CHAPTER – III

INDIAN RAILWAYS: AN OVERVIEW

3.1 Beginning of Railways

3.2 Development at national level

3.3 Organization Structure

3.4 Economic development during the last five years

3.5 Role of in Transport, Storage and Communication

3.6 Division of Indian Railways

3.7 Highlights of the Indian Railways’ Budget 2016-17

61

3.1 Beginning of Railways

Possibly in 1830, originating in ancient Greece a small wooden mine trolley ran in recessed stone guides, is the earliest recorded illustration of a railway. In 1604, the first wooden tracks were laid for running the horse-drawn carriages at Wallaton, England.

Two centuries later in February, 1804, the world’s first steam engine ran successfully on rails which was built by Richard Trevithick who was an engineer. Although this train carried iron and passengers, it was not recognized as the first railway passenger service train because it was a trial run.(www.irfca.org)94

The first ever passenger train was started in England in 1835. This train facilitated the trading of wool. The train was started to cover the distance from Stockton to Darlington. Steam locomotive and iron rails were used to pull a load. This train started its first journey on 27th September, 1825. The engine of the train was developed by George Stephenson. The train carried passengers and goods in 38 wagons. The construction of this railway line began in 1821 which required 4 years to complete the work. This train is considered as the first passenger train in the universe.

However, some claim that the first passenger railway ran in 1830 between Liverpool and Manchester.(www.dnaindia.com)95

3.2 Development at national level

The beginning of train services in India

Traders in the United Kingdom decided to purchase the cotton crop from India because of a major crop failure in America in 1846. The cotton was purchased in the various parts of the Indian sub-continent. Lot of time was required for transporting cotton from sub- continent to the nearest port to transport it to the United Kingdom. Therefore, the British decided to start a railway in India on an urgent basis. At the same time the British decided to use the railway network for faster deployment of troops.

62

In 1849, Lord Dalhousie became the Governor General of India. He was having the experience in the matters related to railway in England. On August 1, 1849, the Great Indian Peninsula Railway was formed.

The GIP Company was established on August 17, 1849 by the East India Company and the Great Indian Peninsula Railway with the capital of 5 lakh pounds. There was also a provision in an agreement to increase this capital to 1 million pounds to expand the railway line beyond Callian (Kalyan) and across the Thull and Bhor Ghats.

The GIP Company did a trial run of railway on November 18, 1852 between Bombay and Thane. However, the first official train in India (and in Asia) ran on April 16, 1853 between Boree Bunder (Mumbai) and Thane at 3.35 p.m. It was a 34 kms journey. This day was declared as a public holiday by the Bombay Government.

The train was drag by three engines – Sindh, Sahib and Sultan. It was having 14 coaches and 400 passengers.

The first locomotive (steam engine), Thomason, drag some wagons which contained earth and mud in Roorkee. Lord Falkland, the second engine (named after a Bombay governor) was introduced in operation after one year near Byculla, Bombay which was used for doing shunting duties. The third engine was used in November 1852 for the trial run of the passenger train. And after all these activities, the first “official” passenger train was introduced on April 16, 1853. It was a long journey before the first “official” train started its journey. The second passenger train was introduced on August 15, 1854 from (Caluctta) to Hooghly.

The first railway workshop was opened by Great Indian Peninsula Railway in 1854 at Byculla, Bombay.

The development of railway network in the north, south and the east

Agreements were signed to construct railway lines to run inland in Bombay (The Great Indian Peninsula Railway), Calcutta (East Indian Railway), and Madras (Madras Railway).

63

For developing the network of railways in the south, the Madras Railway Company was formed in London on July 8, 1845. A general body meeting of the shareholders was held in February 1846 to construct a railway line from Madras to Arcot, known as Wallajah Nagar.

But the matters were delayed and the actual construction begun on June 9, 1853. The first train between Royapuram and Wallajah Nagar ran on June 26, 1856. The train services in Bangalore were started from August 1, 1864.

On March 3, 1859, the first train ran in the north between Allahabad and Kanpur.

The railways then were built on a Guarantee System i.e. the railway companies were guaranteed a certain rate of interest on its capital investment. The guarantee was to be honoured by the East India Company.

The Gaikwad Baroda State Railway

The Gaikwad of Baroda state built a railway, which was of just two and a half feet gauge in 1863, just ten years after the first train ran in India. The maiden line of the Gaikwad Baroda State Railway was constructed quickly between Dhaboi and Miyagam. The Durbar of Baroda had financed the project. The Gaikwad was in such a hurry to commence the project to export cotton that he used bullocks – bullmotives – as engines to run trains instead of waiting for the actual steam locomotives to arrive from England. The steam locomotives of Gaikwad Baroda State Railway arrived in India only in 1873. This was the first narrow gauge railway in India.

The Darjeeling Himalayan Railway

Work on building the Darjeeling Himalayan Railway line began in May 1879 and in March, 1880. In August 1880, the line was opened for passenger and goods traffic as far as Kurseong, 4864 ft. above the sea and thirty-two miles from Siliguri. In July 1881, the line was opened throughout to Darjeeling station.

64

On December 2, 1999, the Darjeeling Himalayan Railway became the second railway site in the world to be designated a World Heritage site. The railway has been added as a world heritage site with “outstanding universal value” by UNESCO’s World Heritage Committee.

The Railway raj

Between 1854 and 1860, India had eight railway companies – Eastern India Railway, Great India Peninsula Company, Madras Railway, Bombay Baroda and Central India Railway, Scindia Railway, Eastern Bengal Eastern Railway, Calcutta Railway Company and South Railway Company. In the years between 1869 and 1881, the British government took up the responsibility of laying railway lines in India from the East India Company. And thereafter, things began to move rapidly.

Chhatrapati Shivaji Terminus station which is the administrative headquarters of Central Railway was then known as GIP Railway. The construction work of the administrative building commenced in 1878 under the guidance of noted architect Fredirck William Stevens. This building is now declared as a Grade-1 heritage. The building has been considered as one of the finest station buildings in the world and architecturally one of the most splendid and magnificent Italian Gothic edifices existing. Work on the building began in May 1878. The construction cost of the terminus was Rs. 16,l5,562. The construction work took 10 years for completion and was officially renamed as Victoria Terminus after Queen Victoria on Queen’s Golden Jubilee Day on June 20, 1887.

An all-Indian locomotive

The first locomotive was manufactured in Indian in 1895 which was built at Ajmer for the Rajputana Malwa Railway. The cost of manufacturing this locomotive was Rs. 15,869 to be used for hauling mixed trains. It was also used on the Bombay Baroda and Central India Railway (BB&CI) network. Now this locomotive has been stored as one of the outdoor exhibits at the National Railway Museum, .

In 1904, Mr. W.H. White, chief engineer of the then Bombay Presidency government had proposed the idea to electrify the railway network. He proposed the electrification of the

65 two Bombay-based companies, the Great Indian Peninsula Railway and the Bombay Baroda and Central India Railway (now known as CR and WR respectively).

Both the companies were in favour of the proposal. However, it took another year to obtain necessary permissions from the British government and to upgrade the railway infrastructure in Bombay city. Mr. Merz was appointed as a consultant by the to give an opinion on the electrification of railways. But, Mr. Merz resigned before making any concrete suggestions.

Moreover, as the project was in the process of being executed, the First World War broke out which put the brakes on the project.

By 1920, Mr. Merz formed a consultancy firm of his own with a partner, Mr. Maclellan. The government retained his firm for the railway electrification project. Plans were drawn up for rolling stock and electric infrastructure for Bombay-Poona/Igatpuri/Vasai and Madras Tambaram routes. All the inputs for the electrification, except power supply, were imported from various companies in England.

The first-ever electric train in India ran from Bombay, similar to the running of the first ever railway train from Bombay to Thane on April 16, 1853. On February 3, 1925, the first electric train ran between Bombay (Victoria Terminus) and Kurla, a distance of 16 kms.

However, India’s first electric locos (two of them), had already made their appearance on the soil of India much earlier. They were delivered to the Mysore Gold Fields by Bagnalls (Stafford) with overhead electrical equipment by Siemens in 1910.

Various sections on the railway network were progressively electrified and commissioned between 1925 and 1930.

A commission was formed in 1920 to suggest administrative changes in the expanding railway network of the sub-continent. This committee was headed by William Acworth who was a world-renowned authority on railways.

66

The Acworth Committee consisted of 10 members, all experts either in Railway matters or finance and administration. The report of the committee was published in September, 1921. The committee suggested the state management of the Indian Railways. The landmark decision about the separation of railway finances from general finances was also the outcome of this report. Subsequently the railway board was expanded to have a financial commissioner, a member in-charge of ways, works, stores and projects, and a member in-charge of administration, staff, and traffic. All these changes eventually led to the presentation of the first ever railway budget in 1925.

The partition

In 1947, the British quit India dividing the nation into two countries, India and Pakistan which led to division of its railway system too. Two big railway systems, Bengal Assam Railway and North Western Railway, were broken up.

A part of the Jodhpur Railway was given to West Pakistan. Much of the Bengal Assam Railway went to the then East Pakistan (now Bangladesh). The Assam Railway was isolated from the rest of the Indian system. Much of the railway infrastructure was damaged in the process of partition as violent mobs attacked railway stations and trains carrying refugees.

Following was the statistics of the division of railway infrastructure:

Table No. 3.1: Division of railway infrastructure during partition in 1947

Country Locomotives Passenger Goods wagons Kilometres coaches India 7,248 20,166 2,10,099 54,376 Pakistan 1,339 4,280 40,221 11,133

After the damage due to the partition, things slowly began to come on track after 2 years. An indigenous locomotive workshop was set up in West Bengal, Chittaranjan Locomotive Workshop (CLW) on January 26, 1950. It had plans to manufacture 120

67 steam locomotives annually. On November 1, 1950, the first of the successful WG class steam engines (8401 Deshbandhu) was commissioned.

Getting things organized

To get things organized, in June 1950, the Railway Board put forward a plan to divide the railways in India into six zones. As per this plan, on April 14, 1951, the Southern Railway was formed by merging the Madras Railway, the South Marhatta Railway, the South Indian Railway and the Mysore Railway.

The Central Railway was constituted by bringing together the Great Indian Peninsula Railway (GIPR), the Nizam Railway, the Scindia Railway and the Dholpur Railway on November 5, 1951.

On the same day, the Western Railway was constituted by merging the Bombay Baroda and Central India Railway (BB & CI), the Sourashtra Railway, the Rajasthan Railway and Jaipur Railway.

On April 14, 1952, the merger of Eastern , the Jodhpur Railway, the Bikaner Railway and some upper divisions of the East India Railway led to the formation of the Northern Railway.

Oudh Railway, Tirhut Railway and the Assam Railway formed the North Eastern Railway and the remaining divisions of the East India Railway and the constituted the Eastern Railway on the same day. These were the first six zones of Indian Railways.

First Export

In the late seventies, the Indian Railways, for the first time ever, bagged an export order for the supply of 15 YDM (metre gauge) locomotives (to be built in Diesel Locomotive Workshop, Varanasi) to Tanzania in January, 1976.

68

The steam theme

With the advent of the high speed electric and diesel engines, the glory and demand of steam was slowly coming to an end. In 1970, the last steam locomotive, Antim Sitara, (WG-10560) rolled out of Chittaranjan Locomotive Works (CLW). By late 1973, the production of all steam locomotives in CLW was put to a halt.(www.dnaindia.com)96

3.3 Organization Structure

69

Chart No. 3.1: Organization Structure of Indian Railways

Ministry of Railways

Minister of State for Railways

Railway Board

Chairman

Railway Board

MemberMembe Member Member Electricalr Staff Traffic Electric al Member Member Financial Engineering Mechanical Commissioner

Director- Director-General Secretary General RPF Estt. Admn. Rly. Health Matters Matters Services

Zonal Railways Production Units Other Units Public Sector

(Open Line) Undertakings/Corporations, etc. General Managers General Managers General Managers

70

There are total 17 zones viz. Central, Eastern, East Central, East Coast, Metro Railway- , Northern, North Central, North Eastern, Northeast Frontier, North Western, Southern, South Central, South Eastern, South East Central, South Western, Western, West Central. Each zone is headed by the General Manager.

There are total 5 plants which are headed by the General Managers viz. Chittranjan Locomotive Works, Diesel Locomotive Works, , Rail Coach Factory-Kapurthala, -Rae Bareli. There are 2 production units headed by Chief Administrative Officer (CAO) viz. Diesel Loco Modernization Works and Rail Wheel Plant-Bela.

There are total 2 other units which are headed by the General Managers viz. Central Organization for Railway Electrification and Northeast Frontier (NF) Railway (Construction).

There are total 3 other units which are headed by the Chief Administrative Officer (Railways) viz. Central Organization for Modernization of Workshops, Indian Railway Project Management Unit (IRPMU) and Indian Railway Organization for Alternate Fuels (IROAF).

There is one unit – National Academy of Indian Railways which is headed by Director- General.

There is one unit – Research Design and Standard Organization (RDSO) which is headed by Director-General and Ex-Officio General Manager.

There are total 16 public sector undertakings/Corporations which are promoted by Indian Railways viz. Braithwaite and Company Limited (BCL), Limited (BSCL), Bharat Wagons and Engineering Company Limited (BWEL), Container Corporation of India Limited (CONCOR), Dedicated Freight Corridor Corporation of India Limited (DFCCIL), Limited (IRCON), Indian Railways Catering and Tourism Corporation (IRCTC), Indian Railway Finance Corporation (IRFC), Konka Railway Corporation Limited (KRCL), Mumbai Railway Vikas Corporation Limited (MRVC), RailTel Corporation of India Limited (RCIL), Rail India

71

Technical and Economic Services Limited (RITES), Limited (RVNL), Pipavav Railway Corporation Limited (PRCL), Centre for Railway Information Systems (CRIS) and Rail Land Development Authority (RLDA).(Indian Railways' Annual Report and Accounts for the year 2013-14)

Graph No. 3.1: Map of Indian Railways’ Route

72

Source: http://www.indianrailways.gov.in/railwayboard/uploads/directorate/coaching/TAG_ 2014-15/IR_Map.pdf

73

3.4 Economic development during the last five years:

The following Table No. 3.2 shows the Growth Rates of Gross Domestic Product during the five years from 2010-11 to 2014-15

Table No. 3.2: Growth Rates of Gross Domestic Product

Period Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 Growth Rates (%) 8.4 6.2 5.6 6.6 7.2 Source: Based on secondary data

The following Graph No.3.3 displays the Growth Rates of Gross Domestic Product during the five years from 2010-11 to 2014-15

Graph No. 3.2: Growth Rates of Gross Domestic Product

Growth Rates (%) 9 8 7 6 5 4 Growth Rates (%) 3 2 1 0 2010-11 2011-12 2012-13 2013-14 2014-15 Period

74

The following Table No. 3.3 shows the Average Annual Growth Rate of GDP by Industry of Origin

Table No. 3.3: Average Annual Growth Rate of GDP by Industry of Origin

Eleventh Plan Twelfth Plan Sr. Sector (2007-12) (2012-17) (%) No. (%)(Actual) (Projected) 1 Agriculture, forestry and fishing 3.3* 4 2 Mining and quarrying 3.2 7.2 3 Manufacturing 6.9 8 4 Electricity, gas and water supply 6 7.8 5 Construction 7.3 8.6 6 Trade, hotels and restaurant 8.3 8.4 7 Transport, storage and communication 12.7 11.8 Financing, insurance, real estate and business 8 services 10.7 9.6 9 Community, social and personal services 8.4 6.7 GDP growth rate (% per annum) 7.9 8.2**

Industry (2-5) 6.6 8.1 Services (6-9) 9.8 9.1

Source: Puri V. K., Misra S. K. “Indian Economy” (2013), 31st edition, p. 820 * Later revised to 3.6% per annum

** The approved Plan reduced this target to 8% per annum

The above Table No. 3.3 is based on constant 2004-05 prices.

75

3.5 Role of Indian Railways in Transport, Storage and Communication:

The average rate of growth in the GDP during the last five year period from 2010-11 to 2014-15 is 6.8%. The share of transport, storage and communication in the Average Annual Growth Rate of GDP by Industry of Origin is 12.7% during the eleventh five year plan period from 2007-12. The projected Average Annual Growth Rate of GDP by Industry of Origin was 11.8% during the twelfth five year plan period from 2012-17. Considering the huge network Indian Railways, its share in the average annual growth rate of GDP by industry of origin is substantial.

3.6 Pune Division of Indian Railways:

Pune Division is one of the total 69 divisions of Indian Railways. Indian Railways’ Pune Division was formed in the year 1996. Before that Pune Division was a part of Mumbai Division. First rail route of Pune Division was inaugurated on 15th May, 1858. It was a track between Pune and Khandala. On an average daily 2.12 lakh passengers are using railway for commutation and 0.06 lakh tones of goods are transported from Pune Division of Indian Railways. Approximately 9,000 staff members are working in Pune Division. There are 73 stations in Pune division including Block stations and Non Block stations. The total of daily originating trains carrying passengers is 68 and that of terminating trains is 67 which are under the management of Pune Division.

Long standing demand for starting local train between Pune- is fulfilled on 25th March, 2017. Passengers were requesting the management of the railways to start this train almost since last 35 to 40 years. The journey of the said local train will be extended to Baramati Railway station.

According to the latest survey conducted for the year 2016-17, Pune Division has secured the 9th rank in the Indian Railways’ most clean railway stations. It has secured the 1st rank in the list of clean railway stations under Central Railways Zone. Pune Division has achieved this milestone because of the rigorous efforts taken by its staff members which was supported by some social organizations and students of some colleges.

76

3.7 Highlights of the Indian Railways’ Budget 2016-17:

Financial Performance 2016-17- Targeted Operating Ratio (OR) - 92%, restrict growth of Ordinary Working Expenses by 11.6% after building in immediate impact of 7th PC, reductions planned in diesel and electricity consumption, Revenue generation targeted at Rs. 1,84,820 crore. To reduce energy consumption in non-traction area by 10% to 15%; all new light provisions will be LED luminaries only. Investments and Resources • Process bottlenecks overhauled including delegation of powers to functional levels; average capital expenditure over 2009-14 is Rs. 48,100 crore, average growth of 8%per annum. • 2015-16 investment would be close to double of the average of previous 5 years. • 2016-17 Capital Expenditure (CAPEX) pegged at Rs. 1.21 lakh crore; implementation through joint ventures with states, developing new frameworks for PPP, etc. It is 21% higher than the expected plan expenditure in 2015-16. High Speed Rail: passenger corridor from Ahmedabad to Mumbai being undertaken with the assistance of the Government of Japan. SPV for implementing high speed projects will be registered. Prime benefit would be providing IR with technology advancements and new manufacturing capability. Winning back the lost modal share Expanding the freight basket of IR - to start time-tabled freight container, parcel and special commodity trains on a pilot basis, container sector would be opened to all traffic barring coal, specified mineral ores and part-loads during the non-peak season. All existing terminals/sheds would be granted access to container traffic, where considered feasible. Dedicated Freight Corridor (DFC) – three new freight corridors: North-South connecting Delhi to Chennai, East-West connecting Kharagpur to Mumbai & East Coast connecting Kharagpur to Vijayawada through innovative financing mechanisms including Public Private Partnership (PPP).

77

Rationalizing the tariff structure – undertake review of tariff policy to evolve a competitive rate structure vis a vis other modes, permit multi-point loading/unloading and apply differentiated tariffs to increase utilization of alternate routes, explore possibility of signing long term tariff contracts with our key freight customers using pre-determined price escalation principles. Building terminal capacity - proposed to develop Rail side logistics parks and warehousing in Public Private Partnership (PPP) mode, 10 goods sheds will be developed by TRANSLOC, the Transport Logistics Company of India, in 2016-17. To soon inaugurate India’s first rail auto hub in Chennai. Encourage development of cold storage facilities on vacant land near freight terminals. Local farmers and fisherman would be given preferential usage of the facility. Resources proposed to be mobilized LIC has agreed to invest Rs. 1.5 lakh crore over five years on extremely favourable terms. Looking forward to setting up a Fund with multilateral assistance for financing railway projects. Nurturing customers - will appoint Key Customer Managers to liaison with our major freight stakeholders; each Zonal Railway will develop customer commitment charter indicating service level commitments of IR, will explore the feasibility of opening up leasing of general purpose wagons. Non fare revenues Station redevelopment; monetizing land along tracks; monetizing soft assets – website, data, etc; advertising – in 2016-17 target 4 times the revenue of 2015-16; overhaul of parcel business - liberalize the current parcel policies including opening the sector to container train operators; revenues from manufacturing activity - by 2020, aim at generating annualized revenues of about Rs 4,000 crore. Estimated Gross Traffic Receipts for the year 2016-17 is kept at Rs 1,84,820 crore . Passenger earnings growth has been pegged at 12.4 % and earnings target budgeted at Rs. 51,012 crore. The freight traffic is pegged at incremental traffic of 50 million tonnes, anticipating a healthier growth in the core sector of economy. Goods earnings is accordingly proposed at Rs. 1, 17,933 crore.

78

Other coaching and sundries projected at Rs. 6,185 crore and Rs. 9,590.3 crore respectively. Vision 2020:

1. Capital investment plan of Rs. 8.56 lakh crore during the 5 year plan period between the year 2015 and 2019. The required amount will be raised as follows:

Table No. 3.4: Medium term financing plan

(Rs. in lakh crore)

Particulars Rs. Gross Budgetary Support 2.56 Internal generation 1 Joint Ventures with the States 1.2 Public Private Partnership 1.3 Debt 2.5 Total 8.56 2. All capital cities of North Eastern Indian States to be connected with broad gauge lines.

3. Additional 10,000 kms of rail routes will be electrified between the year 2015 and 2019.

4. Two dedicated freight corridors will be fully commissioned by the end of the year 2019.

5. Signed the agreements with GE Diesel Locomotives and Alstom for setting up Diesel Locomotive Factory and Electric Locomotive Factory in Bihar.

6. 100 Private Freight Terminals/Sidings will be commissioning by the year ending 2019.

7. Target to increase the advertising revenues by more than 4 times.

8. Shifting 20% of freight traffic to high axle load wagons by the financial year 2016-17 and 70% by the year ending 2019.

79

9. Mission RAFTAAR – Increasing the average speeds of all types of trains (freight, passengers and mail/express).

10. Massive solarisation (1,000 MW Solar Power Plants) planned by the end of the financial year 2021 with an eye on making Railways the largest solar power producer in the country. Also have a plan to generate 130 MW Wind Power by the year ending 2019.(htt)

*****

80