indian railwys ppt.ppt

7/29/2019 indian railwys ppt.ppt

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Indian Railways at thecrossroad

Presented by : Babita Jeena

Kartikay BakshiAshish Gupta

Karan Duggal


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The Beginning

The first commercial passenger train in India ran from Bombay toThane on 16 april,1853

It is the largest railway system in world under one management.

It is the best employer of the world

First diesel locomotives were introduced in india in the mid-1940s

Reclassification of services in 1955-Luxury services was abolished

- renaming of service classes


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In the late- 1980s IR introduced shatabadi Express

IR introduced the CONCERT reservation system in New

Delhi

To promote the construction of railway lines in India,the

British parliament introduced the gurantee system


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Operation of Indian Railways

It operated as a department of the government with theminister for the railways being the highest authority

IR relied on three sources of financing for operations

- budgetary support

- Market borrowings

- Internal resources

No. of facilities to employees

It operated on 3 kinds of gauges

- Narrow gauges

- Broad gauges

- Meter gauges


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Problems

Inability to balance between

social and economic objectives

A high rate of accidents

Burden on the operation of IR

Decline in revenues

Competition from airlines and

roadways


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Social Responsibility versusProfitability

Social commitments.

Subsidized fares to passengers.

Essential goods at a subsidized rate.

Very little support from parliament (Rs 40 billion only 8billion received)

To balance social commitment.

IR resorted to subsidizing its passenger fares.

Essential freight transport .

Exorbitant rate from pvt. transporters to carry freight.


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Social Responsibility versusProfitability

Unprofitable routes to remote part of country just toensure that these are connected to country increasesoperating costs

Unable to attract private transporters causes increasein debt burden.

Expenditure increases on unpopular routes causesimbalance in the departments budgetary resources.


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Safety

Problem faced by the Indian Railways is the

high accident rate

Old Track and Poor State of Rolling Stock

Human error

Outmoded Technology.

Problem of Replacement.


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Decline in revenues

High Debts

Huge pension

Operational costs

High rate on interest

Additional expenditures on unpopular

routes


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Competition from Roadways andAirlines

Less time taken by the airlines

Air fares in the economy class matches

with the first class train fares

Quality of food served, linen and other

facilities in train were bad

People feel safe in airline as compare torailways

Roads are well connected and cheaper


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Some Other Issues

Travel without Tickets

Lack of Modern Management.

Problem of Laying Double Lines

Inadequate Investment


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Solution

Restructuring of Indian railways need to bedone by applying the following strategies :

1. Quality strategy :- How to improve theperformance, services and maintenance of

railways ?2. Marketing strategy :- shift from a supply

concept to marketing concept

3. Customer satisfaction :- How to attract the

business class and other customer ?4. Growth strategy : how to reduce expenses and

increase in revenues


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Quality strategy :

Auxiliary services could be contracted out to private

agencies.

IR broken into several small units to take care of specific

functions like booking, operation etc

Change in the administrative system and reconstitution of the

railway board by including people of entrepreneurial ability.

Improving signaling and communication system whichenhances safety


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Marketing Strategy

Computerize all customer interface areas, like

Reservation, Information Systems (Develop local

language modules) unreserved booking, Claims,

public dealing office etc.

Switch over to Dynamic Rating & Pricing based onmarket prices not on cost plus basis. Indian Railways

should make the concession granted as unique selling

proposition (USP)

TQM to be applied in all management and customer

interface processes.

With aggressive marketing it will regain its market

share of Indian Railways


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Customer satisfaction

Increasing the accountability of railway officials for safety

and performance

IR became more customer focused by introducing

electronic reservations and also accepting credit card

payments.

Food and other services provided should be of good

quality


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Growth Strategy

Stop subsidizing passenger fares with freight

traffic

Improve signaling and communication systems.

Partial privatization should be done.

To reduce its work force by introducing scheme

More focus on safety aspect.

Technological uprgadation for bettermaintenance of railway assets


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Revamping the pricing strategyRationalization of the fares by reducing the

number of people who should be allowed to

travel on discounted fares and restricting them

only to the needy.

Solution to last mileImprove in freight services by tying up with

some trucking companies


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Thank you

indian railwys ppt.ppt

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