Moving INDIA to 2032National Transport Development Policy Committee (NTDPC)Sector ReportRAI!"A#SHighlights byRa$nis% &'marPro(essor ITNational Aca)emy o( In)ian Rail*ays+ ,a)o)arapit-nair.railnet.gov.in/ac0gro'n)T%e1overnmento(In)iaset'pa2ig%!evelNationalTransport Development Policy Committee (NTDPC) on 33 4e5r'ary 2030. T%emaino5$ectiveo(setting'pt%isCommittee*asto)eveloplong termnationaltransportpolicy(*it%at*entyyear%ori6on)*%ic% (acilitatesoverallgro*t%an)e((iciencyint%eeconomy+*%ile minimising energy 'se an) e((ects on climate c%ange.%ttp788planningcommission.nic.in8sectors8NTDPC8T9R:Ca5Sec:NTDPC.p)(23T%e 4'll Report(%yperlin0s to t%e *e5site)In)ia Transport Report 7 Moving In)ia to 2032Do*nloa) Complete Reports 7 ,ol'me I ;; ,ol'me II ;; ,ol'me IIIIn)ia Transport Report 7 Moving In)ia to 2032 (C%apter *ise)P'5lis%e) on 3 per cent o( t%e net*or0) o( littleC'se) non 5roa)Cga'ge lines carrying only aro'n) 3 per cent o( rail tra((ic.22Disc'ssion on Asset Pro)'ctivity1ocomotive productivity: The achievable productivity is partly influenced by the markets offering, *%ic% )i((er (rom co'ntry to co'ntry. Mo)ern locomotive types an) tec%nologies also %ave %ig%er %a'lage capa5ility. Pro)'ctivity is also in(l'ence) 5y t%e maintenance stan)ar)s an) e((iciency o( eB'ipment. In)ia is signi(icantly 5e%in) ot%er co'ntries in locomotive pro)'ctivity 23Disc'ssion on Asset Pro)'ctivity2agon productivity: T%e ac%ieva5le pro)'ctivity )epen)s partly on tra((ic mi@M ot%er t%ings eB'al+ it s%o'l) 5e %ig%er *it% longer lengt% o( %a'l+ %ig%er proportions o( 5'l0 relative to nonC5'l0 tra((ic+ an) t%e 'se o( nonCspecialist *agons (or a variety o( tra((ic types. It is also in(l'ence) 5y train operating strategies an) t%e e((iciency o( c'stomersA terminal operations. 2ig% 'tilisation generally assists in controlling operating costs+ 5't it can occ'r at t%e e@pense o( c'stomers7 (or e@ample many c'stomers may pre(er to 'se specialise) *agons.So'rce7 4reig%t Rail*ays 1overnance+ 9rganisation an) Management7 An International Ro'n)'pM T%e "orl) /an0M Pa'l 4. Amos+ < ='ly 2033.2>Tren)s in Rail*ay investmentNote: !"3s e)penditure as a percentage of the transport sector e)penditure has varied considerably over the 4lan periods( as it moved from a peak of &5 per cent in the /rd to a lo# of /0 per cent in the --th 4lan2GInvestments N So'rces o( 4'n)ingThe total investment in rail*ays in eac% s'ccessive plan starte) increasing at a s%arp rate (rom t%e Ht% Plan (3JI0CIG) on*ar)s. T%e total p'5lic sector investment %as increase) mani(ol) (rom aro'n) Rs HH 5illion in t%e Ht% Plan+ to aro'n) Rs 3+J00 5illion in t%e 33t% Plan.2o*ever+ t%e IRAs e@pen)it're as a percentage o( t%e transport sector e@pen)it're %as varie) consi)era5ly over t%e Plan perio)s+ as it move) (rom a pea0 o( H< per cent in t%e 3r) to a lo* o( 30 per cent in t%e 33t% Plan (4ig're 3.3G).2HIntermo)alism+ M'ltimo)alism an) !ogistics Capa5ility"orl) e@perienceCo'ntryRail*ay an) !ogisticsA'stralia Rail (reig%t operators %ave %a) close partnering arrangements *it% (reig%t (or*ar)ers (or )eca)es 5't since rail*ay restr'ct'ring (reig%t companies *it% *i)er logistics 5'sinesses no* r'n most interstate (reig%t trains in A'stralia. /ra6il Many o( /ra6ilAs rail*ays )eal *it% 5'l0 mining an) agric'lt'ral pro)'cts 5't t%e company *it% t%e largest net*or0 (*it% concessions in /ra6il an) Argentina) OAmerica !atina !ogisticaA+ mar0ets itsel( as a ('ll service logistics company. Cana)a CN promotes itsel( as a transportation company t%at o((ers integrate) services7 rail+ intermo)al+ tr'c0ing+ (reig%t (or*ar)ing+ *are%o'sing an) )istri5'tion. Cana)ian Paci(ic stresses a5ility to plan an) manage logistics sol'tions an) provi)es oneCstop s%opping (or )oorCtoC)oor transportation 'sing longC%a'l capa5ilities o( t%e rail*ay an) t%e local mar0et access o( tr'c0ing+ (or 5ot% rail an) nonC rail serve) c'stomers. C%ina C%ina Rail*ay Container Transport Company *as esta5lis%e) to manage t%e container 5'siness+ incl')ing rail an) intermo)al transport+ cargo %an)ling an) )elivery+ t%e sale an) leasing o( *agons+ containers an) (acilities. =, *it% international investors to esta5lis% 3I ma$or intermo)al centres lin0e) 5y reg'lar container train services. So'rce7 4reig%t Rail*ays 1overnance 9rganisation an) Management7 An International Ro'n)C'p+ "orl) /an0+ Pa'l Amos+ ='ly 2033. 2JRolling stoc0 investmentG0G3G2PR9=?CT ?T?CFTI9N P Consi)ering t%e nee) (or massive capacity a'gmentation over t%e ne@t 20 years+ a separate 5o)y8 organisation+ partially in)epen)ent o( t%e Ministry o( Rail*ays s%o'l) 5e set 'p to e@pe)ite t%e )elivery o( pro$ects. P All *or0s %aving a 5')get o'tlay o( more t%an Rs G 5illion (or may 5e Rs 30 5illion) s%o'l) 5e entr'ste) to an OA't%orityA+ *%ic% may 5e calle) t%e ONational Rail*ay Constr'ction A't%orityA (NRCA). P T%e NRCA *o'l) 5e an 'm5rella organisation %aving a national level presence+ ('lly a'tonomo's+ an) %aving e@tensive po*ers (or a*ar) o( *or0s. P It *ill a*ar) contracts (or constr'ction+ s'pervise B'ality o( constr'ction an) *o'l) ens're smoot% (lo* o( ('n)s (or t%e *or0s to contin'e 'nimpe)e). Repayment o( loans+ ta@C(ree 5on)s+ etc. *o'l) 5e c%annelise) t%ro'g% it. G3PR9=?CT ?T?CFTI9N...2 P All capacity en%ancement pro$ects s%o'l) 5e ta0en 'p a(ter ens'ring t%at ('n)ing is earmar0e) (or eac% pro$ect. P T%e concept o( (inancial close may 5e intro)'ce) (or eac% pro$ect. P Pro$ect teams to 5e %el) acco'nta5le (or timely completion o( t%e pro$ects. P Pro$ect managers to contin'e in t%eir positions till pro$ect completion. P Per(ormanceClin0e) incentives s%o'l) 5e provi)e) an) penalties (or (ail're s%o'l) also 5e impose). G>GGTARI44 P As %as alrea)y 5een approve) 5y t%e 1overnment+ in)epen)ent Rail Tari(( A't%ority s%o'l) 5e set 'p *it% t%e man)ate o( (i@ation o( rates an) (ares. P As t%e overall rail*ays re(orm procee)s+ t%is A't%ority can 5e c%ange) into an overall Rail*ays Reg'latory A't%ority *%ic% *o'l) encompass tari(( setting+ along *it% ot%er reg'latory ('nctions. ServiceC5ase) pricing to attract tra((ic (or 5agge) 5'l0 commo)ities an) nonC5'l0 commo)ities. P A realistic programme o( (are revision s%o'l) 5e )esigne) to re)'ce8eliminate t%e losses on passenger services. T%e government may s'5si)ise 'p to 2G per cent o( t%e costs o( S'5'r5an rail*ays an) no s'5si)y s%o'l) 5e provi)e) (or nonCs'5'r5an rail*ays. GHTari(( Reg'lation7 1overnment Control in ,arying Meas'resG2FMAN R?S9FRC?S P T%e recr'itment to t%e rail*ay ca)res o( o((icers s%o'l) 5e totally )issociate) (rom t%e Civil Services an) Central ?ngineering Services e@ams. P T%e SCRA e@am s%o'l) 5e 'pgra)e) to recr'it can)i)ates+ *%o are alrea)y gra)'ates+ to t*o streams o( Rail*ay Service vi6. In)ian Rail*ay Tec%nical Service an) In)ian Rail*ay !ogistics Service+ *%ile overall re(orm is 'n)erta0en. P In)'ction o( 'ns0ille) sta(( to 5e re)'ce) an) gra)'ally )one a*ay *it%. P T%e recr'itment processes to 5e s'pplemente) 5y *ell researc%e) an) metic'lo'sly )evelope) in)'ction an) in service training to constantly 'pgra)e t%e s0ills o( employees. P Recr'itment o( %ig%ly B'ali(ie) P%Ds (rom IIMs8IITs an) lateral recr'itment (rom mar0et *o'l) 5e consi)ere) (or specialist ('nctions *it% s'ita5le compensation. P A system o( re*ar) (or collective per(ormance an) varia5le pay lin0e) to incremental s'rpl's generate) 5y vario's 'nits to 5e implemente). HGInstit'tional Arrangement (or Spee)ing Fp Capacity ?n%ancement on IRP All *or0s %aving a 5')get o'tlay o( more t%an Rs G 5illion (or may 5e Rs 30 5illion) s%o'l) 5e entr'ste) to an OA't%orityA+ *%ic% may 5e calle) t%e #$ational Rail%a& Constr'ction A'thorit&( )$RCA)!P T%e pro$ects s%o'l) 5e ta0en 'p as ?PC contracts *it% (i@e) timeCo'tlay an) *atertig%t ('n) provision. No time overCr'n an) cost overCr'n may 5e allo*e).HHAcco'nting systemIt is important t%at t%e acco'nts o( t%e Rail*ays s%o'l) 5e recast into a company acco'nt (ormat in line *it% t%e In)ian 1AAP so t%at t%e tr'e state o( In)ian Rail*ays (inances 5ecome clearer.H