chapter – iii indian railways - an...

Chapter – III

Indian Railways - An Overview

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

47

3. 1 INTRODUCTION

Service sector plays the vital role in the system of economic development.

An overview at the economic history revealed that the share of services in national

product uplifts the economy for certain stages of development. Infrastructure and

Development of economy have their contribution even from the service sector like transport.

Railways is one of the sectors that has the capacity to carry high levels of passenger and

freight utilization and energy efficiency. It possesses more capital-intensive than other

transport, when lower traffic levels are taken into consideration. The history of Indian

Railways, Railway network in top ten countries, country-wise passenger kilometers of

Railways, country-wise freight kilometers of Railways, history of rail transport in India,

zone-wise overview of Indian Railways, zone-wise financial performance indicator of

Indian Railways, zone-wise financial results of Indian Railways and zone-wise net gain

or loss by Indian Railways are presented in this chapter.

3.2 HISTORY OF RAILWAYS

During the sixth century B.C, man-hauled Railways were first introduced.

The word Railway is first used in the 1770s. The idea of moving goods by wagons

running on parallel sets of rails goes back to the sixteenth century, but these early routes

that had wooden rails were usually called wagonways or tramways. The shift in emphasis

that led to the use of the word rail instead was partly due to the increased use of the

technique in the colliery routes in north-eastern England, which came to be called lines of

rails, but believed that most strongly influenced by the introduction of iron rails in the

late eighteenth century1. It is known as Railways or Railroads, at first two words, using

the word rail in its sense of “rod, bar”. This comes from an old French word reille, “iron

bar”, whose Latin precursor regula, “straight stick, rod”, has also bequeathed regular and

rule. At first Railway and Railroad were used pretty much equally, but by the 1830s the

former had prevailed in British English, though the latter was taken to North America and

became the dominant “Railway”. After the development of the steam engine by British,

that improvised the rail transport as a source of the power in the 18th and 19th centuries.

Mainline Railway was constructed with the assistance of steam engines. The gradual

development decreased the costs of shipping, fear of losing goods due ships sinking and


48

pirates. The national market has started moving in the developmental phase, due to the

change of transport from canals to Railways. The invention and development of the Railways

in Europe was considered to be one of the significant technological inventions of the late

19th century for the United States, without which the gross domestic product was lower by

seven per cent in 18902.

The advancement in Railways such as electrified trains, first tramways and rapid

transit was introduced in the 1880s. Steam locomotives were replaced by diesel-electric

locomotives, in most countries which had non-electrified Railways during the early

1940s. This replacement had come to an end by 2000. Japan and a few other countries

introduced electrified high-speed Railway systems during the 1960s.

3.2.1 Pre-Steam

During the 6th century BC, the first Railway builds for about six kilometre Diolkos

wagonway, which ferried boats across the Corinth isthmus in Greece that ran for over

600 years. Trucks manually halted by slaves in limeston, which provided the track element1.

After the Dark Age the Railways was initiated to re-emerge in Europe.

The earliest known record of a Railway in Europe from this period is a stained-glass

window in the Minster of Freiburg in Breisgau in Germany, dating from around 13503.

The line initially used wooden rails and a hemp haulage rope, and was worked with the

help of human or animal power. The line still exists, albeit in updated form, and is one of

the oldest Railway still to operate.

In Europe around 1550, narrow gauge Railway common in mines had wooden rails.

Transporting coal from mines to canal wharfs for transshipment to boats was done by means

of wooden wagons in 17th century and it was usual in United Kingdom. Middleton Railway

in Leeds was world's oldest working Railway which was constructed in 1758. In New York

at Lewiston during 1764, the gravity railroad was first built in the United States. During 1810

Leiper Railroad was innovated as the first permanent tramway.

The Cast iron plates on top of wooden rails were the foremost iron plate Railway

which was introduced and came into practice in 1768. Balloon loops was first used for

turning, were in later stage taken switching was permitted by using movable points.


49

In United Kingdom the iron edge Railway came into existence during 1790s. In 1803,

William Jessop opened the Surrey Iron Railway in south London, arguably the world's

first horse-drawn public Railway. The invention of the iron rail by John Birkinshaw in

1820 allowed the short, brittle, and often uneven, cast iron rails to be extended to 15 feet

lengths. These were succeeded by steel in 1857.

3.2.2 Age of steam

The steam engine has been developed during the Industrial revolution in the United

Kingdom that creates ideas for mobile steam locomotives which enable the motion of trains

on tracks4. Heavy low-pressure engines were designed and patented by James Watt's in 1769

(revised in 1782) were not appropriate for getting employed in locomotives5. In 1804,

Richard Trevithick used high pressure steam and demonstrated the first locomotive-hauled

train in Merthyr Tydfil, United Kingdom6. After a couple of years, the first passenger

horse-drawn Railway was operated from Swansea and Mumbles7.

3.2.3 Earliest British Steam Railway

In 1811, the first Railway locomotive was successfully designed by John

Blenkinsop. It was a rack Railway operated by a steam locomotive from Middleton

Colliery and Leeds on the Middleton Railway8. In 1825, Salamanca, a locomotive was

built. The first public steam Railway in the world was built by George Stephenson which

was a Locomotion for the Stockton and Darlington Railway, north east England. After

four years he again built ‘The Rocket’ that won the Rainhill Trials. This success served as

a stepping stone for future establishment of his company as the predominant builder of

steam locomotives which was used on Railway in the United Kingdom, the United States

and a part of Europe9.

In 1830, the first intercity Railway was opened between the Liverpool and

Manchester Railway. Stockton and Darlington Railway adopted the gauge that was used for

the early wagonways. The international standard gauges width was 1,435 mm (4 ft 8 1⁄2 in)

that has been used more about 60 per cent of the world's Railway. By the early 1850s,

a stunning achievement within the twenty years of the opening of the Liverpool and

Manchester Railway Britain had over 7,000 miles of Railway 10.


50

3.2.4 Early Railroads in the United States

Railroads were constructed on a far larger scale than those in Continental Europe,

both in terms of the distances covered and also in the loading gauge adopted, which

allowed for heavier locomotives and double-deck trains. In the United States the building

of railroads started in 1830. Tom Thumb was the first steam locomotive designed by

Peter Cooper's that ran 13 miles between Baltimore and Ohio railroad track. After three

years the second railroads was built for 136 miles between Charleston to Hamburg in

South Carolina. Eight different gauges were involved for a journey from Philadelphia to

Charleston that demands passengers and freight to change trains seven times12.

In 1830, the Baltimore and Ohio Railroad was the first single line that was

connected to a network in the United States. In the next year Albany and Schenectady

were connected by a steam Railway that ran for 16 miles within 40 minutes13.

At later half of the 19th century the US railroad system had seen the tremendous

and remarkable growth that constituted one of the world’s total mileage. Though the

American Civil War was consider as an impediment for the railroad development that

paved the way for the strategic utilization of Railway at times of war. The first elevated

Railway had been built after the war in New York in 1867 as well as the symbolically

prominent first transcontinental railroad was completed in 1869.

3.3 RAILWAY NETWORK IN TOP TEN COUNTRIES

Table 3.1 shows the Railway network in top ten countries during the year 2014.


51

TABLE 3.1

RAILWAY NETWORK IN TOP TEN COUNTRIES DURING THE YEAR 2014

Country Railway length (km)

Electrified length (km)

Area (km2) per km track

Population per km track

Nationalized or private

United states 2,24,792 1600 43.40 1379 Private

China 98,000 48,000 105.46 14722 Nationalized

Russia 87,157 50,000 133.58 1117 Nationalized

India 65,000 23,541 51.19 18846 Nationalized

Canada 46,552 129 174.51 468 Private

Germany 41,981 20,497 9.47 2210 Nationalized

Australia 38,445 2,715 199.94 572 Nationalized

Argentina 36,966 136 77.45 1117 Nationalized

France 29,640 15,140 21.53 2201 Nationalized

Brazil 28,538 1,122 285.57 6397 Nationalized

Source: http://en.wikipedia.org/wiki/List_of_countries_by_rail_transport_network_size

Table 3.1 reveals the Railway network in top ten countries during the year 2014.

In the length of Railway network, United States of America has the highest of 2,24,792 km

because it has a large and vital part of the nation's passenger transportation network and

freight shipments, followed by China with 98,000 km. India stands in the fourth place

with the Railway length of 65,000 km. Brazil occupies the tenth place with the Railway

length of 28,538 km.

Russia has the highest electrified Railway network length of 50,000 km it is due

to the splendid advancements in electrifying the half of track to carry passengers and

traffic quickly. India occupies third position with 23,541 km of electrified length next to

China with 48,000 km. Canada stands in the tenth position with 129 km.


52

The highest area per kilometer track of 285.57 km2 is secured by Brazil, followed

by Australia with 199.94 Km2. India is in seventh position in the area per kilometer track

of 51.19 Km2. Germany has the lowest area per kilometer track of 9.47 km2 among top

ten countries on the bases of Railway length.

India obtained the highest population of 18,846 per kilometer track among top ten

countries it is because India is the second most populous country in the world. Australia

has the lowest Population of 468 per kilometer track.

EXHIBIT 3.1

RAILWAY NETWORK IN TOP TEN COUNTRIES DURING THE YEAR 2014


53

3.4 COUNTRY-WISE PASSENGERS PER KILOMETER IN RAILWAY

Country-wise passenger-km in Railway (Countries with more than 5 billion passenger

per kilometer) is portrayed in table 3.2

TABLE 3.2

COUNTRY-WISE PASSENGERS PER KILOMETER IN RAILWAY

DURING THE YEAR 2014

(In Billion)

Country Passengers per km

India 1046

China 815.7

European union 397.8

Japan 395.1

Russia 139.8

French 88.1

Germany 79.2

UK 62.7

Ukraine 50.6

Egypt 40.8

Source: http://en.wikipedia.org/wiki/Rail_usage_statistics_by_country

Table 3.2 reveals the country-wise passengers per kilometer in Railway during the

year 2014. Indian Railways carries the highest of 1046 billion passengers per kilometer

because it has the second highest population where a number of passengers who depend

on Railways for transportation is high and Railway are operated in every part of the

country as the service sector with less fare when compared to other mode of transport.

China occupies second place with 815.7 billion passengers per kilometer. Egypt carries

the lowest of 40.8 billion passengers per kilometer when compared to top ten counties

with more than 5 billion passengers kilometer.


54

EXHIBIT 3.2

COUNTRY-WISE PASSENGERS PER KILOMETER IN RAILWAY

DURING THE YEAR 2014


55

3.5 COUNTRY-WISE FREIGHT PER KILOMETER IN RAILWAY

Country-wise freight per kilometer in Railway (Countries with more than

10 billion ton kilometer) is stated in table 3.3

TABLE 3.3

COUNTRY-WISE FREIGHT PER KILOMETER IN

RAILWAY DURING THE YEAR 2014

(Ton. in Billion)

Country Ton-km

China 2,947

United States 2,469

Russia 2,011

India 668

Canada 323

European union 300

Brazil 268

Ukraine 218

Kazakhstan 197

South Africa 113

Source: http://en.wikipedia.org/wiki/Rail_usage_statistics_by_country

Table 3.3 indicates the country-wise freight per kilometer in Railway during the

year 2014. China rail transport carries the highest of 2,947 billion ton per kilometer this

has been due to transportation of bulk commodities namely grain, fertilizer, coal, ores and

minerals that are transported using rail freight to domestic shipping and international rail

cargo. South Africa carries the lowest of 113 billion ton per kilometer when compared to

top ten countries with more than 10 billion ton per kilometer.


56

EXHIBIT 3.3

COUNTRY-WISE FREIGHT PER KILOMETER IN

RAILWAY DURING THE YEAR 2014


57

3.6 HISTORY OF RAIL TRANSPORT IN INDIA

In the mid-nineteenth century the history of rail transport in India began. In India

till 1849, there was not a single kilometer of Railway line. A British engineer, Robert

Maitland Brereton, was responsible for the expansion of the Railway from 1857 onwards.

The Allahabad-Jabalpur branch line of the East Indian Railway had been opened in June

1867. Brereton was responsible for linking this with the Great Indian Peninsula Railway

(GIPR), resulting in a combined network of 6,400 km14. Hence it became possible to

travel directly from Bombay to Calcutta. This route was officially opened on 7th March

1870. By 1875, about £95 million were invested by British companies in India that

guaranteed Railways. By 1880 the network had a route mileage of about 14,500 km,

mostly radiating inward from the three major port cities of Bombay, Madras and

Calcutta. By 1895, India had started building its own locomotives, and in 1896 sent

engineers and locomotives to help build the Uganda Railway.

In 1900, the GIPR became a government-owned company. The network spread to

the modern day states of Assam, Rajasthan and Andhra Pradesh and soon various

autonomous kingdoms began to have their own rail systems. In 1905, an early Railway

Board was constituted, but the powers were formally vested under Lord Curzon. It served

under the Department of Commerce and Industry and had a government Railway official

serving as chairman, and a Railway manager from England and an agent of one of the

companies of Railways as the other two members. For the first time in its history, the

Railways began to make a profit.

In 1907 almost all the rail companies were taken over by the government.

The following year, the first electric locomotive made its appearance. With the arrival of

World War I, the Railways was used to meet the needs of the British outside India. With

the end of the war, the Railways was in a state of disrepair and collapse.

In 1920, with the network having expanded to 61,220 km, a need for central

management was mooted by Sir William Acworth. Based on the East India Railways

Committee chaired by Acworth, the government took over the management of the

Railways and detached the finances of the Railways from other governmental revenues15.


58

The period between 1920 and 1929 was a period of economic boom; there were

66,000 km of Railway lines serving the country; the Railways represented a capital value

of some 687 million sterling; and they carried over 620 million passengers and

approximately 90 million tons of goods each year. Following the Great Depression, the

Railways suffered economically for the next eight years. The Second World War severely

crippled the Railways. Starting 1939, about 40 per cent of the rolling stock including

locomotives and coaches was taken to the Middle East, the Railway workshops were

converted to ammunitions workshops and many Railway tracks were dismantled to help

the Allies in the war. By 1946 all rail systems had been taken over by the government.

The government started to operate the Railways in a few cases such as the Eastern

Bengal, the Sind, Punjab and Delhi, and the Oudh and Rohilkhand Railway. The public

works department managed these lines in a similar manner as the state-owned lines were

constructed in the 1870s. In most other cases, the Government entered into agreements

with directors of the former Railway companies. The newly formed companies generally

held less than 20 per cent of the capital. The profits were guaranteed, at lower rates of

three to four per cent and at smaller capital values. Surplus profits were shared with the

Government in proportion to their respective capital shares. Government control and

supervision also substantially increased following the shift to state ownership.

The public-private partnership model became increasingly common after the

1880s as many state-owned and operated Railways were transferred to private operation,

and new companies were set up on similar terms. However, the public opinion turned

against private operation and beginning in the 1920s the government gradually took over

all Railway operations. Thus, the move to state ownership between 1874 and 1912 was

the key first step in India’s move to complete nationalization of its Railways.


59

3.6.1 INDIAN RAILWAYS MAP

Indian Railways map is presented in the exhibit 3.4

EXHIBIT 3.4

INDIAN RAILWAYS MAP

Source: www.mapsofindia.com


60

3.6.2 ORGANIZATION CHART OF INDIAN RAILWAYS

Chart 3.1 portrays the organization chart of Indian Railways.

CHART 3.1 ORGANIZATION CHART OF INDIAN RAILWAYS

Source: www.indianrailways.gov.in/railwayboard

* Chief administrative officer (Railway), ** Metro Railway, Kolkata


http://www.indianrailways.gov.in/railwayboard�

61

The above Chart 3.1 explains the organization structure of Indian Railways from

top to lower authority as below.

Minister of Railways is part of the Cabinet in the government and an elected

member of parliament.

There are usually one or two Ministers of State for Railways, and sometimes a

Deputy Minister for Railways as well.

The Railway Ministry under the Minister of Railways handles the legislative

aspects relating to Indian Railways, including sanctioning its financing, its capital

projects, and operations at a high-level. He must promote improvements in

Railway service performance.

The Railway Board is appointed by the government, and is the body that manages

the operations and projects of Indian Railways.

The Railway Board has a Financial Commissioner, and several Members for

different functional areas: Member Electrical, Member Mechanical, Member Traffic,

Member Civil Engineering, Member Staff, Member Signalling & Telecom, and

Member Stores. (The last two were added in January 2004.) One of these is also

the Chairman of the Railway Board. These officers are all ex-officio Secretaries

to the Government of India in the Railway Ministry; the Chairman is ex-officio

Principal Secretary to the Government of India in the Railway Ministry.

The Financial Commissioner consults with the Minister of Finance as well as with

the Minister of Railways. The Secretary of the Railway Board has the rank of an

additional secretary to the Government of India.

There are 16 Additional Members for specific areas: civil engineering, works,

metropolitan transport, traffic, electrical engineering, mechanical engineering,

signal and telecommunications, computer services, production units, planning,

finance, budget, staff management, commercial services, and general engineering.

There are a varying number of Officers on Special Duty who are deputed to serve

various functions as the need arises. They are on par with the General Managers

of the Zonal Railways.


62

The Railway Board functions rather like the board of directors of a corporation in

supervising operations and directing policy implementation.

The Railway Board is further organized into Directorates, each with an Executive

Director, Directors, Joint Directors, Deputy Directors, and so on. These cover the

areas of Accounts, Budget, Civil Engineering, Coaching, Corporate Coordination,

Computerization and Information Systems, Economic Efficiency and Research,

Electrical Engineering, Electrification, Establishment, Federations, Finance, Health,

Land Management, Legal, Management Services, Mechanical Engineering,

Mechanical Engineering – PU & W, Management Information Systems, Official

Language, Pay Commission, Planning, Projects, Public Relations, Safety, Safety

Review Commission, Secretariat, Security, Signal, Statistics and Economics, Stores,

Telecommunications, Track, Traffic – Commercial, Traffic – Transport, Tourism

and Catering, Vigilance, Works.

The Research, Design, and Standards Organization has Director General and is

an attached office of the Railway Board.

The Railway Liaison Office is another attached office, which works with the

directorate of supplies and disposals of the government.

Subordinate offices of the Railway Board include the Railway Rates Tribunal, Railway

Service Commissions (19 of them), the Railway Staff College at Vadodara, Indian

Railways Institute of Signal Engineering and Telecommunications at Secunderabad,

and the Indian Railways Institute of Advanced Track Technology at Pune.

There are 9 Zonal Railways, Konkan Railway is constituted as a separate

corporation but is treated as a Zonal Railways under the Railway Board. Each

zone has a General Manager and a senior deputy general manager, and is split into

11 departments: engineering, operations, commercial, finance and accounts,

mechanical, electrical, personnel, signal and telecom, stores, medical and security.

A separate construction department may be present. The post of General Manager

of a Zonal Railways is pretty much directly descended from the post of the same

name in the state Railways of the late 19th century.


63

There are 5 production units: chittaranjan locomotive works, diesel locomotive

works, interal coach factory, rail coach factory and rail wheel factory.

3.7 ZONE-WISE OVERVIEW OF INDIAN RAILWAYS

Indian Railways is divided for administrative convenience into several regional

Railways. Until recently there were nine zones, and this structure had not changed much

for four decades. Recently, seven new zones have been created, giving a total of 16.

In 2010, Kolkata Metro was given the status of the 17th zone of Indian Railways.

Additionally, Konkan Railway has the administrative status of a zone of Indian Railways,

but is not normally considered a zone for operational purposes.

Each of the sixteen zones is headed by a general manager who reports directly to

the Railway Board. The zones are further divided into divisions under the control of

Divisional Railway Managers. The divisional officers of engineering, mechanical,

electrical, signal and telecommunication, accounts, personnel, operating, commercial,

security and safety branches report to the respective Divisional Manager and are in

charge of operation and maintenance of assets. Further down the hierarchy tree are the

station masters who control individual stations and the train movement through the track

territory under their stations' administration.

3.7.1 ZONES OF INDIAN RAILWAYS

Table 3.4 shows the zones of Indian Railways that include the name of the

Railway, abbreviation, date of establishment, route km, headquarters and divisions.


64

TABLE 3.4

ZONES OF INDIAN RAILWAYS

S.No Name of the Railway Abbreviation Date of

establishment Route km Headquarters Divisions

1 Central CR 5 November1951 3905 Mumbai Mumbai, Bhusawal, Pune, Solapur, Nagpur

2 East Central ECR 1 October 2002 3628 Hajipur Danapur, Dhanbad, Mughalsarai, Samastipur, Sonpur

3 East Coast ECoR 1 April 2003 2572 Bhubaneswar Khurda Road, Sambalpur, Visakhapatnam

4 Eastern ER April 1952 2414 Kolkata Howrah, Sealdah, Asansol, Malda

5 North Central NCR 1 April 2003 3151 Allahabad Allahabad, Agra, Jhansi

6 North Eastern NER 1952 3667 Gorakhpur Izzatnagar, Lucknow, Varanasi

7 North Western NWR 1 October 2002 5459 Jaipur Jaipur, Ajmer, Bikaner, Jodhpur

8

Northeast Frontier NFR 15 January 1958 3907 Guwahati Alipurduar, Katihar Rangia, Lumding, Tinsukia

9 Northern NR 14 April 1952 6968 Delhi Delhi, Ambala, Firozpur, Lucknow, Moradabad

10 South Central SCR 2 October1966 5803 Secunderabad Secunderabad, Hyderabad, Guntakal, Guntur, Nanded, Vijayawada


65

S.No Name of the Railway Abbreviation Date of

establishment Route km Headquarters Divisions

11 South East Central SECR 1 April 2003 2447 Bilaspur Bilaspur, Raipur, Nagpur

12 South Eastern SER 1955 2631 Kolkata Adra, Chakradharpur, Kharagpur, Ranchi

13 South Western SWR 1 April 2003 3177 Hubli Hubli, Bangalore, Mysore

14 Southern SR 14 April 1951 5098 Chennai Chennai, Trichy, Madurai, Palakkad, Salem, Thiruvananthapuram

15 West Central WCR 1 April 2003 2965 Jabalpur Jabalpur, Bhopal,Kota

16 Western WR 5 November 1951 6182 Mumbai Mumbai Central, Ratlam, Ahmedabad, Rajkot, Bhavnagar, Vadodara

17 Metro Railway MR 31 December 2010 27 Kolkata Kolkata

Source: http://www.irfca.org/faq/faq-geog.html


66

3.7.2 INDIAN RAILWAYS ZONAL MAP

Indian Railways zonal map is presented in the exhibit 3.5.

EXHIBIT 3.5

INDIAN RAILWAYS ZONAL MAP

Source: www.mapsofindia.com


67

3.7.3 ZONE–WISE FINANCIAL PERFORMANCE INDICATOR OF INDIAN

RAILWAYS

Zone–wise financial performance indicators of Indian Railways during the year

2011-2012 are presented in table 3.5.

TABLE 3.5

ZONE–WISE FINANCIAL PERFORMANCE INDICATOR OF INDIAN

RAILWAYS DURING THE YEAR 2011-2012

Zones Capital (Rs. in Billion)

Number of Employees*

(Million)

Route Kilometrage

(Km)

Number of Stations

(Hundreds)

Passengers Carried (Billion)

Goods Carried **

(Tons in Billion)

Central 80.96 0.11 3905.47 496 1.86 0.14

Eastern 52.25 0.11 2447.00 437 1.18 0.12

East Central 113.65 0.08 3656.22 399 0.41 0.17

East Coast 47.17 0.06 2676.65 273 0.10 0.17

Northern 318.38 0.15 6989.90 812 0.92 0.18

North Central 49.86 0.07 3150.67 351 0.39 0.19

North Eastern 39.02 0.06 3767.55 238 0.34 0.03

Northeast Frontier 157.24 0.07 3964.85 288 0.09 0.03

North Western 40.51 0.07 5501.79 402 0.18 0.06

Southern 80.04 0.12 4993.90 557 0.86 0.06

South Central 69.70 0.10 5809.99 582 0.45 0.16

South Eastern 43.09 0.09 2661.28 321 0.28 0.2

South East Central

25.69 0.05 2454.98 178 0.19 0.2


68

Zones Capital (Rs. in Billion)

Number of Employees*

(Million)

Route Kilometrage

(Km)

Number of Stations

(Hundreds)

Passengers Carried (Billion)

Goods Carried **

(Tons in Billion)

South Western 43.60 0.05 3190.70 283 0.22 0.07

Western 58.50 0.11 6439.59 610 1.78 0.13

West Central 27.01 0.06 2964.80 284 0.05 0.13

Metro Railway 34.32 0.01 25.13 23 0.17 0.00

TOTAL 1280.99 1.37 64600.47 6534 9.47 2.04

MEAN 75.35 0.08 3800.03 384.35 0.56 0.12

SD 71.00 0.03 1723.06 187.11 0.57 0.07

Source: Computed from annual report of Indian Railways

*Number of employees includes only number of permanent employees of the entire zones

**Goods include Coal, Total Pig iron and finished steel, Raw Materials, Iron Ore, Cement, Food Grains, Fertilizers, Mineral Oils, Container and Other Commodities.

Table 3.5 reveals the zone-wise financial performance indicators of Indian Railways

during the year 2012. The total capital investment of Indian Railways zones is

Rs.1280.99 billion in which the Northern Railway has the highest capital investment of

Rs.318.38 billion, followed by Northeast Frontier Railway with the capital of Rs.157.24 billion.

The lowest capital investment of Rs.25.69 billion is made in South East Central Railway.

It has a mean value of Rs.75.35 billion and standard deviation of Rs.71.00 billion.

Zone-wise number of permanent employees of Indian Railways shows that the

Northern Railway has the highest of 0.15 million employees out of 1.37 million

employees in all seventeen zones, followed by Southern Railway with 0.12 million

employees. The least number of 0.01 million employees are employed in Metro Railway.

It obtains a mean value of 0.08 million employees and with standard deviation of

0.03 million employees.


69

Zone-wise Route kilometrage of Indian Railways specifies that the Northern

Railway has the highest Route of 6989.90 kilometer, followed by 6439.59 kilometer in

Western Railway with the total of 64600.47 kilometer. Metro Railway has the lowest

route of 25.13 kilometer. It has a mean value of 3800.03 kilometer, standard deviation of

1723.06 kilometer.

Indian Railways has the total number of 6534 stations in all seventeen zones.

Northern Railway has the highest of 812 stations, followed by Western Railway with

610 stations. Metro Railway has the least of 23 stations. It has a mean value of

384.35 stations and standard deviation of 187.11 stations.

Northern Railway has the highest capital investment, number of permanent

employees, and route kilometrage, because it is situated in the capital of India, it is under the

process of promoting tourism, mechanical signaling being replaced by electro-mechanical

relays and microprocessor-based interlocking. The key commodities carried by the zone are

iron & steel, raw material for iron & steel, cement, food grains, fertilizer, and other

commodities. It serves to the industries such as iron and steel plant, cement plants, Indian oil

company, thermal power plants, other important industries served are Bharath Heavy

Electronics Ltd, fertilizer industries, western Indian match company, distilleries, turpentine

and raisin company, sugar mills, scooter factories, asbestos, potteries and cycle industries.

The above table also reveals that the zone-wise number of passengers carried by Indian

Railways demonstrate that the Central Railway carries the highest number of passengers

i.e. 1.86 billion passengers out of 9.47 billion passengers, because it is the leading passenger

carrying system that carries more than 4 lakh passengers to every part of the country through

mail or express or passenger trains. Mumbai suburban train system is the lifeline of the

metropolitan city. More than 3 million passengers travel every day in 1618 suburban trains,

moving across 77 stations. 44 suburban services are operated on Pune-Lonavla section in Pune

division, followed by Western Railway with the 1.78 billion passengers. The least of

0.05 billion of passengers is carried by West Central Railway. It obtains a mean value of

0.56 billion of passengers and standard deviation of 0.57 billion of passengers.


70

Zone-wise goods carried by Indian Railways during the year 2011-2012 is

2.04 billion ton in which the highest of 0.19 billion ton is carried by North Central zone,

followed by Northern Railway with 0.18 billion ton of goods. The least of 0.03 billion ton

of goods is carried by North Eastern Railway and Northeast Frontier Railway. It has a

mean value of 0.12 and standard deviation of 0.07.

3.7.4 ZONE-WISE FINANCIAL RESULTS OF INDIAN RAILWAYS

The financial result such as net traffic receipt, net revenue receipts, net gain or

loss of Indian Railways zones is given below.

3.7.4.1 ZONE-WISE NET TRAFFIC RECEIPT OF INDIAN RAILWAYS

Zone-wise net traffic receipt of Indian Railways that includes gross traffic

receipts, and total gross expenditure are presented in the table 3.6


71

TABLE 3.6 ZONE-WISE NET TRAFFIC RECEIPT OF INDIAN RAILWAYS DURING THE YEAR 2011-2012

(Rs. in Billion)

Railway zones

Gross Traffic Receipts Total Gross Expenditure Net Traffic Receipts

Gross earnings suspense Total Working Expenses* Suspense Total

Gross Traffic Receipts - Total

Gross Expenditure Central 83.31 -0.18 83.13 88.04 -0.02 88.02 -4.89 Eastern 41.69 0.01 41.7 75.92 -0.12 75.8 -34.1 East Central 62.19 0.01 62.2 64.42 -0.19 64.23 -2.03 East Coast 90.13 -0.11 90.02 40.27 0.10 40.37 49.65 Northern 104.98 0.10 105.08 127.03 -0.04 126.99 -21.91 North Central 90.33 0.03 90.36 55.83 0.07 55.9 34.46 North Eastern 19.19 -0.04 19.15 38.78 0.01 38.79 -19.64 Northeast Frontier 28.83 -0.16 28.67 47.97 -0.28 47.69 -19.02 North Western 39.72 0.01 39.73 39.72 -0.06 39.66 0.07 Southern 56.08 -0.12 55.96 68.74 0.22 68.96 -13 South Central 94.40 -0.02 94.38 81.09 -0.24 80.85 13.53 South Eastern 78.59 0.07 78.66 57.16 -0.22 56.94 21.72 South East Central 65.49 0.02 65.51 36.18 -0.19 35.99 29.52 South Western 29.57 0.01 29.58 32.23 -0.16 32.07 -2.49 Western 89.12 -0.05 89.07 84.31 0.18 84.49 4.58 West Central 66.84 -0.01 66.83 46.87 -0.10 46.77 20.06 Metro Railway 1.07 0.01 1.08 3.33 -0.01 3.32 -2.24 TOTAL 1041.53 -0.42 1041.11 987.89 -1.05 986.84 54.27 Source: Indian Railways annual statistical statements 2011-12 *Working expenses include total ordinary working expenses, appropriation to depreciation reserve fund, appropriation to pension fund


72

Table 3.6 demonstrates the zone-wise net traffic receipt of Indian Railways during the

year 2011-2012. Northern Railway shows the highest gross traffic receipts of Rs.105.08 billion

with the gross earnings of Rs.104.98 billion and suspense of Rs.0.10 billion. It is due to

increase in earnings of goods, passenger and other coach. The lowest of Rs.1.08 billion of

gross traffic receipts is recorded in Metro Railway with Rs.1.07 billion of gross earnings and

Rs.0.01 billion of suspense because Metro Railway carries only the passenger.

The above table also reveals that the highest of Rs.126.99 billion of total gross

expenditure is incurred in Northern Railway in the year 2011-2012 with Rs.127.03 billion of

working expenses. It is due to increase in repair and maintenance of permanent ways,

motive power, carriage and wagons, staff welfare and amenities, and operating expenses

incurred for traffic and fuel. It has negative value of suspense of Rs.0.04 billion. Lowest

gross expenditure of Rs.3.32 billion is recorded in Metro Railway with Rs.3.33 billion of

working expenses and negative value of suspense of Rs.0.01 billion.

The highest net traffic receipt of Rs.49.65 billion is recorded in east coast railway

with gross traffic receipt of Rs.90.02 billion and total gross expenditure of Rs.40.37 billion,

followed by Rs.34.46 billion of net traffic receipt in North Central Railway with

Rs.90.36 billion of gross traffic receipt and Rs.55.9 billion of total gross expenditure.

The lowest negative value of net traffic receipt of Rs.34.1 billion is documented in

Eastern Railway with Rs.41.7 billion of gross traffic receipt and Rs.75.8 billion of total

gross expenditure.


73

EXHIBIT 3.6

ZONE-WISE NET TRAFFIC RECEIPT OF INDIAN RAILWAYS

DURING THE YEAR 2011-2012


74

3.7.4.2 ZONE-WISE NET REVENUE RECEIPT OF INDIAN RAILWAYS

Table 3.7 describes the zone-wise net revenue receipt of Indian Railways during

the year 2011-2012.

TABLE 3.7

ZONE-WISE NET REVENUE RECEIPT OF

INDIAN RAILWAYS DURING THE YEAR 2011-2012

(Rs. in Billion)

Railway Zones Net Traffic Receipt

Net Miscellaneous Receipt

Net Revenue Receipt

Central -4.89 0.39 -4.50

Eastern -34.1 0.78 -33.32

East Central -2.03 2.21 0.18

East Coast 49.65 -3.44 46.21

Northern -21.91 0.06 -21.85

North Central 34.46 0.90 35.36

North Eastern -19.64 0.52 -19.12

Northeast Frontier -19.02 7.07 -11.95

North Western 0.07 1.16 1.23

Southern -13 0.81 -12.19

South Central 13.53 0.83 14.36

South Eastern 21.72 0.83 22.55

South East Central 29.52 0.18 29.70

South Western -2.49 0.45 -2.04

Western 4.58 0.15 4.73

West Central 20.06 0.24 20.30

Metro Railway -2.24 -0.01 -2.25

Total 54.27 13.13 67.4 Source: Indian Railways annual statistical statements 2011-12


75

Table 3.7 signifies the zone-wise net revenue receipt of Indian Railways during

the year 2011-2012. Among the seventeen zones the highest net traffic receipt of

Rs.49.65 billion is recorded in East Coast Railway because it has high gross traffic receipt

when compared to total gross expenditure. The Northern Railway has the lowest value of

negative net traffic receipt of Rs.21.91 billion.

In the year 2011-2012 with the total of Rs.13.13 billion of net miscellaneous

receipt, the North Western Railway has the highest of Rs.1.16 billion. It is due to high interest

on fund balances and receipts from safety surcharge on passenger fares. The lowest of

negative net miscellaneous receipts is recorded as Rs.3.44 billion in East Coast Railway.

The highest net revenue receipt of Rs.46.21 billion is found in East Coast Railway

with the total of Rs.67.4 billion. This has been due to highest net traffic receipts and net

miscellaneous receipts, followed by North Central Railway that has net revenue receipt of

Rs.35.36 billion during the year 2011-2012. The lowest of negative net revenue receipt of

Rs.33.32 billion is recorded in Eastern Railway.


76

EXHIBIT 3.7

ZONE-WISE NET REVENUE RECEIPT OF



77

3.7.4.3 ZONE-WISE NET GAIN OR LOSS BY INDIAN RAILWAYS

Table 3.8 shows the zone-wise net gain or loss by the Indian Railways during the

year 2011-2012.

TABLE 3.8

ZONE-WISE NET GAIN OR LOSS BY


(Rs. in Billion)

Railway zones GAIN/ LOSS

Central (6.57)

Eastern (35.60)

East Central (5.12)

East Coast 43.96

Northern (32.70)

North Central 33.04

North Eastern (20.89)

Northeast Frontier (19.20)

North Western (0.63)

Southern (15.89)

South Central 11.17

South Eastern 20.57

South East Central 28.53

South Western (4.11)

Western 2.15

West Central 19.05

Metro Railway (6.50)

Net Gain 11.26 Source: Indian Railways annual statistical statements 2011-12

Note: Figure in the bracket refers to loss.


78

Table 3.8 illustrates the zone-wise net gain or loss by Indian Railways during the

year 2011-2012. The highest gain of Rs.43.96 billion is recorded in East Coast Railway

because it played a great role in meeting the increased transport demand of the region

with several mineral based-industries, mega steel plants and chemical & fertilizer plants

and has increased rail transport capacity to major ports like, Paradeep, Gopalpur and

Visakhapatnam that enhance their cargo handling facilities. The Western Railway has the

lowest gain of Rs.2.15 billion during the year 2011-2012.

The above table also reveals that the negative highest loss of Rs.35.60 billion is

recorded in Eastern Railway. It is due to new station building named as Sealdah,

construction of Railway bridge over river Matla, the health services for better patient

care, like starting a super speciality cardiac centre at BR Singh hospital in eastern

Railway, Battery operated car at the service of physically challenged passengers at

Sealdah Railway station. The negative lowest loss of Rs.0.63 billion is occurred in North

Western Railway during the year 2011-2012.


79

EXHIBIT 3.8

ZONE-WISE NET GAIN OR LOSS BY



80

3.8 CORRELATION ANALYSIS

It is used to analyze the degree of relationship between two variables.

Table 3.9 states that the correlation analysis of zone-wise financial performance

indicator (capital, number of employees, kilometer, number of stations, passengers

carried, goods carried) of Indian Railways during the year 2011-2012.

TABLE 3.9

CORRELATION ANALYSIS

Capital No. of Employees Kilometer No. of

Stations Passengers

Carried Goods

Carried

Capital 1

No. of employees .608** 1

Km .548* .751** 1

No. of Stations .639** .946** .878** 1

Passengers carried .208 .684** .423 .634** 1

Goods carried .137 .376 .156 .342 .145 1

* Correlation is significant at the 0.05 level (2-tailed).

** Correlation is significant at the 0.01 level (2-tailed).

Table 3.9 reveals the correlation analysis of zone-wise financial performance

indicator of Indian Railways during the year 2011-2012. Capital is correlated with rest of

financial performance indicators of Indian Railways. It can be implicit from the

correlation matrix that number of employees (.608**) and number of stations (.639**)

are positively correlated at 1 per cent level of significance. Kilometer (.548*) is found

positively correlated at 5 per cent level of significance.

Number of employees is correlated with other financial performance indicators of

Indian Railways, kilometer (.751**), number of stations (.946**) and passengers carried (.684**)

has positively correlated at 1 per cent level of significance. The table also reveals that the


81

kilometer is correlated with rest of financial performance indicators of Indian Railways,

number of stations (.878**) is positively correlated at 1 per cent level of significance.

The number of stations is correlated with other financial performance indicators of Indian

Railways, passengers carried (.634**) is positively correlated at 1 per cent level of significance.

3.9 INDEPENDENT SAMPLE t-TEST

Independent sample t-test is used to investigate the significant difference of two

means of two populations. In this study gain and loss are taken to test the independent

sample t – test. It contains two sets of analysis, the first one assuming equal variances in

the two groups and the second one assuming unequal variances.

Table 3.11 depicts the result of independent sample t-test for zone-wise net gain

and loss to the government by Indian Railways.

H0: The average outputs of gain and loss are not significantly different from each other.

TABLE 3.10

INDEPENDENT SAMPLES t - TEST

Output

Levene's Test t-test for Equality of Means

F Sig. t Df Sig. Mean Difference

Std. Error Difference

95 per cent Confidence

Interval of the Difference

Lower Upper Equal variances assumed

.034 .857 1.24 15 .234 7.92 6.39 -5.70 21.54

Equal variances not assumed

1.21 11.94 .250 7.92 6.54 -6.35 22.18

Table 3.10 reveals the independent sample t-test for equality of means. The value of

statistic indicates two groups, gain and loss have equal variance. Therefore, the statistic

associated with equal variance assumed should be used for the t-test for equality of means.

The t-test result (with equal variances assumed) shows t-statistic of 1.239 with 15 degrees of

freedom. The corresponding two-tailed p-value is .234, which is greater than 0.05. Therefore,

the null hypothesis is accepted at 5 per cent significance level.


82

REFERENCE

1. http://www.worldwidewords.org/articles/trains.htm

2. Lewis, M. Railways in the Greek and Roman World (PDF). Retrieved

http://www.sciencenews.gr/docs/diolkos.pdf

3. Hylton, S. (2007). The Grand Experiment: The Birth of the Railway Age 1820–

1845. Ian Allan Publishing.

4. Museumwales, (2008). Richard Trevithick's steam locomotive. Retrieved from

http://www.museumwales.ac.uk/rhagor/article/trevithic_loco

5. Payton, P. (2004). Oxford Dictionary of National Biography, Oxford University

Press, Oxford. Retrieved from http://www.oxforddnb.com/view/article/32296,

accessed 5 June 2008.

6. Chartres, J. R. (1997). Oxford Companion to British History. Oxford UP, pp. 13-14.

7. BBC (2007). Early Days of Mumbles Railway. Retrieved from

http://www.bbc.com/news/wales/south_west_wales/

8. Ellis, Hamilton. (1968). The Pictorial Encyclopedia of Railways. Hamlyn Publishing

Group.

9. Dilts, J.D. (1996). The Great Road: The Building of the Baltimore and Ohio, the

Nation's First Railroad, 1828–1853. Palo Alto, CA: Stanford University Press.

pp. 26. ISBN 978-0-8047-2629-0.

10. Wolmar, C. (2009). Joining up Europe. Blood iron and gold: how the railways

transformed the World, Atlantic Books, pp. 94. ISBN 978-1-84887-170-0.

11. The History of the Tom Thumb Peter Cooper, Retrieved from

http://inventors.about.com/library/inventors/bl_tom_thumb.htm

12. The Journal of Ebenezer Mattoon Chamberlain 1832-5", Indiana Magazine of

History, Vol. XV, September 1919, No. 3, pp.233ff.

13. Ambrose, Stephen E. (2000). Nothing Like It In The World; The men who built the

Transcontinental Railroad 1863–1869. Simon & Schuster. ISBN 0-684-84609-8.

http://books.google.co.in/books?id=TZp_GT7PscIC&lpg=PP1&dq=ambrose+nothi

ng+like+it&pg=PP1&hl=en#v=onepage&q&f=false


http://en.wikipedia.org/wiki/International_Standard_Book_Number�

http://en.wikipedia.org/wiki/Special:BookSources/978-0-8047-2629-0�


http://en.wikipedia.org/wiki/Special:BookSources/978-1-84887-170-0�


http://en.wikipedia.org/wiki/Special:BookSources/0-684-84609-8�

http://books.google.co.in/books?id=TZp_GT7PscIC&lpg=PP1&dq=ambrose+nothing+like+it&pg=PP1&hl=en#v=onepage&q&f=false�

http://books.google.co.in/books?id=TZp_GT7PscIC&lpg=PP1&dq=ambrose+nothing+like+it&pg=PP1&hl=en#v=onepage&q&f=false�

83

14. www.indianrailways.gov.in/railwayboard

15. http://railwaywiki.in/articles/index.php?lang=marathi&article=10

16. http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,30

4,366,554,1276

17. http://en.wikipedia.org/wiki/Rail_transport

18. http://www.nr.indianrailways.gov.in/view_section.jsp?lang=0&id=0,1


http://www.indianrailways.gov.in/railwayboard�

http://railwaywiki.in/articles/index.php?lang=marathi&article=10�

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,304,366,554,1276�

http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,304,366,554,1276�

http://en.wikipedia.org/wiki/Rail_transport�

chapter – iii indian railways - an...

Documents