India: A Revolution on Rails?

By Imtiaz Muqbil

Indian Railways' multi-million dollar spruce-up is set to continue in the year ahead with a new caveat, balancing "social viability" and "economic viability". The budget proposal for 2009-10 tabled to parliament by Railways Minister Ms Mamata Banerjee on 03 July 2009 will strive to go down the aviation track in upgrading one of the world's largest railway networks - boost passenger services, develop railways terminals/stations and safety, improve connectivity, expand the reservations systems, create better facilities for the handicapped, all without a single increase in fares or freight rates. It will go further than airlines in some respects with a strong focus on freight movements, especially perishable products like fruits and vegetables, thus creating opportunities for developing new markets for India's low-earning farmers.

As these projects are implemented over the Railways' roughly 17,800 services a day, the benefits to travel & tourism will be phenomenal. Domestic tourism will be a primary beneficiary, but so will international tourism, especially for backpackers, most of whom prefer to travel around India by train. It will open up access to dozens of destinations around India, creating new tour packaging opportunities, boosting the average length of stay and distribution of earnings. Neighbouring countries will also benefit; one key part of the budgetary expenditure is for development of links with neighbouring Bangladesh. Indeed, with the signing of the Trans Asian Railway network agreement, numerous other countries will be encouraged to undertake similar upgrades in their railway facilities.

After getting the lion's share of attention in recent years, India's aviation sector has become a victim of its over-zealous growth. The railway network, which transports the vast majority of middle- and lower-income strata Indians, is making slow but steady progress, with every possibility that it will turn the tables on the airlines in providing economically viable, environmentally friendly, inclusive and safe travel around India.

The Railways budget is the third most awaited financial event in India, after the Union Budget and Economic Survey. Created in an election year, the new budget is designed to be both "populist and popular". It strives to provide "inclusive" economic growth and promote greater intra-India social and cultural linkages. Indeed, this year's budget seeks to continue what is considered one of the most significant "turnaround" stories in commercial history but with a difference. Says the minister (who is now back in the Railways portfolio after serving an earlier term under a previous government in 2000), "The Railways is an organization with twin responsibilities - commercial and social. It will be our endeavour to render all commercial services with a human face" and "make Indian Railways a strong, responsive and vibrant organization, with higher levels of capability and effectiveness."

Like the main Union budget, the Railways budget is designed to help the Indian government eradicate poverty, and generate growth by upgrading the living standards of common people. Said the minister, "I am deeply conscious of the need to bring about a perceptible improvement in the travel experience of our passengers. .... and bring highest satisfaction to the travelling public. I am also aware that the recession in the economy has caused much economic burden among the poorer section of our society. Therefore, I do not propose any increase in the passenger fares of any class or category of trains. Similarly, I do not intend to increase freight tariffs." In addition to pledging improved passenger amenities, cleanliness, quality of railway catering, safety and security and punctuality, she promised a 'White Paper' would be created to assess the Railways' organizational, operational and financial status and develop a Vision 2020 along with short- and long-term strategies and plan of action to realise it.

From a broader perspective, the new policy ditches the notion that privatisation of state assets is always the best way forward. In her statement to Parliament, the minister queried "whether railway projects (should) be measured only on the scale of "economic viability" or do we also need to look at the "social viability" of these projects?"

She added, "Are the fruits of development to be restricted only to a privileged few and not to the teeming populations in remote and backward areas of our country? These projects may be economically unviable but are an economic necessity for the people of those regions who have remained victims of backwardness and poverty. They need these projects even more. I do believe and I am firmly committed to the visible upliftment (sic) of the downtrodden and under privileged which is imperative for holistic socio-economic development of the country. These projects that are instrumental in upgradation (sic) of the deprived and under privileged, may not meet the so called economic viability criterion but create real economic assets which will be far more beneficial for future development."

She said, "Just as everybody has a right to vote in democracy, in the same manner, every ordinary person should have the right to development. Several lakhs of people are awaiting development. I think the time has come when our economists and social philosophers will have to consider, that the upliftment (sic) of the poor and down trodden, is the primary task of any welfare government and society and the old mindset of economic viability should be substituted by social viability. Rather than following the conventional strategy of firing staff as a means of cutting costs, it will seek to improve the benefits and working conditions for the 140,000 staff.

She added, "The Railways must set an example to promote 'inclusiveness' in their functioning keeping the needs of all sections of our fellow countrymen in our thoughts, decisions and deeds. I have therefore decided to set up an expert committee to advise me on innovative financing and implementation of the so called "economically unviable" but socially desired projects. We will identify those parts that are detached from all infrastructure development and facilities and within a short time I will prepare a blueprint of how many such schemes can be implemented in the coming five years."

The key issue, she said, was the "need to strike a right balance. Everyone knows that India is changing and changing rapidly. Indeed Railways is making its own important contribution to this change. Today the people of India are eager for faster and inclusive economic growth. They want better connectivity, more employment opportunities. People of every region in every state want to see progress in agriculture, industry, trade and business, so that they and their children can live a better life. Indian Railways is a unique umbrella for creation of infrastructure for development and it is our Mission and Vision to expand the network to reach development to every corner of the country."

"Every person wants to live in dignity. The journey of life also begins with dignity. Rail journey is also like the journey of life. I want that every person should travel on our Railways with dignity."

Highlights of the budget

<> Launch of a new train service called "Duronto" with non-stop, point-to-point services between major metropolitan centres nationwide. For the first time, non-stop trains will link Kolkata-Mumbai, and the capital of New Delhi with Chennai, JammuTawi (Northern India), Lucknow, Pune, Kolkata, Allahabad, Sealdah, Bhubaneshwar and Ernakulam. Another non-stop service will run Kolkata-Amritsar. These will be operated on bi-weekly or tri-weekly basis. Another 57 "superfast" new train services will be created, also linking cities such as Visakhapatnam-Mumbai, Kolkata-Bangalore and Mumbai-Varanasi. Another 27 services will be extended beyond existing destinations, and a further 13 will be upgraded to nearly daily services.

<> The 50 railway stations of nearly all these key cities will be upgraded to "world class standards with international level facilities" through innovative financing and in Public Private Partnership mode. Some of these include are CST Mumbai, Pune, Nagpur, Howrah, Sealdah, Bhubaneswar, New Delhi, Lucknow, Varanasi, Amritsar, Kanpur, Guwahati, Jaipur, Chennai Central, Tiruvananthapuram Central, Secunderabad, Tirupati, Bangalore City, Baiyapanahali (Bangalore), Ahmedabad, Bhopal, Habibganj, Gaya Jn., Agra Cantt., Mathura Jn., Chandigarh, Kolkata, New Jalpaiguri, Majerhat, Mangalore, Porbandar, Anand Vihar, Bijwasan, Ajmer Jn. and Puri.

<> This year, another 375 stations will be provided with basic facilities such as drinking water, adequate toilets, catering services, waiting rooms and dormitories especially for lady passengers, and better signage.

<> All Railway zones have been instructed to give priority to provision of good quality food, drinking water and toilet facilities and ensure cleanliness on trains and stations. National and regional cuisines will be introduced. A comprehensive policy including strict monitoring mechanisms is to be developed for achieving these objectives.

<> Expand On Board House Keeping Scheme (OBHS) to cover 200 additional pairs of trains and also take up improved linen management through modern automated laundries. A pilot project will be started in Mumbai, Delhi, Kolkata, Chennai and Thiruvananthapuram and later extended to other cities.

<> Help Physically Challenged Persons and aged persons by providing standard ramps, earmarked parking lots, specially designed coaches in each mail and express train, lifts and escalators.

<> Introduce Train Information System with automatic announcements in Kolkata, Chennai and Delhi suburban sections as is already in the process of being installed in Mumbai.

<> Explore the possibility to depute at least one doctor in long distance trains. Arrangements will be made to provide Ambulance services for passengers at Chennai, Bangalore, Delhi, Hyderabad, Mumbai, Kolkata and Bhubaneswar to start with.

<> Provide on-board infotainment services on Rajdhanis, Shatabdis and important long distance inter-city trains.

<> The absence of toilet facilities on some trains when the travel time is less than 4 hours, poses difficulties for women, children and aged persons. Plans are to provide toilet facilities on all journeys of more than 2 hours. Conduct field trials for introducing environment friendly toilets.

<> The Reservation System now covers 800 locations with 6,872 terminals. This will be expanded to cover 200 new towns and cities and a further 800 new locations in cities and towns already having PRS facilities. Each member of both houses of Parliament has been asked to identify one PRS location of their choice for inclusion in the list.

<> The number of Unreserved Ticketing System (UTS) terminals is being expanded from 5,000 to 8,000. Automatic Vending Machines will be installed at 200 large and medium sized stations. E-ticketing will also be introduced. Cancellation of confirmed e-tickets is to be simplified. Efforts are on to provide SMS update on waitlisted tickets.

<> Under an MoU with Department of Post, passengers can now buy computerized tickets from nearly 5,000 post offices in cities and towns. Mobile ticketing vans will be introduced for issuing reserved and unreserved tickets in both urban and rural areas. Poor people who are unable to go to the stations can now purchase tickets in market places, "mohallas" and other busy places. This year, 50 such mobile vans will be introduced nationwide.

<> High capacity air conditioned double-decker coaches will be introduced for intercity travel.

<> The Additional General Managers on each zonal Railway will be responsible for periodic supervision and carrying out surprise inspections and attending to public grievances. Each Division will have a dedicated officer for field level supervision.

<> "Yuva Trains" will be introduced between major cities to help youth and low income groups travel at low rates. The new low-priced fast train service will connect rural hinterlands to major metros/cities. The train will provide air conditioned seated accommodation. A weekly service will be introduced as a pilot service within three months between Mumbai-Delhi and Delhi-Kolkata. If successful it will be extended to other areas of the country.

<> Concessions "Izzat": A new scheme called 'Izzat' (dignity, or respect) will involve a uniformally priced monthly season ticket of Rs. 25 would be available free of all surcharges for travel up to 100 kms for members of the unorganized sector with monthly income not exceeding Rs. 1500/-.

<> Concessions to journalists: Instead of giving coupons, it is now proposed to issue photo identification cum credit card based on the certification by the Press Information Bureau and other State and local authorities. In addition, concession of 30% will be increased to 50%. Permission to travel with spouse at 50% concession will be given for once a year.

<> Student concessions. The presently free monthly season tickets for second class travel between school and home for girl students up to graduation and for boy students up to 12^th standard will be extended to students attending Madrasa, High Madrasa and senior Madrasa. Concessional monthly season tickets will also now be available for students attending school up to Class XII, Madrasa, High Madrasa and senior Madrasa for travel in Metro rail, Kolkata. Students attending recognized vocational institutions will also enjoy this 60% concession on the metro fare.

<> Only Ladies Special: As the number of working women in increases, they face considerable difficulties in travelling for work. 'Ladies Only' train services will be introduced in Delhi, Chennai and Kolkata suburban similar to that on Mumbai suburban.

<> Freight Business: Improve the proportion of freight traffic moving on Railways. Besides improving the loading of coal, iron ore, cement, fertilizers and food grains, Railways are seeking to increase their share in new traffic streams like automobiles, fly ash etc. Permission to access private sidings will be given to containers which will help in attracting piecemeal traffic presently not being carried by Railways. A premium service for container movement with assured transit time is being considered for time sensitive cargo.

<> Private ownership of special purpose rolling stock for commodities and private operation of freight terminals will be encouraged. A new policy would be unveiled to allow construction and operation of private freight terminals and multi-modal logistic parks. Partnerships will be sought with state governments and major logistics players to set up logistics parks co-habited by multiple players through participative funding.

<> Mega logistics hubs are being planned alongside the proposed Eastern and Western Dedicated Freight Corridors.

<> Multi-functional Complexes (Macs) will be built in station premises for providing rail users facilities like shopping, food stalls and restaurants, book stalls, PCO/STD/ISD/Fax booths, medicine & variety stores, budget hotels, underground parking etc. These are planned at 50 railway stations serving places of pilgrimage, industry and tourist interest this year.

<> Kinas-Vision (Farmer-Vision) project: India suffers an unacceptable loss of about Rs. 35-40,000 crore (Editor's note: one crore is 10 million) every year in wastage of fruits and vegetables. The Railways proposes to contribute to India's second green revolution by introducing special trains to carry perishable products like fruits and vegetables, fish, etc, from identified production clusters to consumer centres. A professional agency will be hired to identify locations and design proper services.

<> Promote small industries and facilitate movement of village handicraft, cottage industry and textile products from production clusters like Tirupur, Dhanekhali, Shantipur etc to consumption centres.

<> Super Fast Parcel Express Trains: Launch of a premium parcel service named "Faster Parcel Services" on a pilot basis on 3 routes between: Tughalakabad (Delhi) and Royapuram (Chennai) Tughalakabad (Delhi) and Vapi (near Mumbai); Tughalakabad (Delhi) and Howrah This is envisaged as a time-tabled service from dedicated terminals with guaranteed transit time and web-based bookings.

<> Dedicated Freight Corridors on the Western and Eastern routes, a landmark project of great importance for creating infrastructure and generating employment. The Western corridor passes through Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra. The Eastern Corridor will run from Ludhiana to Kolkata via Dankuni, covering the states of Punjab, Uttar Pradesh, Bihar, Jharkhand and West Bengal. Prefeasibility studies for the other trunk routes viz; North-South, East-West, East-South and Southern (Chennai-Goa) corridors have been conducted and Ministry of Railways will take steps for further action in this regard.

<> A Delhi-Mumbai Industrial Corridor is being developed in the area of the Western Dedicated Freight corridor comprising industrial hubs, rail port connectivity, logistic parks and mega power plants which will be executed in public private partnership mode.

<> An Eastern Industrial Corridor developing alongside the Eastern Dedicated Freight Corridor, similar to the Delhi Mumbai Industrial corridor. The Railways land banks will be used to avoid cost increases and help in early start of industrial projects.

<> Improvements in Rail based suburban services i.e. Metro Railway, Circular Railway and EMU services, considered to be the "life-line" of megapolises like Mumbai, Kolkata, and Chennai. Even after augmenting the capacity of the existing trains by way of additional coaches and introduction of additional services, the rail based suburban system will not be able to meet the demand of the ever increasing population and do not provide rail based transport from origin to destination to the commuters.

<> Kashmir: A new rail line from Anantnag to Baramulla in Kashmir Valley has already been completed. Further, Quazigund-Anantnag line will be completed by August 09 and will be inaugurated soon.

<> The Northeast region: Another very sensitive region, where rail projects are in progress for providing connectivity to state capitals of Arunachal Pradesh, Nagaland, Manipur and Mizoram. Ten rail projects in this region have been declared as National projects. A proposal for creation of Northeast Region Rail Development Fund has been initiated to ensure timely completion of the National Projects.

<> Improvement of staff quarters & colonies. During 2009-10, 6,560 new staff quarters are proposed to be constructed. Indoor stadiums will be developed in major railway divisions and zones including Bongaon at the Indo-Bangladesh border.

<> Increase the contribution to Staff Benefit Fund to Rs 350/- per employee by one year. Of this amount, Rs 100 per employee will be exclusively for activities relating to women empowerment and training for developing vocational and occupational skills of physically and mentally challenged wards of railway employees especially girl-childs and higher education for girls. It has been proposed to set up Scholarships for higher education of girl children of group D staff for promoting their economic independence.

<> Open seven Nursing Colleges on Railway land at Delhi, Kolkata, Mumbai (Kalyan), Chennai, Secunderabad, Lucknow and Jabalpur on Public Private Partnership model so as to facilitate the wards of the Railway employees in finding a good vocational avenue.

<> Medical colleges are planned to be established attached to existing railway hospitals through PPP, to give higher education facilities to new generation of railway children.

<> Special Recruitment Drive will be launched to wipe out backlog in filling up the vacancies of Scheduled Caste/Scheduled Tribes. It is proposed to develop a scheme to give better representation to minorities, women and economically back ward classes of the society in railway recruitments. A Special Recruitment Drive will be launched for filling up of vacancies against Physically Handicapped Quota.

<> Strengthen apprentices training facilities to impart state of the art training to young artisans and supervisors.

<> Safety: Safety is first priority. This includes timely track renewal, modernization of signals, use of various safety equipment like digital ultrasonic flaw detecting machines and wheel impact load detectors.

<> Road Over Bridges and Road Under Bridges are extremely important from safety point of view. The present mechanism of cost sharing between the Railways and the state governments needs to be reviewed. A new approach is being sought, with assured funding, to facilitate turnkey execution of these projects.

<> Anti Collision Device (ACD) has been made operational on 1736 RKm of North Frontier Railway. Further work for extending this system on 1700 RKm on three railways Southern, South Central and South Western Railways is planned to be completed in two years.

<> Security and Integrated Security Scheme has been drawn up for 140 vulnerable and sensitive railway stations. Women RPF squads are being deployed for security of women passengers, particularly in sections where a large number of women travel alone regularly.

<> During 2008-09, 363 km of doublings were constructed whereas for 2009-10, target for doubling of 700 km has been fixed. The target for electrification during XI Plan is 3500 Route Kilometers with an outlay of Rs.3500 crores. In the first two years of XI Plan, 1299 RKMs has been electrified.

<> Railway Printing Presses: Long been neglected and considered a non-productive asset. A few major presses like Mumbai (Byculla), Delhi (Shakurbasti), Kolkata (Howrah) and Chennai are proposed for upgrading, making it cost effective for the railways and also creating surplus capacity for ancillary development and commercial purposes.

<> All the initiatives indicated in the Budget and the projects taken in hand are to be strictly monitored for implementation in line with fixed target dates. A project monitoring committee is to be set up to monitor the time-lines. This will achieve substantial savings in cost associated with faulty planning and time over-run

The full text of the Railways Minister's speech, including numerous technical and financial details on funding can be found here.

Source:

Travel Impact Newswire

Imtiaz Muqbil, Executive Editor, 24 Soi Chidlom, Bangkok, Thailand 10330. T: (66-2) 2551480, 2537590. Fax: (66-2) 2544316. Email: imtiaz@travel-impact-newswire.com