INDIAN RAILWAYS

INDIAN RAILWAYS AT THE

CROSSROADS
• Largest network under a single management.

• Often called the “lifeline of India”

• Largest employer in the world, employing about 1.6 million (2003).

• Survey revealed that 1 in every ten Indians depended on IR for his

livelihood
• IR carries on an average, 13 million people across the country everyday.

• IR operated as a department under the central government of India.

 ORIGIN AND DEVELOPMENT OF IR

• Roots are in 1800’s and was started by the

British East India Company
• Initially used only to transfer goods and
later moved to passenger trains
• First passenger train between Bombay and
Thane in 1853
• To promote construction of Railway lines,
the British parliament introduced guarantee
system.
• By 1870 the total coverage was 4000 miles
 ORIGIN AND DEVELOPMENT OF IR

• Darjeeling Himalayan railway was considered the

greatest engineering feat in the history of IR
• In 1950, Janata express trains were introduced
• More affordable to ordinary people
• In 1970’s and 80’s, IR introduced super fast trains
like Rajdhani and Shatabdhi
• Mid 1980’s – Computerised ticketing and reservation
at new Delhi
 OPERATIONS OF IR
• A department of government where Railway
minister is the highest authority
• 16 General Managers took care of 16 Zonal
offices
• IR relied on 3 sources of financing
– Budget support
– Market borrowing
– Internal resources
• IR presented a separate budget from the general
budget
• Three types of gauges – narrow, broad and
meter.
 SOCIAL ROLE vs. ECONOMIC
ROLE
• Provide subsidized fares to passengers
• Obligation to carry essential goods at a subsidized rate
• IR needed Rs.40 Billion for social obligation but got only
Rs.8 Billion
• They started to subsidise for the losses by charging
exorbitant rates for private freight
• Borrowing at a very high rate of interest from open
market
 PROBLEMS FACED BY IR
• Social responsibility vs. Profitability
• Safety
– Old tracks, Bridges and Facilities
– Bad working conditions for train drivers
• Competition from Roadways and Airlines
 PRIVATISATION ??
• A good option
• It will stream line operations
• More accountability and responsibility
• A corporate structure
• Implementation nightmare
GAP ANALYSIS
KNOWLEDGE GAP
• Customers seek
– Ease of ticketing, Refundable, on time arrival and
departure, hygiene and good food, cheaper fares,
safety
– Except for the timing, the zone of tolerance for all
other services are met
STANDARD GAP
• Bathroom facilities are not up to the standards
• Loose Berths (seats)
• Waiting rooms not properly maintained
• Inadequate fans and electrical
DELIVERY GAP
• Timings – Delays of trains
• Unclean linen
• Food
• No water in Bathrooms
• No hygiene
COMMUNICATION GAP
• Helpline numbers do not get through
• Improper information on train delays
 BLUE PRINT

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