fdi in railways

7/24/2019 FDI in Railways

1/19

Foreign Direct

Investment(FDI) in IndianRailways

Presented By,

Pratiyush K Rai

Arun S

Debasrita Das

Abinash Dash

Jagannathan V Chaitra Kamath


2/19

FDI: Need of the hour

Severe cash crunch

Very high operating ratio

No signifcant investment in last 2!"eca"es

Nee" #or mo"erni$ation an" e%pansion


3/19

INDIAN RAILWA!" FA#$!%&'"'

R*+$, -.!"//&&&

Locomotives"0&& !tations "1&2

Wagons "%%&&&&

3assengers 1/&&million

Freight '&0& million t

,m4loyees '5 million

Revenues

%&56illion 7 Wage 6ill

''6illion 7

Freight ''&8

million t 3assengervehicles &&&


4/19

*69ectives eleventh 4lan"railways

#reate ade;uate ca4acity to cater to

Long term growth .edium term growth

3rovide im4roved services

Railways" #a4acity e


5/19

#hallenges in eleventh 4lan"

railways

Dou6le its trans4ort ca4acity

Reduce unit costs of o4erations

Im4rove service levels

$o achieve this concentrate on Investments@strategic ca4acity eet res4onsive 4ricingand 4lanning 4olicies


6/19

Areas for '&& FDI inRailways

!u6ur6an #orridor 3ro9ects through 3335

Bigh s4eed train 4ro9ects5

Dedicated freight lines5

Rolling stoc> including train sets andlocomotives or coach manufacturing andmaintenance facilities5

Railway ,lectri=cation5 !ignalling system5

Freight terminalsC Logistics 3ar>s5


7/19

Areas for '&& FDI inRailways5

3assenger terminals5

Railway $echnical $raining Institutes5

$esting facilities and la6oratories5

#oncessioning of standalone 4assengercorridors (6ranch linesE hill railways etc5)5

Nonconventional !ources of ,nergy5

.echani?ed Laundry

Rolling stoc> 4rocurement5


8/19

#urrent FDI Inow in Indian

Railways5

3anvel".um6ai

#!$ #orridor .um6ai"Ahmeda6ad Bigh!4eed 3ro9ect5

-achra4ara Railcoach Factory

Rs5 'E&&&

#rores5

Rs5 /8E&&rores5

Rs5 'E%&& crores


9/19

Future 3ros4ect for the

Investors


10/19

Strength

'5Good !co4e ofRevenue5

%5#hea4est !ource of$ravel

5

Weakness'5#orru4tion

%53o4ulist measures infares5

85Lac> of !afety5

Opportunity

'5,ver IncreasingDemand 6oth in

3assenger H Freight!egment5

%5Wide !co4e forRevenue .a


11/19

3,!$,L Analysis5

3olitical: Railway is always used as a cash cow 6y3oliticians E so these things needs to 6e removed5

,conomic: +rgent .easures such as FDIE FII arere;uired to =ll the Ga4 in revenue H eing intoconsideration low earnings in Indian ,conomy5

$echnological: $echnical advancements in

!ignaling systems are re;uired to #ontrol theAccidents5


12/19

3,!$,L #ont555

,nvironmental: Diesel Locomotives

needs to 6e re4laced at a more ra4id4ace than 4resent 6y electri=cation ofes4ecially 6road gauge railway lines5

Legal: Railway o4erations has 6een

always 4lagued 6y large no5 of Wor>er+nionsE !uch as N5#5R5.E hence 6etterwage system needs to 6e im4lemented5


13/19

.ono4oly


14/19


15/19

Indian railways mayhemtoday

Social service obligation concern

Fresh data released as 4art of the railway 6udgeton

thursday indicates railways outgo on net socialservice o6ligationin the current =nancial year(%&'"') stood at Rs %E2'% crore '/5% 4er cent ofits total traKic earnings5 $he share is not 9ust thehighest in the 4ast nine yearsE the outgo on social

service has grown faster than railways revenue5March 1, 2015

Economic times


16/19


Most o the trains has become

uneconomical an! accounts hugeamount or the losses"

Beres what they =nd: half the trains are running at alossE every tri45 $his includes all the =ve Durontosthe committee loo>ed atE two Ra9dhanis and one!hata6di5 *n averageE across the '/ trainsE everytrain runs a loss of Rs '51 la>h 4er tri45

Mune %8E %&'

$he Bindu


17/19



18/19


Surplus man po#er

Director general of the NAIRE 3ramod -umar haswritten a letter to the chairman of Railway oardinay .ittal giving his suggestions for maintainingeconomy in man4ower cost of Indian Railways5 $heletter mentions that Omost of the current yardstic>sfor the creation of staK have 6een the same from 4ast

'"%& years5 Is 4ossi6le to maintain these assetseKiciently with even 8& to & less staK com4aredwith yardstic>s5OMun E %&'8

Times of India


19/19

$han> ou for our

$ime55

fdi in railways

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