You have pointed out the correct things. Rail was used for vote politics for decades. Nothing new about it. But now-a-days, the central Govt is doing dirty things to it as you mentioned. Doing infrastructural development increased in recent years, no doubt. But passenger service, revenue does not improved. Even after doing privatization, initially rail will earn a good revenue from the private players. In long term, private player will withdraw their service because they don't want to be part of politics in place of profit. Finger crossed.