Reforms are on track

The sceptics argue that the 8216;so-called turnaround8217; is driven by 8216;plucking low hanging fruits8217; in a booming economy and soon it will all be over. We have no doubt in our mind that the scope for innovations in systems, processes, policies and technology is endless. The strategy of getting maximum bang with the same buck can continue to work wonders for the Railways for years to come. The Railways proved the critics wrong once again in 2007-08 by sustaining double digit growth in traffic earnings for the fourth consecutive year.

We should not forget that the Chinese Railways has only a slightly bigger network than the Indian Railways. While the two railways have equal number of passenger km, the freight throughput of the Chinese Railways is five times higher than that of the Indian Railways. As against 140 trains in China, we run only 70-80 trains per day on a double line track. This is just one example of the immense untapped potential of the Indian Railways. We can also augment the system8217;s capacity at low cost within a period of three to four years by use of advanced signalling and communication systems.

For example, installation of intermediate block signalling on the entire high density network at a cost of Rs 250 crore will improve line capacity by five per cent 8212; 15 per cent by end of March, 2009. Similarly, completion of automatic block signalling works on saturated sections of Delhi-Mumbai and Delhi-Kolkata routes would add another 20 per cent line capacity in three years. Application of information technology is another lever which can yield early returns at low cost by ensuring higher levels of synergy and optimisation.

Moreover, the Railways is not stashing away the surplus in banks. It is investing for capacity augmentation on a larger scale. The annual plan size of the Railways has got multiplied by a factor of three during the last four years from Rs 11,000 crore to Rs 38,000 crore in 2008-09. Wagon production has gone up from 6,000 to 20,000, locos from 180 to 500, construction of new BG lines from 1,000 km to 3,500 km and so on.

Far more significant are the steps taken to improve capacity of the system through upgradation and modernisation of assets. For instance, capacity of newly designed covered and open wagons is higher by 78 per cent and 22 per cent respectively as compared to old design wagons. Similarly, capacity of new design passenger coaches is 5-20 per cent higher than old coaches. Production of old design coaches and wagons has been stopped and the retrofitment of old rolling stock is being done on a large scale.

The Railways would invest nearly Rs 250,000 crore during the next five years for modernisation, technological upgradation and doubling of transport capacity. More significantly, works and rolling stock programmes have been given the much-needed commercial orientation and sharp focus. Route-wise capacity augmentation programme for the entire high-density networks would be implemented at a cost of Rs 75,000 crore over the next five years. All important dedicated routes for iron ore and coal will be made fit for 25 tonne axle load and port connectivity works would be completed on war footing.

For long-term capacity augmentation, construction of eastern and western dedicated freight corridors will begin over the next six to nine months. The Railways has ambitious plans for building dedicated freight corridors over the entire golden quadrilateral and its diagonals. New rolling stock units for manufacturing wheel and axles, coaches, diesel and electric locos and new generation wagons will be set up in the next few years. Construction of multi-modal logistics parks and modernisation of major stations into world class terminals would enable provision of state-of-the-art services to customers.

Inclusive reforms in the Railways have unveiled a new era of enterprise, risk taking and creativity. But our dreams have not yet been realised in full measure. There is no doubt in our mind that we have succeeded in creating an environment in which railwaymen dream more boldly, imagine more creatively and aspire more confidently. The Indian Railways we imagined four years ago is now within our reach.

Views are personal