Economics of Indian Railways

8/11/2019 Economics of Indian Railways

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Indian Railways__ Some Information

Indian Railways(IR) is an Indian state-ownedenterprise, owned and operated by the governmentof Indiathrough the Ministry of Railways.

It is one of the world's largest railway networkscomprising 115,000 km (71,000 mi) of track over aroute of 65,000 km (40,000 mi) and 7,500 stations.

As of December 2012, it transported over 25 millionpassengers daily (over 9 billion on an annual basis).
http://en.wikipedia.org/wiki/State-owned_enterprisehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Ministry_of_Railways_(India)http://en.wikipedia.org/wiki/Ministry_of_Railways_(India)http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Ministry_of_Railways_(India)http://en.wikipedia.org/wiki/Ministry_of_Railways_(India)http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/State-owned_enterprisehttp://en.wikipedia.org/wiki/State-owned_enterprisehttp://en.wikipedia.org/wiki/State-owned_enterprise


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Indian Railways__ Some Information

In 2011, IR carried over 8,900 million passengersannually or more than 24 million passengers daily(roughly half of which were suburban passengers)

and 2.8 million tons of freight daily.

In 2011-2012 Indian Railways had revenues of

111984.89 crore(US$21 billion) which consists of69675.97 crore(US$13 billion) from freight and28645.52 crore(US$5.3 billion) from passengerstickets
http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indian_rupee


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INDIAN RAILWAYS Indian Railways is 150 year old

It is largest railway system in world under one management

It is a lifeline of country

It is biggest civilian employer in the world

No strike in last 30 years in spite of 17 lakh workers

Always targeted by public during any rally, agitation etc


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INFRASTRUCTURE Railways has 7500 engines, 38000 coaches & about 2.5 lakh

of wagons

7000 stations & about 500 computerized passenger

reservation centers

1 lakh km of track

17 lakh employee(10 lakh in Group C) including 10000 officers

6 lakh staff Quarters

Biggest township Kharagpur has 12000 quarters


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Speed Shatabdi trains can run at maximum speed of 140 kmph

Rajdhani maxm 130 kmph

Superfast trains 110 kmph

Other mail & exp 110kmph but more stoppage

Goods train maximum 100 kmph


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BudgetRailway earns mainly from goods traffic

Daily expenditure is about Rs 100 cr (42% staff,18% fuels)

Daily earnings Rs120 cr

daily loss on uneconomic branch line Rs 8 cr


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Production units Chitranjan locomotive works at Chitranjan for

electrical engine

Diesel locomotive works at Varanasi for DieselEngine

Coach factory at Perambur & Kapurthala

Railwheel factory at Bangalore

Diesel component works at Patiala


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PSU Indian railway catering & tourism co (IRCTC)

Indian railway construction comp (IRCON)

Rail India technical services (RITES)

Container corporation (concor) Railtel corporation (Rail tel)

Konkan railway corporation Ltd (KRCL)

Mumbai rail vikas corporation (MRVC)

[Railtel Corporation of Indiais a Government of India enterprisefocusing on providing broadband and VPN services. RailTel was formedin September 2000 with the objective of creating nation-widebroadband, telecom and multimedia network, to modernize TrainControl Operation and Safety System of Indian Railways. ]


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SN 14

Research

Research Design & Standardization Organization (RDSO) inLucknow in house research organization

It is an integrated organization for track & rolling stock

responsible for developing and testing of new technology anddesign related to railways


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SN 15

TRAINING OFFICERS Railway staff college,Vadadara- General training for all Railway

officers

IRICEN,Pune

Civil engg IRIEEN,Nasik-electrical engg

IRIMEE-jamalpur-Mechenical engg IRISET-Secundrabad-signal & telecommunication engg

Indian Railways Institute of Transport Management (IRITM) atLucknow-Traffic deptt


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SN 16

Training (contd)

Supervisors and staff

Zonal training centre

Divisional training school

Others like drivers, engineering training schools

177 training institutes for training of non gazetted staff

25% of officers and 17% of staff are trained annually


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SN 19

Railways concern

Not able to fix fare as per cost - i) loss in suburban service ii) loss due to increase in cost of diesel

Not able to close uneconomic branch line-yearly loss2500 cr

Political interference in investment decision

Not able to meet public demand for more seats infew sector and run empty trains in others

Need Rs.50000 cr to complete on going projects


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SN 20

Commercial versus SocialIssues

Railway has social obligation to run transport servicefor all the area of country irrespective of profitmotive. It can not close uneconomic lines

It can not increase fare due to adverse politicalimpact even though fuel cost mounting

It has to generate enough resources for efficient

maintenance & replacements of assets on its own


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SN 21

Performance of Indian Railways:


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SN 22

Growth Rates of Earnings and Expenses


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The Operating Ratio = Total Expenses / Total earning receipt


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SN 24

Investment Strategy of IR


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Gauge Conversion


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IR at a Glance


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Earnings in Freight


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Traffuc


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The trend of growth in receipts and expenditure on IndianRailways


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The increase / decrease inoriginating tonnage of variouscommodities in 2002-03 over 2001-02 is shown in the

following chart:


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SN 32

PASSENGER BUSINESS OF IR

Indian railways have a share of nearly 22%

in the passenger transport market

DURING 2003-04

5210 Million passengers were carried

Passenger kilometers was 530 billion

Passenger earning was 13460 crores

Passenger business accounts for 31% of

the revenue Passenger business has two major segments

Premium passenger service

Mass Volume transportation segment

1300 1600

2500

3600

46005100

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PASSENGERS CARRIED (IN

MILLIONS)

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PASSENGERS KILOMETERS

(IN BILLIONS)


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SN 34

Role of IR


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Economics of Indian Railways __

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Organization


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Any question is most welcome

THANKS

The End

Economics of Indian Railways

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