015 Debroy committee recommendations mooting an independent regulator as a precursor to private participation are hanging fire despite Cabinet approval in 2017. Unviable subsidising of passenger operations by freight tariffs is another anomaly no railway minister could rectify.

Telecom is in no better shape. Only two operators, Jio and Airtel, are aggressively competing for market share. GoI-owned BSNL is bleeding and Vodafone Idea is tottering on the edge. 5G auctions have been non-starters even as the world marches ahead. The sector hasn’t seen a new telecom operator for a decade while many withered away during this period. Would a cash-strapped GoI go easy on 5G spectrum fees to spur upfront capital expenditure? Telecom needs fresh, bold policies again.

Taking charge of the IT ministry, Vaishnaw has said Twitter must follow Indian rules, though he is unlikely to emulate predecessor Ravi Shankar Prasad’s fire and brimstone approach. Meanwhile, parts of new IT intermediary guidelines are facing spirited and necessary legal challenges over privacy and free speech. IT regulation must distinguish between social media platforms’ obligations and the already-regulated digital news media’s freedoms. A data protection law is long overdue. Digital economy needs new ideas. Vaishnaw is riding three boats in choppy waters. He will need all his formidable abilities.