TOPICS

INFRASTRUCTURE TOPICS COVERED (sequence as per Importance)

Gati shakti + NIP - National Infra pipeline
PPP
Logistic sector
Mining Industry
Island development in india
Ports + Inland transport
General Transport
Civil Aviation
Housing for all
Power sector
Railways
River interlinking project
Road development
Road accident - E4
*****Gati shakti + NIP - National Infra pipeline
Gati shakti
National Monetisation Pipeline (NMP)

NIP - National Infra pipeline

What
Investment of 102 lakh crore by 2024-25 : NATIONAL INFRASTRUCTURE PIPELINE (NIP)

News
Government released a report titled National Infrastructure Pipeline (NIP) —> Need 102 lakh crore
for 5 trillion economy by 2025-25

Facts
39:39:22
About 60 lakh crore by Centre (bcoz NE cant get such huge investment)
Projects identified in
Power,
Already ailing - hence private investment tough
roads,
railways,
urban infra
Soft infra
Education
Health

Reason
Infra need - developing country has
Create jobs
Improve logistics
Create positive sentiment

Challenges
Funds - by
C t
 Centre...
State..
Private...
Infra investment in past 6 years total - 50 lakh crore- making double is challenge

Important reforms suggested in the report

Improving project preparation processes with transparent policy and legislative framework
Single window for all approvals
optimal risk sharing
Transparent contract awarding
Easy availability of finance from India
Dispute resolution mechanism

Way ahead
Contract enforcement - low hanging fruit..
Focus on court and judges - 0.08% of GDP is spent
EoDB wale thoda related ...
.........
Not much relevant !!
Policy continuity
Land and labour reforms
Finance
Bond market
Strengthening the municipal bond market in India
Banks make them invest
*****PPP - See PYQ and get more info
Intro
India will have $ 500 billion infrastructure investment gap by 2040 as per Economic survey

Conclu
Hyderabad Metro
State-of-the-art metro system - latest tech, driverless trains, innovative design and
structures...etc
20k crore outlay- 90% private private funded. (unlike other metro which is funded primarily
by public exchequer)
Largest PPP in India and one of the largest in the world.

Investment models (GADI)

Growth led investment (19th century) - focus on growth
Autonomous investment model (1930s - By John Kanes) - expenditure increase
Directed investment model (socialist - PSU) (1930s)
Induced Investment model - Bring investment from FDI FII
PPP

PPP MODELS
Greenfield
BOT - collecting toll revenue or annuity fee from the Government, as agreed (max 30 yrs)
BOOT
DBFOT
Terminal T3 Delhi airport by GMR
Turnkey - DBF
EPC
Delhi metro under DMRC (by L&T)
HAM
Port under Sagarmala + NHAIs
Brownfield
MOT (maintain) (govt give one time grant - then operate)
TOT - reverse bidding (themselves do it)

Various advantages of public-private partnership (PPP):

1. Access to private sector finance: I
2. Better infrastructure:
3. Increased transparency in the use of funds:
4. Less delays:
5. Risk distribution:
6. Constant cash flow:

Various issues related to public-private partnership (PPP) + Stall of projects

 1. Coordination - Clearance from authority = time consuming (land acquisition, environmental
clearance)
1. Policy and regulatory gaps: Inadequate regulatory framework and inefficiency in the approval
process e.g. more than two years were needed for the Gujarat Pipavav port project to receive the
necessary clearances after achieving financial closure.
1. Moreover, most of the large projects involve dealings with various ministries where
coordination remains inefficient.
2. Corruption - delays
1. Crony capitalism: politically connected firms
3. Contract Issues - Disputes in contract document
4. Finance
1. Global slowdown - COVID
2. No Viability gap funding
5. Low risk with govt and agencies
1. Uncertainties: PPPs often cover a long-term period of service provision (eg. 15-30 years).
6. baki toh pata hi hai...
7. Renegotiation: While private firms accept stringent terms of PPP contracts initially, they lose no
opportunity for renegotiating contracts

Way ahead:
PPP project review committee – to evaluate PPP projects (for large projects)
Improving project preparation processes with transparent policy and legislative framework
Single window for all approvals
optimal risk sharing
Transparent contract awarding
Easy availability of finance from India
Dispute resolution mechanism
Checking Viability

HYBRID ANNUITY MODEL (HAM)

to revive PPP in highway construction
HAM is a mix of EPC (Engineering, Procurement and Construction) and BOT (Build, Operate, Transfer)
models
Finance and operation risk by both
40% upront
HAM projects accounting for around 50% of total awards in terms of highway length

EPC (engineering, procurement and construction)

ROLE OF GOVERNMENT?
entire funding by government
 entire funding by government
all clearances, land acquisition, regulatory norms

ROLE OF PRIVATE PLAYER?

contractor build the project by designing, installing and procuring land and labour
contractor legally reponsible to complete the project within time frame -> penalty provisions

TOLL OPERATE AND TRANSFER (TOT) MODEL

WHAT?
Right to collect toll to be auctioned and assigned to a concessionare for 30 years
responsibility of concessionare for operation and maintenance of roads during tenure

SIGNIFICANCE?
model once successful, would be replicated in other sectors – power, oil and natural gas
****Logistic sector
WHY IN NEWS?
Commerce and Railways Minister has asked the various transport Ministries of State to find ways to
reduce logistics costs in the country to 9% of GDP by 2022 from the current 14%. (devp- 8%)

Conclu
To achieve a target of 5% share in world exports, Indiaʼs exports need to grow at an average rate
of over 25% for the next five years.
According to Amitabh Kant, CEO NITI, it took 14 days for goods to be transported from Delhiʼs
industrial areas to ports on western coast of India

WHAT ??
Material handling, warehousing, packaging, transportation, shipping security, inventory
management, supply chain management

CHALLENGES OF LOGISTIC SECTOR?

Apex
Lack of inter-ministerial coordination: It hampers smooth multi modal transport in India
Complex - involvement of more than 20 government agencies, 200 shipping agencies.
Lack of proper regulatory oversight: It results in logistics as a highly fragmented and
unorganized industry.
Transport - fragmented
railway – high freight tariff, low terminal quality
Road – congestion, multiple checkpoints (loss of time and administrative hurdles)- poor
maintenance of equipment, overloading of the truck beyond capacity
port – inadequate depth to attract large vessel, high turnaround time
storage infrastructure
inadequate size of warehouses, leakage in warehouses
complicated tax regime
Lack of skilling: Logistics industry employs a large number of blue collar workers, but it lacks skill-
development infrastructure to train them.

GOVERNMENT INITIATIVE?
Delhi Mumbai Industrial Corridor ($90bn) --> Draw diagram
Finance ministry granted infrastructure status to logistic sector
Logistic efficiency enhancement programme
technological initiative
RFID in place of bar codes,
GPS for real time tracking,
e-way bills under GST
Think on issues...
Finally - India has signed the Trade Facilitation Agreement of the WTO
 Ro-Ro vessels
carry trucks -> decongestion on roads

WAY AHEAD?
inter-ministerial coordination
multimodal transportation
single GST rate on multimodal transportation
regulatory oversight
operationalise a national warehousing grid - like MH model
Identifying warehouses spread across various government departments and institutions to be
then taken over and managed by one nodal agency.

ʻPORT Logistics: Issues & Challenges in Indiaʼ - by

Dun & Bradstreet report : Findings

Five issues, namely, causes 90% of detention
Processes and operations across the ports are not standardised or uniform
shipping line issues & charges,
documentation & paperwork -
port congestion,
customs clearance,
regulatory clearance
****Mining Industry
CHALLENGES??
environmental concerns – open cast mining (highly polluting)
politicial – mining baron nexus -> non transparent auctioning
social issues = child labour, exploitation of workers, rehabilitation issue (Dongriya Kondh Tribe in
Niyamgiri Hills)
Tech -lack of scientific data
non uniform distribution of minerals and unmapped reserves
old and obsolete technology, low output, lack of skilled manpower
Admn - monopoly of state owned companies
economic - delay in land acquisition, environmental clearance -> stalled project -> NPA
Theft

GOVERNMENT INITIATIVES?
National mineral policy 2018
HELP Policy ….
PM Khanij Kshetra Kalyan Yojana
by DMFs
TAMRA portal - auction and clearance
Sudoor Drishti - monitoring

WAY AHEAD?
involvement ofcivil society for monitoring of child labour and illegal mining issues.

NATIONAL MINERAL POLICY 2018

HIGHLIGHTS OF THE POLICY?

industry status to mining sector (recently in Gujarat)
Transparent mechanism – transparency while reserving areas for state agencies
dedicated mineral corridors
Intergenerational equity
DMF

Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015
DMFs: --> Implement PMKKKY
DMFs were instituted under the as non-profit trusts to work for the interest and benefit of persons
and areas affected by mining-related operations.
Jurisdiction: State Government.
high priority areas (60% fund)
Drinking water.
Health
Women and child welfare.
Education
Livelihood and skill development.
Welfare of aged and disabled.
Sanitation
***Island development in india
IMPORTANCE
Strategic maritime role
ensuring freedom of navigation in IOR and smooth flow of trade through 10 degree channel,
strait of Hormuz, Bab El Mandeb, strait of Malacca
Naval exercises. Eg Malabar
International cooperation
HADR (humanitarian assistance and disaster relief operation)
economic importance
development of refineries, tourism
minerals in Indian ocean
regional connectivity and trade
deep water ports, large bays for ships to anchor
blue economy

CHALLENGES?
Natural disasters
cyclone Ockhi over Lakshadweep
flood, tsunami
tribal development challenge – tribes such as Great andamanese, Onges, Jarawas, Sentinelese
logistic issues – road building, airstrip construction,
climate threat
sea level rise -> reduction in magrove cover

GOVERNMENT INITIATIVES?
Island development agency (IDA) under Union Home minister
India – Japan cooperation on development of smart island (2016)
Sagarmala project
Mausam project
***Ports + Inland transport
News
Major ports bill 2020 - cleared by cabinet
Allow 12 major ports - to device service charges

Regulations
All Indian ports are regulated under the Indian Ports Act, 1908. This Act defines the jurisdiction of
central and state governments over ports, and lays down general rules for safety of shipping and
conservation of port facilities.
Major Ports: -->12 (+200 Non major)
Major ports are under the jurisdiction of the Government of India and are governed by the Major
Port Trusts Act 1963, except Ennore port, which is administered under the Companies Act 1956.
The ports act as semi-autonomous bodies under the administrative wing of the Ministry of
Shipping.
Minor Ports:--200
Non-major ports come under the jurisdiction of the respective state Governmentsʼ Maritime
Boards (GMB)

Issues and Challenges with Indian Ports:

1. High turnaround times-Ports in India suffer from high turnaround times for ships. For example, in
Singapore, average ship turnaround time is less than a day. However, in India, it is over two days.
(Economic Times)
2. Port congestion: Port congestiondue, container volume,shortage of handling equipment and
inefficient operations is a major concern Example: In Nhava Sheva port
 inefficient operations is a major concern. Example: In Nhava Sheva port
3. Sub-optimal Transport Modal Mix: Lack of requisite infrastructure for evacuation from major and
non-major ports leads to sub-optimal transport modal mix
4. Limited Hinterland Linkages: There is inefficiency due to poor hinterland connectivity through rail,
road, highways, coastal shipping and inland waterways. This in turn increases the cost of
transportation and cargo movement
5. Lengthy inspection and scrutiny: Though customs operations in India are rapidly going paperless
and converting to digital, inspections and scrutiny continue to be lengthy for cargo and other shipping
operations.
6. Inadequate infrastructure and Technology Issues
Lack of adequate berthing facility, number of berths, sufficient length for proper berthing of the
vessels at the Non-Major Ports is another problem.
Most Indian ports lack of equipment for handling large volume
Further many ports also lack adequate navigational aids, facilities and IT systems
7. Issues with Regulations:
The major problem with regulation is that major and non-major ports fall under different
jurisdictions. Further, the regulatory framework is rigid.
Cabotage laws in India continued to remain restrictive. Foreign-flagged vessels are not allowed to
ship cargo from one Indian port to another as that remains a protected turf for domestic shippers

Land acquisition and environmental clearances are some specific challenges for non-major
ports.
8. Issues with PPP Model:
Most port PPPs impose strict limits on what private operators are allowed to do, usually in terms
of the types of cargo they are allowed to handle.
Until recently, Other problems were related to tariff regulation and absence of dispute resolution
mechnaism
9. Environmental impact:
During the operation of ports, spillage or leakages from the loading and unloading of cargo and
pollution from oil spills are common due to poor adherence to environmental laws and standards.
The water discharged during the cleaning of a ship and the discharge of ballast water is a threat
to marine ecosystems
Dredging causes environmental problems (increased sedimentation) affecting local productivity
of the local waters and its fisheries.
10. Social impacts of Port Development:
Most port projects and development results in displacement (such as Gangavaram Port in
Andhra and Mundra in Gujarat).
Besides displacement, the other important concern expressed by fishing communities is the
restriction of access to fishing grounds around a port.
11. Manpower and Labour Issues:Lack of adequate training, falling manpower quality, opposition to
reform are major issues
Major Committees and Recommendations:
1. Vijay Kelkar Commiitee on PPP:
With regards to ports, the committee recommended review of role and need of Tariff Authority
for Major Ports (TAMP), review of MCA, quicker clearances, rationalized leases and stamp duties
2. Niti Aayog in its Three Year Acton Agenda (2017-2018):
Increase competition through easing cabotage
Explore creating deep-water ports or barges for ports with low drafts
Facilitate minor/non-major port connectivity to hinterland areas

GOVT INITIATIVES
The Union Cabinet has approved the Major Ports Authority Bill 2020 --> for regulation, operation
and planning of Major Ports
At present, major ports are regulated by the Major Port Trusts Act, 1963
Major Ports Authority Bill 2020 Features:
vests the administration, control and management of such ports upon the Boards of Port
Authorities
empowers the Board of Port Authority to raise loans and issue securities for the purposes
of the capital expenditure and working capital requirements of such port authority.
seeks to constitute an Adjudicatory Board for adjudication of disputes among major ports,
Public Private Partnership concessionaries and captive users
Faceless
Paperless
Sagarmala
Dry port developments

SAGARMALA
Major components of the project include:
Port Modernization & New Port Development
Port Connectivity Enhancement
Port-linked Industrialization
Coastal Community Development
Way Forward:
1. Environmental clearances, Tariff norms, land acquisition etc. need to be standardized and
implemented for the port sector so as to boost foreign investments
2. It is important to provide rail and road connectivity to major and minor ports in order to ensure
seamless multimodal transport and improve efficiency
3. Priority should be given on expanding capacity and improving operational efficiency. Emphasis
should be placed on installing advanced cargo handling processes, scalability in processes and
mechanisation of port operations.
4. Technologies like big data and advanced GPS navigation systems should be optimally used for better
functioning of ports
5. The regulatory regime should be made less complex and less rigid.
6. Port modernisation and new port development, port connectivity enhancement, port-linked
industrialisation and coastal community development under the Sagarmala project has an
immense scope for reduction in transportation and logistics costs and boosting export
competitiveness
INLAND WATER TRANSPORT

Fact
Logistic share of waterways in India remains only at about 1.5%, as compared to China having 8%
share.

News
Recently Ministry of Shipping waived waterways usage charges (WUC) for the next three years
 Recently, Ministry of Shipping waived waterways usage charges (WUC) for the next three years.

POSITIVES OF INLAND WATER TRANSPORT

ease burden from rail, road
Cargo capacity
Safety of shipping
Cost
World Bank : road is 2 times
environmentally sustainable
gateway to NE -> boost connectivity in the region
employment
multi modal transport planning

(Adapted from U.S. DOT Maritime Administration)

Mode of Transportation (Safety) (Enviro)

1 unit 1 unit

100 times less 3 times more than ship

100 times less 10 times more than ship

NEGETIVES/ CHALLENGES
ECOLOGICAL
Seasonal variation in water level in rivers
diversion of water for industrial, irigation
siltation, pollution of rivers
navigation -> oil spill
threat to aquatic animals e.g. Gangetic dolphin
blind – rely on biosonar
Ministry of Shipping has planned to safeguard - by restricting the speeds of vessels
and blowing sirens and horns.
POLITICAL
inter state water dispute
inter linking of rivers needed
TECHNICAL
 inadequate depth of water
shortage of vessels
lack of terminals and inland ports
lack of repair, maintenance and overhaul facility
modern navigation and safety system

WHAT GOV IS DOING

Inland waterways authority of india (IWAI) set up in 1986
National waterways act 2016
declared 100 waterways as national waterways (NW)
Sagarmala
Ministry of Shipping waived waterways usage charges (WUC) for the next three years.
money raising through infrastructural bonds
JAL VIKAS MARG PROJECT
1400 km from Allahabad to haldia (west bengal) on ganga
technical and financial assistance from WB
states involved – UP, Bihar, Jharkhand, WB
vessel tracking and monitoring system -> avoid vessel collision

Way ahead
....

Dry port

A dry port is an inland intermodal terminal directly connected by road or rail to a seaport and
operating as a centre for the transshipment of sea cargo to inland destinations.
**General Transport
*Civil Aviation
Conclu
Expand the airport capacity more than 5 times to handle 1 billion trips a year under a new
initiative - NABH Nirman.

CIVIL AVIATION POLICY 2016

OBJECTIVE??
• make india 3rd largest civil aviation market by 2022
• increase cargo volume 4 times

PROBLEMS IN AVIATION SECTOR

Restricted to major cities only
Cost
Surcharges
Capacity
Cargo
WiFi
india is the only country other than North korea that does not allow wifi facility in aircraft
even international flights flying over india have to switch off wifi
…….

others
loss making airlines – Air india
unruly passenger - (MONTREAL PROTOCOL) - airline's right to seek compensation for expenses
caused by unruly behaviour; india – not ratified yet
*Housing for all
Intro
The Pradhan Mantri Awas Yojana (2015) —> (3 crore shortage : Census 2011)

STATUS
PMAY
1 cr houses sanctioned
60 lakh grounded
30 lakh delivered
Mumbai Dabawallas will be getting houses

PROVISIONS
PMAW (Urban)
Slum rehabilitation of Slum Dwellers with participation of private developers using land as a
resource.
Promotion of Affordable Housing for weaker section through credit linked subsidy.
Affordable Housing in Partnership with Public & Private sectors.
Subsidy for beneficiary-led individual house construction /enhancement.
PMAW (Rural)
1 crore households - assistance for construction of pucca house
1,20,000 in plain areas and to Rs 1,30,000 in hilly states/difficult areas
Way ahead
For all Infra projects - like Telangana - Flying squad can be made - comprising of IAS, IPS, IFoS
officers (12 blocks randomly allowed) monitoring and surprise visiting places to check progress and
recommend interventions.
1.1cr houses lying idle :Census 2011 -->Draft Model TENANCY Law 2019 --> for RENTING
Disposal of over 10k enemy properties which the government estimates is worth about Rs 1 lakh
crore.

Draft Model TENANCY Law 2019 --> for RENTING

Facts
1.1cr houses lying idle :Census 2011
Bcoz tenants are often accused of “trying to grab the property” on the rented premises

Context: Centre has proposed a DraftModel TENANCY Law 2019 to regulate renting of premises.

Highlights of the draft:

 Compulsory rent agreement in writing in both rural and urban
The security deposit to be paid by the tenant in advance will be a maximum of two monthsʼ rent.
In some cities- 11 months of rent ;
Both landlord and tenant will have to submit a copy of rent agreement to the district Rent
Authority - will give a unique identification no
If the landowner refuses to carry out the required repairs, the tenant can get the work done and
deduct the same from periodic rent / security deposit.
It mandates the landowner to give a notice in writing three months before revising rent.
According to it, tenants overstaying will have to pay double the rent for two months and four
times thereafter.
Set up Rent authority in every state for the registration of all tenancy agreements
States will be required to constitute rent courts and rent tribunal - for faster dispute resolution.
Landowner cannot cut power and water supply in case of a dispute with the tenant.
States will be free to adopt the law owing to land being state subject.
No retrospective -
Repeal of rent control acts - politically sensitive like south Mumbai - many living at negligible rent

Significance:
Ease the burden on civil courts,
unlock rental properties stuck in legal disputes, and prevent future tangles
Whimsical rent raises
Provide housing for temporary migrants - e.g. students and professions
Affordable housing to poor - who cant buy

Conclu
balancing the interests of tenants and landlords.
*Power sector
Electrification

News
Recently, pan-India Real Time Market in electricity was launched.
Real time market is organised market platform enabling buyers and sellers to meet their energy
requirement closer to real time operation.
Auctions will be held 48 times a day
Two platforms: Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL).
Prime Minister calls for One Sun, One World, One Grid (OSOWOG) initiative - aims to connect 140
countries through a common grid that will be used to transfer solar power.
RURAL ELECTRIFICATION

CRITERIA FOR RURAL ELECTRIFICATION??

1. min 10% of household = electrified
2. public space – schools, hospitals etc should be able to avail power supply on demand
 3. basic infrastructure such as distribution transformer should be available in village

CHALLENGES??
Techincal
high AT&C losses (aggregate technical and commercial) (25% according to CEA report)
low plant load factor of coal (60%) - indicator of capacity utilisation of power generation units
problem of load distribution
Financial
debt ridden power distribution companies (UDAY scheme) (Rs 40000 crore as NPA)
high aggregate technical and commercial losses,
inadequate tariff hikes - high cross subsidisation (reduce it)
inadequate and untimely subsidy disbursements
Non availability of regular fuel supply arrangement
cancellation of coal block -> shortfall in supply of coal
high cost of renewable energy devices
Administration
land acquisition, environmental clearance -> stalled projects
People
accessibility (30 crore people have no access to electricity, according to Census 2011)
power theft – due to high electricity tariff
geographical barrier – hilly terrain (NE)

Govt initiatives
UDAY
NTPC + PowerGrid —> joint venture- National Electricity distribution company (NEDC)
Saubhagya
DDU GJY
GARV- app to provide information about rural electrification in all villages
SAMVAD window – feedback from people – forwarded to concerned authorities

DIN DAYAL UPADHYAYA GRAM JYOTI YOJANA 2014

Features
new substations and high voltage distribution networks
separate feeder lines for agro and non-agro purpose = better load management
24/7 electricity to all rural household by 2019 using metered connections

Adv of NEDC
*Railways
INTRODUCTION??
NEED --> Both Station and Trains-Freights !!
MODERN
AFFORDABLE
SAFE
ENVIRO FRIENDLY
world's 3rd largest rail network
carry 2.3 crore people daily, 3 million tonnes of freight daily, 13 lakh employee ; 90% of the total coal
moved in India.
hence, balancing act between commercial operations and social obligations
65% railway's income from freight

Conclu
Developed country is not a place where poor people uses the car, it is the place where rich people
uses public transport
50 lakh crore between now and 2030.
The capital outlays for Railways is just about Rs 1.5 lakh crore per annum --> Need Private

CHALLENGES??
OPERATIONAL
operational ratio =98 in 2017-18 (CAG report)
railways has been spending 98 paise on every rupee that it earns.
accidents – derailment, unmanned level crossings
modernisation – old trains, lack of LHB coaches
quality of service – time delay, safety, food
freight related issues – lack of dedicated freight corridor -> freight delay
REGULATORY
Human resource management – many classification of railway officials
DRM do not have financial, functional autonomy
Human resource at lower level - used for domestic purposes
accountability – during accident?
FINANCIAL
cross subsidization – reduce export competitiveness
And donʼt need in Shatabdi AC coach
only 5% of non fare revenue
budgetary support
private investment
extra budgetary resources (60%), which primarily includes borrowings(less FDI and PPP),
followed by budgetary support (33%) and railwaysʼ profits (10%).

GOVT INITIATIVES
 REFORM Done (Bibek Debroy Committee)
Change the composition of the Railway Board;
Unify various railway services; - Restructuring of railways
Unite the Railway Budget with the Union Budget.
Allow private entry, including in running of private trains;
For operation -over 100+ Origin Destination (OD) pairs of routes using 150+ modern trains
Decentralise decision-making to zones/divisions and even further below;
Other
OPERATIONAL
Mystery shoppers to track railway services- will move as passengers
REGULATORY
Proper delineation of functions, establish accountability
FINANCE
Dedicated Freight Corridors

WAY AHEAD??
OPERATIONAL
Independent body like railway safety authority (Now already independent Rail devpt
authority)
technical committee – technical audit
Expand the rail network to de-congest the traffic and increase the traffic speed
REGULATORY
....
FINANCE
Non fare revenue policy
Disinvestment in non-core e.g. Indian railway container corp
Reduce - cross subsidization
Restructuring of the Railway

Reforms
Railway board includes 8 members - now 5
Chairperson will act as Chief Executive Officer(CEO) along with four members responsible for
Infrastructure, Operations & Business Development, Rolling Stock and Finance respectively.
Merger of the different cadres into a central service called the Indian Railway Management Service
(IRMS).
Rank of GM = Rank of Board members

Need
Ending departmentalisation
promote smooth working of Railways, expedite decision making
More efficiency and accountability
Reduce working in silos and help in better output
e.g.
Drinking water - responsibility of civil engineering.
Water-coolers are looked after by electrical
Recommend by Bibek Debroy Committee (2015) - for 2 services
Prakash Tandon Committee- for 1 service

PRIVATE TRAIN MODEL

In this model, the physical infrastructure of the train such as locomotives, coaches, loco pilots
among others will remain in the Indian Railwaysʼ hands.
However, the services provided including ticketing and refunds, parcels, catering and housekeeping
will be outsourced to Indian Railway Catering and Tourism Corporation(IRCTC).

e.g. Train TEJAS

This is the first private train—> Delhi - Lucknow - running on same track as IR but free to provide
amenities and charges of train

Dedicated Freight Corridor (DFC)

Dedicated Freight Corridor (DFC)

DFC is a high-speed and high-capacity railway corridor dedicated exclusively for freight (goods
and commodity) movement.

Facts
Construction of 2 freight corridors – COST (of both) - 12$ billion
the Western DFC connecting the states of Haryana and Maharashtra, and
Eastern DFC connecting the states Punjab and West Bengal – is being undertaken.
The other four corridors include - These four corridors are still in the planning stage.
North-South (Delhi-Tamil Nadu),
East-West (West Bengal-Maharashtra),
Etc….
Contractor
L&T.
Adv
Speed
Cost
Capacity
Reduce unit cost of transportation by speeding up freight train operations & higher productivity:
DFC can allow train speed to a maximum of 100 kmph from the current average speed of around
25kmph
Improving Carrying Capacity: By adopting state-of-the-art technology, DFC will make significant
improvement in basic design features (More height, width, container stack etc.)
Decongestion of traffic: The diamond quadrilateral which is just 15% of rail network carries 50% of
total freight traffic.
New Economic Activity: It will facilitate fresh industrial activity and multi-modal value-addition
service in surrounding
Challenges
Land acquisition
Double stack vs single stack: The project has adopted different technical standards . WDFC- double;
EDFC - single stack
This makes seamless movement of double stack trains from WDFC to EDFC tough.

Way ahead
Allow private participation, along with Indian Railways in bringing end users.
Fasten up the process of land acquisition
RAIL SAFETY AND ACCIDENT

INTRODUCTION??
Patna – indore express derailment – 115 reported casualities (2016)

REASON
HUMAN
Staff deficit
Ignorance
25 dead, 400 injured as Utkal Express derails near Muzaffarnagar, UP (2017)
Driver has applied the brake suddenly seeing the repair work going on in the track.
TECHNICAL
Wagon (DFC)
lack of fire detection system
the incidents of fire has increased to six in 2018-19 :Economic Survey 2019
Lack of anti collision technologies
incident of train collisions has come down to zero in the year 2018-19 :Economic Survey
2019
Derailment - bcoz of Carriage and wagon defect, old carriages, failure of railway equipments
incidents of derailment have also decreased in the year 2018-19 :Economic Survey 2019
Tracks
unequal gauge length, old tracks
over utilisation of tracks – same track for freight and passenger trains
since independence, 25% increase in rail network, but > 1000% increase in passenger
and freight traffic
tempering ith il t k t t ft tfit lit
 tempering with railway tracks – protest, cases of terror outfits, naxalites
Unmanned level crossings (phatak hi nhi hai)
Signal system

IMPLICATIONS
economy
Social
tourism
....

Govt efforts
Signaling
Railway New Signaling system - Automatic train protection (ATP) system that helps in
adhering to permissible speed limits without driver intervention
4G-based mobile train radio communication system (MTRC) which will can be used for
emergency communications.
Rashtriya Rail Sanraksha Kosh
corpus of ₹1 lakh crore to be utilized over a period of five years for replacement, renewal and
upgradation of critical safety assets.
Wagon
use of LHB (linke hoffman Busch) in place of ICF coaches - lighter, safer, speed
Tracks
dedicated freight corridor
ultrasonic flaw detection to keep traks safe
IIT Madras is designing automatic fracture detection system for indian railways
Admn
HRD
Safety inspections at regular intervals to monitor and
educate staff for observance of safe practices.
Setu bharatam project – elimination of unmanned railway crossing
….Baki based on above reasons

WAY FORWARD
Finance
high budgetary support to railways
Invite private - 50 lakh crore needed
Independent body like railway safety authority
Elimination of unmanned level crossing (setu bharatam project)
audio-visual warning at level crossings
Responsibility attachment
Railway stampede- Elphinstine
Privatization of railways :

Cons
It is difficult to find a buyer who can manage such humungous resources – human, physical and
financial.
Preference to profit making routes and not hinterland
Job losses—> social unrest.
Increase in railway passenger tariffs -unaffordable for many.
Rise in cost of essential commodities

Conclusion
Not merely a commercial entity –important social obligations -affordable means of transport

METRO RAIL POLICY 2017

PROVISIONS??
centre would approve metro rail projects only if
private participation + last mile connectivity through feeder services
“economic internal rate of return of 14%”.
financial viability of metro projects – commercial development at stations, non fare revenue
generation through advertisement, lease of space
mandatory alternative analysis – e.g. BRTS, Light rail transit, Tramways, metro rail
independent 3rd party assessment by agencies
some money raised from JICA, European investment bank

POSITIVES??
More rational location/city
More rational route
PPP led growth -> boost investor's confidence
….

NEGATIVES??
Advanced planning….

Rail development authority

NEED?
railway operation like setting passenger fares = politicisation
cross subsidisation

WHAT??
WHAT??
Advise railway ministry related to
tariff for freight and passenger fares
setting performance standards for rail operations
suggest policies for private sector participation

(2018) Railways blueprint confirms its fears: Air travel will be No. 1 choice in three years
It show that 25 per cent of domestic air travel happens over inter-city distances within 500 km —
Contrary to popular perception that air travel is chosen only for 800-1,000-km distances.
Railways - From a growth of 10 per cent in 2014-15, it shrunk to 5 per cent in 2015-16
Airways - The 20 % for next 5 yrs..
*River interlinking project
*Road development
Conclusion
WB report 2019
Connectivity there has been a positive impact on child immunisation, childbirths in hospitals,
and schooling of both boys and girls in rural areas
DHOLA SADIYA BRIDGE (Bhupen Hazarika) --> Security (Naxal - NorthEast)
connect assam and Arunachal pradesh
ISSUE
Above wale....
NHAI—> stuck projects - mostly on (BOT-Toll) mode.
Finance
BUT To reduce financial stress, the PMO has suggested a return to (BOT) projects from EPC and
HAM
monetise asset

Reason
PMO said NHAI is stuck with unplanned and excessive expansion
......

Govt Measures —> to revive stalled projects on National Highway:

Finance
NHAI seeks to raise ₹85 000 crore via asset monetization by FY25
 NHAI seeks to raise ₹85,000 crore via asset monetization by FY25
INVITS
One-time fund infusion
Monetization of projects through Toll- operate Transfer model, securitization of toll
revenue etc.—> attract fresh capital from the market
Monitoring
Streamlining ofland acquisition and environment clearances..
Renegotiation of T&Cs in the PPP contracts
Further improvement in contract documents
PM GRAM sadak yojana

ACHIEVEMENTS?
More than 1 lakh habitations have been connected
Stages
PM GSY - Phase 1
Involved construction of new all-weather roads in rural habitations - kutcha road —>
Formally ended in March 2019 — 6 lakh km/ 6.5 got built
PMGSY-II
the focus was on upgradation of existing roads — their strengthening through re-laying of
surface, widening —> About 30k / 50,000 km completed
Separate “Road Connectivity Project for Left Wing Extremism Affected Areas”
PMGSY - III
Costing Rs 80000 crore
Linking already-built roads to agricultural markets and villages
CONDITIONS
Implements the Agri reforms
Plant trees on boundary
Use plastic

Impact
WB report 2019
scheme led to a shift from farm to non-farm employment
Connectivity there has been a positive impact on child immunisation, childbirths in hospitals,
and schooling of both boys and girls in rural areas

Urban mobility
Road accident - E4
FACTS AND FIGURES??
1.5 lakh people die every year due to road accident (NCRB data)

DEFN
Golden Hour:It is the time period of up to one hour following a traumatic injury, during which the
likelihood of preventing death through prompt medical care is the highest.
Black spot:It is defined as a stretch not more than 500m in length where five accidents have taken
place or where ten fatalities have happened in the last three years.They account for 90% of road
accidents in the country.

CAUSES??
Policy issue -
poorly designed and maintained roads,
ineffective implementation of existing laws (motor vehicle act)
corruption in RTO -> fake licences
Individual level
drunk driving (15%)
solution : raise legal age for drinking alcohol
rash driving - overspending (25%)
talking on mobiles while driving

IMPLICATIONS?
Economic cost...
social cost
death of bread winner -> poverty, distress
disability -> stigma, loss of human productivity

CHALLENGES??
Harassement of good samaritans

GOVERNMENT INITIATIVES??
Law
motor vehicle (amendment) act 2019
Al h l
 Alcohol
SC banned sale of alcohol within 500 m from national and state highway
Policy
Vaahan and Saarthi -> digitisation of RTO operations -> reduce corruption
.....
Smart city - traffic management
Good samaritans law
IndiaRAP - Highways to be rated from 5 star to 1 star based on safety. Decentralised approach.
3rd party Assesment. Good governance - people involved.
Community participation - 40 employees of a company contribute and start fixing potholes in
Benguluru. Trying to get funds for private and companies.

RECOMMENDATIONS OF COMMITTEE?
Sundar committee on road safety
establishment of directorate of road safety and traffic management

MOTOR VEHICLE (AMENDMENT) Act 2019 - PROVISIONS??

1. National Road Safety Board@ the central.-advice on all aspects of road safety and traffic
management.
2. strict penalties for high risk offences –
1. drunk driving - 10k
2. Phone pe - 5k
3. e-registration of vehicle
1. aadhaar number required to apply for license, vehicle registration
4. protecting good samaritans from harassment

WAY AHEAD??
education
road safety = part of school curriculum
Garland or other gift for no helmets - free distribution of helmets - Rachkonda police has done
engineering (of roads, traffic)
Good transport and National freight policy – ease out traffic burden on passenger vehicle
Central information system – combining data collected from both police and hospitals
(Cambodia)
enforcement
road safety audits
....
emergency care
national trauma care policy for road accident victims
quick relief – air ambulance, well equiped mobile clinics