Indian Railway

Founded 16 April1853

Key People Mamata Banerjee

E-Ahamed & K.H.Muniyuppa

Employees 16,00,000(2009)

Revenue Rs88,355 crore(2009-2010)

Technical Details Three Gauges :Broad, Meter,

Narrow
Stations 7000 – 8000 approx.
Hierarchy of Trains Duranto Exp. ,Rajdhani Exp.
,Shatabdi Exp. ,Express &
Passenger, Suburban Trains
 Services

Accommodation
Passenger
classes

Catering &
Passenger Public Tourism
Amenities Grievances
UPWARD MARCH OF INDIAN
RAILWAYS
COST STRUCTURE OF INDIAN RAILWAYS

2007
STRATEGIES ADOPTED FOR TURNAROUND

RETRENCHMENT

RE-POSITIONING
ORGANIZATIONAL
STRATEGIES

RE-ORGANISING

ENVIRONMENTAL
FACTORS
 RETRENCHMENT

• Cost Cutting Initiatives

-Operating expenses will be reduced
• Efficiency improvements
-Ratio of total working expenses to gross
revenue receipts
• Outsourcing
-Catering and Parcel Service
• Downsizing
 REPOSITIONING
(Revenue Raising Initiatives) 

Focus on growth
• Focus on requirement of CUSTOMERS
• Two types of Customers:
– Availing Freight Services
– Availing Passenger Services

• Turnaround mainly Freight Revenue driven

– Increased Axle Load
– Reduced Wagon Turnaround
–
 CONTD…

• Improved Passenger Revenue

– Competitive pricing
– Increase in Passenger Comfort & Amenities
– Safety concerns of Passengers
 CONTD…

• Product innovation
-Double stack containers
-Availability of Wagons specifically designed

• Product differentiation
- e-Ticket
 RE-ORGANISATION
 

• Changes in planning systems

-Improved accounting and management information systems
-Long range decision support system
-State of art passenger reservation system
-Freight operating business system
-Enterprise resource planning

• Decentralizing
-Setup of zonal centers
-Zones raised from 9 to 16 centres
-Vendor management system
 CONTD…
• Human resources initiatives
-Improved working conditions
-Indian railway strategic management institute
-Participation of railway employees in management
-Sports facilities
-Multitasking of staff and revenue increase

• Change in organisational structure

-Change in decision making process
-Transformed to a customer focused organisation
-Call centres and regular updating
 ENVIRONMENTAL FACTORS
 

• Rise in demand
• Impact of the Pay Commission
• Decline in the financial cost
FINANCING OF INDIAN
RAILWAYS
 XI- FIVE YEAR PLAN FOCUS AREA
1. Capacity augmentation, especially Delhi-Mumbai and Delhi-
Howrah dedicated freight corridors
2. Establishment of logistic parks and terminals
3. Rationalization of freight structures
4. Increased use of IT enabled services
5. World class quality passenger amenities
6. Public-private partnerships for building and operation of rail
infrastructure
7. Design of high capacity wagons
8. Restructuring of IR to focus on core activities
9. Establishing a Rail Tariff Regulatory Authority
INDIAN RAILWAYS – A REAL
TURNROUND
NET REVENUE
OPERATING RATIO
DETERMINANTS OF TURNAROUND
GOODS EARNINGS
Contd…
PASSENGER EARNINGS
 OTHER EARNINGS

• PARCEL EARNINGS
• CATERING
• ADVERTISEMENT EARNINGS
BUDGET 2010-11 HIGHLIGHT
 BUDGET ESTIMATE
Freight loading targeted at 944 MT – an
increment of 54 MT; number of passengers
likely to grow by 5.3 %.
Gross Traffic Receipts estimated at Rs. 94,765
crore, i.e Rs 6490 cr more than 2009-10.
The dividend payable to general revenues kept
at Rs 6608 cr.
Budgeted operating ratio 92.3%.
 ANNUAL PLAN 2010-11
 Highest ever Plan Outlay at Rs 41,426 cr., an increase of Rs 1142 cr over
2009-10.
 New Lines – Rs 4411cr.
 Passenger Amenities–Rs 1302 cr.
 Metro Projects – Rs 1001cr.
 Acquisition of 18000 wagons.
 Additional budgetary support of Rs 3701 cr sought for 11 National
Projects.
 1021 km of New Lines to be completed. 9 new line projects announced.
 800 km of gauge conversion and 700km of doubling targeted.
 Several projects being taken up on cost sharing basis with State
Governments and on PPP mode.
 INDIAN
RAILWAY
 Financial back up from Assets are not properly utilized
government Government protocols, lot of
 Biggest company in the world in negligence
terms of Employee Strength Lack of safety measures in all trains
 Large Infrastructure Delay in train timings
 Large Network across the
country
 Luxurious and also affordable to
common man

Use of Latest Technology Low cost airlines

Better customer service Development of roadways
Metro trains in cosmopolitans cities
Privatization of Railway
 Change Management by Prof. V. Nilakant 03 & Prof. S. Ramnarayan

Learning Turn Around

•Process of testing
•Understanding the
Organisations
Forces of stability and
readiness to change
changes In
Gathering support
organisation
and collecting info
•Need of change
and IDEAS Sudhir
(Technological,
Kumar
Quality , Cost,
Marketing, etc..)

•Evaluating and •Creating and putting

continuous in place the new
implementing structure
1. Cognitive Turner •Generating cross
2. People Cataliyser functional team and
3. Systems Architect Innovation
4. Efficiency Builder
 Learning
• Choosing the right people
• Take calculated risks
• Full Utilization Of Assets
• Think out of Box
• Use Of all Information
• Leaders Ambitions
 SOME RECENT NEWS ABOUT IR

• Revenue Earnings up by 7.83 per Cent During April-

September 2010
- 7.83 % (44323.70 CR. to ` 41104.78 )

• Railways’ New ‘R3i policy’ aims at attracting private sector

participation in Rail connectivity ( Additional rail transport
capacity can be created)
– Cost sharing-freight rebate model,
– Full contribution- Apportioned earning Model,
– The SPV model and,
– The Private Line Model.
 Cont..
• Railways Make ‘Jan Sadharan Ticket Booking
Sewak’ Scheme More Flexible (Introduced in
2008)
  - Bank guarantee reduced  40,000 to   20,000
Security Deposit reduced  15,000 to 5,000
• Plan to provide bottled drinking water at
cheaper rates to passengers through 6 more
water bottling plants
 Cont..
• Introduction of New Trains
Year New Trains Increase in
Suburban Non Frequency
Suburban (Non
Suburban)

2007-08 162 192 56

2008-09 235 279 86
2009-10 132 213 34

• 10.65 lakh acre of land (90 % under use and remaining

10%= 1.13 lakh acre)135 sites measuring 3761 acres have
been entrusted to RLDA for commercial development.
 Cont..

• 327 ongoing projects under new lines, gauge

conversions and doublings across the country
with a huge throw forward of about Rs. 98000
Crore as on April 1, 2010.
• Two wind mill plants of 10.5 MW capacity each,
estimated at Rs. 66.5 crore each have been
sanctioned will complete in coming two years
• Rail To NEPAL (BUDGET 2010-11)
• Internet Facility in Rail (BUDGET 2010-11)
 Cont..
• Railways in SPORTS
- 16 Padamshree,
- 3 Rajiv Gandhi Khel Ratna,
- 5 Dronacharya Sammaan,
- 6 Dhyanchand Sammaan
- 134 Arjun Puraskar
- CSR :- ‘Commonwealth Express’
 VISION 2020
•  Add 25000 Kms of Lines by 2020 with Govt
funding & PPP
• 2. Increasing  Passenger Train speed from
110-130KMPH to 160-200KMPH
• Electrification of 14000 Kms
Thank
you…