Professional Documents
Culture Documents
Indian Railways PPP 2003 Final Last
Indian Railways PPP 2003 Final Last
Indian Railways PPP 2003 Final Last
Rampala
Memorial Lecture 2010
Bankruptcy inevitable!
Approach
Rakesh Mohan Committee (RMC)
• Appointed by Government
• Review the Indian Railways operations
• Members: vast knowledge in railway and transport sector plus those
with futuristic thinking and knowledge/education background.
• The RMC repot submitted in year 2001
Problems
• Hon Minister Lalu Prasad Yadiv (Minister since 2004) continued the
philosophy & strategies
Results
Within 3 years Indian Railways showed impressive results
In year 2005 -2006 operating ratio of 83.5 % compared to 98.3% in year 2000
Targeted to achieve operational ratio of 65% in year 2010
Year 2000
2005-06 2010-11
Operating Ratio 98.3% 83.5% 65%
Eng. B D Rampala Memorial Lecture-2010 10
1999-00
Operating ratio
Wagon Turnaround
Repositioning strategies
Reorganization strategies
Focus on growth
Product innovation
Product differentiation
Improving market shear
IRFC RVNL
IRCON IRCTC
Non interfering
Sets goals
Expects results
Ensures organization alignment
Follows up fundamental initiatives
Autonomy to Railway Board
Eng. B D Rampala Memorial Lecture-2010 28
Direct Approach
All dealings with Minister and Indian Railway Board has been through a noble
person appointed as officer on special duty (OSD), Mr Sudhir Kumar.
Role:
Specially chosen by the minister for this position based on earlier experiences and
interactions with him. His role would be to provide the link between the minister and
railway board and translate the vision of minister into action in railway.
all this has happened through the existing systems and culture of the Indian railway.
Eng. B D Rampala Memorial Lecture-2010 31
Image Building
Sustainability
★ The rail sector has committed itself to cut the specific emissions of
rail transport by 30% over the period 1990-2020
Land take
★ Railway infrastructure occupies 2-3 times less land per
passenger or freight unit than other modes of transport
External costs
★ The external costs of rail may be as low as 1% of those of roads
Introduce
•Rakesh Mohan Committee .2001. Highlights of the executive summary, available at http:/www.irastimes.org/rkmreportingexesummary.htm
accessed on 30 may 2007.
•World Bank. 1994. The World Bank railway database available at http:/www.worldbank.org/transport/rail/rdb.htm.
•Desh Gupta and Milind sathye (Financial turnaround of Indian railway) 2008. Accessed from Scribed web site. On 17.6.2010.
•IRFC Indian Railway Finance Corporation. 2004. Anual report of the Indian railway financial cooperation. New Delhi.