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April, 2012


The Indian Railways (IR) is one of the largest developed networks in the world and the major catalyst to infuse socio-economic growth in the Indian economy. India has the world's fourth largest rail network. The total route network of Indian Railways ranges to about 64,000 kilometre (km) spreading across 7,000 stations, with more than 18,000 trains operating every day. Over 22 million passengers travel by trains on a daily basis in India. The Indian Railways is also the second largest organisation under a single management.

In addition, the Railways transport around 2.5 million tonnes (MT) of freight via trains on a daily basis. These include a huge variety of goods like mineral ores, iron and steel, fertilisers, petrochemicals, and agricultural produce.

Sector Structure/ Market Size

The Indian Railways has generated earnings worth Rs 92,985 crore (US$ 18.13 billion) approximately from April 2011-February 2012 as compared to Rs 84,402 crore (US$ 16.45 billion) during the same period last year, registering an increase of 10.17 per cent. The approximate number of passengers booked during April 2011-February 2012 was recorded at 7.58 billion as compared to 7.21 billion during the same period last financial year, an increase of 5.21 per cent.

The Railways carried 969.78 MT of revenue earning freight traffic during fiscal 2011-12. The freight carried represents an increase of 48.27 MT over the freight traffic of 921.51 MT actually carried during the corresponding period last year, registering an increase of 5.24 per cent.

The Indian Railways has generated Rs 61,215.49 crore (US$ 11.93 billion) of revenue earnings from commodity-wise freight traffic during April 2011 to February 2012 as compared to Rs 56,073.37 crore (US$ 10.93 billion) during the corresponding period last year, registering an increase of 9.17 per cent. Railways also registered an increase of 5.16 per cent, carrying 875.60 MT of commodity-wise freight traffic during April 2011 to February 2012 as compared to 832.66 MT carried during the corresponding period last year,. The Net Tonne Kilo Metres (NTKM) went up from 548.92 billion during April 2010 to February 2011 to 579.06 billion during April 2011 to February 2012, highlighting an increase of 5.49 per cent.

The cumulative foreign direct investment (FDI) inflow into the railways related components sector stood at US$ 234.76 million from April 2000 to January 2012, according to statistics released by the Department of Industrial Policy and Promotion (DIPP).

Industry Initiatives

  • The two consortiums - Indian and Japanese firms - Sojitz Corporation-Larsen & Toubro (L&T) and Mitsui-IRCON-Leighton have been selected in the pre-qualification stage to bid for civil work contracts of the western rail freight corridor stretch in India, covering 640 km
  • Tata Steel Minerals Canada (TSMC) has entered into a "life of mine" rail transportation contract with Quebec North Shore and Labrador Railway Company (QNS&L). The deal allows for the transportation of iron ore from the Direct Shipping Ore (DSO) Project, owned by TSMC, from Emeril Junction, Newfoundland and Labrador, to Arnaud Junction in Sept-Iles, Quebec
  • India and Germany have strong cooperation and friendship in the field of railway transport, highlighted Mr Mukul Roy, the Union Minister of Railways. A memorandum of understanding (MoU) between the two railways is presently also under finalisation. Referring to the past association, Mr Roy added that German companies have earlier been involved in the procurement of LHB coaches, signalling equipment etc
  • ABB India has won an order worth Rs 75 crore (US$ 14.62 million), from Delhi Metro Rail Corporation Ltd (DMRC), to provide power solutions for the Jaipur metro rail network. The Jaipur Mass Rapid Transport System (MRTS) is expected to carry approximately 11,000 commuters per hour when it becomes fully operational
  • The Railways is poised to sign a joint venture (JV) agreement in April 2012, for setting up a wagon component manufacturing facility at Jellingham, East Midnapore in West Bengal. The work on the project is likely to commence from September 2012. The plant will be set up for manufacturing 10,000 wagon couplers and 10,000 bogies per year and the railways has agreed to an assured off-take of 5,000 couplers and 5,000 bogies per annum
  • The Indian Railways has signed a MoU with the Government of Chattisgarh for development of three rail corridors in the State. The rail corridors would be developed in the Northern region of Chattisgarh, with an approximately total length of 452 km
  • The Mumbai Metropolitan Region Development Authority (MMRDA) has conducted an electrical trial run of India's first monorail in Mumbai from Wadala to Mysore Colony - a distance of 4.5 km. The first phase of the project is expected to be completed by November 2012
  • The Delhi Metro Rail Corporation (DMRC) has inked a deal to procure 76 coaches from the Canadian company Bombardier. The US$ 120 million order was placed by Delhi Metro, which now has a length of 185 km and carry 2 million passengers. The coaches will be used to commission the first eight-coach trains on the Haryana Urban Development Authority (HUDA) City Centre - Jehnagirpuri corridor in May 2013
  • The Northern Railways has opened India's longest railway tunnel through the Pir Panjal range in Jammu & Kashmir. The tunnel which is 10.96 km long is India's longest and Asia's second longest tunnel. The total cost of the tunnel was Rs 391 crore (US$ 76.22 million)