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Growth of Indian Railways

The document discusses the growth of Indian Railways from a small network of 32 km in 1850 to over 62,000 km today. It details how Indian Railways has transformed from a loss-making entity to the second largest profitable public sector undertaking in India through various operational and business strategies like increasing freight rates and volumes, modernizing infrastructure, introducing new trains and coaches, and improving human resource practices.

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Mittal Patel
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50 views27 pages

Growth of Indian Railways

The document discusses the growth of Indian Railways from a small network of 32 km in 1850 to over 62,000 km today. It details how Indian Railways has transformed from a loss-making entity to the second largest profitable public sector undertaking in India through various operational and business strategies like increasing freight rates and volumes, modernizing infrastructure, introducing new trains and coaches, and improving human resource practices.

Uploaded by

Mittal Patel
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Growth of Indian Railways

Submitted to:Prof.Shariff Memon

Submitted by:Mital Sabalpara (10080) Manish Jodhwani (10040)

The Indian Railways, which was declared to be heading towards bankruptcy, is todays second largest profit making Public Sector Undertaking.

Indian Railways
It has been from 150th Year of dedicated service.

It has grown from a mere 32 Km to a vast network of more than 62,000 kms. It has acted as a great unifying factor for the nation with diverse geographical/ regional features. It Stood up in times of national emergencies, natural disasters etc. It has faced many challenges with the inherent resilience of this vast organization.

WHY TO STUDY INDIAN RAILWAY?


1. Indian Railway is the worlds largest employer and it had turned around, without any layoff in its workforce. 2. Strong forward and backward linkages with core sectors. 3. Public sector symbolizes efficiency.

INDIAN RAILWAY AN OVERVIEW


OWNERSHIP :- MINISTRY OF RAILWAY, GOVT. OF INDIA Founded :- 26 April 1853 First railway track: Bombay to Thane, distance 32 kms. Now Indian railways has 66000 kms network coverage

INDIAN RAILWAYS AN OVERVIEW


Industry :- Railway and Locomotives. Service :- Rail transport and freight transport services. Revenue :- Rs.107.66 billion Employees :- 14,06,430 (2006) Divisions :- 16 Railway Zones Website :- www.indianrailways.gov.in

Key people
Union Railway Minister:Laloo Prasad Yadav Minister of State for Railways:R. Velu Minister of State for Railways:Naranbhai J. Rathwa Chairman, Railway Board:K C Jena Officer on Special Duty:Sudhir Kumar

REASONS OF DECLINE
OPERATION INEFFICIENCY. RIGID PRICING. INVESTMENT IN UN-REMUNERATION PROJECTS. LACK OF ACCOUNTABILITY.

FROM LOSS TO PROFIT


14000 12000 10000 8000 6000 4000 2000 0 1981 1991 2002 2003 2004 2005 2006 2007 2008 -2000

(Rs in crores) 10206 Operating profit 1000 1115 6193 11449

-198

175

1091 2074

Surplus
12000 10000 8000 6000 4000 2000 0
1000 1115 1091 2074 6193 (Rs. In crores) 11449 10206

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Net Revenue
18000 16000 14000 12000 10000 8000 6000 4000 2000 0
4478 5273 16022 (Rs. In cr.) 14453

10143

3130 2337

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

SOURCES OF REVENUE
OTHERS 4%

PASSENGER 27% FREIGHT (GOODS) 69%

FREIGHT BUSINESS OF INDIAN RAILWAYS


CORE INFRASTRUCTURE INDUSTRY IN INDIA COMPRISES : CRUDE, REFINED PETROLEUM PRODUCTS, COAL, STEEL, CEMENT, FERTILIZERS. IN INDIAN RAILWAY ABOUT 75% OF FREIGHT COMPRISES COAL, STEEL, CEMENT AND PETROLEUM PRODUCTS GROWTH 05-06 5.8% 06-07 8.4%

TRACK UTILISATION Increase in Traffic Density


19.5 19 18.5 18 17.5 17 16.5 16 15.5 15

18.83 18.34 17.46 16.85 16.34 15.55


200-01 2001-02 2002-03 2003-04 2004-05 2005-06

15.35
1999-00

INCREASE VOLUMES
ALLOW TO INCREASE IN CARRYING CAPACITY From 20.32Tonnes TO 22.82Tonnes. INCREASE IN REVENUE BY Rs. 6000 Cr.

PRODUCT INNOVATION
INTRODUCE DOUBLE STACK CONTAINER ON DIESEL ROUTE. INTRODUCE NEW DESIGNED WAGONS WITH HIGHER CARRYING CAPACITY. NEW REFRIGERATED PARCEL VANS WERE INTRODUCED .

SEPARATE TRACKS FOR THE FREIGHT TRAINS. LINE CLEARANCE ON THE STATIONS.

MODERNIZATION
CONVENTIONAL
FITTINGS BALLAST JOINTS SWITCHES MAINTENANCE RIGID 150/200mm FISH PLATED STRAIGHT MANUAL

MODERN
ELASTIC 250/300mm WELDED CURVED MECHANISED

PASSENGER REVENUE AND VOLUME PERFORMANCE


REVENUE VOLUME
7000

PASSENGERS IN MILLIONS

25000 20000

6000 5000 4000 3000 2000 1000 0 2001200220032004200520062007

Rs IN CRORE

15000 10000 5000 0

2001 2002 2003 2004 2005 2006 2007

YEAR

YEAR

PRODUCT DIFFERENTIATION
INTRODUCE NEW TRAINS. INTRODUCE NEW PASSENGER COACHES. INTRODUCE E-TICKTING. NEW SIGNALLING TECHNOLOGY. SUBSTANTIAL INCREASE IN PASSENGER COMFORT AND AMENITIES. UPGRADATION.

COMPETITIVE PRICING
AVERAGE RATE PER PASSENGER PER KM REMAIN UNCHANGED ( Rs. 0.24 / Km).

REDUCE FARE FOR AC COACHES TO COMPETE WITH AVIATION.

back

OUTSOURCING: LEASE OUT PARCEL AND CATERING SERVICES. ADVERTISING SERVICES.

DOWNSIZING:NUMBER OF EMPLOYEES WERE BROUGHT DOWN From [1.652 mn(1991) TO 1.41mn(2006)]

HUMAN RESOURCES INITIATIVES


CHANGES IN ORGANIZATIONAL CULTURE CREW FRIENDLY DRIVERS CABINS AND BRAKE VANS WERE DESIGNED. ESTABLISHMENT OF INTERNATIONAL RAILWAY STRATEGIC MANAGEMENT INSTITUTE. PARTICIPATION OF RAILWAY EMPLOYEES IN MANAGEMENT (PREM). SPORTS FACILITIES.

WHEELS OF CHANGES
MoU WITH CHINESE COUNTERPART. RAIL FLEET WITH ECO-FRIENDLY TECHNOLOGY. TRAIN TRAFFIC CONTROL WILL BE COMPUTERISED SOON. WI-FI WILL BE INTRODUCED SOON IN BUSINESS CLASS. RAILWAY WILL UTILIZE SOLAR ENERGY.

LIMITATIONS
OVER UTILIZATION MAY BECOME A PROBLEM. COMMERCIALIZATION MAY BECOME A PROBLEM. TRAVELLING TIME IS STILL NOT IMPROVED. IMPROVEMENT IS STILL NEEDED. SPHERE NEED TO BE INVESTIGATE FURTHER.

COMPARISON WITH WORLD CLASS RAILWAY. FINANCIAL PROFIT ANALYSIS AND ACCOUNTING SHOULD BE SEE IN DETAIL FURTHER.

Vinyl wrapped train by Airtel


80 crores contract with airtel and kurkure for ad

MILES TO GO

INDIAN RAILWAY

PALACE ON WHEELS

Who will be the beneficiaries?

You & Me Thank You.

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