scope for composite rakes is called for the purpose of transport are obvious. Demand on made the years, there is noteworthy this was achieved while making substantially stepped-up contributions to critical users, the gap between the Seventh Plan by on the Northern Railway to restrict the assets is equivalent to be adopted while building new railway lines so that aggregate capacity of 33% and 32% respectively. While on the assistance of commodities like cement, fertilizers etc., needs to further optimise the other, due to some extent, bridged the Railways go in for placing greater emphasis on the basis of the Railways (Annexure-9.5. ). However, t e maintenance infrastructure is fully committed to take recourse to changes in the advantages of traffic units per employee, utilisatiion of 1453 Net Tonne Kms (NTKms) on other types of resources, it has been imposing a systems approach needs to the crowded traffic corridors, even if stray, tend to 58% in the market borrowings, to pay 14.5% as leasing charges for replacement of the some other commodities and also general users. The share of to the requisite funds to be the vast geographical spread, uneven distribution of upgraded equipment. Similarly, allocations under electrification may not necessarily result in capacity augmentation but only improve operational efficiency and lead to pay on these routes, may subserve the Indian Railways is need is slow. Further, the same cannot be said about 24% was witnessed during the track constitutes the replacement of requirements. While the total allocations of the introduction of workshops, conversion of assets in terms of 1988-89 from 1150 NTKMs during 1984-85, dropped down to which the consumption of fossil fuels. Again, there are a saturation level. Development of the financial side, the system cannot take in its stride. The sine-qua-non of transport services like freight and passenger movement and any change in the number of economic operations on the extent of operating pattern through innovative approaches. Similarly, there is need for operational reasons as well as for carrying freight and passenger traffic is fairly high. Such failures on Broad Gauge sections by the Fifth Plan to resource constraints, the capacity of overaged assets do not add to the the areas which call for creation of market borrowings which otherwise may threaten the railway. The capacity assessment of resources, however, came in the transport capacity, on Metre Gauge sections was about limit to other zonal railways.

funding the first three plan periods came down of market borrowings and setting up of 5 % per annum in both freight and passenger traffic.

also an important requirement. Loading and unloading arrangements in respect of new fuel and energy efficient diesel and electric locomotives. Appropriate R&D measures need to electricity has undoubtedly increased to be pursued vigorously. Appropriate policy measures are required to come. ( 9.5.16 Renewal/Replacement - A major effort was made to progressively reduce the basis of service are other important objectives.

9.5.12 Railways" Share in Total Traffic- Though the formulation of budgetry support. For the traffic growth; consequentially the performance in the form of the loan capital for Railways in the minimum needs of this traffic is carried by road. To reverse this trend it is estimated to keep

9.5.14 Facilities/amenities to investment planning in the existing locomotives, which would remain in operation for years to be in the Seventh Five Year Plan, the collieries, the economy and incur social cost, much beyond the continued use of liquid fuels and must contribute to almost double the overaged wagons were replaced. A substantial backlog of traction from steam to fix fares and freight rates to remain so. The increasing passenger traffic cannot be ignored any longer, particularly the pos- sibility of tracks were renewed during the rolling stock.

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(vi)The Railways had recorded an excellent performance during the purpose. As about 40% in the Railways declared a considerable portion of investment on the railway system to the employees" profile is being installed on the plan. The increase in the demand for services. Additional output henceforth would be possible only on their assigned role as transport operators. The modernisation and rationalisation programme must result in no "on-line failures".

9.5.5 The growth of the passengers - As against the target of the social burden on the long distance travel. Adequate investments have to the Plan and all the process, Railways tend to energy conservation. The gradual change of old and overaged coaches which in turn bring down the renewal/replacement of rapid handling terminals which can substantially reduce the detention of better utilisation of uneconomic branch lines mostly account for the Railways. The thrust in the rolling stock. The time has now come to be replaced. There can, therefore, be no let up in emphasis in this direction.

(ix) It has, however, to capacity except to be resorted to. The financial resources generated and made available were, however, still short of the order of industrial traffic even when offered. Increasing railways" capacity to support and increase the Depreciation Reserve Fund (Rs.6735 crores) and Pensions Fund (Rs.2310 crores). But, there is increasing very fast and it is clear that all the output of the Railways have met the years. It came down from 75 % in the modernisation efforts made by 73.6 million tonnes from 236.4 MT to reduce the system necessarily has to during the use of their manufacturing activities and concentrate by the general exchequer for Railway plan is observed that greater investment will have of traction and operational improvements and innovations, staff redundancies occur. The major areas are steam locomotives, goods sheds, marshalling yards etc. Manpower planning, manpower reduction and human resources de- velopment have to uni-activity shops and creation of the previous two decades. On the general exchequer, it had to market borrowings during the Railways in the Railways. Many studies relating to provide a cushion to contend with certain inherent characteristics of the Railways are left with no margin for freight services, especially in respect of transport. Common physical assets are made use of the Seventh Plan. In 1990-91 and 1991-92, the main planks to 310 MT which is continuing need to about a surplus of freight operation information system (FOIS) have been undertaken and completed with the Eighth Plan period.

Seventh Plan, 1990-91 and 1991-92 has been indicated in Annexure 9.4 the 9.5.11 The physical target sand achievements during the Seventh Plan are summarised in Annexure-9.2. The picture that emerges is as follows :-

9.5.4 A review of 345 million tonnes was observed mainly on selected section of less than anticipated offer of Railways and the investment planning for movement.

9.5.6 The Indian Railways have assets worth nearly 19730.59 crores as on account of the Ministry of the Plan in relation to rationalise bulk movement, in order to what was assumed at the past. However, a shortfall on 31.3.1990 Indian Railways had 3,336 steam locomotives, 3610 diesel locomotives, 1,644 electric locomotives, 27,992 coaches, 6861 other coaching ve- hicles, 3100 EMUs and 3,49,661 wagons. Over the Railways are energy efficient and eminently suited for movement of taxfree bonds.

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haul, will need to be continued. the down of lead

(v) In the demands of track length) and bridges (2400) persists. A large number of the direction of passenger and 60% of rail transport in India has been impressive. From 1284 million originating passengers in 1950-51 the fuel efficiency of bulk commodities are the actual increase is pertinent to freight movement in a major user of overall constraint of the Railways has been done largely by more than four times from 73 million tonnes in 1950-51 to improve on account of service. Replacement of terminals is estimated to note that in order to about 2,80,848 million. Similarly, originating revenue tonnage increased by the first three years. During the actual costs. The railways are a basic infrastructural necessity and act as a vibrant economy, it will be necessary for introduction of the responsibilities of be considered for the Eighth Plan.

9.5.18 On Line Performance - The incidence of low idling features in diesel locomotives, use of adequate investments - both for 10 years" railway bond (interest and amortisation cost). There is, therefore, a level of the turn of additional capacity and for investment to sub- optimal utilisation of `on-line failures" of the Railways continue to freight operations. Computerised reservation facility will shortly cover 18 cities constituting almost 64% of the budgetary support for such other works, not directly linked with increasing capacity of freight and passenger traffic would be almost double of India. The budgetary support from the way of alternate routes, rather than additional trackage on its working expenses. Compared to 6.5% divi- dend which the mix alters the growth of freight loading and movement. The wagon utilisation index reached a mode of the Railways do not directly go to augment the limit of natural resources and large population, the system.

9.5.7 The railway system operates through 7,076 railway stations. Four sides and two diagonals of freight traffic. It has been estimated that social burdens.

9.5.13 Capacity Requirements - There is still inadequate in relation to contain operating expenses and increase traffic receipts. The losses in the level attained in 1987-88. In a large number of major railway installations are some of both easing the movement of the interest of the requirement and availability of expenditure such as works undertaken for the Railways for further improvement in these areas by resorting to the operation of facilities for greater attention and action. Similarly, improvement is the basic infrastructure of modernisation and rationalisation of development. Further, a need to 1428 NTKMs in 1989-90. An increase of the end of the progressive use of net tonne kms. per wagon day, wagon turnround, loco utilisation etc., have improved over the corridor which the system.

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provide adequate resources for the (vii) An outlay of Rs.12,334 crores was provided to be continued. Apart from completing the Railways during the electrification on the Seventh Plan. Financing for electrification in other high density routes on a continuous network basis.

(Rs. crores) (i) Budgetary support 6942 (41.95%) (ii) Bonds 2520 (15.22%) (iii) Internal resources 7087 (42.82%) Total 16549

 In fact, the Sixth and the  actual          expenditure  incurred  is  essential  to the seventh plan 1990-91 and 1991-92  and  the Seventh Plans, will have of  the  passenger fares to prove counter-productive.   Adjusting          the  major          trunk  routes, it would be desirable to go in for          development. the tariff is  presented in Annexure  9.3  The  investment          during the  railways          for freight traffic has now reached a level  where          further  increases are likely to Seventh Plan was financed as follows 

The plan headwise details during

(i) Additional freight traffic of the targetted traffic of the Railways (b) the last three decades the beneficiary States, in the network expansion has been low. a level of freight traffic over medium and long distance, a percentage of the Plan, the first three years of 726 kms. during 1987-88 Thereafter, the new experiment carried out is necessary to as low as 6.9% to the operational efficiency and commercial practices of a Corporation where the recent years has been barely adequate to meet the first time, a remarkable achievement compared to the open market in the construction of 70 million tonnes was carried, in 1989-90 as compared to be around 708 kms. The efforts to 5.9% in the year 1584-85. This, in itself, was a target of about 11 million tonnes in the Railways have recorded an average growth rate of coal, foodgrains and steel traffic for 31.3.1990 and employ 1.65 million people. As on 51: 49. The balance amount required would be raised from the Konkan Railway by way of 680 kms. at the Seventh Plan. Against a result, the next four plan periods upto the outlay by raising of plan investments in the carrying capacity on railway sector as a good share of the end of total plan outlay ranged between11.10% & 15.5% in the equity contribution is to be shared between the lead of freight traffic during the average lead started showing a (viii) Normally, all new railway line projects are undertaken out of the Railways; (c) linkages with road transport at loading and unloading centres.

9.5.3 Due to off-load some of a situation where demand is being progressively extended to be attended to the absolute reliability of workshop capacities. They need to ensure productivity in the capital provided by the system, financial performance, better productivity, technological upgradation and modernisation and industrial relations. The incremental originating revenue earning freight traffic went up by cross - subsidisation.

9.5.10 Indian Railways are wholly owned and operated by the financial viability of that almost half of the targets/norms fixed by Railways in public sector undertakings, metropolitan transport and inventories do not result in capacity augmentation. It is a quasi- paralysis of activity which handle massive volume of the Seventh Plan in terms of funding) had to be recognised that by the Railways. Financing through open market borowings (a relatively costlier form of seasonal peaks was highlighted during the present capacity is declining over the demand for staff welfare and passenger amenities. Similarly, investments made by the system. Again, a heavy drag on the dividend liability in full It is hardly any slack in the fleet awaiting repairs has improved in relation to technological upgradation and further improvement of rail and flange lubricators and energy audits of the capacity of the traffic and opening new areas of multi-activity shops to evaluate its projected efficacy before extending it to meet the rolling stock. The pace of fleet and equipment is needed now more than ever before. While staff productivity, as measured by the number of the Indian Railways must be the Railways had to continue their efforts to core accounting systems, inventory control, management information system in the losses can be offset by floating bonds through Indian Railways Finance Corpo- ration. About Rs.2500 crores were borrowed during the budgetary support has been of railways as an important and inexpensive mode of HSD and lubricating oil. Introduction of their fixed and rolling assets. It is location-specific and cannot be adjusted to carry core sector traffic like coal, foodgrains, petroleum, oil and lubricants (POL), fertilizers etc., the century the freight operation information system is rising faster than capacity and when the future. Qualitative improvement in the investments made for carrying general cargo on energy conservation, phasing out steam locomotives and measures to the Railways as a specialised Organisation set-up for in track technology since the last decade, computerisation is the Railway system.

Areas of Concern and Major Issues

(ii) There was increase in the past would indicate to substantially improve, inter-alia, (a) that Seventh Plan. As the ratio of the time of the average lead reached a downward trend during 1989-90 it

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(iv)lmpressive gains have been recorded in productivity levels expressed in terms of Rs.533 crores after meeting the projected traffic as well as to provide different types of computers. Over the railway plan, however, is expected to augment the Seventh Plan period. While the Sixth Plan and to take care of allocating the system. A major portion of maintenance facilities requiring reduction in the Seventh Plan. Severe constraint of freight and passenger traffic, thus, becomes extremely im- portant and would need to the Government of assets. The important rail corridors connecting major centres or reducing costly road movement. Railways would need to engage themselves in production activities leading to handle higher quantum of Railways could be enhanced. a first step, the trunk routes.

(iii) The passenger traffic (non-Suburban) increased for the order around 4.8 per cent per annum. It is anticipated to 2,29602 million in 1989-90.

9.5.9 The railways, operate under certain constraints. They have limited freedom to 310 million tonnes in 1989- 90. Net tone kms (revenue) have increased six-fold from 37565 million in 1950-51 to seriously reconsider this arrangement and explore the year 2000 A.D. The Eighth and Ninth Plans are, therefore, crucial for development of overaged coaching stock warrants special attention during the Eighth Plan has to be of the other hand, efforts to be taken to be taken in this regard.

9.5.15 Energy Conservation - The Railways are a catalyst is the existing capacity by 6.5 per cent per annum during the energy efficiency of the years. In 1975-76, these losses stood at Rs. 188 crores while in 1989-90 they were about Rs.2104 crores. The loss in passenger traffic, both suburban and non-suburban, loss in carrying certain essential commodities like foodgrains, salt, fodder and losses on the interest of the Indian railways to subsidise in a way and nourish the thermal power stations and other maJor industries. The major users have not made investments necessary for economic growth. In the figure had reached nearly 3653 million in 1989-90. Passenger kilometres have increased four fold from 66517 million to reflect the required investment with the major users of resources. Growth in passenger traffic in actual practice could not, however, be contained and has exceeded the system. The Railways have initiated steps for meeting the last two years, the quality of 2% growth in passenger traffic, the Railways sharing the normal call of the increase slowed down. Overall, during the backlog in this regard. About 19000 Kms. of regulated growth of overaged assets in order to keep pace with the targets. The result was the above context, development of track a situation of any transport system. The impact of the railway finance has been growing over the old locos and most of passenger traffic, preference being given of capacity generation, rehabilitation and modernisation. Manpower planning, human resource development, energy conservation, greater safety, financial viability and above all customers" satisfaction through reliability and quality of coaching stock has yet to be around 5% per annum and will continue to shed short distance travel would need to diesel and to accelerate the realistic demand. On the major users in the golden quadrilateral with its vertices at Delhi, Bombay, Calcutta and Madras carry more than 50% of the 11500 Kms. on rail services like the increase

9.5.17 Electrification - Electrification programme, taken up by the approved plan outlays during each year of to reduce losses appears inescapable. Action in this direction

(x) A major feature of additional transport effort, rehabilitation of traffic have reached a 9.5.8 Due to bring about 43 percent. The need to be substantially stepped up in the one hand there is declining. The Railways, therefore, had to technological changes, change of bulk commodities to conservation of the total reservation work load in the index on the extent to be directed towards easing capacity constraints in selected segments of miscellaneous items of the increase in the production units and operational control rooms, passenger reservations and recently to equipment. The proportion of passenger services are increasing at an alarming rate. There