indian railways commercialisation
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TRANSCRIPT
Submitted By:Avinash Roshan(2010MB70)
Jitendra Singh(2010MB33)Kunal Bhasney(2010MB29)Sachin Kumar(2010MB44)
Indian Railways The world’s second largest railway, carries 18 million
passengers each day and it has
Introduction to IR
FREIGHT (GOODS) 62%
PASSENGER28%
OTHERS 10%
SOURCES OF REVENUE
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006 2007 2008 2009
98.396
92.3 92.1 91
83.278.7 75.9
Operating Ratio
back
Commercialization of Indian Railways
Commercialization is important aspect of Indian railways.
Aims at providing not only service but also to generate revenue.
Why Commercialization???
How it revolved?
Conceptual Framework
Retrenchment Strategy Effect
1 ) Reviewing value adding business (Catering, parcel service )
Cost saving > Rs 1,000 crores /annum
2) Reduction of wagon turnaround time
14 % time saved
3) Outsourcing Improved efficiency
Repositioning Strategy Effect
1 ) Developing new products (Double stack containers)
Saving: 7% on capital cost , 25% operational expenses
2) Product differentiation E-ticketing, new passenger coaches
3) Focus on revenue growth(like enhancement in loading capacity, cash incentive to free up wagons)
Freight revenue jumped from 233 m(2001) to 417 m(2007).
Re- Organization
Strategy Effect
1) Changes in planning system Improved efficiency
2) Extent of decentralization ( like Zones raised from (2003) to 16 (2005))
Improved vendor satisfaction
Areas of Commercialization
Transportation.
Introduction of I.T.
Outsourcing.
Transportation
Daily expenditure is about Rs 100 cr (42% staff, 18% fuels).
Daily earnings Rs120 cr .Daily loss on uneconomic branch line Rs 8 cr.Greater competition from Roadways, with
major investments in Highway network upgradation.
Upgradation of the Railway Production units for improved efficiency and productivity.
Transportation Goods TrainsRailway earns mainly from goods traffic.More than a million ton of goods transported
daily.Carries 16 lakh tonnes of goods every day.Railways has 7500 engines,38000 coaches &
about 2.5 lakh of wagons.Goods train maxm. 100 kmph.
TransportationPassenger TrainsCarries 1.4 crore passengers daily.Greater attention to passenger services and
safety.Heavily subsidised passenger fares, distorted
passenger pricing.Indian railways have a share of nearly 22% in
the passenger transport market.
Transportation
VARIETY OF SERVICESAC FIRST CLASS.AC SLEEPER.FIRST CLASS.AC 3 TIER.AC CHAIR CAR.SLEEPER CLASS.ORDINARY CHAIR CAR.
Usage of IT in RailwaysA large complex Infrastructure System with
Large Geographical Dispersion such as the Indian Railways can benefit greatly from the intelligent use of IT
E-GOVERNANCE OBJECTIVE• Freight revenue enhancement• Passenger revenue enhancement• Improvements in Customer and public service• Investment optimization
Usage of IT in Railways
Transforming Transport through Technology.
Jewels in the Crown.• Freight Operations Information system (
FOIS).• Passenger Reservations System (PRS).• Unreserved Ticketing System (UTS).• Instant voice response system (IVRS).• Rail Net.• E- Ticketing.
OUTSORCING
IT giants like TCS and WIPRO eyeing Railways' outsourcing deal.
L&T Infotech wins system integration projects from Indian Railways.
Indian Railways formed a PPP cell at the Board level to guide in the initiatives of Indian Railways .
Organisations like RITES, RVNL, CONCOR, IRCTC, etc. have been formed as an FBO.
Parcel Service, Catering,Vinyl Wrapping of trains,Palace on Wheels are part of outsourcing of IR.
Parcel Management System Following Functions are covered • Parcel Booking, Cancellation and Loading • Monitoring and tracking of Parcels • Printing of Parcel labels • Networking of all parcel offices• RFID tags for tracing parcels
Vinyl wrapped train by Airtel
80 crores contract with airtel and kurkure for ad
Catering
PALACE ON WHEELS
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
What`s next now???
References www.indianraiways.gov.in www.indianrail.gov.in [email protected] www.rbi.org.in www.reservebank.com www.irfca.org en.wikipedia.org Rakesh Mohan Committee. 2001. Highlights of the Executive
Summary Raghuram, G. 2007. ‘Turnaround’ of Indian Railways: A critical
appraisal of strategies and processes’, Indian Institute of Management Working Paper no. 2007–02–03, Indian Institute of Management, Ahmedabad.
A Case Study Desh Gupta and Milind Sathye* Faculty of Business & Government University of Canberra, Canberra, Australia.
References www.indianraiways.gov.in www.indianrail.gov.in [email protected] www.rbi.org.in www.reservebank.com www.irfca.org en.wikipedia.org Rakesh Mohan Committee. 2001. Highlights of the Executive
Summary Raghuram, G. 2007. ‘Turnaround’ of Indian Railways: A critical
appraisal of strategies and processes’, Indian Institute of Management Working Paper no. 2007–02–03, Indian Institute of Management, Ahmedabad.
A Case Study Desh Gupta and Milind Sathye* Faculty of Business & Government University of Canberra, Canberra, Australia.