A

Desk Project Report

On
“PERFORMANCE ANALYSIS OF TRANSPORT SECTOR”

Submitted in the partial fulfilment of the degree of Master of

Business Administration
At
School of Commerce and Management

Faculty Guide:
Dr.Urvashi Thakur
Proffessor

Submitted By:
Sheetal Kumari Mishra
Enrollment Number: AJU/210042
2021-23
 ACKNOWLEDGEMENT

I take this opportunity to thank my faculty mentor Dr.Urvashi Thakur, As Proffessor, ARKA
JAIN University, for his valuable guidance, closely supervising this work over with helpful
suggestions, which helped me to complete the report properly and present.

More importantly, his valuable advice and support helped me to put some creative efforts on
my project. He has really been an inspiration and driving force for me and has constantly
enriched my raw ideas with his vast experience and knowledge.

Specially, I would also like to give my special thanks to my parents whose blessings and love
enabled me to complete this work properly as well.

Sheetal Kumari Mishra

AJU/210042
M.B.A. - 2021-23.
 School of Commerce and Management

CERTIFICATE BY THE FACULTY MENTOR

This is to certify that Ms. Sheetal Kumari Mishra, Enrollment Number-AJU/210042, a

student of Master of Business Administration (M.B.A.) (2021-23), has undertaken the Desk
Project titled “PERFORMANCE ANALYSIS OF TRANSPORT SECTOR”. The Project
report is hereby submitted by the student for the partial fulfillment of the requirement for the
award of the degree of Master of Business Administration, under my supervision.

To the best of my knowledge, this project is the record of authentic work carried out during the
academic year (2021-23) and has not been submitted anywhere else for the award of any
Certificate/ Degree/ Diploma etc.

Signature with date

Dr Urvashi Thakur
Proffessor
Scom, Arka jain university
 School of Commerce and Management

DECLARATION BY THE STUDENT

I, Sheetal Kumari Mishra, hereby declare that the project titled “PERFORMANCE
ANALYSIS OF TRANSPORT SECTOR”, has been carried out by me during my
‘Desk Project’ and is hereby submitted in the partial fulfillment of the requirement for
the award of the degree of Master of Business Administration.

To the best of my knowledge, the project undertaken, has been carried out by me and is my
own work. The contents of this report are original and this report has been submitted to
the “ARKA JAIN University’, Jharkhand and it has not been submitted elsewhere for the
award of any Certificate/Diploma/degree etc.

Signature of the Student with date

Sheetal Kumari Mishra
Roll No.-05
Enrollment No.-AJU/210042
M.B.A. Batch -2021-23.
 SUMMARY

Transport is a crucial infrastructure needed for the developmental process. It accounts for a
major share of energy consumption in India, especially the petroleum products. The
consumption is likely to grow up further with economic and population growth, rapid
industrialization, urbanization and agricultural development increase freight and passenger
transport, and higher real incomes stimulate leisure-related travel. The Ministry of Road
Transport and Highways (MoRTH) is a ministry of the Government of India, that is the
apex body for formulation and administration of the rules, regulations and laws relating to
road transport, transport research and in also to increase the mobility and efficiency of the
road transport system in India,The National Highways Authority of India was established by
the National Highways Authority of India Act, 1988. Section 16(1) of the Act states that the
function of NHAI is to develop, maintain, and manage the National Highways and any other
highways vested in, or entrusted to, it by the Government of India India has the fourth-largest
railway system in the world, following the US, Russia and China. As of FY21, the Indian
Railways had 13,452 passenger trains and 9,141 freight trains. As of FY21, it had a total
route network of 68,103 kms. Indian Railways has logged the highest ever electrification of
sections covering 6,015 Route Kilometer (RKM) in a single year during 2020-21. More than
5 times electrification was achieved during (2014-21) last seven years as compared to during
2007-14. By 2024, Indian railways will be run completely on electricity. The Indian airline
industry has grown significantly over the years. Lower ticket prices, a pick-up in air traffic,
the release of the National Civil Aviation Policy (NCAP), 2016, a relaxation in aircraft
import norms and the foreign direct investment limit in domestic airlines, and the listing of
InterGlobe Aviation Limited were the highlights of the past 18 month.
 TABLE OF CONTENTS

CHAPTER CHAPTER NAME PAGE

NUMBER NUMBER
1. INTRODUCTION
1.1 Review of Literature
1.2 Research Gap
1.3 Objectives
2. MATERIALS&METHODS
2.1 Participants & Procedure
2.2 Measures
2.3 Data analysis
3. DISCUSSION
3.1 Interpretation
3.2 Practical & Theoretical
implications
3.3 Future directions
4. CONCLUSION
5. REFERENCES
 CHAPTER-I
INTRODUCTION
1.1 Review of literature

Transport is a crucial infrastructure needed for the developmental process. It accounts for a
amjor share of energy consumption in India, especially the petroleum products. The
consumption is likely to grow up further with economic and population growth, rapid
industrialization, urbanization and agricultural development increase freight and
passenger transport, and higher real incomes stimulate leisure-related travel. There exists
only a limited possibility for fuel switching at least in the short run of a decade or so.
Hence, this sector can aggravate foreign exchange burden by demanding huge oil
imports. Thus, it is necessary to understand the complexities associated with this sector:
changes in the demand patterns, modal split, performance and their trends, conservation
potential, effect of fuel switching from conventional to new energy sources, and so on. In
this connection, this paper aims to answer the following key policy questions pertaining
to the transport sector in India. •

1.2 Research Gap

ROADWAYS:-The Ministry of Road Transport and Highways (MoRTH) is a ministry of

the Government of India Number of road transport passengers in India FY 2001-2019 In
fiscal year 2019, the road transport passengers amounted to around 22.6 trillion passengers
per kilometer across India. The road network across the south Asian country was the second
largest in the world. India’s automotive market was dominated by two-wheelers and
passenger vehicles.

RAILWAYS:-India has the fourth-largest railway system in the world, following the US,
Russia and China. As of FY21, the Indian Railways had 13,452 passenger trains and 9,141
freight trains. As of FY21, it had a total route network of 68,103 kms. Indian Railways has
logged the highest ever electrification of sections covering 6,015 Route Kilometer (RKM) in
a single year during 2020-21. More than 5 times electrification was achieved during (2014-
21) last seven years as compared to during 2007-14. By 2024, Indian railways will be run
completely on electricity.The railways sector has seen some developments, investments and
support from the Government in the recent past,Indian Railways’ revenue reached US$ 5.7
billion in FY 2023 (until July 10, 2022)

AIRWAYS:- Vistara commenced operations in January 2015 with its inaugural flight between
Mumbai and Delhi. With plans to expand its fleet size by 2018, the airline is looking at
increasing its capacity by 50 per cent. It plans to add Kolkata, Chennai and some Tier II cities
to its network by the close of 2016-17.
 1.3 OBJECTIVE
The government’s objectives ensure that all the areas where it can have an impact are
considered before making a viable plan. The transportation planning objectives in relevance
with the government are

1. Safety
2. Improving security
3. Reduce accidents
4. Environment
5. Reducing the levels of noise
6. Minimizing greenhouse gases
7. Improving the quality of air
8. Improving the ambiance during the journey
9. Enhancing the landscape
10. Economy
11. Improving transport economic efficiency for transport providers and business
users
12. Social inclusion
13. Access to facilities
14. Integration
15. Integration between different modes of transport
16. Integrate transportation policy with other government policies
 CHAPTER-2

Material & method

2.2 Measures

India’s transport problems

Even with the current size of the urban population, Indian cities are facing a multitude of issues
such as severe congestion; deteriorating air quality; increasing greenhouse gas (GHG)
emissions from the transport sector; increasing road accidents; and an exploding growth in the
number of private vehicles (largely motorcycles). With the urban population projected to more
than double in the next generation, the situation could easily get out of control and thwart
India’s economic development efforts unless remedial measures are soon taken.

In a move to recognise and act upon urban mobility issues, in 2006 the federal government of
India introduced the National Urban Transport Policy (NUTP), setting the policy framework
for providing sustainable mobility for the future (see Figure 1). In 2015 the government
unveiled its new plan to upgrade 100 cities into ‘smart cities’ and to ‘renew’ 500 cities.

2.3 Data Analysis

ROADWAYS
India has one of the largest road networks of over 4.885 million km consisting of :

Road Length Distribution

Roads Length

National Highways/Expressways 1,32,500 km

State Highways 1,56,694 km

Other Roads 56,08,4 km

Total 58,97,671 km
The total road length of India had grown more than 11 times in 60 years from 1951 to 2011;
also the length of the surfaced roads had increased about 16 times over the same period. The
connectivity in India has tremendously improved due to formation of new surface roads.
For development of roads in the country the government has made an allocation of
₹19,423.88 crores under the Central Road Fund for 2013–2014 with the following breakup:

Type Grants

Grants to State Governments and UTs for State Roads ₹2,659.91 crores

Grants to SGs and UTs for inte-state connectivity and roads of national
₹262.22 crores
importance

National Highways ₹9,881.95 crores

Rural Roads ₹5,827.20 crores

Railways ₹1092.60 crores

₹19,423.88
Total crores
 National Highways Program

Ministry of Transport and NHAI has launched the green highways programme in 2019
The National Highways Act, 1956 provided for public i.e. state investment in the building
and maintenance of the highways.
The National Highways Authority of India was established by the National Highways
Authority of India Act, 1988. Section 16 of the Act states that the function of NHAI is to
develop, maintain, and manage the National Highways and any other highways vested in, or
entrusted to, it by the Government of India.
 RAILWAYS

Growth of Railway revenues falls in the last few years

Causes of railway accidents are many and varied. As discussed earlier, train derailments can occur
due to improper maintenance of railroad tracks, faulty equipment, a mechanical malfunction, or a
collision with another train. Trains can collide with cars, trucks, and other smaller vehicles at grade
crossings.
 AIRWAYS

Financial performance
Most of the airlines in the country continue to be in the red. This can be attributed to the high
cost structure and limited room for increasing fares (and thus revenues) owing to fierce
competition. Over the past 16-18 months, falling crude prices have resulted in the lowering of
aviation turbine fuel (ATF) prices. ATF costs account for about 40 per cent of the total costs
of an airline. However, higher taxes and the weaker rupee are dampening some of the gains
.Indigo and GoAir remain the only profitable airline businesses in the country. The national
carrier, Air India, incurs the highest losses, followed by Jet Airways and SpiceJet

.
Market share
The present industry structure is marked by a dominance of low-cost carriers (LCCs) such as
IndiGo, SpiceJet and GoAir. Their success has also attracted foreign players such as AirAsia
in the LCC segment. With regard to market share, LCCs continue to dominate. In 2016 (till
July), their share is about 60 per cent, led by IndiGo, which continues to be the market
 CHAPTER-3
Discussion
3.1Interpretation

ROADWAYS

The Ministry of Road Transport and Highways (MoRTH) is a ministry of

the Government of India, that is the apex body for formulation and administration of the
rules, regulations and laws relating to road transport, transport research and in also to increase
the mobility and efficiency of the road transport system in India. Through its officers of
Central Engineering Services (Roads) cadre it is responsible for the development of National
Highways of the country. Road transport is a critical infrastructure for economic development
of the country. It influences the pace, structure and pattern of development. In India, roads
are used to transport over 60 percent of the total goods and 85 percent of the passenger
traffic.
Roads are a crucial mode of transport in India. As of year 2020, India had around 4.7 million
kilometers of roads, making it the third largest road network in the world, after the U.S. and
China. With both freight and passenger transport, road transport dominates the sectors in the
country. In addition, with increasing number of vehicles, and rising passenger and freight
movements, road transport will continue to play the central role in India’s transport sector

Number of road transport passengers in India FY 2001-2019

In fiscal year 2019, the road transport passengers amounted to around 22.6 trillion passengers
per kilometre across India. The road network across the south Asian country was the second
largest in the world. India’s automotive market was dominated by two-wheelers and
passenger vehicles. Two-wheeler sales in recent years had a share of over 80 percent
RAILWAYS

India has the fourth-largest railway system in the world, following the US, Russia and China.
As of FY21, the Indian Railways had 13,452 passenger trains and 9,141 freight trains. As of
FY21, it had a total route network of 68,103 kms. Indian Railways has logged the highest
ever electrification of sections covering 6,015 Route Kilometer (RKM) in a single year
during 2020-21. More than 5 times electrification was achieved during (2014-21) last seven
years as compared to during 2007-14. By 2024, Indian railways will be run completely on
electricity.The railways sector has seen some developments, investments and support from
the Government in the recent past,Indian Railways’ revenue reached US$ 5.7 billion in FY
2023 (until July 10, 2022)

The total passenger revenue stood at US$ 1.45 billion in FY2023 (until July 10, 2022)In
FY22 passenger traffic stood at 3.54 billion as compared to 1.28 billion in FY21.In case of
freight earnings it experienced a year on year growth of 20.84%. It stood at US$ 18.55 billion
in FY22 as compared to FY21 which was at US$ 15.35 billion.Freight remains the key
revenue earning segment for the Indian Railways, accounting for 75.2% of the total revenue
in FY22, followed by the passenger segment.FDI inflows in railway-related components
stood at US$ 1.23 billion from April 2000-March 2022.In the Union Budget 2022-23:The
government allocated Rs. 140,367.13 crore (US$ 18.40 billion) to the Ministry of
Railways.Indian Railways will develop new products and efficient logistics services for small
farmers, and small and medium enterprises. It will also take steps towards integration of
postal and railway networks to provide seamless solutions for movement of parcels.100 PM-
GatiShakti Cargo Terminals for multimodal logistics facilities will be developed over next
three years.Multimodal connectivity between mass urban transport and railway stations will
be facilitated on priority.2,000 km of network will be brought under Kavach, the indigenous
technology for safety and capacity augmentation. ‘One Station-One Product’ concept will be
popularized to help local businesses and supply chains.RailTel, a PSU under the Railway
Ministry, which provides fast and free Wi-Fi across the Indian Railways network, announced
its highest ever consolidated income of Rs. 11,660.05 million (US$ 158.48 million) for
FY19-20. This income figure is a growth of 12.3% over the consolidated income of the
financial year FY18-19.
In November 2021, Indian Railways announced that ~102 semi-high-speed Vande Bharat
Expresses are expected to commence operations by 2024, with at least 10 new trains
scheduled to launch by August 2022 that will connect 40 cities.

In October 2021, India and Nepal signed an MoU (Memorandum of Understanding), for a
proposed US$ 3.15 billion railway line project, to connect Kathmandu and the Indian border
town, Rexall.

In October 2021, Indian Railways announced a plan to establish ~500 multi-modal cargo
terminals under the ‘PM GatiShakti’ programme, with an estimated outlay of Rs. 50,000
crore (US$ 6.68 billion) in four-five years. Through this plan, the government plans to
integrate various modes of transportation for seamless movement of parcel and bulk cargo
(e.g., coal and steel).

In November 2020, India Railways announced that 40% of dedicated freight corridor (DFC)
will be opened for traffic by end-FY21, while the entire 2,800 km route will be completed by
June 2022.

AIRWAYS

The Indian airline industry has grown significantly over the years. Lower ticket prices, a pick-
up in air traffic, the release of the National Civil Aviation Policy (NCAP), 2016, a relaxation
in aircraft import norms and the foreign direct investment limit in domestic airlines, and the
listing of InterGlobe Aviation Limited were the highlights of the past 18 month.

Launch of new airlines

During calendar year 2015, four new airlines joined the Indian aviation market. These were
Vistara, a full-service carrier and Air Pegasus, TruJet and Air Carnival, all regional players.

Vistara commenced operations in January 2015 with its inaugural flight between Mumbai and
Delhi. With plans to expand its fleet size by 2018, the airline is looking at increasing its capacity
by 50 per cent. It plans to add Kolkata, Chennai and some Tier II cities to its network by the
close of 2016-17.

Air Pegasus started commercial operations in April 2015 and serves a number of destinations
– Bengaluru, Hubli, Trivandrum, Madurai and Kadapa. However, in July 2016, the
airline cancelled scheduled operations on account of acute cash problems and non-payment to
lessors and maintenance providers. As of August 2016, the airline is in discussions with a
private equity fund and a Southeast Asian airline to dilute up to 30 per cent stake to raise money
and resume operations.

TruJet launched commercial operations in July 2015. With a fleet of three ATR72 aircraft, the
airline operates flights to 10 airports. It is looking to get support/subsidy (extended by some
state governments) to connect new destinations, such as the one provided for connecting
Puducherry.

3.2 Practical & theoretical implication

ROADWAYS

The Ministry of Road Transport and Highways adopted a new systematic numbering of
National Highways in April 2010. It is a systematic numbering scheme based on the
orientation and the geographic location of the highway. The new system indicates the
direction of National Highways whether they are east–west (odd numbers) or north–south
(even numbers). It also indicates the geographical region where they are with even numbers
increasing from east to west starting from NH2 and odd numbers increasing from north to
south starting from NH1.
 Total Length of National Highways in India in (KM)

Year Total Length in (KM)

2021 – 2022 140,995

2020 – 2021 136,440

2019 – 2020 132,995

2018 – 2019 132,500

2017 – 2018 126,500

2016 – 2017 114,158

2015 – 2016 101,011

2014 – 2015 97,991

2013 – 2014 91,287

2012 – 2013 79,116

2011 – 2012 76,818

3.3 Future Directions

ROADWAYS
Bharatmala, a centrally-sponsored and funded road and highways project of the Government
of India[8] with a target of constructing 83,677 km (51,994 mi)[9] of new highways, has been
started in 2018. Phase I of the Bharatmala project involves the construction of 34,800 km of
highways (including the remaining projects under NHDP) at an estimated cost
of ₹5.35 lakh crore (US$67 billion) by 2021-22.
RAILWAYS PLANS
The Ministry of Railways plans to monetise assets including Eastern and Western Dedicated
Freight Corridors after commissioning, induction of 150 modern rakes through PPP, station
redevelopment through PPP, railway land parcels, multifunctional complexes (MFC), railway
colonies, hill railways and stadiums.

With increasing participation expected from private players, domestic and foreign, due to
favourable policy measures, both passenger and freight traffic is expected to grow rapidly
over the medium to long term. The Government of India’s focus on infrastructure is a major
factor which will accelerate growth of railways. Railways infrastructure plans to invest Rs 50
lakh crore (US$ 715.41 billion) by 2030.

The Indian Railways is likely to deliver 58 super critical as well as 68 critical projects worth
more than Rs.1,15,000 crore (US$ 15.44 billion) in the next few years. 27 super critical
projects will be completed by December 2021, while two projects will be handed over by
March 2022. 29 super critical projects—spanning 1,044 kms and costing Rs. 11,588 crore
(US$ 1.5 billion)—have been commissioned. Four projects worth Rs. 1,408 crore (US$
189.05 million) have been completed and the remaining projects are targeted for completion
by March 2024.

Indian Railways completed eight major capacity enhancement projects by taking advantage
of the coronavirus lockdown. These projects included three super critical projects with a
combined length of 68km, three critical projects with a combined length of 45km,
upgradation of the entire 389km railway line from Jhajha in Bihar to Pandit Deen Dayal
Upadhyaya junction in Uttar Pradesh and a new 82km port connectivity line to Paradip.

In FY21-22, the Indian Railways announced to complete several projects. The Railway
Ministry has identified 56 projects in various railway zones that will be completed in
February-March 2021.

As of October 2021, Indian Railways completed electrification work of total 649 route
kilometers, from Katihar to Guwahati, over the Northeast Frontier Railway, boosting the
route’s connectivity.

As a part of the Railways’ plans to upgrade its network, the Ministry announced that all non-
AC sleeper coaches will be replaced by AC coaches for trains running >130 kmph. This
move has been taken as a technical necessity for high-speed trains with the bonus of
improving passenger experience.

On July 25, 2021, the Indian Railways Station Development Corporation (IRSDC), a nodal
agency of the Ministry of Railways spearheading the re-development of railway stations
across the country, claimed that the two railway stations will be redeveloped at an indicative
cost of Rs. 1,285 crore (US$ 172.54 million) in four years.

The Indian Railways has decided to undertake electrification of Broad Gauge (BG) rail lines
in a mission mode and is likely to complete the process by 2023-24. Of the 64,689 kms of
broad gauge route, 45,881 kms has been electrified and the remaining 18,808 kms route is yet
to be electrified. About Rs. 21,000 crore (US$ 2.8 billion) is estimated to be spent on
electrification of the remaining BG routes.
The Indian Railways has decided to undertake electrification of Broad Gauge (BG) rail lines
in a mission mode and is likely to complete the process by 2023-24. Of the 64,689 kms of
broad gauge route, 45,881 kms has been electrified and the remaining 18,808 kms route is yet
to be electrified. About Rs. 21,000 crore (US$ 2.8 billion) is estimated to be spent on
electrification of the remaining BG routes.

RAILWAYS FUTURE TARGETS

Railways is leading India’s fight against climate challenge and is taking significant steps
towards meeting its ambitious goal of being a net zero carbon emissions organisation by 2030
and meeting India’s Intended Nationally Determined Contributions (INDC) targets.

The future outlook of the railways sector looks on track with pandemic easing out.

Indian Railway network is growing at a healthy rate. In the next five years, Indian railway
market is expected to be the third largest in the world, accounting for 10% of the global
market. ‘Adarsh’ Station Scheme has been started since 2009-10 and presently, railway
stations are upgraded/modernised based on identified need of providing better enhanced
passenger amenities at stations. Under the scheme, 1253 stations have been identified for
development, out of which 1201 stations so far have been developed. The remaining 52
stations are planned to be developed by 2021- 22.

AIRWAYS
Airports of the future
Airports are not certain to expand into cities in their own right, so-called aerotropoles, with
their own hinterland of associated businesses. It may be that they shrink as the cost of human
resources rises and technology improvements allow increasing automation in the name of
efficiency, and possibly safety.
Of course, it is equally possible that rather than being eliminated, human resources could be
redeployed to improve the flight and airport experience and capitalize on passenger flows,
extending the airport shopping experience to a range of other facilities
 Conclusion

Transport is a crucial infrastructure needed for the developmental process. It accounts for a
major share of energy consumption in India, especially the petroleum products. The
consumption is likely to grow up further with economic and population growth, rapid
industrialization, urbanization and agricultural development increase freight and passenger
transport, and higher real incomes stimulate leisure-related travel. The Ministry of Road
Transport and Highways (MoRTH) is a ministry of the Government of India, that is the
apex body for formulation and administration of the rules, regulations and laws relating to
road transport, transport research and in also to increase the mobility and efficiency of the
road transport system in India,The National Highways Authority of India was established by
the National Highways Authority of India Act, 1988. India has the fourth-largest railway
system in the world, following the US, Russia and China. As of FY21, the Indian Railways
had 13,452 passenger trains and 9,141 freight trains. As of FY21, it had a total route network
of 68,103 kms. Indian Railways has logged the highest ever electrification of sections
covering 6,015 Route Kilometer (RKM) in a single year during 2020-21. More than 5 times
electrification was achieved during (2014-21) last seven years as compared to during 2007-
14. By 2024, Indian railways will be run completely on electricity. The Indian airline industry
has grown significantly over the years. Lower ticket prices, a pick-up in air traffic, the release
of the National Civil Aviation Policy (NCAP), 2016, a relaxation in aircraft import norms and
the foreign direct investment limit in domestic airlines.
 References

1. HPEC, 20110

2. Source: Vahan digital register

3. Source: ‘How India Travels’ – ANI Technologies/Ola Cabs – January 2016

4. Source: Road Accidents in India – Ministry of Road Transport & Highway,

Government of India

5. Source: ‘The Cost of Air Pollution – Strengthening the Economic Case for
Action’, World Bank 2016