Indian Railways On Track For A Transformation
Public transport is vital in a country like India owing to its large population and expansive lands. The transportation industry in India is one of the most diverse comprising of Rail, Air, Water, and Road. It accounts for 6.4% of the GDP and is vital to the economic growth of the country.
One of the key areas of the transport industry is the rail network which spreads across 67,956 km making it the largest in Asia and the fourth largest in the world. Under the solitary management of Indian Railways, it comprises 13,169 passenger trains and 8,479 freight trains in operations from 7,349 stations. The gross revenue of Indian Railways for FY-22 (until June 2021) stood at INR 39,655.25 crores (US$ 5.34 billion) while freight earnings stood at INR 33, 241.75 crore (US $4.48 million) accounting for 84% of the total revenue. Earnings by the passenger segment stood at INR 4,921.11 crores (US$ 663.07 million) being the second major contributor of the total revenue.
The railway is one of the most efficient and economical methods of transport for both, passengers and goods. They are the economic lifeline of India with the volume of passengers using it in their daily commute. Additionally, they play a vital role in transporting goods like coal, metals, petroleum, chemical manures, and food grains. Even the automobile industry heavily relies on Indian Railways as the preferred carrier.
Indian Railways is an assets-heavy entity and it requires a punctual maintenance schedule, hence the value chain is imperative in keeping the sector functioning smoothly by enabling operations, management, maintenance of railway tracks and electricity lines, services, testing, construction activities, and procurement of materials.
The government has also pushed for significant initiatives to boost the railway industry. The National Infrastructure Master plan (Gati Shakti) will help India’s growth story. By doing away with silos of departmentalism, the infrastructure roadmap will see faster and efficient completion. Gati Shakti is expected to increase the cargo handling capacity of railways to 1600 MT by the year 2024-25 thus accelerating the construction of two dedicated freight corridors. Even metro works have picked up and we can see India having a top-notch multi-modal transport hub in the coming years. These efforts will see greater last mile connectivity and increase the pace of economic prosperity.
Furthermore, the Central Government’s National Monetization Pipeline (NMP) is a strategic move that will shore up India’s overall development and bridge the infrastructure deficit. A rise in alternative financing for infra development will not only create a wealth of employment opportunities but, most importantly, strengthen the nation’s economy. Furthermore, it will lead to an increase in the railway’s potential to carry goods at a higher speed and a short turnaround time with enhanced efficiency. These factors will lower the high logistical costs and drastically reduce carbon footprint as well.
The Indian Railways had also unveiled a National Rail Plan (NRP) for India – 2030 which aims to create a ‘future ready’ railway system by 2030. It will look to create capacity ahead of demand and cater to future growth in demand right up to 2050. In July 2021, the South Central Railway zone announced infrastructure development by doubling the maximum permissible speed to 100 km per hour on the Godavari Bridge. The initiative gave a major boost to the Indian Railways on infrastructure modernisation.
The Indian Railways has taken several measures in improving the infrastructure and the quality of services and by 2030 the railway upgrades include 100% electrification of railways, upgrading existing lines with more advanced facilities, up-gradation of railway stations, developing a large high-speed train network interconnecting major cities in India and developing various freight corridors within the country. In a recent report by IEA, it was stated that Indian railways will account for nearly 40% of the total global rail activity by 2050.
To conclude, India’s Railway Transport is getting support and advancements from the government. On the subject of becoming the world’s largest Railway entity, the government’s initiatives have been designed for the benefit of the supporting businesses. Never has there been a better opportunity for railways to propel themselves to be the top transport sector in the world.
