Is the fare hike by Indian Railways justified?

Indian railways recently announced price hike, which was (of course) followed by hue and cry, stone-pelting, the usual dharnas and all. The hike would definitely pinch the pockets of the Indian middle class and lower-middle class (as they are ones who travel by train). They are already braving inflation and this hike would make their lives even more difficult. So, is this hike justified? 

Following are some fun facts that one should be aware of;

1. Indian railways is among the world's largest railways network
2. It is also among the top 10 employers (by the number of workforce)
3. It carries ~24 million passengers and ~2.8 million tons of freight......DAILY 
4. About 70% of its revenues are paid-out as salaries!!!
5. Indian Railways is going through a financial stress. It is cash-strapped, which is not a good sign for an organization that is heavily dependent on infrastructure
6. Passengers are not paying what they should be paying as government subsidizes the fare. The consumer subsidy is around INR 26,000 crores!!!
7. Railways need INR 4.5 lakh crores to complete 586 pending and ongoing projects
8. No investment for safety and investment as there is not enough money left

(Source: Wikipedia & Times of India)

So now, the facts are in front of us. The next thing that we need to do is to ask a few questions to ourselves. Is there a need to change anything? Does Indian Railways require better infrastructure so that it can give the passengers their money's worth? The answer is YES.

Indian Railways must improve its infrastructure. It needs to expand its reach. It may be among the world's highest railways network but India is a BIG country. There are several places that are not yet connected. Railways need to deploy faster trains. Railways needs to make the trains and platforms cleaner. Railways need to serve hygienic food. Railways need to improve the safety of its infrastructure and passengers. Railways need to create a self-sustaining and profitable model. We all want that, isn't it? That is not the issue. The issue is that we want it to be free. Things must improve without us making any contribution. That happens in Panchtantra and Dada-Dadi ki Kahaaniyaan. Probably, not even there.

We cannot ask for better governance, standard of living etc on one hand and freebies on the other. Governments have been subsidizing several essentials but Indian economy can no longer sustain that much burden. Central and State governments of the past have been giving away freebies. Free rice, idlis, television etc. and probably we have become a little used to of all the freebies. One has to understand that when they give freebies, the economy takes a hit and then we start paying higher for other essentials. Nothing and no one develops in this process. 

It is high time that we start believing in the reform measures. These measures are neither short-sighted nor aimed at gaining instant popularity. It would make our lives more difficult in the short run. However, we all will win in the long run. Have faith and patience.