Indian Railway

Indian railway

Indian Railways is 150 year old

It is largest railway system in world under one management

Second largest railway system in the world

It is a lifeline of country

It is biggest civilian employer in the world

Always targeted by public during any rally, agitation etc

Indian Railways covers 64000 of route km along length & width of

the country

It runs 12000 trains every day

it carry 1.4 core passengers & 16 lakh tones of goods every day

It is fuel efficient system

The Turnaround Story

Capacity enhancementImprove productivity from existing system

Streamline and optimize business procedures

Capacity utilizationDynamic pricing policy

Tariff rationalization

Various discount scheme

Revenue enhancement

Increasing number of coaches

Service offered to private player

Low cost and high volume operations

Using information

Technology for greater

EfficiencyObject

freight revenue enhancement

Passenger revenue enhancement

Improved and optimize service

Marketing

The main area where air travel scores over railway

Time of travel (Railway v/s Airline )

Price ( less price than AC 2 tier )

Manufacturer oriented market

Consumer oriented

INCOME BASED SEGMENTATION

The Lower Class ( < Rs. 3 lakh p.a. )

The Middle Class ( Rs. 3 to 10 lakh p.a. )

The Upper Class ( Rs. > 10 lakh p.a. )

Segment/service Lower class Middle class Upper class

Travel yes yes no

Tourism ( luxury trains)

No Yes yes

Upper class

Luxury packages

Luxury train(place on wheel, the Deccan odyssey, the fair queen)

Lower class

Unreserved compartments in newer train

Wooden seats replaced by the cushioned sheet

8 new Garib Raths and 32 pairs new trains to be introduced in

coming year

Middle class200 trains to be made superfast

Dynamic pricing

Sleeper class fares slashed by 4%

Reduction of super fast charge and second class ticket by 20%

Rs 5000 crore set apart for local trains

Woman and senior citizens to get priority lower breath

Cyber cafes and ATM to be opened at major stations

6000 automatic ticket vending machine

E-tickets made cheaper

RAILWAY - LALU PRASAD & THEIR ACHIEVEMENTS

Indian railway was running in losses since years.

But Lalu Prasad Yadav has proven this wrong.

He has presented figures where Indian Railway has made profit for

year 2004-05.

He has also presented 2006 budget with Rs 56,000 cr income and

Rs 7000 Cr profit.

o e-ticketing and SMS booking of tickets

o Any holder of a wait-listed ticket can be allotted

accommodation in a higher class with no extra charges.

o Tatkal tickets can be booked three days in advance and

higher tatkal charges.

o Commercial use of Railway land for food, entertainment

and other purpose.

o Surprise checking at railway stations for staff attendance,

weights of consignments and etc.

o Name and number of Vigilance officers published in News

papers for any complaints.

PRIVATIZATION OF INDIAN RAILWAYS

What you think privatization of Indian Railway is require or not ?

Two model of privatization

Model 1:- Sell off whole IR to big Indian

group

Model 2:- Breakdown whole organization into

different department

A failure example privatization of British railways

BR has been spilt into 100 different companies

A companies for specified task

On contractual basis

Reason of failing

Not perfect co-ordination

More maintenance cost

Goal dissimilarity

Dissatisfied employee

Mismanagement of government

The mid way

“Commercialization rather than privatization”

Encourage the private player in field of marketing and operation and maintenance of luxury tourist trains.

Give the noncore activity to private player