restructuring of indian railways . by group11

8/4/2019 Restructuring of Indian Railways . by Group11

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RESTRUCTURING

OFINDIAN RAILWAYSSUBMITTED BY:Sharath chandra dasbba(be) 4531/09


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INDIAN RAILWAYSIt is the most state owned railway co. of India . It is overseen by the the Ministery ofRailways of Govt. of India .It has one of the largest and busiest rail networks in the

world.

It transport 18 million passengers and more then 2 million tonnes of freight daily. It is

world largest utility employers with more then 1.4 million employees .

FOUNDED :26 th April,1853HEADQUARTERS :New Delhi, IndiaKEY PEOPLE : E. Ahmed & K.H. Muniyappa, Chaiman & Railway Board. S.S.KhuranaINDUSTRY : Railways & Locomotives

SERVICES : Rail TransportREVENUE : Rs. 931.59 billion ( US $ 19.13 billion)EMPLOYEES : 14,06,403 (2007)PARENT : Ministry of Railways, Government of India.DIVISIONS : 16 Railway Zones (excluding Konkan Railway)


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HEAILWAY

ZONES


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British RailwaysPRIVATISED IN 1990S


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HOW ABOUT PRIVATISING THEWHOLE INDIAN RAILWAYSNOW??

SHRI LALU PRASAD YADAV

MINISTER

INDIAN RAILWAYS

MR. ANIL AMBANI

CEO

INDIAN RAILWAY


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PERFORMANCE OF THE RAILWAYS2000 2001 2000-01 2001-02

Total revenueearning

456.4 473.5 347.8 357.3 3.7 2.7

Net Tonnes Km(billion)

305 312 229 239 2.4 4.4

Net Tonne Kmper wagon perday (Broad)

2027 2042 1975 2076 0.7 5.1

PassengerTraffic

originating(million)

4585 4833 3557 3866 5.4 8.7

Passenger Km(billion)

431 457 342 38.4 6.1 12.1


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0

10

20

30

40

50

60

70

80

90

100

1st Qtr 2nd Qtr

PASSENGER(1990-91&2003-04)

FREIGHT(2004-05&2005-07)

ANNUAL % GROWTH

GROWTH OF RAILWAYS


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FARE COMPARISON

AIRLINES SECTOR LOWEST FAREINDIAN

AIRLINES

DELHI-BANGALOR RS.3965

DELHI-MUMBAI RS.3965

DELHI-CHENNAI RS.5065

DELHI-HYDERABAD RS.3965

DELHI-KOCHI RS.8035

SPICE JET DELHI-BANGALOR RS.1999





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FARE COMPARISON

AIRLINES SECTOR LOWEST FARE

AIR DECCAN DELHI-BANGALOR RS.2529




JET AIRWAYS DELHI-BANGALOR RS.3720

DELHI-MUMBAI RS.3220DELHI-CHENNAI RS.3620



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YEAR

NUMERS IN MILLION

2001-02 2002-03 2003-04 2004-05

RAILWAYS 5,093 4,971 5,112 5,475

AIRLINES 12.81 13.32 14.54 18.17

PASSENGER DISTRIBUTION


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DOLLAR]

HOUSEHOLDINCOME RANGE[CURRENT $US]

% OFHOUSEHOLDS

NUMBER OFHOUSEHOLDS

$1000 65 9,593,204

$1000- $2000 45 86,338,840

$2000- $3000 23 44,128,740

$3000- $4000 6.5 12,471,166

$4000- $5000 5 9,593,204$5000- $6000 4.5 8,633,884

$6000 11 21,105,050

TOTAL 100 191,864,088


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HOUSEHOLD DISTRIBUTION BYINCOME LEVEL,INDIS[$US]

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

$1,000 $2000-

$3000

$4000-

$5000

$6,000

No of Households

Num

berOfHouseholds

Household Income Range


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OPERATING RATIOOPERATING RATIO

70

75

80

85

90

95

100

1987

-88

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

PERCENT

Series1


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THE TURNAROUNDSTORY

EARNINGS & EXPENSES


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CHARACTERISTICS OF RAILWAYS& RAIL INVESTMENT :High capacityEfficient land use

Very fuel efficient

Environment friendlyBulk movement

Suited for long life

Capital intensive

Long gestation

Relatively low return

Internal crosssubsidy

Large shelf of projectsocio economic considerations


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THROW FORWARD1.SHELF OF 296 PROJECTSRS.61,487CRORES TO

COMPLETE.2.9000 KMs OF NEW LINES .

3.7600 KMs OF GAUGE CONVERSATION.

4.3825 KMs OF ELECTRIFICATION.

5.245KMs OF SUB-URBAN PROJECTS .


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WHAT HAS BEEN DONETaken initiatives to attract private participation .

Joint ventures with some State Governments .

Increase in number of Super fast trains .

Reduction in fares.

Parcel services & leasing of brake vans of passenger trains.

Differential pricing based on time of bookng THE TATKAL SCHEME

Automatic upgrades to passengers .

Improvement in service quality.

THE WAY AHEAD:LOWER CLASSUnreserved components to be incrased.Increase unreserved second class coaches.Wooden seats to be replaced by cushioned ones.

MIDDLE CLASS8 new Garib Rats 732 pairs new trains introduced.200 trins to be made superfast.Differential discounts in peak & off peak seasons.Cyber cafs & ATMs to be opened at major stations.


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BRAND LALOOTRAVEL IN COOL UPPERCLASS COMFORTAT

NO EXTRA COST

UPGRADATION SCHEME HAS NOWBEEN EXTENDED TO RAC& WAITING

LIST PASSANGERS AS WELL

JUMPING OF CLASS WILL BEPERMITTED IN CASE ELIGIBLE

PASSANGER ARE NOT AVAILABLE IN

THE IMMEDIATELY LOWER CLASS

THE REQUEST FORM HAS BEENSIMPLIFIED FOR THE PURPOSE OF

UPGRADATION

ALL PASSANGERSBOOKED ON ASINGEL TICKET ARE UPGRADED

TOGETHER


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SERVICES INDIAN RAILWAYS CANOFFER

LOWER CLASS

( < RS3LAKHp.a )

MIDDLE CLASS

( RS 3-10 LAKHp.a )

UPPER CLASS

( > RS 10LAKHp.a)

TARVEL

TOURISM(LUXURYCLASS)

SERVICE

SEGMENT
http://media.battlestarwiki.org/images/thumb/b/b3/Symbol_Cross.svg/480px-Symbol_Cross.svg.pnghttp://media.battlestarwiki.org/images/thumb/b/b3/Symbol_Cross.svg/480px-Symbol_Cross.svg.png


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PALACE

ONWHEELS

The Twin bedded Saloon

The Bar Lounge

The Bar Lounge

The Exterior


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BUDGETRY

SUPPORT

INTEGRATION

GENERATION

EBR(MARKET

BORROWING)

20%

35%

45%

FINANCING OF X-RS.84,708 CRORES


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Annual Catering ContractsHowrah Kalka MailRs 83.6 lakhs from

Rs 5 lakhsLicense fee (Bandra)Rs 16 lakhs from

Rs 78,000Licence fee (Nagpur)Rs 34 lakhs from

Rs 32,000

HotelsTalks on with the Oberoi Group

Food PlazasVending machines ..

Data Source -IIMA analysis of the RailwaysTurnaround (G. Raghuram)

COMMERCIALISING ACTIVITIES


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IS COMPLETE RESTRUCTURING REALLYREQUIRED IN INDIA ???

-Critical role of railways in economy.-Too complex system.-Need of partial restructuring .-Non core activities out sourced.

ADVANTAGES OF COMMERCIALISATION:-Competitive rates.-Less political interference.-Financial freedom to an extent.

SHORTCOMINGS:-Automization of BR.-Role of government still required.-Employee dissatisfaction.


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MEASURES TO STRENGTHEN SAFETY ANDUPGRADE RAILWAY INFRASTRUCTURESpecial Railway safety fund with Rs. 17,000 crores to wipe out

the arrears in the renewal of safety equipments . Provision of 25 watt VHF sets at road side stations for

communications between drivers guards & Station staff .

Funds located from Diesel cells used for safety related work

pertaining to level crossings .

Tracks circulating of run- through lines on all stations with

permitted speed of 75 kmph completed .

Bogies mounted break system being introduced on wagons .development & indigenous manufacture of centre Buffer Couplers.

The High level committee on in enhanced Security on Railways.


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restructuring of indian railways . by group11

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