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June 2010 Report by the Indo-Italian Chamber of Commerce & Industry
roads. the foreign direct investment (FDI) inflow into railways related components has been € 75. the railways and roads would continue to dominate the transport landscape in the foreseeable future. Since the early 1990s. According to the Department of Industrial Policy and Promotion (DIPP). Railways and roads are the dominant means of transport carrying more than 95% of total traffic generated in the country. inland water transport. coastal shipping. Major improvements in the sector are therefore required to support the country’s continued economic growth and to reduce poverty. ports. Necessary Model Concession Agreement (MCA) has been finalized.856 stations daily.5 million from April 2000 to March 2010. India’s Transport sector The transport system in India comprises a number of distinct modes and services. through borrowings and from budgetary support for meeting the investment requirements of the Eleventh Five Year Plan. notably railways. The shortfall would be met through private investments in PPP projects. there is excessive cross-subsidization from freight to passenger services. Kolkata and Chennai is the heaviest.140 route kms. agreements signed with 15 parties in January 2007. Investments At present. runs about 11. The traffic between Delhi.Railways & Metrolines Transport Industry in India Introduction Good physical connectivity in the urban and rural areas is essential for economic growth. It runs through the country covering 63. Private sector participation in container movement is already unfolding on a large scale after it was decided to introduce competition in this segment.000 trains including about 8. Specific areas have to be thrown open for private sector participation.702 passenger trains and carries more than a million tonnes of freight traffic and 14 million passengers covering 6. Additional investment from private sector is also expected through their investments in manufacturing facilities created as a consequence of partnerships with Internal Resources. However. The PPPs are projected to contribute over 9% of the total required investment of around € 30 billion in the next five years. India’s growing economy has witnessed a rise in demand for transport infrastructure and services by around 10 percent a year. and airlines. Mumbai. though the total area used by them is just 16 per cent of the entire Indian Railways network in the country. and The Indo-Italian Chamber of Commerce & Industry – June 2010 2 . It is estimated that the Indian Railways would not be able to generate sufficient funds internally. the sector has not been able to keep pace with rising demand and is providing to be a drag on the economy. including those through PPPs (Public–Private Partnership). road transport. airports. Railways The Indian Railways industry has one of the largest developed networks in the world. Although other modes such as coastal shipping and inland water transport would play a greater role. Together it is expected that about € 3 billion worth of investments would be done by private sector during the Eleventh Five Year Plan.
the technical institutions and the construction industry. and other rolling stock. These new production facilities would have to be capable of producing superior locomotives. coaches. to get € 150 million. a crucial input is availability of sufficient capacity in terms of construction agencies and qualified human resources. but rather meeting the accelerating demand for high quality services imposed by a vibrant economy for which it has to take immediate and appropriate steps to augment capacity and deploy it optimally through new investment and tariff policies. locomotives. The estimated cost of construction of both these corridors is expected to be around € 4 billion and it is likely to take about five years for completion of these corridors. The Eastern corridor of 1232 km will connect Ludhiana to Sonnagar via Dadri and Khurja. ! With the quantum increase in both passenger and freight traffic. In the Union Railway Budget for 2009-10. ! For successful implementation of all the capacity-enhancement projects. and wagons would be required. An investment of over € 8. prepare for the task of making available necessary technical human resources and acquire necessary capabilities through joint ventures. In addition to augmenting the existing production capacities.Railways & Metrolines Transport Industry in India the scheme has since been operationalized with seven new operators. rolling stock availability will be a key factor. including DFCs (Dedicated Railway Freight Corridor Projects). DFCs are designed to run double stack container trains with 25 tonne axle load running at a maximum speed of 100 km per hour. excluding CONCOR. thus facilitating transfer from one corridor to another. commencing operations by utilizing about 30 new rakes. In order to obtain increased throughput and reduce the cost of operations.5 billion will be required to maintain existing assets by timely rehabilitation and replacements. Dedicated Railway Freight Corridor Projects on Western and Eastern Routes has been planned. The Western corridor of 1469 km will connect Jawaharlal Nehru Port to Dadri and Tughlakabad in the North. ! A clear priority is achieving higher maintenance standards of the existing assets to sustain the level of traffic of about 730 million tonnes. presented on July 3. Challenges & opportunities ! The key challenge it is not attracting additional traffic. new production facilities for coaches. ! In order to create capacity and improve quality of services.5 billion proposed for 2009-10. wagons. the Railways Minister highlighted the following points: ! ! Plan outlay of € 5. namely. The Indo-Italian Chamber of Commerce & Industry – June 2010 3 . Adequate awareness has to be created in the country so that appropriate agencies. as well as for modernization to improve their utilization levels. Passenger amenities get high priority. 2009. etc.
speed actuated controlled discharge toilets and biodegradable toilets will be introduced in passenger coaches. ! Rolling Assets: technological upgradation and modernization of rolling stock is a key element of the plan for rolling assets. ! Electrification: during the Eleventh Plan about 3500 km of track will be electrified which is nearly double the Tenth Plan achievement of about 1800 km. it is necessary to continuously upgrade the technology. It is envisaged that the entire 6973 km of iron ore route will be upgraded for running 25 tonne axle load trains during the 2007/2012 Eleventh Plan period. Efforts will be The Indo-Italian Chamber of Commerce & Industry – June 2010 4 .000 Route Kilometres (RKM) still has obsolete overhead alignment-based communication system on certain routes. In addition to pursuing the measures indicated above. It is also envisaged that 4220 km of existing feeder routes joining the DFC will be upgraded to 25 tonne axle load.9 tonne axle load wagons from the present axle load of 21.3 tonne will lead to improved loadability of the wagons. it should be possible to switch over to 25 tonne axle load concurrently with availability of requisite rolling stock. ! Coach toilets are the main source of poor sanitation in railway premises. With investments directed into identified mineral routes. ! High-speed Passenger Services: the Eleventh Plan strategy is to increase the commercial speed of passenger trains. construct. measures such as introducing longer trains and optimization of coach capacities have to be fully explored. ! Technological developments: To keep pace with the Railways sector. Track and bridge structures will be strengthened concomitantly. Speeding up delivery of passenger services by utilizing Mainline Electric Multiple Unit (MEMU) and Diesel Electric Multiple Unit rakes would also be pursued with greater vigor. ! The second important strategy would be investments in identified mineral routes and feeder routes to DFCs. The relationship between the Ministry of Railways and the SPV will be codified in a Concession Agreement which draws upon best practices worldwide. In order to prevent discharge from the toilets while the train is in railway station premises. It will also be responsible for operation of trains. and introduction of fast services between metropolitan cities with peak speeds up to 150 km per hour from the present speed of 110–130 km per hour. The SPV will plan.Railways & Metrolines Transport Industry in India ! An SPV (Dedicated Freight Corridor Corporation of India Ltd) has been formed to implement the DFCs Project. Trains would be augmented to 24 coaches on all important sectors. and maintain infrastructure. It is planned to speedily replace it with an Optical Fibre Cable (OFC) and quad cable-based communication system. Universal switch-over to 22. ! Signalling and Telecommunication: more than 10.
5 5 Note: EMUs = Electric Multiple Units.413 Eleventh Plan Target 155 1.9%) 475 (+43%) 2011-12 1. VUs = Vehicle Units Projection of Freight Traffic in the Eleventh Five Year Plan vis-à-vis Achievements in the Ninth and Tenth Plans 2001-02 Originating freight (million tonnes) Freight tonnes km Note: % increase over the previous Plan 2006-07 728. and hazardous chemicals.2 The Indo-Italian Chamber of Commerce & Industry – June 2010 5 .2%) 5.5 332.554 524 622 10.352.169.0%) 702 (+47.8 (+40%) 2011-12 8.16 2.8 17. Eleventh Five Year Plan—Requirement for Rolling Stock Tenth Plan Target Wagons (nos in FWUs) Electric locos (nos) Diesel locos (nos) BG conventional Coaches (VUs) EMUs/DEMUs/MEMUs (VUs) 65 343 444 9.Railways & Metrolines Transport Industry in India directed to bring lighter and corrosion-resistant material to improve the payload to the tare ratio of wagons.400 (+32.8 1.1 (+22. Railways are also planning to introduce special types of wagons for movement of automobiles.789 1. bulk cement. fly ash.9%) 691. FWUs = Four Wheeler Units.3 494.2%) 942 (+36.715 Actual 90.100 (+51.2 Projection of Passenger Traffic in the Eleventh Five Year Plan .vis-àvis Achievements in the Ninth and Tenth Plans 2001-02 Originating passengers (million) Passengers km (billion) Note: % increase over the previous Plan 2006-07 6.8%) 492.4 (+47.
5 billion and the works were completed in 2006. Ahmedabad and Mumbai. There is also a monorail system being planned in Kolkata. 7 and 8) by 2021.Railways & Metrolines Transport Industry in India Trams & Metro Rail The advent of the British saw trams being introduced in many cities including Mumbai and Kolkata. At present. A two-track elevated corridor has been proposed above the existing Western Railway line between the stations of Churchgate and Virar in Mumbai for airconditioned EMUs. for a total of 65 km. for a total of 121 km. Up to now.5 billion in the Metro rail system in the next 10 years. is seen as a model for other metros. while three other lines should be completed under Phase IV (6. Bengaluru. Lucknow. operational since 2002. which is presently under construction. Rapid transit systems have been proposed in Thane. Chennai. Indraprastha – Dwarka Sub City is 32 km long.8 km long. Mumbai will soon be one of the two cities in India to have a monorail network. while the third one. Phase II involves the extension of the second and the third lines.for the implementation of the Delhi Metro Rail Transport System (MRTS) and its subsequent operation. This phase should be completed by 2010. Shahdara – Rithala is 22 km long. The current state of the metro rail projects in the five main cities is as follows: Delhi . Rapid transit systems are also under construction in Hyderabad. but this is yet to be implemented anywhere on a commercial scale. three metro lines are operational in Delhi and more are under construction there. Amritsar and Kochi. The Delhi Metro. Delhi (GNCTD). India would invest € 28. the second one. with equal equity participation from the Government of India (GOI) and the Government of the National Capital Territory. The Indo-Italian Chamber of Commerce & Industry – June 2010 6 . Kolkata was the first city in India to possess a subterranean rapid transport system. Two more phases should follow: Phase III involves the implementation of two more lines (4 and 5) by 2015. They are still in use in Kolkata and provide an emission-free means of transport. Kanpur. The aim of MRTS is to cover the city with an efficient metro rail system by 2021. the Phase I of the project has been completed. The Konkan Railway Corporation had patented a suspended monorail system called the Skybus Metro in Margao. the Kolkata Metro. The first line. a company named Delhi Metro Rail Corporation was registered in 1995. The nationalised Calcutta Tramways Company is in the process of upgrading the existing tramway network at a cost of € 4 million. with eight more cities coming under the mass transport system during this period. The total cost of Phase I has been of € 1. the Mumbai Monorail. Vishwa Vidyalaya – Central Secretariat is 10. Pune. with the implementation and operation of three lines. whose operations commenced in 1984.
lasting from 2011 to 2016. The Indo-Italian Chamber of Commerce & Industry – June 2010 7 . Andheri – Dahisar (18 km). (MMOPL). The Master Plan that is being implemented for the development of the metro foresees three different phases of development. the first 63 km will be developed. The 24. will be 11 km long. As for now. “Our Metro”) is the under-construction mass transit rail system for the city of Bangalore.30 km. Vidhana Soudha. under Phase III. There will be two lines in total. Out of the 42. Bandra – Colaba. Under Phase I.Namma Metro (literally. Charkop – Bandra – Mankhurd.5 km) and Ghatkopar – Mulund (12. consisting of two corridors of double line electrified. serving the areas not connected by existing Suburban Rail System. Chennai . with the first line scheduled to be opened in 2011. to be completed by 2021. the third one. the French company Veolia and the Mumbai Metropolitan Region Development Authority (MMRDA). weaving through the commercial and residential areas of the city.5 km). Phase I.30 km. Bangalore . which involves the construction of two corridors. the remaining 63 km will be developed. two more lines will be built: Charkop – Dahisar (7. Five consortia have been shortlisted as general consultants for the project.4 km long. Under Phase II. for a total length of 146. will cover a total of 42. with the construction of the following lines: BKC – Kanjur Marg via airport (19. The main objective of the project is to provide a rail based mass transit connectivity to people within an approach distance of 1 to 2 km. The owner of the project is Mumbai Metro One Pvt.5 km).Railways & Metrolines Transport Industry in India Mumbai . 13. 8. which will start in 2016 and finish in 2021.8 km). Finally. The East-West corridor will be 18. Versova – Anderi – Ghatkopar.10 km long.9 millions.5 km and a total cost of € 2. This started in 2006 and is scheduled to be completed by 2012.20 km North-South corridor will begin at Hessarghatta Road Terminal and terminate at Puttenahalli.the development of the Mumbai Metro project is under way. the second one. starting from Byappanahalli and terminating at Mysore Road terminal. a consortium composed by Reliance Energy.2 km long.4 km). 38. The first phase of Bangalore Metro. The elevated section of the project is scheduled to be operational by 2011 and the entire project is scheduled to be completed by the financial year 2014-2015. The agency responsible for its implementation is Bangalore Metro Rail Corporation Ltd (BMRCL). Majestic and City Market and most of the rest will be elevated. the project consists of one Phase. Ltd. which started in 2006 and is supposed to be completed by 2011. The project is owned by Chennai Metro Rail Limited (CMRL). As for now. Hutatma Chowk – Ghatkopar (21.8 km will be underground near City Railway Station. About 55% of the corridors in Phase I is underground and the remaining elevated. only one development phase has been activated. Sewri – Prabadhevi (3. Three lines will be operational after the ending of this first phase: the first line.The Chennai Metro is the rapid transit rail system of the Tamil Nadu’s main city.
but excluding state taxes and value of vacant state government land. 14. Given that the bid is still open. Hyderabad . 26. which was approved by the Union Government in April 2008 under Public-Private Partnership (PPP). Washermen – airport. the Orange Line. The project consists of only one Phase. 2010 to July 14. In view of the postponement of the meeting of the Empowered Institution for the Scheme for Financial Support to PPPs in Infrastructure.2 millions. will be 23. will be 22 km long.8 km long. the Authority has decided to extend the Bid Due Date for the Hyderabad Metro Rail (MRTS) project under Clause 1.Railways & Metrolines Transport Industry in India The estimated cost of this project is about € 2. 2010 to consider the updated Bid documents of Hyderabad Metro Rail project. central taxes and interest during the period of construction. The Indo-Italian Chamber of Commerce & Industry – June 2010 8 .1 km long. there is no expected ending date of the project at yet. 30 km long. The bidding process was completed by July 2008. from Miyapur to Nagar. The project will be the largest MRTS project in India under PPP model. The overall length of the lines will be approximately 71 km. Maytas failed to achieve financial closure for the project as per schedule in March 2009 and urged the government to extend the deadline by six months. which was originally scheduled to be held on June 4. Three lines are to be completed: the Green Line. from JBE to Falaknuma. the Blue Line. the Central and State Governments together are expected to contribute about 41%. Of this. Chennai Central – St. including escalation.1 km. The total length of the system will reach 45. 2010. while the second one. the Andhra Pradesh Government decided to cancel the contract to Maytas and called for fresh bids for the project. In July 2009. The first corridor.The Hyderabad Metro is the planned mass rapid transit system of the Andhra Pradesh city.5 km long. the bid being awarded to a consortium led by Maytas Metro Saytam in December 2008. Thomas Mount. from Nagole to Shilparamam. Nevertheless.3 of the RFP from June 07.
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