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Indian Railways

April, 2013


One of the largest and busiest rail networks in the world, the Indian Railways is spread over 64,015 route kilometres and is a major mode of transport for passenger and bulk freight traffic.

Mr Pawan Kumar Bansal, the Railways Minister, in one of his recent speeches, praised the Indian Railways for entering the billionaire's club, reckoned by the estimated quantum of originating freight traffic over its network in 2012-13.

Market Size

  • The Indian Railways generated total approximate earnings on originating basis of Rs 124,814.87 crore (US$ 23.09 billion) during 1st April 2012 to 31st March 2013 as against Rs 104,334.61 crore (US$ 19.29 billion) during the corresponding period last year, registering an increase of 19.63 per cent. While the total goods earnings increased by 23.24 per cent, total passenger revenue earnings shot up by 11.35 per cent.
    The revenue earnings from other coaching amounted to Rs 3,137.92 crore (US$ 580.11 million) during 1st April 2012 to 31st March 2013. The total approximate numbers of passengers booked during 1st April 2012 – 31st March 2013 were 8501.30 million compared to 8306.17 million during the same period last year, showing an increase of 2.35 per cent
  • Moreover, Indian Railways carried 1,009.73 million tonnes (MT) of revenue earning freight traffic during 2012-13, 39.95 MT higher than that of 969.78 MT carried during the corresponding period last year, marking an increase of 4 per cent.
    The Railways have kept the loading target at 1,047 MT for the fiscal 2013-14
  • The cumulative foreign direct investment (FDI) inflow into the railways related components sector stood at US$ 260.09 million from April 2000 to January 2013, according to statistics released by the Department of Industrial Policy and Promotion (DIPP)

Recent Developments

  • Allcargo Global has decided to invest in setting up a rail terminal in Hyderabad as part of the company's expansion plans in India. The company, that has already purchased land for setting up the terminal, is marking its debut in the rail business. It currently operates Container freight stations, Inland container depots and coastal shipping as part of its integrated logistics business
  • L&T Metro Rail (Hyderabad), an arm of infrastructure firm L&T has granted a Rs 220 crore (US$ 40.67 million)-project to Korean technology firm Samsung SDS Company, for setting up automatic fare collection (AFC) system for the upcoming Hyderabad metro rail project. The scope of the order majorly includes setting up of smart card based ticketing system, automatic gates, cash and card based payment system, ticket vending machines, and near field communication technology that enables usage of mobile phones as fare media. Samsung has already proved its mettle in implementing similar AFC projects across several countries including three in India - Delhi metro, Bangalore metro and Jaipur metro
  • India witnessed the roll-out of its first mono rail which was test run in Mumbai recently. The first phase of the project spans for 8.80 km and is anticipated to be opened to public in August 2013. The second phase, a 10.74-km long stretch, is expected to be completed by August 2014. The total project cost at fixed rate is estimated at Rs 3,000 crore (US$ 554.71 million).
    The Mumbai Metropolitan Region Development Authority (MMRDA), which is also a town planning agency, is the nodal agency for the city's infrastructure projects
  • Harsco Corporation, a global industrial services company is keen on making alliances and acquisitions in India. Patrick K. Decker, Harsco's newly-appointed President and Chief Executive Officer, foresees huge scope for business in railway infrastructure in India.
    The Pennsylvania-headquartered company, which is into metals and minerals, infrastructure, rail and industrial businesses, is operating in India for two decades