Reform, Perform and

Transform
Indian Railways
JULY 2017
 Reforms proposed

Process flow to achieve Vision 2022

Challenges faced at Reforms agenda Performance Transformation

the start of the achieved plan for 2022
journey

A transformation is
A slew of reforms were
The scale of Commendable underway in Indian
announced aimed at
challenges was progress has been Railways in pursuit of
eliminating issues
enormous made in last 3 years clear, defined goals
plaguing from years
CHALLENGES YEARS OF UNDER-INVESTMENT IN INFRASTRUCTURE

Overstretched Infrastructure – with more than

60% of routes being more than 100% utilised

In the last 64 years while the freight loading has

grown by 1344% and passenger kms by 1642%,
the Route kms have grown by only 23%
CHALLENGES LACK OF CUSTOMER FOCUS

Inability to meet the demands of its both freight

and passenger customers

Apart from the quantum of investment, quality

of delivery an issue

Cleanliness, punctuality of services, safety,

quality of terminals, capacity of trains, quality of
food, security of passengers and ease of
booking tickets among major customer focus
issues
CHALLENGES LOW INTERNAL GENERATION OF RESOURCES

Passenger trains utilise two-thirds of capacity

and generate only one-third of revenues

High freight tariff leading to getting out-priced in

market

Inadequate carrying capacity leading to

decreasing modal share in freight and huge
unmet passenger demand

Negligible diversification in commodities being

catered for

Negligible proportion of ‘Non-fare’ revenues

CHALLENGES ORGANISATION RIGIDITY

Slow decision making, inadequate market

orientation and silo working

Long project approval duration- average 24

months
REFORMS AGENDA for
investment
(5YEARS) Total: `8,56,020 Cr
Network Decongestion (including DFC + electrification, Doubling+
electrification& trafficfacilities)
1,99,320
Network Expansion (includingelectrification) 1,93,000
NationalProjects (North Eastern & Kashmirconnectivityprojects) 39,000
Safety(Trackrenewal, bridgeworks, ROB, RUB and S&T) 1,27,000
InformationTechnology/ Research 5,000
RollingStock (Locomotives,coaches,wagons – production & maintenance) 1,02,000
PassengerAmenities 12,500
HighSpeed Rail& Elevated corridor 65,000
Stationredevelopment + logisticparks 1,00,000
Others 13,200
REFORMS AGENDA for
investment PARTNERSHIPS
JVs WITHSTATE
RIDF (Railways of India OFF-BUDGET DEBT
GOVERNMENTS
Development Fund) IR to tie up long- term
Railway & State
Fund proposed to finance Rail fund for projects
Governments to be
Infrastructure; independent of
shareholders IR PSUs to leverage free
Railway Budget
reserves/ equity for raising
Revenue streams
debt
from tariff and Will tap international pension,
commercial insurance and sovereign wealth
exploitation of funds and provide for entire
space rights Rail sector in India, not just
Ministry of Railways
REFORMS AGENDA for
infrastructure
BG lines commissioning to increaseto19
kms/day,could rise to 25 kms/day in
partnership with state governments

2 dedicated freight corridors to be

commissioned by 2019; 3 NEW DFCs in
pipeline

Increased pace of electrification @ almost

4000 kms/ year. Target to electrify11,000
Kmsinnext3 years

Over 100 stations to be modernized to

world class standards
 REFORMS AGENDA for
speed

Semi-high speed trains

to be operational along
the goldenquadrilateral

Increased averagespeed of freight trains to 50

kmphand mail/expresstrainsto 80 kmph
REFORMS AGENDA for
infrastructure
DIGITAL
- Include rural India in the digital
revolution by providing Rail wire
Sathi at7000 stations - Internet
enabled Kiosks which serve as
single window for government
schemes and departments

- Implement Enterprise Resource

Planning architecture in Indian
Railways
REFORMS AGENDA for
financial health

10 -20%
non fare revenue

Reductionin fuel costs

Controlling staff costs through

rationalisingrecruitment

Increased share of non core

commoditiese.g.,White goods,
FMCG,Auto
 REFORMS AGENDA for
customer satisfaction
INTEGRATEDCOMPLAINT REDRESSAL
IVRS
IR makes 3 lakh calls
TWITTER everydayto
seek feedback Twitter and
FACEBOOK fromcustomers Facebook have
Integrated 139
already been
Customer Customer integrated. Plan
Complaint INSTAGRAM complaint to develop this
helpline
System comprehensive
YOUTUBE 182
system innext
Security 6 months
CPGRAM helpline
 REFORMS AGENDA for
better governance

Unified cadre of Fully functional

officers working Railway University
towards a
common vision

Institutionalised
system of
Accounting reformsto performance
establish connectivity appraisal based
between outcomes onobjective
andinputs parameters(KRAs)
REFORMS AGENDA for
passenger convenience

Ambitious plan for 2,00,000 rail display Less than 5 min waiting
refurbishment of 40,000+ network screens installed forpurchase of tickets
coaches with world-class across 2000 stations –New enabled through higher
amenities, to be introduced medium for adverts and speeds of web interface,
e.g., Entertainment on information dissemination POS terminals,ATMs
board, Wi-Fi, vending
machines, Autodoors
REFORMS AGENDA for
structural changes NEW STRUCTURES
SHRESTHA SUTRA
New R&D organisation to World class data analytics,
serve the future simulation softwares, network
technology needs of optimisation & decision support
Railways systems

RAIL INVESTMENT & PLANNINGORGANISATION

Develop and own the corporate medium term and long
term plans, identify investment opportunities,
standardise economicassessment of projects and
propose optimal modes of financing
REFORMS AGENDA for
sustainability

To convert allproduction units as well

as at least one workshop in each
zonal railway as green industrial unit

1000 MW of solar powercommissioned by

2020; more than 130 MW of wind energy
REFORMS AGENDA for
sustainability
Rainwater harvesting facility
on all roofs with more than
200sq.m space

Discharge free railways- bio-

toilets in all coaches
PERFORMANCE
ACHIEVED

Commendable
progress has been
made in last 3 years…
PERFORMANCE
ACHIEVED on
investment ACCELERATED CAPITAL INVESTMENTS

INVESTMENT ` CRORE

24,307 45,979 58,718 93,795 1,11,000 1,31,000

AVG2004-09 AVG2009-14 2014-15 2015-16 2016-17 2017-18(PLAN)

Securedassuredfundingof ` 1.5 LakhCrorefromLIC

PERFORMANCE
ACHIEVED on ALMOST DOUBLED THE PACE OF
infrastructure
INFRASTRUCTURE CREATION
BROAD GAUGE LINES COMMISSIONED (KMS) ELECTRIFICATION COMPLETED (KMS)

AVG2009-14 1,528 AVG 2009-14 1,184

2015-16 2,828 1,730

2015-16

2016-17 2,857 2016-17 2,013

2017-18(PLAN) 3,500 4,000

2017-18(PLAN)
PERFORMANCE
ACHIEVED on
infrastructure
ELIMINATED ALL MG LINES IN NORTH
EAST
BROAD GAUGE LINES COMMISSIONED ACROSS NORTH EAST INDIA (KMS)

AVG2009-14 100

AVG2014-16 411

2016-17 481

ALL CAPITAL CITIES OF

NORTH EASTERN INDIAN
STATES TO BE CONNECTED
WITH BROAD GAUGELINES
PERFORMANCE
ACHIEVED on
COMPLETED LANDMARK STRUCTURES
infrastructure
WHICH HAD BEEN DELAYED FOR YEARS

RAIL CUM ROAD BRIDGE ON GANGA - MUNGER JUBLEE RAIL BRIDGE ON HOOGLY - KOLKATTA

HIGHEST RAIL BIRDGE UNDER CONSTRUCTION IN LONGEST RAIL TUNNEL COMPLETED IN NORTH EAST
NORTH EAST
PERFORMANCE
ACHIEVED on
RAMPED UP BUILDING OF NEW FREIGHT
infrastructure
TERMINALS

NO. OF PVT SIDINGS AND PRIVATE FREIGHT TERMINALS COMMISIONED

35 45
2016-17
28 2015-16
AVG2009-14

MISSION ‘100’ WAS LAUNCHED IN 2015-16 TO PLAN TO MODERNISEGOOD SHEDS THROUGH

EXPEDITE COMMISSIONING OF TERMINALS TO PPP UNDERWAY
SUPPORT FREIGHT GROWTH
PERFORMANCE
ACHIEVED on LEVERAGED THE PRIVATE SECTOR TO
infrastructure
BUILD INFRASTRUCTURE

CONSTRUCTION IN FULL SWING AT MARWHORA CONSTRUCTION IN FULL SWING AT MADHEPURA

PROTOTYPE OF LOCOMOTIVE TO BE 'MADE IN INDIA' BEING DEVELOPED IN UNITED STATES

Approved 2 new loco factories in Bihar (were stuck since10 years), oneofthe largest FDIs in India with combined
order book of`40,000 Crore. Factoriescurrentlyunder construction; Target to commission in next year
 PERFORMANCE
ACHIEVED on
infrastructure
MODERNISING STATIONS

Contracts awarded and construction 25+ STATIONS

commencedfor Habibganj and under various stages of bidding
Gandhinagar Railway Stations
Redevelopment programme
would entail investments of
more than `1,00,000 Crore
PERFORMANCE
ACHIEVED on PICKED UP ‘SPEED’
speed

Introduced India’s fastest train

GatimaanExpress
@ 160kmph

Formed ‘NationalHigh Sanctioned `17,000 crore to

Speed Corporation’ to develop Delhi-Mumbai and
undertake high speed Delhi-Kolkatta as integrated
railway construction semi high speed corridors
between Mumbai & (160-200Kmph). Contracts to
Ahmedabad be awardedthisyear
 PERFORMANCE
ACHIEVED on CONSTANTLY IMPROVED FREIGHT
freight
PERFORMANCE
- For the first time ever in Indian Railways, freight rates were reduced

- Port congestion charges dropped

- Dual pricing policy of iron withdrawn

Highest ever
TONNAGE MNTONNES loading by
1,109 Indian Railways
1,095 1,104

1,051

2013-14 2014-15 2015-16 2016-17

 PERFORMANCE
ACHIEVED on
freight LIBERALISED THE FREIGHT SECTOR

Numerous policyinterventions
carriedout

Sidingpolicy Automatic freight Time-tabled

liberalised rebate scheme in freightservices
traditional empty introduced
Multi-point flowdirection
loading introduced
introduced Container
Last mile
Goods sectoropened
connectivity
terminals up for more
through
opened up commodities
Roadrailers,Roll
forhandling
on RollOffs
containers
 PERFORMANCE
ACHIEVED on
customer service
BECAME MORE CUSTOMER FRIENDLY

Appointed Key Customer Structured dialogue Electronic registration of

Managers to serve as single between Railways and Demand and Electronic
point of contact for all Customers christened transmission of Railway
major freight customers. ‘Samvad’ started Receipts started
Introduced Longterm
contracts, which are being
signed by key customers
 PERFORMANCE
ACHIEVED on
IMPROVED CUSTOMER EXPERIENCE BY
customer service
GOING DIGITAL
%OF CASHLESS TRANSACTIONS
1,20,000
Number of simultaneous internet
Passenger 68% users handIing capacity
Business

Freight 99%
Business
System capability improved by 3 times
 PERFORMANCE
ACHIEVED on
INSPIRED FROM ‘SWACHH BHARAT’,
customer service LAUNCHED ‘SWACHH RAIL’
Over
NO. OF BIO-TOILETS NO. OF OBHS TRAINS 800 trains
with OBHS
service

34,014
198
1,917 146
62

AVG2009-14 2016-17 AVG2009-14 2015-16 2016-17

 PERFORMANCE
ACHIEVED on MADE PASSENGERS FEEL AT HOME
customer service

RESERVED ACCOMMODATION CAPACITY [NO. OF BERTHS IN CRORE]

End of2014 37.1

Present 50

Launched new catering policy

Launched all India
Food to be prepared largely at sophisticated,
helpline 182 to
world class base kitchens. Big push on E-
resolve passenger
Catering and Ready to Eat meals – Offers more
complaints
choice to passengers
 PERFORMANCE
ACHIEVED on
BUILT ‘ONE OF ITS KIND’ COMPLAINT
customer service
REDRESSAL MECHANISM IN THE WORLD
PROCESS

24/7 operations via a centrally

INPUTS managed cell OUTPUT
Tweets classified as critical, Average repsonse
non-critical, suggestions & others time of less than 30
23 For every actionable tweet, a ticket mins
MILLION is opened in the system
passengers Critical tweets are communicated
travelling /day
via SMS or phone calls
Each ticket is monitored at
6500
tweets/day
various stages in the system
until resolution
 PERFORMANCE
ACHIEVED on
FOCUSSED ON REDUCING COSTS AND
financial health
LOOKING AT ALTERNATIVE SOURCES OF
REVENUE
Significantcostsavingsplanned
- Launched Mission 41K - Save `41,000 Crores in 10 years
through energyefficiency and procurement
optimization

Achieved` 10,100crores ofnon-farerevenue in 2016-17, almost80% increasein one year

- Various initiatives lined uptoboost NonFare Revenuesfurther

• Train Branding – Both external and internal advertising ontrains

• Railway display network– Creating a new mediumfor advertising and information

dissemination

• Sole advertising rightsforthe entire Zonal Railway; On Boardentertainment

 PERFORMANCE
ACHIEVED on LAUNCHED NEW TRAIN PRODUCTS
passenger experience

Launched new trains products

to meet targeted customer
needs – Tejas, Humsafar,
Mahamana and Antyodaya
trains
 PERFORMANCE
ACHIEVED on
UNDERTOOK MAJOR STRUCTURAL
governance
REFORMS

Setting up an independent Created distinctRolling Stock

regulator, Rail Development and Traction Departments –
Authority approved. One of Led to capture of massive
the biggest reforms synergies and improved
in Rail Sector operational efficiency

Piloted merger of Rail Budget

and General Budget
 PERFORMANCE
ACHIEVED on
IMPROVED GOVERNANCE AND
governance
TRANSPARENCY
AVERAGE PROJECT APPROVAL DURATION (MONTHS)

EARLIER 24 100%
NOW 6 e-procurement
established.
Complete
digitisation of
supply chain
catering to annual
procurement of
more than
` 25,000 Cr

Largest ever online Delgation of Key result areas

recruitment powers defined for
in the world conducted to functional General Managers
by Indian Railways levels & DRMs
 TRANSFORMATION PLAN

TO ACHIEVE VISION 2022

TRANSFORMATIVE
AGENDA for
infrastructure DECONGESTED NETWORK DUE TO DFC
COMMISSIONING AND ADDITIONAL 16000 KMS OF
DOUBLE LINES

ROADMAP
Regular comprehensive reviews being conducted to
ensure timely delivery of DFC

Speed of Infrastructure creation (Doubling) has

already increased from 4Km/ day in 2014 to the
current 7 Km/ day. Target to increase to 9.5 Km/ day
in 2017-18 to 19Km/ day by 2022
TRANSFORMATIVE
AGENDA for
infrastructure
90% OF ROUTE KMS ELECTRIFIED

ROADMAP
Already doubled the pace of electrification

~16,000 Km to be electrified in the next 3

years

Leveraging other PSUs e.g., PGCIL for

implementation
TRANSFORMATIVE
AGENDA for
infrastructure
100+ REDEVELOPED MODERN STATIONS

ROADMAP
25+ stations under various stages of bidding

Construction already started at 2 stations

Leveraging PSUs like NBCC, MRVC for

development of stations
 TRANSFORMATIVE
AGENDA for freight
TIME TABLED FREIGHT TRAINS

ROADMAP
First time-table train already being run

Pilot in conceptual stage to run time tabled

container trains on NDLS-BCT sector

Plan to develop a software to manage train

operations and advance charting to enable
publishing of schedules for freight trains
TRANSFORMATIVE
AGENDA for
financial health
20% REVENUES FROM NON FARE SOURCES

ROADMAP
Dedicated directorate set up in Railway Board

Station development program launched

Major policy changes initiated to enable

partnerships with Advertisement industry leaders

Land monestisation is being expanded

TRANSFORMATIVE
AGENDA for
cleanliness
ZERO DISCHARGE OF HUMAN WASTE

ROADMAP
Over 70,000 bio toilets already fitted, 2 corridors
already declared as discharge free

All new coaches to be fitted with bio toilets

Bio toilets in every coach by 2019

TRANSFORMATIVE
AGENDA for
Speed of freight trains @50kmph & Mail/Express trains @
higher speeds 80 kmph. Semi high speed trains along golden
quadrilateral

ROADMAP
Dedicated cross-functional directorate already set-
up to focus exclusively on increasing speeds on
network

Integrated corridor planning being implemented

for Delhi-Mumbai and Delhi-Kolkata

6 other corridors planned for semi-high speed

operations
 TRANSFORMATIVE
AGENDA for freight
37% MODAL SHARE IN FREIGHT

ROADMAP
Growth in tonnage from 1.1bn tonnes to 2.4 bn tonnes
by 2025 requires IR to grow at 8.5% CAGR

Incremental tonnage required after adjusting for BAU:

Cement – 200mn tonnes
Steel – 50mn tonnes
Share gain from Road in new markets – 230mn tonnes
Other commodities – 250mn tonnes

New delivery models to be explored to capture

incremental traffic e.g., Dwarf containers have already
been rolled out
TRANSFORMATIVE
AGENDA for
customer service
PUNCTUALITY@ 95%

ROADMAP
Decongestion of network and DFC
commissioning to release capacity which
would lead to operational streamlining and
hence higher punctuality

Predective mainteance regime being

incorporated to further enhance asset
reliability
TRANSFORMATIVE
AGENDA for
infrastructure
RESERVED ACCOMMODATION AVAILABLE ON DEMAND

ROADMAP
Commissioning of DFC would release capacity on
existing network to run mail/express trains in line
with demand

New Generation Electronic Ticketing System

implementation and data analytics would lead to
optimal utilisation of berth capacity
TRANSFORMATIVE
AGENDA for
better skills
FULLY FUNCTIONAL RAILWAY UNIVERSITY

ROADMAP
Consultants already working on DPR for
formation of university

Application for deemed university status due

in September