TURNAROUND OF INDIAN RAILWAY

 Whenever a situation develops to its extreme. it is bound to turn around and become its opposite .

Lalu Prasad Yadav . And I have used that lesson in everything in my life. but always catch it by its horns. including the Railways.Lalu Prasad Yadav leadership style  My mother always told me not to handle a buffalo by its tail.

 If you don t milk the cow fully .leadership style The solution lay in increasing volumes and not the cost .  Don t micro manage .delegate your work .it falls sick. take calculated risks.  Think out of the box  .

000 crores On a pure operating level..THE LOSS MAKING ERA  The Expert-Group report submitted in July 2001 Expertstated: Today Indian Railway is on the verge of a financial crisis. . To put it bluntly.. IR is in a terminal debt trap. and in sixteen years Government of India will be saddled with an additional financial liability of over Rs 61. the business as usual low growth will rapidly drive IR to fatal bankruptcy.

and to 1.652 million in 1991. One of the elements of retrenchment strategy is to trim off excess staff.412 million by 2006.472 million by 2003.key strategies the Indian Railways adopted Downsizing The number of employees. which peaked at 1. was brought down progressively to 1. The approach that the IR adopted was not to fill in vacancies created due to retirement or other reasons  .

the IR also outsourced advertising activity. the strategy of outsourcing through public private partnership and wholesaling rather than retailing was adopted  . catering and advertising. In the other business areas of parcel.key strategies the Indian Railways adopted Outsourcing Besides the catering and parcel service activity.

it introduced new design of wagons with higher pay load (carrying capacity) but lower tare weight (weight of the empty wagon) that improved safety features.500 tonnes. .key strategies the Indian Railways adopted  Product Innovation The IR introduced double stack container trains on some diesel routes. These containers increased the carrying capacity of each train to 2. Further. The effect of these measures can be seen in higher freight revenue.500 tonnes against 1.

the main plank of the IR turnaround. IR raised the freight on iron ore by 17%.key strategies the Indian Railways adopted Rise in demand The rise in freight revenue .  .

Lalu and Indian Railways  He disallowed plastic cups used for serving tea at railway stations and announced that they will be replaced by kulhads (earthen cups) generate rural employment reduce garbage as kulhads are bio-degradable bio- .

He maintained passenger profile so that compartments could be taken off or added to trains according to seasonal demands.Lalu and Indian Railways   He made personal inspections in the railways . . He undertook surprise check at Rail Bhavan. He deducted the salaries of 500 latecomer employees and sent them back.

he decided to send nearly 100 top officials abroad for training in latest techniques and sharpen their managerial skills in management schools of USA and France.Lalu and Indian Railways  As a part of his drive to modernize the railways . .

because they were enjoying monopoly ever since British left India and would invite open tender.Lalu and Indian Railways He said that he would revoke the contract of AH wheeler & company which runs newspaper stands on most Indian railway stations.  .

´Turnaroundµ    The essence of the turnaround was in the fact that (i) total revenues increased by a significant percentage in the last two years (ii) the net revenues continued a robust upward trend. .

Fully air-conditioned airGarib Rath  A view of the Garib Rath. train for the poor that provides comfortable . . air-conditioned travel at airaffordable cost to India's poor.

irctc.com) .IRCTC  The site which serves online ticketing for Indian railways is the largest e-commerce ewebsite (www.

A dead end street is a good place to turn around Tanya grover Parvinder kaur Gaurav dutt Shakti vohra .

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