Issues & Challenges

• Growth to cope with GDP

• Planning Commission Projects 7 to 8% growth
• IR to develop by 2020
– To carry freight traffic of about 1700 million tonnes per
annum
– To carry 25 million passengers daily
• IR plans 6% freight increase and 3.5%
passenger service increase
• Shortfall - 300 million tonnes of freight and 2
million passengers
 Saturated Routes
• Golden Quadrilateral and Diagonals
• Quantum jump to be catered
• Higher axle load 20 to 30 tonnes
• Increase round trip kilometerage of train
• Dedicated Freight Corridor
• Higher HP locomotives
• Lighter wagons – 120 tonnes gross load
 Rail Road Coordination
• Road
• Heavily congested
• Only one percent of total
National Highways is four
laned
• Freight vehicles cover 250-300
km in a single day as against
500-600 km in developed
countries
• Energy guzzlers
/Environmental unfriendly
• 60 tonnes Volvo Trucks
• Customized service
• Specialized Vehicles
• Consignment tracking
• Door to Door service
• Rail
• Freight rates are amongst the
highest in the world due to cross
subsidy of passenger freight
• Lack of operational flexibility
• Inadequate up gradation of
service levels
• Non-availability of wagons
• Frequent congestion of sidings
• Inter zonal conflict
• High over-all costs due to other
cost
• Bulk management
• Quick transport
• Green transport
• Energy efficient
 Safety First
• Consequential Train Accidents
– 2002-03 - 349
– 2003-04 - 320
– 2004-05 - 234
• Train Accidents for million kms are
important indices-
– 2002-03 - 0.44
– 2003-04 - 0.41
 Drop in Accidents
Year Collision Derailment LXAcc Fuel Misc Total m/km

1999-00 20 325 93 21 - 459 0.64

2003-04 9 199 95 14 5 320 0.41

Note: Accidents per million km is 0.29 in 2005-06.

Target 0.17 by 2010.
 Casualties and Compensation

Year No. of Injured Casualties Compensation

Passenger paid (Rs. Lakh)
killed
1999-00 338 716 0.22 1095

2003-04 84 279 0.026 757

 CAUSES OF TRAIN ACCIDENTS (2003-04)

Human Failure 268 84%

Railway staff 161 50%

Other persons 107 34%

Equipment failure 16 5%

Sabotage 18 6%

Incidental factors 15 5%

total 320 100%

 SAFETY MEASURES
• Over aged Track
• Track Circuit
• ACD (10000 km)
• SRFS works (17000 Crores)
• Renewal of Assets
• AWS
• 60 kg rail-UIC
• Welded Rail
• Quality Management
• Interlocking of level crossing, phone,safety aid
 Information Technology
• IR strong in content, computing & communication
• IT and passenger future customer service
• i – ticket / e-ticket-IRCTC
– Smart card
– UTS
– PRS
– Ticket vending
– ATM
– Cyber café,mobile telephony
– FOIS
– TMS
• Upgrading of passengers
• Traffic accounting
• Synergize with road,air
 STRUCTURE
• DUAL Role
– Commercial obligation
– Social obligation
• Unified system
– National Emergency
– Disaster Relief
• Corporatization ?
• PPP
– PRCL/KRCL
– WIS
– Container-14 parties(540 cr.)
– Rail projects
• Performance by PSU’s
– RITES
– IRCON
– IRFC
– IRCTC
– RAILTEL
 Financial Management
• National Budget Support dropped from 75% to 22%.

• Market Borrowings at 16-19%.

• Loans in perpetuity and perpetual liability of loans.

• Projects take priority over profitability.

• High Cost.

• Resources to Low priority Investment.

• VIth Pay Commission- Increased staff cost & pension obligations.

 Vision
“ To be a modern (safe and customer focused) Railway system with

sufficient capacity to meet the country’s transport need for passenger

and freight traffic through an optimal inter-modal mix at least cost to

society while maintaining financial viability of the system”

-Railway Corporate Plan 1985-2000