INDIAN rAILWAYS

Dharmesh Sharma
dharmesh_sharma04@yahoo.co.in
POINTS HIGHLIGHTED
This presentation demonstrates the H Hist
History, Expansion of Railways on i ory
the Indian Subcontinent, the P
s Present
organizational structure, working rt Status
style and other interesting facts of O
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History
16th April, 1853...............The Beginning

The first railway on Indian sub-continent ran over a

stretch of 21 miles (34 Kilometers) from
Bombay to Thane.

The idea of a railway to connect Bombay with Thane,

Kalyan and with the Thal and Bhore Ghats inclines
first occurred to Mr. George Clark, the Chief Engineer
of the Bombay Government, in 1843.
The formal inauguration ceremony was performed on
16th April 1853, when 14 railway carriages carrying
Present status
Indian Railways (IR) is Asia’s largest and the world’s
second largest network under one management, with
a separate Ministry and its own annual budget. The
key activities of IR are transportation of freight and
passengers. The network carried about 18 million
passengers and 2 mt freight every day on the
network of 63,332 km. Broad Gauge (BG) is the
primary gauge for the freight movement. Meter
Gauge (MG), which was far more significant earlier, is
being increasingly converted to BG.
 Click to edit Master text styles

Key Statistics of IR
Ø Running Track -
84,370 km
Broad gauge (1676 mm) -
69,016 km
Meter gauge (1000 mm) -
12,429 km
Narrow gauge (762 mm) -
2,925 km

Ø Route -
63,332 km
Electrified route -
17,907 km
Ø Locomotives -
8,025
Organizational structure
Indian Railways is a department owned and
controlled by the Government of INDIA. The
Railway Ministry is headed by Mr. Lalu Prasad
Yadav, the Union Minister for Railways and
assisted by two Ministers of State for
Railways, Mr.R.Velu and
Mr.Naranbhai.J.Rathwa. Indian Railways is
administered by the Railway Board, which has
six members and a chairman.
 Organizational Chart
MINISTER OF RAILWAYS

MINISTER OF MINISTER OF
STATE FOR STATE FOR
RAILWAYS RAILWAYS
RAILWAY BOARD

CHAIRMAN
RAILWAY BOARD

MEMBER MEMBER MEMBER MEMBER MEMBER FINANCIAL

ELECTRICAL STAFF ENGENEERING MECHANICAL TRAFFIC COMMISSINOER
Organizational Chart
Railway Production Units
The Indian Railways manufactures a lot of its
rolling stock and heavy engineering components.
Production Units, the manufacturing plants of the
Indian Railways, are managed directly by the
ministry. The General Managers of the PUs report
to the Railway Board. The Production Units are:

Ø Chittaranjan Locomotive Works, Chittaranjan

Ø Diesel Locomotive Works, Varanasi
Ø Diesel-Loco Modernization Works, Patiala
THE LOSS MAKING ERA OF INDIAN
RAILWAYS
“Indian Railways is today on the verge of a financial
crisis. To put it bluntly, the Business As Usual Low
Growth will rapidly drive IR to fatal bankruptcy, and in
sixteen years Govt. of India will be saddled with an
additional financial liability of over Rs. 61,000 crores
(15.35 billion US $). On a pure operating level, IR is in a
terminal debt trap.”

- Expert Group on IR headed by Dr. Rakesh

Mohan – July 2001.
THE LOSS MAKING ERA OF INDIAN
RAILWAYS

q Sectors due to which Railways incurred Losses

• Passenger Business.
• Reduction in the share of Transport Market.
• Freight Segment.
• Scrap Disposal.
• Increase in wages and salaries.
• Social Service Obligations.
Turnaround of indian railways

§Indian Railways (IR), which was

declared to be heading towards
bankruptcy as per the Expert
Group on Indian Railways in 2001,
is today the second largest profit
making Public Sector Undertaking
after ONGC.
Turnaround of indian railways

STRATEGY ADOPTED TO REDUCE LOSSES

• Play on volumes
• Reduce the unit cost
• Pass on the benefits to the consumer.
• Improvisation or reinventing instead of
• Increasing length, seating capacity and
restructuring
occupancy
• Optimizing layout of coaches
• Standard composition of trains
• Reducing losses on catering and parcel
services
Turnaround of indian railways

Major Steps Undertaken:

• IR created a Special Railway Safety Fund of Rs. 170 billion to
improve safety environment, through replacement of over aged
railway assets, that is, tracks, bridges, rolling stock, signaling gears
etc.
• In the last four years, the Railways have upgraded 210 mail and
express
trains to the super-fast category, taking the total number of such
trains to 350.
• Use of high technology for passenger safety (train safety devices like
Train
• Protection and Warning System and Anti-Collision Devices).
• Security: Railway Protection Force was strengthened to escort
passenger trains in security sensitive areas.
• Cleaner Trains
• Book stalls
Turnaround of indian railways

AC 1st class fares

•

reduced by 29%

AC 2nd class
•

fares reduced by
17%

Second class
•

fares reduced by
17%

Freight rates for

•

POL reduced by
17%
Turnaround of indian railways
Turnaround of indian railways
Turnaround of indian railways
Turnaround of indian railways

Tatkal (instant)-
reserved tickets

• In the last three years,

the number of tatkal

 Turnaround of indian railways

FREIGHT BUSINESS IS A PLAY ON VOLUMES

Driven by :
Ø Improved wagon turnaround and axle load
Ø Tariff rationalization and dynamic pricing policy
Ø Efficiency improvements and targeted
investments

(NTKMs – Net Tonne Kilometers)

● Energy efficient
● Energy efficient

S
●
●
Changing technological
Changing technological O
● Inherent limitations of being a Government
● Inherent limitations of being a Government
department
department

W
●
●
More demanding
More demanding T
SWOT Analysis of IR
 THANK
YOU

INDIAN RAILWAYS