INDIAN

RAILWAYS
PRE AND POST COVID SECTOR ANALYSIS
NIDHI SHAH
21BSP1807

AVINASH DHARWAL
21BSP3453

ROHIT NATTHANI
21BSP2001

KAUSAR KHAN
21BSP3512

AATREY MEHTA
21BSP3040

ZYADE
21BSP2343

SIDDHARTH SUCHAK
21BSP2179
 NIDHI SHAH
 Route length network spread 67,956 kms,
21BSP1807
 13,169 passenger trains
 8,479 freight trains
 Plying 23 million travelers
 3 million tonnes (MT) of freight daily from 7,349 stations
 INTRODUCTION
 India has the 4th largest rail network in the world.
 The entire infrastructure is managed by the Railways
Board.
 27th Jan 2020 --- 22nd March 2020
 Decline in rail traffic>deteriorating finance > Lower investment> Poor Infrastructure >
Decline in employment.
 Revenue from : passenger and freight traffic.
 In 2018-19, freight and passenger traffic contributed to about 67% and 27% of the internal
revenue respectively. The remaining is earned from other miscellaneous sources such as
parcel service, coaching receipts, and sale of platform tickets.
INFRASTRUCTURE

ZYADE
(21BSP2343)
Infrastructure Development
(FY 2019-2020)
 New line, Doubling and Gauge conversion
commissioning increased to 2,226 km in 2019-20, which
is nearly 50% more with reference to average annual
commissioning achieved during 2009-14 (1,520 km/year)
 Expenditure by Railway for doubling projects alone in FY
2019-20 is Rs 22,689 crore, which is over 9 times the
average annual expenditure during 2009-14 (Rs 2,462
crore).
 Railway Electrification works have been completed In FY
year 2019-20,on a total of 5,782 Route KMs
 Total 28 Projects of 1273 Km length got completed &
commissioned during FY 2019-20
 Infrastructure Development
(FY 2020-2021)
• Under the Union Budget 2021-22, the government allocated Rs.
110,054.64 crores to the Ministry of Railways.
• Target to complete around 56 projects in various railway zones.
• In April 2021, Indian Railways completed the construction of Chenab
Bridge (world’s highest railway bridge). The total cost of the bridge is
estimated to be Rs. 1,486 crore and design life of the bridge is said to be
120 years.
• Infrastructure development in the field of Signaling &
Telecommunication include provision of Wi-Fi facility in 303 Railway
Stations, installation of CCTV cameras at 120 Railways etc.
• Indian Railways is planning annual capital expenditure of Rs. 2 lakh
crore until FY 2024 in line with the robust infrastructure upgrade
envisaged for the country-wide railway network.
 How The Railway Infrastructure Is Effectively
Utilized During COVID-19

 The medical and healthcare system of Indian railways were geared up to accommodate the
challenges of the pandemic.
 Existing Railway infrastructure like Railway coaches, health centers, etc. are converted into
isolation wards
 Utilization of Railway factories and workshops for manufacturing face masks, sanitizers, PPE
kits, basic hospital equipment, disinfection chambers, etc.
 Indian railway has played a key role in maintaining the supply of essential items such as food
grains, dairy products, and medicines, etc.
 Utilization of Railway station areas to sell essential goods to the public.
Projects of Indian Railway for
Infrastructure Development
 'Adarsh' Station Scheme
 Solar Panel on Railway Stations
 Semi High Speed projects
 Redevelopment of Railway Stations
04

Demand
&
Supply
AVINASH DHARWAL
(21BSP3453)
 PRE-COVID DEMAND OF RAILWAYS
 Indian Railway have 4th largest rail network which is spread over 67,965 km.
 Indian Railway’s main demand is to fulfil transporting needs, which mainly
consist of goods and passengers.
 To complete the demand & supply, Indian Railways have around 13,000
Passenger trains and 8,5000 freight trains.
 Before COVID, Indian Railway supplied 30 lakh tonnes of freight daily around
the country.
 In freight, railways mainly connect the demand & and supply of products such
as, petroleum, fertilizers, raw material, cement coal, etc.
 Indian Railway network transported over 22 lakh passengers daily.
 Railway travel is a pleasant and satisfying experience for the common citizen.
 Over the years, before COVID Indian Railway was a major mean of
transportation. But as COVID strike, demand & supply gradually fluctuated as it
decreased for sometime, and again increased.
 POST COVID DEMAND OF PASSENGER TRAINS

 As per the government's instructions Indian Railway reduced its passenger trains to
minimal level.
 Indian Railway decided to increase its freight trains in place of the Passenger trains
 Due to economic shutdown, many workers lost their job, this led to unorganized chaos
• .
as unemployed people started to travel back to their respective states, having no mode
of transport available.
 That's where Indian Railway stepped in and took initiative of transporting people.
 Indian Railway started new “Shramik Trains” to transport workers to different states.
Around 4,500 shramik trains were operated to completed the demand.
 INCREASE IN FREIGHT TRAFFIC
• Freight traffic is the major source of income for Indian railways.
• Indian railway's freight played a major role for the demand that emerged during COVID.
• Indian Railway increased its freight traffic & speed of trains, by which it was able to complete demand
& supply in large number as well as fast.
• Indian Railway uses "Kisan Rail" to transport agricultural products from farmers to the supply center.

SUPPY OF COACHES FOR ISOLATION WARDS

• During COVID, India faced shortage of hospital beds and medical instruments, hence
increased the demand.
• Country was not ready for this sudden increase in demand, and unable to fulfill the supply.

• Indian Railway stepped in and provided isolation coaches.

• These isolation coaches are generally known as “COVID Care Coaches”
 REVENUE EARNED BY INDIAN
(PRE VS POST COVID)
150,000

·FREIGHT EARNING

2019-20 : 1,22,850 CR
100,000
2020-21 : 1,47,000CR

·PASSENGER EARNING :
50,000

2019-20 : 51,061 CR
2020-21 : 12,500 CR

0
2019-20 2020-21
Change in Policies
AATREY MEHTA
(21BSP3040)

06
 PRE-COVID
Catering services
Poor Hygiene
Ticket booking system
Freedom to roam across country
Non availability of protective items
Elasticity

KAUSAR KHAN
(21BSP3512)
 CHANGE IN ELASTICITY PRE & POST COVID
 The Railways has been using hike in freight rates as a tool to cross subsidies the
passenger fares, thereby, losing share to other modes of transport.

 The Economic Survey for 2014-15 said freight traffic is more sensitive to price changes
than passenger traffic.

 It also pointed out that that cross-elasticity of civil aviation traffic to changes in railways
prices is at 5.7 per cent .

 Similarly, in freight categories, petroleum products are observed to be very price

sensitive, while iron ore on the other hand does not easily respond to price changes, it
added.

 Some states have started extending the lockdown within their state. In such a situation,
the decline in passenger revenue could last longer than these three weeks of lockdown.
 While passenger traffic has been completely banned, freight traffic has been moving.

 Railways has also started operating special parcel trains (to carry essential goods, e-
commerce goods, etc.) since the lockdown. These activities will help continue the generation
of freight revenue.

 Railways has also relaxed certain charges levied on freight traffic. It remains to be seen if
Railways will be able to meet its targets for freight revenue.

 Cross-subsidization has resulted in high freight tariffs. Passenger operations will face more
losses.

 A decline in revenue surplus affects Railways’ ability to invest in its infrastructure.

 If Railways’ revenue receipts decline this year, it may require additional support from the
central government to finance its revenue expenditure, or finance it through its borrowings.
 Supply Chain
Management
Supply chain management is the
handling of the entire production flow of a

good or service — starting from the raw

components all the way to delivering the final

product to the consumer.

ROHIT NATTHANI
(21BSP2001)
 SUPPLY CHAIN OF RAILWAY
 The COVID-19 pandemic has had a significant impact on
nearly all spheres of the Indian economy.

 Due to restricted connectivity during the lockdown, supply-

chains, exchange and transfer of essential goods and
services and distribution of various commodities have all
been affected.

 However, a critical public utility has emerged as a beacon of

hope and public service in this crisis: the Indian Railways.

 Indian Railways During Covid-19
Indian Railways Has Done A Remarkable Work During The Covid Crisis
by Helping Their Hand Towards The Supply Of Essential Goods Such As
Grains ,Food ,Fruits ,Etc . Across The Country.
The Indian Railways Started Various Initiatives For The Supplying
Essentials To Different Parts of The Country Through Railways Which
Are As Follows:-
1. Kisan Rail And Doodh Duronto
2. RO-RO Train
3. Shramik Trains & Oxygen Express
4. Parcel Trains
1.Kisan Rail And Doodh Duronto
 Indian Railways has seen this crisis as an 
opportunity to grow its freight traffic. 
 Crisis created supply chain disruption in the
transfer of essential goods across the nation, the
freight business showed remarkable resilience.
 Demand for the transportation of core commodities
– such as coal, cement and iron ore – declined due
to economic slowdown, demand for new
commodities emerged.
  Dedicated freight trains – such as Kisan Rail and
Doodh Duronto – have enabled farmers to
transport their produce (including spices, fruits,
vegetables, milk and dairy products) to demand
centres in record time during the pandemic .
2. RO-RO Trains
 To ensure speedy and efficient supply of essential
commodities, Railways has upscaled transportation
by using Roll-on Roll-off (Ro-Ro) facilities to carry
loaded trucks.
 The rake can accommodate at least 42 trucks
onboard its open wagons.
 The RO-RO service is unique in that trucks with
goods are driven on special ramps onto open
wagons of the trains
 Sturdy ramps have been built near railway lines at
both ends.
 RORO Trains were Introduced by Ex Railway
Minister Mr.Piyush Goyal in konkan junction and
he stated “Ensuring speedy and efficient supply of
essential commodities, Railways has upscaled
transportation by using Roll-on Roll-off (Ro-Ro)
facilities to carry loaded trucks”.
 3.Shramik Train & Oxygen Express
• Over 1 crore migrants returned from cities to their home states through Different
Ways Of transport.

• A total of 63.19 lakh passengers travelled from cities to their home states in as
many as 4,621 Shramik Special trains.

• Irctc Arranged Foods For Thousands Of Passengers In Unschduled Trains.

• Recent initiative to operate ‘Oxygen Express’ trains to safely transport Liquid

Medical Oxygen from oxygen plants to hospitals across the country as India battled
its second wave is a perfect example of Indian Railways’ agility and ingenuity.

• Over 17,239 metric tonnes of Liquid Medical Oxygen (LMO) in over 1,042 tankers
has been delivered across the country by the Indian Railways.

• Liquid oxygen Was Also Provided By Private Organizations Such As Tata Group ,
Reliance Industries, Vednata Also When There Was Scarcity.
4. Parcel Trains
• In a major boost to the supply chain across the country, Indian Railways introduced Swift
and Efficient Transport of Utilities (SETU)

• SETU was launched on 19 April .

• SETU:- To ensure unhindered services of time tabled parcel trains for nationwide
transportation of essential commodities and other goods.

• On 27 April 2020, the e-commerce giant Amazon India announced that the company will
be Using The Indian Railways For Delivering Of The Goods through 55 Different Lanes.

• With the aid of Anaconda' trains, which are three times the usual train length, and the
launch of 'SETU, a one-stop parcel traffic helpline to bridge the supply chain gaps,

• Parcel trains are being currently operated on 65 routes.

• Parcel trains are proving to be a profitable venture to the Railways as over 20,400
tonnes of consignments have been loaded since its commencement was announced and
the earnings have already reached INR7.54 crores.
 Employment in the sector and COVID impact
• The Railways is one of the largest employers in not just the country but the world with around
13 lakh employees.
• Awareness campaign: Employees were educated on the dos and don'ts to curb the spread of the
COVID19 pandemic. Posters and display boards were put across the Railway stations premises,
trains, and other Railway offices and establishments.
• . Railway officers and staff took the COVID pledge through Video Conferencing. A collection
of steps to be taken by zonal railways to keep employees safe are described in the Rail Parivar
Dekh-Rekh Muhim. The procedure to separate its employees from COVID-19 drawn up by
the Central Railway is part of the mapping of all its 13-lakh staff and the identification of
potential quarantine facilities for each of them.
• Healthcare services: All central government employees have access to railway health facilities.
Hospital Helpline 24X7 hours was introduced Mask supply, sanitizers, and PPE kits: Masks
and hand sanitizers were distributed to all employees and contract workers.
 COVID IMPACT ON EXPORT AND IMPORTS

SIDDHARTH SUCHAK
(21BSP2179)
 “The [lockdown] has resulted in simultaneous supply
and demand shocks which affected almost all the
sectors. SMEs are also facing challenges ranging from
liquidity crisis to supply chain disruption, resource and
inventory breakdown, and a sudden drop in demand.
On the export side, the major export destinations …
are [holding and cancelling orders]. Though it has been
only [a very short time], the pandemic has had large
scale impact. The situation is evolving rapidly.”
—A representative IFC client bank

This Railway Network is ideal for long distance travel and

movement of bulk commodities, from being an energy
efficient and economic mode of transport.
 July 25, 2020: Indian Railways has send its first-ever export container train to Bangladesh on
Friday from CONCOR’s Container Freight Station (CFS) at Majerhat in Kolkata to Benapole
through integrated check post (ICP) at Petrapole.
 With total 50 containers, the train carried FMCG in 40 and fabrics in 10 while the Indian exporters
were Procter & Gamble, Arvind Ltd and Vardhaman Textiles.
 Indian Railways had recently loaded, for the first time ever, a special parcel train to Bangladesh
with 384 tonnes of dry chillies from Reddipalem in Guntur District of Andhra Pradesh.
 Further, for fast, safe and efficient transportation of perishables and non-bulk commodities, first
‘Kisan Rail’, a multi-commodity train between Devlali- Danapur to carry fruits and vegetables has
been given scheduled stoppage at Manikpur and Prayagraj Chheoki stations and Eight special
parcel trains between Okha- Guwahati, Guwahati- New Delhi, Howrah- Amritsar and Jodhpur-
Guwahati have been given scheduled stoppages at Tundla, Kanpur Central and Prayagraj Junction.
 As per the revised text of the Letter of Exchange, all authorised private container train operators
(Indian as well as Nepali) will be able to utilise the Indian railway network to carry freight
containers for Nepal’s imports or exports, ending the monopoly of the Indian government-
owned Container Corporation of India (CONCOR).
 However, some goods that Railways transports, such as cement which contributes to about 8% of
Railways’ freight revenue, have not been classified as essential goods.
 Railways has also relaxed certain charges levied on freight traffic.  It remains to be seen if Railways
will be able to meet its targets for freight revenue.
 In 2020-21, Railways expects to earn Rs 1,47,000 crore from goods traffic, an increase of 9% over the
revised estimates of 2019-20 (Rs 1,34,733 crore).
 As per numbers provided by the Ministry of Railways, up to February 2020, freight revenue was
approximately Rs 1,08,658 crore.  This is Rs 26,075 crore less than the 2019-20 revised estimates
for freight revenue.  This implies that Rs 26,075 crore will have to be generated by freight traffic in
March 2020 to meet the revised estimate targets (19% of the year’s target).
 However, the average freight revenue in 2019-20 (for the 11 months) has been around Rs 10,029
crore.  Note that in March 2019, freight revenue was Rs 16,721 crore. 
 “April saw the suspension of all passenger services and a steep drop in freight transportation demand
owing to the pandemic and the lockdown and the freight loading was 65 per cent of last year. However,
within the first quarter, the signs of improvement were there. July to September were the recovery phase
where the Railways’ steps for tariff rationalization and ease of doing business started showing their
impact. In the mid quarter, freight loading breached the last year mark. Once the momentum was gained,
freight loading has continued to rise every month into the third quarter,”
— PS Mishra told BusinessLine.

 As the passenger trains take rest in rail yards, the

movement of the container between the ports and their
hinterlands have become swift. For example,
container trains moving between Jawaharlal Nehru
Port (JNP) and Delhi are taking about half the time
compared with the normal time. It feels like a trial run
of the Dedicated Freight Corridor (DFC), though it
will be faster once the DFC is operational.
CONCLUSION

NIDHI SHAH
21BSP1807
 For the first time in 167 year history, all Indian passenger
10
trains were shut
 8 billion passenger's daily travel was halted
Shramik Trains
Diversified Fright
A Covid 19 core coach
RORO Train
Doodh Train
Oxygen Train

 In 2020-21 Indian Railways expectation to earn Rs 61,000

crore from passenger traffic, an increase of 9% over the revised
estimates of 2019-20 (Rs 56,000 crore).
 Reality: The total passenger revenue between the period
April 2020 to February 2021 is Rs 12,409.49 crores
Thank You