Indian Railways

The 5-year Action Plan

June 18, 2015 Background • World’s largest rail network under a single management with 66,000 route kilometers • Supports 1.3 million people through employment • IR operates over 20,000 trains daily of which: – Over 12, 000 passenger trains; more than 7,500 freight trains – connecting over 8,000 stations – carrying over 23 million passengers – transporting over 3 mn tonnes of freight • IR carried: IR achieved in last decade what was – 518 mn tonnes p.a. from year 1853 to 2003 accomplished in – 1,054 mn tonnes from 2003 to 2013-14 150 years • Now network stretched to its limit; expansion required immediately

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Challenges • Committed liabilities on Revenue Generation Revenue expenditure (2013-14): • Staff with Pension - 52% • Fuel bill - 19% • IRFC payments – 5% • Stores- 3% • Other - 9% Social service obligations • Essential commodities carried below cost • Passenger and other coaching services (€4286 mn p.a.) • Operation of uneconomic branch lines • Concessions

Little surplus for investment in capital 3

Challenges (contd.)

• Project planning and execution – Projects worth Rs 4.91 lakh cr / € 70143 million (at original cost) sanctioned and pending

– Ensuring assured funding to prevent cost /time overruns

4 Under-investment

Under- investment

Poor Lower quality surplus for services, investment delays

Lower Inability to resource increase generation fares 5 CONGESTED (POSITION AS ON 31-03-2013) NETWORK

LINE CAPACITY AND UTILISATION ABOVE 100% .65% of sections on High

PATHANKOT

TALWARA JOGINDER NAGAR AMRITSAR JALANDHAR ATARI BEAS UNA NAGAL DAM Density Network (HDN) GOVINDWAL FIROZPUR SHIMLA KOTKAPURA Sanehwal LUDHIANA KALKA FAZILKA AMBALA DEHRADUN RAJPURA SRI-GANGANAGAR BATHINDA RISHIKESH KRDE JAKHAL SAHARANPUR LAKSAR SARUPSAR KOTDWARA SURATGARH JIND PANIPAT ANUPGARH MORADABAD Ramnagar HISAR KATHGODAM TANAKPUR ROHTAK routes are saturated. LALKUA BHIWANI HPU SARDAR SHAHR DELHI

GZB RAMPUR LALGARH PILIBHIT LOHARU KHURJA KOLAYAT REWARI BIKANER CHANDAUSI MAILANI PALWAL HARDUAGANJ NEPAL GANJ DANGARI ALIGARH BAREILLY ROSA MURKONGSELEK KASGANJ SIKAR ALWAR TINSUKIA HATHRAS SITAPUR JAISALMER RINGUS MATHURA BALAMAU SITAPUR DEGANA ETAH CANTT. DIBRUGARH CHHITAUNI POKARAN TUNDALA BURHWAL MORANHUT LEKHAPANI VALMIKINAGAR HARMUTI MERTA RD. JAIPUR BANDIKUI GONDA AGRA SHIKOHABAD BHALUKPONG MERTA BAYANA ETAWAH MANKAPUR NARKATIAGANJ AMGURI CITY PHULERA NEW JALPAIGURI JODHPUR LKO KAPTANGANJ DARJEELING ALIPURDUAR JORHAT . DHOLPUR NAGINIMORA 7 HDN Routes connecting FD Daurai AJMER KATRA RAXAUL SILIGURI BALIPARA RANGAPARA TULI MUNABAO BILARA BHIND GORAKHPUR Chauri Chaura NEW BONGAIGAON HAIBARGAON NONERA KANPUR UNNAO SULTANPUR Samuktala Rd. SILGHAT LUNI SAGAULI GWALIOR BHIMSEN BHATNI MUZAFFARPUR FURKATING SAMDARI TANDA SAKRI RANGIYA SENCHOA JOGBANI CHAPARMUKH SAWAI MADHOPUR PANIHAR RAE MARWAR SHAHGANJ HALDIBARI JOGIGHOPA BARELI DARBHANGA DHUBRI GUWAHATI AIT INDARA HAZIPUR SHEOPURKALA MAU SAMASTIPUR SAHARSA GOLAPARA DIPHU KHAJURI DUDHNOI LUMDING SHIVPURI KHRIRAR ZBD CHHAPRA KHAGARIA BARSOI RADHIKAPUR JHANSI SONPUR KOTA ALLAHABAD PATNA KUMARGHAT DITOKCHERRA MAVLI MUGHAL SARAI KATIHAR BALURGHAT MIGRENDISA CHITTAURGARH NAINI KIUL BHILDI MANIKPUR VARANASI GAYA RAJGIR BHAGALPUR BADARPUR UDAIPURCITY CHUNAR JHAJHA SINGHABAD KATAKHAL GUNA JIRIBAM BARI SADRI NIMACH RUTHIYAI SONNAGAR MANPUR MANDAR HILL TARANGA HILL SATNA LALGOLA SILCHAR major urban PALANPUR REWA CHOPAN JASIDIH MADHUPUR BINA GARHWA ROAD SAMAKHIALI MAHESANA BILLI SITARAMPUR MAHADIYA GIRIDIH SAINTHIA KUMARGHAT BHAIRABI BHUJ AZIMGANJ DULLABCHERRA NALIYA VIRAMGRAM CHHOTA AMBANA RAMPUR MALIYA GANDHINAGAR MODASA KUDA NAGDA BARKAKANA DHANBAD HUT GANDHIDHAM MIYANA KATNI SHAKTINAGAR RATLAM UJJAIN KANDLA AHMADABAD MAKSI KATWA AGARTALA KAPADVAJJ KOTSHILA ANDAL LOHARDAGA SABARMATI BHOPAL BISHRAMPUR ADRA OKHA WANKANER NADIAD JABALPUR RANCHI MURI PURULIYA KHANA DAHOD DEWAS BANKURA SURENDRANAGAR GODHRA ANUPPUR PETRAPOL RAJKOT PANIMINES INDORE CHANDIL BANDEL BANGAON SINI GAMHARIA WANSJALIYA PRATAPNAGAR MHOW ITARSI RAJKHARSWAN BARASAT CHOTA GEVRA ROAD TATANAGAR BHAVNAGAR UDEPUR MANDLA FORT JETALSAR NAWAGAON SEALDAH NAINPUR CALCUTTA PORBANDAR GUA conglomerates . HOWRAH JUNAGARH TANKHALA PARASIA ROURKELA KHARAGPUR CHAMPA LAKSHMIKANTAPUR BNDM BADAMPAHAR ALANG KHANDWA AMLA CHHINDWARA BILASPUR KAKDWIP UMARPADA BALAGHAT BANGRIPOSI RAMTEK BIMLAGARH BANSPANI DAHEJ UDHNA NARKHER JHARSUGUDA Rengali VERAVAL GONDIA JORURI ACHALPUR URKURA SAMBALPUR BARSUAN RUPSA PIPAVAV BHUSAVAL DIGHA BHILAI RAIPUR SUKINDA BHADRAK NAMKHANANAVIKWANA BILIMORA MANDIRHASAUD MANESNAR RD. NISCHINTPUR JALGAON AMARVATI NAGPUR TUMSAR DAITARI DHAMRA PORT DURG TALCHER JAKHAPURA JAMNER UMRER ARJUNI RAJIM ANGUL AKOLA KAPILAS RD. CHALISGAON PULGAON WARDHA WADSA DHAMTARI BUDHAPANK MANMAD KHAMGAON BOLANGIR NERGUNDI YAVATMAL NAGBHIR DALLI RAJHARA RAJATHGARH MAJRI CUTTACK RAJUR TITLAGARH VIRAR AURANGABAD LANJIGARH BHUBANESWAR PARADEEP PIMPALKUTTI TADALI JUNAGARH KHURDA RD. .Indian Railways (IR) has ADILABAD BALLARSHAH PURI CHANDA FORT MANIKGARH PARBHANI PURNA GADCHANDUR SINGAPURAM MUDKHED JAGDALPUR LAKSHMIPUR RAYAGADA NANDED JAGTIAL GUNUPUR LONAVALA PARLI VAIJNATH DAMANJODI PEN PALASA ROHA DAUND LATUR RD. PEDDAPALLI BHIGWAN KORAPUT BOBBILI PUNE NIZAMABAD SALUR LATUR KARIM NAGAR KIRANDUL NAUPADA BARAMATI KURDUWADI MOHOL KAZIPET WARANGAL PANDHARPUR SOLAPUR KOTTAVALASA VIZIANAGARAM MANOHARAPUR MANUGURU HOTGI BOLARUM GOPALAPATNAM 1219 sections of which BIBINAGAR VIKARABAD BHADRACHALAM ROAD VISAKHAPATNAM DORNAKAL WADI HYDERABAD SECUNDERABAD MIRAJ MOTUMARI RAJAMUNDRY SAMALKOT VIJAYAWADA MACHERLA KAKINADA RAICHUR GUDIVADA NARASPUR MADGAON GUNTUR MACHILIPATNAM LONDA MARMAGAO DONAKONDA HARBOUR REPALLE GUNTAKAL NANDYAL TENALI AMBEWADI 492 sections (40%) are Gooty

KALLURU RAYADURG ONGOLE DHARMAVARAM

PENUKONDA GUDUR BIRUR TIRUPATI

PAKALA PANAMBUR MANGLORE KATPADI SAKLESHPUR BANGOLORE CHENNAI saturated.

ARAKKONAM CHENGALPATTU MYSORE JOLARPETTAI CHAMARAJA NAGAR

VILLUPURAM PODUCHERRY UDAGAMANDALAM

SALEM

COIMBATORE ERODE Ariyalur IRUGUR Lalgudi SHORANUR Ponmalai TRICHUR .18% network carrying TIRUCHCHIRAPPALLI ERNAKULAM COCHIN BODINAYAKKANUR HARBOUR MADURAI

VIRUDUNAGAR

QUILON VANCHI MANIYACHCHI TENKASI TIRUNELVELI

TRIVANDRUM 56% traffic KANNIYAKUMARI

6 Spin-offs of Network Augmentation

.Impact on GDP .Employment generation .Remote area connectivity .Increased rail share in transport sector- more environment friendly means of transport .Impetus to manufacturing .National integration

FIVE-YEAR ACTION PLAN

8 Deliver a sustained & measurable improvement in customer service Make rail a safer means of travel Goals Expand IR’s capacity substantially & to modernize infrastructure Make IR financially sustainable

Adopting a medium-term perspective

Drivers Building partnerships

Leveraging additional resources Revamping management practices, systems, processes, & re-tooling of human resources Setting standards of governance & transparency – Quality of life in journeys – Station redevelopment – Capacity augmentation – Safety – Technology upgradation Thrust – Partnerships for development areas – Improvements to management processes & systems – Resource mobilization – Human resources – Energy & sustainability – Transparency & governance initiatives

Investment focus • High density corridors prioritized based on revenue generation capacity • Station redevelopment & logistic parks • Passenger Amenity works • Safety works – Track renewal – Signalling – Level crossings • Traffic Facilities • Private participation: – Liberalised Wagon Incentive Scheme – Logistic parks – Review Private Freight Terminal Operators’ scheme; modernisation of existing terminals – Encouraging development of alternate routes 11 INVESTMENT PLAN 5 years Item Rs. In mn € in mn Network Decongestion (including DFC + electrification, Doubling + electrification & 1993200 28474.3 traffic facilities) Network Expansion (including 1930000 27571.4 electrification) National Projects (North Eastern & Kashmir 390000 5571.43 connectivity projects) Safety (Track renewal, bridge works, ROB, 1270000 18142.9 RUB and S&T) Information Technology / Research 50000 714.286 Rolling Stock (Locomotives, coaches, 1020000 14571.4 wagons – production & maintenance) Passenger Amenities 125000 1785.71 High Speed Rail & Elevated corridor 650000 9285.71 Station redevelopment + logistic parks 1000000 14285.7 Others 132000 1885.714

TOTAL 8560200 122289 12 Investment focus (contd.) 2015-19 3000 Targets for commissioning (kms) 2500 2000 1500 1000 500 0 Gauge New Line Doubling Conversion 2014-15 380 880 723 2015-16 500 800 1200 2016-17 400 800 1800 2017-18 400 800 2300 2018-19 400 800 2800

About 500-600 km doubling & 100 km gauge conversion to be commissioned every year involving Railway PSUs Station Development

– Developing identified stations to international standards with modern facilities & passenger amenities on lines of PPP airports – Land and air-rights of station buildings to be leveraged – All costs of redevelopment to be met from proceeds of commercial revenues – To seek participation of private entities – Technology collaboration with Foreign railways for development of world class terminals

14 Five year Fund (Rs. in lakh crore/ requirement million €) Gross Budgetary 2.56/ Support 36571

28% 30% Internal 1.00/ generation 14286 1.20/ State JVs 17143 1.30/ PPP 18571 15% 13% 2.50 14% Debt /35714 8.56/ 122,286 GBS INTERNAL GENERATION STATE JVs PPP DEBT Total Initiatives – Resource Mobilisation

•JVs with State Governments –Railway & State Governments to be shareholders –Revenue streams from tariff and commercial exploitation of air rights; institutional structure being developed •JVs with Public Sector Units (PSUs) –For construction/expansion of lines, JVs to be set up with key customers of IR –PSU companies to provide funds upfront for undertaking projects •Off-budget debt –IR PSUs to leverage free reserves/ equity by IR for raising debt –IR to help PSUs tap international low cost pension & insurance funds for 20/30 year paper –IR to repay debt to PSU over loan repayment period

16 Initiatives – Resource Mobilisation

• Innovative financing including PPP • Areas: Redevelopment of railway stations (PPP – BOT), Electrification & Signalling (EPC; PPP-annuity) , Construction of freight lines/elevated corridor (PPP - BOT or Annuity), Own your train (suppliers’ credit), Port & Mine connectivity projects; (JVs or PPP - annuity), Technical Training Institutes for providing certificates to qualified drivers/ technical staff • Models for private participation rolled out for freight terminals, wagon investment etc; to be reviewed to ensure flow of funds • Private investment projects identified; to be bid out • Non-tariff revenues • Revenues from advertisements, exploiting air rights over stations & other buildings, land along tracks, OFC for Digital India, export of products & services, tap solar energy along tracks, buildings, etc

17 Initiatives – Efficiency & Productivity

• Efficiency & Productivity – Review of approval processes; timelines & targets to be set; Global benchmarking of KPIs – Delegation , Decentralization and De-regulation – Mechanised maintenance of track – Audit – systems, HR, energy, water, operations – Long term PPAs for power procurement – Project execution – Special Projects: Bullet trains, Semi-high speed trains, Elevated rail corridors, Satellite towns connectivity – Dedicated Freight Corridor to be completed on war-footing – Project prioritisation; high density networks to be taken up, doubling, third line, elevated tracks – EPC form of contracting to be adopted as far as feasible

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Initiatives - Customer satisfaction

• Helplines • Developing world’s best coaches and retrofitting existing coaches • Introducing Wi-Fi at all major stations • Development of a Customer Portal integrated with helpline • Expanding e-catering • Establishing modern and mechanised base kitchens & base laundries • Operation 5 minutes for unreserved tickets; introducing mobile ticketing on Smartphones for unreserved tickets. • Provision of CCTVs in coaches to provide better security to women passengers • Executive lounges to be developed at all major stations.

19 Reforms

• Policy reforms – Regulator for tariff setting, private participation & other activities – Empowerment at functional level – Creation of strategic business units for parcels, suburban , station management and Logistics – Liberalization of Wagon ownership – Accounting reforms – Creating world class railway universities to impart quality training 20

for more information: www.indianrail.gov.in contact: [email protected]

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