GIPE-PUNE-OIIOI2 - DSpace@GIPE

RATIONALIZATION IN INDIAN BUSINESS ENTERPRISE 225
the Ouclh and Rohilkhand Railway as well as the transfer
of the Naini-Jubbulpore Section of the E. I. R. to the Great
Indian Peninsula Railway (3.656 miles) are. organizationally
considered, some of the most signal instances of ration­
'alization in the post-war economic world. Of equal value
as thi9 administrative consolidation is to be treated the
financial rationalization of the railways brought about by
the legislative agreement of 1924. Previously the
general budget of the Central Indian Government
was subject to the violent fluctuations such as
were caused by the incorporation therein of'
the railway estimates. and the railways were
thereby pcevented from carrying out a continuous policy
such as/might lead to economy and profit. The r~ilway
finan·:eshave since the •• convention •• between the Government
and the Legislative Assembly (1924) been
separated from the general finances of the country, and the
ger-eral finances have :been receiving a definite annual contribution
(some Rs. 60.000.000) from the railways. The
railwa~ tendencies in India' bave in many respects repeated
-those of Italy ·since 1905.
"Railway rationalization is no less manifest in the
engineering aspects. The State Railways Workshops
Committee (1925-26). presided overby Sir Vincent Raven,
recommended the abolition of certain workshops and the
strengthening and improvement or modernization of
others. S The reorganization has meant the institution of
I) Z~i(unB de. Vel'