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PROJECT REPORT ON:

“INDIAN RAILWAYS”

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TABLE OF CONTENTS

I ACKNOWLEDGEMENT 2
1 INTRODUCTION 4
2 NINE ZONES OF INDIAN RAILWAYS 5
3 ORGANIZATION OVERVIEW 6
4 HISTORY OF INDIAN RAILWAYS 7
5 MISCELLANEOUS FACTS 8
6 STORY OF CONVERTABILITY FROM LOSS EARNER TO PROFIT 10
E ARNER
7 LOCOS AND COACHES MANUFACTURING UNITS 11
8 PROBLEM OF INDIAN RAILWAYS 12
9 HIGHLIGHTS OF INDIAN RAILWAYS BUDGET 2006-07 13

10 CONCLUSION 19
11 BIBLIOGRAPHY AND REFERENCES 20

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CHAPTER 1
INTRODUCTION

Today,

 Energy resource,
 Telecommunication
 Transport

Are the basic infrastructural requirement which acts as and indicator to the growth
of any Economy. Transport includes road transport, air transport, water transport and rail
transport. Transport provides useful link between production centre, distribution areas
and ultimate consumer. If we talk about inland transport mode than the one biggest
transport industry comes in the mind the – railways. We can not ignore the contribution
of the railway to the growth of the economy with its incredible services like mobility of
various commodities and passengers.
It is a hazardous to imagine Indian economy without railway. We always fill
proudly and happy when we think that our Indian railway Asia’s first and worlds second
largest after the Russia under the single management. We may also fill amazing by
knowing that Indian railway is world’s largest employment provider organization.
There are cities like Mumbai and Delhi where railway service is treats life line of cities.
In Mumbai local trains services are popular and in Delhi metro train services are popular.
In Mumbai every day local trains carries 90 lakhs passengers. That means if local trains
stop, Mumbai also stop.
So, we can understand the important of railway for a country like India.

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CHAPTER 2

NINE ZONES OF INDIAN RAILWAY

Indian railways have been divided in to nine zones –

 Western railway,
 Central railway,
 Eastern railway,
 Northern railway,
 North eastern railway,
 Northeast frontier,
 Southern railway,
 South central railway
 South eastern railway

Covering the largest route length of over 63,000 kms of total Indian boundary.
The last station of the four directional boundaries is West-Mumbai, South-
Kanyakumari, East - Guwahati, North-Jammu. It is the most convenient way of traveling
if you are traveling on a budget.
The railway has one of the most efficient communication systems between two
stations.
Following are the table which is showing the nine zones of Indian railway and their
headquarters as well as their length

Railway/zones Headquarter Length (km)

Central railway Mumbai (CST) 7,067
Western railway Mumbai (church gate) 9,735
Eastern railway Calcutta 4,303
Northern railway New Delhi 10,995
North eastern railway Gorakhpur 5,131
Northeast frontier railway Maligaon (Guwahati) 3,858
Southern railway Chennai 7,009
South central railway Secundarabad 7,218
South eastern railway Calcutta 7,161

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CHAPTER 3
ORGANIZATION OVERVIEW

The Ministry of Railways under Government of India controls Indian Railways.

The Ministry is headed by Union Minister who is generally supported by a Minster of
State. The Railway Board consisting of six members and a chairman reports to this top
hierarchy. The railway zones are headed by their respective General Mangers who in turn
report to the Railway Board.
For administrative convenience Indian Railways is primarily divided into 16
zones:

Railway Zone Headquarters

Central Railway Mumbai CST

Eastern Railway Kolkata

Northern Railway New Delhi

North Eastern Railway Gorakhpur

North East Frontier

Maligaon, Guwahati
Railway

Southern Railway Chennai

South Central Railway Secunderabad

Western Railway Church Gate, Mumbai

South East Central

Bilaspur
Railway

East Coast Railway Bhubaneswar

North Central Railway Allahabad

North Western Railway Jaipur

South Western Railway Hubli

West Central Railway Jabalpur

East Central Railway Hajipur

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CHAPTER 4
HISTORY OF INDIAN RAILWAYS

“ Indian railways are older more than 150 years ”

In the year 1832 the first railway running on steam engine, was launched in
England. Thereafter in may 1843 a young engineer graham Clark got down from a ship
harbored at Mumbai (then Bombay). He was sent to India at the insistence of the textile
industrialist of Manchester , Lancashire, Liverpool, in England to find out how and in
which part of India a railway can be built which would be useful transport cheap cotton
from Indian hinterland first to Bombay harbor and then from there to England by ship.
Thereafter on 1st of august, 1849 the great Indian peninsular railways company was
established in India. On 17th of august 1849, a contract was signed between the great
Indian peninsular railway company and east India Company.
As a result of contract an experiment was made by laying a railway track between
Bombay to thane (56 kms).
On 16 th April, 1853 the first train service was started from Victoria terminus
(CST) to thane carrying 400 people in 14 carriages, covered 21 mile (34 kms) at 3.35
PM. the time taken by the 75 minute. This is not first in India but also in Asia.
On 15 th august 1854 the second train service commenced between Howrah and
Hubli.On 1st July, 1856, the third train service in India and first in south India
commenced between Vyasarpadi and Walajah road and on the same day the section
between Vyasarpadi and Royapuram by Madras Railway Company was also opened.

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CHAPTER 5
SOME MISCELLANEOUS FACTS ABOUT INDIAN RAILWAYS.

SOME FACTS:

 The total route length of Indian railway is approximately 63,000 kms.

 The first electric train was opened in February 1925 on Mumbai suburban
railway on Mumbai Victoria Terminus (VT) – Kurla branch line.

 As on 31st march, 2004 the electrified route was 17,503 kms.

 The Indian railway largest in the Asia and second largest in the world after
the USSR.

 The total number of railway station in India is more then 7,000.

 The Indian railway operates approximately 7,525 trains’ daily covering

7,031 railway stations.

 The largest platform in India is at Kharagpur. The length is 2,733 feet. It is

situated in west Bengal.

 The longest railway tunnel is Konkan railway tunnel i.e. 65 kms.

 The longest rail bridge is across Godavari River. The length is 10,052 feet.

 The largest marshalling yard is at Mughalsarai.

 The third class in the Indian railway was abolished in 1974. Now there are
seven classes- AC-1st, AC-2T, AC-3T, Sleeper, AC chair car, first class and
second class.
 Railway set up a fund in 1974 to give financial assistance to victims of
railway accidents.

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 As per the latest data Indian railway have more then 1.5 million employees

 The Indian railways have 7,817 engine, 46,119 coaches and 2, 28,170
wagons.

 The steam engines are being phased out and diesel and electric locomotives
are being introduced. As on 31st march 2004 there were 45 steam, 4,769
diesel and 3003 electric locomotives.

 India’s first metro railway was opened in kolkata on 24th October, 1984.

 Rajasthan’s prestigious tourist train Palace on wheels, renamed the royal

orient express, extended to Gujarat and the responsibility of its operation
handed over to the tourism corporation of Gujarat.

 About 27 % of the total route km on the Indian railway is electrified.

 Computerized reservation increased to 92%.

 Prestigious Konkan railway (760 km) project has been commissioned.

 A new rail coach to run at a speed of 160 km per hour but 25% lighter than
the conventional bogies has been developed by rail coach factory,
Kapurthala.

 On November 23, 1999, after a gap of 25 years a direct train link with
Bangladesh was reopened.

 On December 24, 2002, metro train service started in New Delhi.

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CHAPTER 6

STORY OF
CONVERTABILITY FROM LOSS EARNERS TO PROFIT EARNERS

Indian railways are managed under public sector. The primary objective of
Indian railway is to provide welfare to the societies. For the long period of time
in the past railway was suffering from huge losses.
But from last two years this railway became a profitability undertaking. This sudden
change has attracted the attention of whole managers and various economists. That how it
may be possible? This magical incident becomes possible due to following reasons:

1. Excellent management under laloo Prasad yadav:

Laloo Prasad Yadav became rail minister of India in
UPA government in 2004.when laloo Prasad yadav took the this responsibility then every
one was in belief that to managed the railway is not capacity of laloo Prasad yadav.but he
managed the entire the rail network very efficiently and he has done that work which was
not imagine by any one. In 2005-06 railways given the 13,000 Cr profit and in the 2006-
07 its profit reaches to 20,000 Cr Rs. Under the excellent administration of laloo yadav.
Laloo Prasad yadav runs railway not as a minister but as a business guru.
He applied various tricks which contributed towards income of railway without making
effect on overall passengers fare.
Example:
Indian railway increased the cancellation charged of traveling ticket from 20 to
40 without increasing the overall fare amount as a result when a passenger cancels the
ticket he loose Rs 40 as a cancellation charge which adds to the profit of the railways but
without hurting or irritating to any of passengers.

2. Optimum use of capacity:

The past rulers were not using the full capacity of rails.
This was the laloo yadav under who’s control this drawback minimized to some extent.
As he started many cargo trains as double Decker. So that they can carry much
commodity or luggage at once in the same overhead expenses. Such proper utilization of
capacity increased savings by reducing average costs.
3. Growth in production and transportation of industrialized Goods:
In India many industrial units are increasing in the size as well as in the
respect of volume of production. Such produce needs market for selling the railway
having large network and huge carrying capacity is suitable for the smooth mobility
of such commodities like heavy machines, building material such a cement iron rods.
So that they prefer to carry their commodity by rail which in turn leads to the earnings
of the railways as a payment of freight charges
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CHAPTER 7

LOCOS AND COACHES MANUFACTURING UNITS

There are six main production units under the railway:

 Chittaranjan locomotive works (west Bengal), established in 1950 for the

manufacture of steam engines, and has since changed over to the production of
electric engines.

 The diesel locomotive works at Varanasi (Uttar Pradesh) went into production of
diesel engines in 1964.

 Diesel component works has been set up at Patiala for the manufacture of
components for diesel locos and important sub-assemblies.

 Integral coach factory, Perambur (Tamil Nadu)

 Rail coach factory, kapurthala 9punjab0. The production of railway coach is

supplemented by two public sector undertakings, the Bharat earth mover’s ltd.,
Bangalore and jessops & Co. ltd. Kolkata.

 In order to prevent drain of foreign exchange on import of wheels and axles for
the railway, a wheel & axles plant was set up at Yelahanka, Bangalore in 1984.

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CHAPTER 8

PROBLEMS OF INDIAN RAILWAYS

In spite of all various advantage and specialties, we can not ignore that there are many
serious drawback of Indian railways. They are as follows:

 Outdated technology of locomotive:

The rail engines used to run the trains are very old and outdated technology. So they
require much maintains and they do not give proper return, as they do not perform
efficiently. There is immediate need to change the engines by new and updated ones.

 Small and inadequate rail networks:

As India is world’s second largest rail networks country but if we look by considering
requirements of economy and size of country then it is not enough. Further India’s
population which is increasing leads pressure on such facility. So there must be extension
in the rail networks as per the demand and requirements.

 Problem of financial crunch:

The railway is facing the problem of financial crunch. The conventional methods of
increasing the net revenue, like rising of tariffs and expenditure control are inadequate for
generating the levels of investment required.

 Problem of social responsibilities:

As the primary objective of the railway is welfare of public. So it has to operate a number
of unremunarative lines, for example:

 Railway provides concession to students in the journey ticket fare up to

50% and for senior citizens up to 30%. Such reduction in fare results in
losses to the railway industry.
 Often essential goods like food grains, fruits and vegetables have to be
carried at losses.

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CHAPTER 9
HIGHLIGHTS OF INDIAN RAILWAYS BUDGET 2006-07

9.1 2005-06: Review of performance and revised estimates:

 record breaking performance in the first nine months of the year 2005-06
 Growth in freight loading and revenues is 10% and over 18% respectively.
 Loading target increased from 635 mt to 668 mt ands freight revenue target
increased from Rs 33,480 Cr to Rs 36,490 Cr.
 Tenth plan target of 624 mt and 396 billion tonne kilometers to be surpassed
one year in advance.
 Passengers earnings, other coaching earnings and sundry others earning
increased by 19% and 56% respectively over previous year.
 Ordinary working expenses to increase by Rs 1,200 Cr.
 Likely end year fund balance Rs 11,280 Cr.

9.2 2006-07: Review of performance and revised estimates

 Major technological up gradations planned.

 New high capacity wagons being designed and manufacture of aluminum and
stainless wagons planned in 2006-07.
 Payload to tare weight ratio to improve to better than 3:1, and thereafter to
around 4:1.
 Transfer of technology to be encouraged and use of IT to be expanded.
 Public partnership and public-private partnership to get a major thrust
 Opening up of container segment well received, 14 applicants deposit Rs 540 Cr
as registration fee.
 Permission to run private container trains to be given before 31st march 2006.

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9.3 MEASURES TO IMPROVE FREIGHT BUSINESS:

 Reduction in unit cost of freight traffic due to increase in loading capacity of

wagons and some other measures.
 Additional loading of 4 to 8 tonnes per Wagons per adds 100 Million Tonnes to
loading capacity with resultant Revenue generation of Rs 5000 Cr.
 Validity of brake power certificate for CC rakes increased from 6000 to 7500
km.
 Wagon manufacture to increase by about 25%
 Production of electric locomotive to increase by 17% and diesel locomotive by
5%.

9.4 REDUCTION OF LOSSES IN PASSENGER BUSINESS:

 Increase Volumes reduced unit costs strategy to be adopted in the passenger

business also.
 Cut down losses in the coaching services by about Rs 1000 Cr in the coming
year and by 50% in the next three years by increasing the number of coaches
and occupancy of trains , reducing travel time and reducing losses in the
catering and parcel segments.
 Over 200 mail/express trains to be made super fast.
 Journey time of a majority of the Shatabdis, Rajdhanis and of certain
mail/express trains likely to reduce.
 The number of coaches in about 190 popular passenger carrying trains to be
increased up to 23-24 coaches enabling railway to earn Rs 200Cr additionally
every year.
 Platform length at 200 stations to be increased at a cost of Rs 60 Cr
 Up gradation of lower class passengers to higher class without any additional
payment introduced on all Rajdhanis and mail/express train.

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9.5 REDUCTION IN LOSSES IN PARCEL AND CATERING BUSINESS;

 Policy of leasing out panty cars and catering units at large stations through open
bids to continue.
 Capacity utilization of parcel business to be improved.
 Parcels can be loaded and unloaded at all stations where the half is 5 minutes or
more and the leaseholders can themselves prepare the loading manifest.
 150 kg ceiling for booking luggage in the brake vans removed.

Year 2006 declared as the year of passenger services with a smile strategy to shrink
queues at booking counters. –

 Charges leviable on issue of e-tickets reduced.

 E-tickets can also be bought through rail travel service agents
 800 more UTS centre to be opened.
 200 Automatic ticket vending machines in Mumbai suburban area to be
installed.
 Jansadharan ticket booking scheme- formulated to make available pre-
paid UTS counters to unemployed youth.
 Under the Gramin ticket booking scheme , agency being given at
roadside stations to unemployed rural youth for issuing tickets.

9.6 IMPROVEMENTS IN PASSENGER AMENITIES:

 All ‘A’ and ‘B’ category stations to be made model stations.

 Help of architects to be taken in all division to make stations building more
beautiful, comfortable and with modern look.
 Modern facility such as ATM, cyber cafes etc. to be provided at all major
stations.
 A pilot for giving the publicity rights for an entire division to a single agency,
through open tender.

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9.7 MODERN FACILITY IN PASSENGEWR TRAINS:

 New technology LHB designs passenger coaches to be used in Patna, sealdah

and Rajdhanis also.
 Four popular trains to be provided with world class passenger amenities and
interiors.

9.8 RAILWAY SAFETY:

 Overaged tracks and bridges and track circuiting work on all stations on A, B
and C routes to be completed by march 2007.
 Balance work under SRSF to be completed by March 2008.
 Renewal of asset becoming due after 2001 being sanctioned on a concurrent
basis and executed.
 Number of consequential accidents comes down from 473 in 2001 to 234 in
2004-05.

9.9 STAFF WELFARE:

 Increase in contribution to the staff benefit Fund for the next year – nearly nine
fold.
 100 community halls to be constructed.
 While away from headquarter, food to be made available to running staff during
duty hours at nominal rates.
 Quality shoes, socks, gloves, uniform, necessary implements to all gang men or
key men.

9.10 IMPROVEMENTS IN MEDICAL FACILITIES:

 New super specialty cardiology and nephrology to be constructed at Patna.

 Three new divisional hospitals at Agra, Raipur and Nanded.

9.11 SPECIAL RECRUITMENT DRIVE AND EXTENSION OF PERIOD OF

CONCESSION IN MAXIMUM AGE LIMIT:

 Over 6,000 SC/ST vacancies filled up during current year.

 Special drive to fill up the backlog in the OBC vacancies in next year.

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 Maximum age limit to SC/ST/Backward Class categories candidates extended
by a year (from 3rd February 2006).

9.12 CONCESSIONS:

 50% concession in second class fares to farmer and milk producers for travel to
institutes of national level in other parts of the country for the purpose of
training/learning better agriculture practices and dairy farming announced
earlier extended to sleeper class.
 50% concession in second class and sleeper class fares to persons who have lost
their limbs in accidents or due to any other causes, for travel to institute of
national level, for transplantation of artificial limbs along with one attendant.

9.13 PASSENGERS SERVICES:

 The ‘Thar Express’ between India and Pakistan inaugurated.

 150 km/hr speed trains started in Delhi-Agra station. Will start on Delhi-
Kanpur-Lucknow route too.

9.14 NEW TRAINS, EXTENSION OF TRAINS AND INCREASE IN

FREQUENCY:

 New trains : 55 pairs.

 Extensions of services : 37 pairs.
 Increase in frequency : 12 pairs.
 Re-routing of trains : 2 pairs.

9.15 WORKSHOPS AND PRODUCTION UNITS:

Production capacities to be increased at

 Rail Wheel factory,chhapra
 Integral coach factory, Chennai.
 Samastipur workshop

9.16 ANNUAL PLAN 2006-2007

 The largest ever plan outlay of Rs.23,475 Cr. Consisting of:

 Rs. 7,511 Cr. Of support from general Exchequer
 Rs. 10,794 Cr. Through internally generated resource.
 Rs. 5,170 Cr. Through extra budgetary resource.
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 Outlay for road related safety works: Rs.700 Cr.
 The outlay on safety related plan heads is Rs. 2,922 Cr, for track renewals, Rs.
590 Cr. For Bridges and Rs. 1,518 Cr. For Signalling and Telecommunication ,
Rs.436 Cr. For constructions of ROBs/RUBs and Rs. 275 Cr. For manning of
unmanned level crossing.

9.17 PROJECTS:

 Targets for 2006-07 include over 550 kms of new lines, over 1100 kms of
Gauge conversion and 435 kms of doubling.
 Surveys to be taken up: 23 new lines, 1 gauge conversion and 8 doubling.

9.18 BUDGET ESTIMATES 2006-2007:

 Freight loading target at 726 million tones and freight output at 479 btkms.
 Revenues in freight , passenger, other coaching and sundry other earning
segments to be Rs. 40,320 Cr. , Rs. 16,800 Cr., Rs. 1400 Cr. And Rs. 1308Cr.
Respectively.
 Gross Traffic Receipts (GTR) to be Rs. 59,978 Cr.
 Ordinary Working Expenses to be Rs. 38,300 Cr.
 Appropriation to Pension Fund and DRF to be Rs. 7,790 Cr. And Rs. 4,307 Cr.
Respectively.
 Operating ratio expected to be 84.3% in 2006-07.

9.19 PROPOSAL RELATING TO FREIGHT RATES AND PASSENGERS

FARES:

9.19.1 FREIGHT SERVICES:

 No across the board increase in freight rates.

 Number of commodity groups to be reduced from 80 to 28.
 Highest class lowered to 220, freight rates of diesel and petrol less by 8%.
 Over the next three tears , the highest class to be lowered below 200 and
rates for the highest classification to be made than double that of the
lowest classification (except rates of some light commodities).

9.19.2 PASSENGERS SERVICES:

 No increase in passenger fares.

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 Passenger tariff structure rationalized so that the fares of AC first and AC second
class will be 11.5 times and 6.5 times the second class fare, respectively.
Reduction in AC -1 fare by 18% and AC -2 fare by 10%.
 Fully air – conditioned Garib Rath to be run on a pilot project basis initially with
four pairs of services, fares about 25%lower than present AC-3 tier far

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CHAPTER 10
CONCLUSION

Railway Electrification, thus provides a modern, cost effective, energy efficient,

environmental friendly, safer, fast and pollution free mode of rail transport to meet the
ever growing demand for heavy freight haulage, high speed passenger travel, inter-city
and mass suburban transportation. This system is also capable of using any form of
primary energy including hydro, nuclear, thermal, solar etc.Consequently; it reduces
dependence of nation on largely imported petroleum resources. At the current level of
traffic hauled by electric traction is helping the nation to save diesel fuel worth
Rs. 4500 Cr.
It is worth mentioning that all the modern railways of the world have adopted the
electric traction. China although a late starter in matters of electric traction and having
railway system similar to Indian Railways is currently electrifying at the rate of 1000
Kms. every year and expected to surpass Indian Railways within the next two year.

INDIAN RAILWAYS PERCENTAGE OF ELECTRIFICATION COMPARED WITH

WORLD RAILWAYS IS AS UNDER:-

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Name of Country Total Rly.(Length) Electrified Network % Electrified
kms (kms)
Switzerland 3284 3057 93
Japan 12668 8939 71
Sweden 11797 7440 63
Italy 16146 10030 62
Germany 40710 16202 40
France 34837 12611 36
Russia 88716 38600 43
Ukraine 22631 8348 37
U.K. 16938 4911 29
Portugal 3068 2132 69
South Africa 20319 8976 44
India 63140 16986 27
China 61539 16000 26

Thus, Railway Electrification is a world wide phenomenon and

in the other developed and developing countries, the percentage of electrified network to
total network varies from 26 percent to 93 percent, whereas Indian Railways has reached
only 27 percent. This indicates that Indian Railways have to go a long way in the field of
Railway Electrification in serving the interest of national economy in transport sector

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CHAPTER 11

BIBLIOGRAPHY AND REFERENCES

11.1 BOOKS:

 General Knowledge at a glance by R.Gupta.

 I.C.A.I Economic book.
 Economic Times
 Financial Express

11.2 WEBSITES:

 http://www.indianrail.gov.in
 http://en.wikipedia.org/wiki/Indian_railways
 http://economictimes.indiatimes.com
 http://www.trainweb.org/indiarail

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