Short essay on Railway Management in India

Railway management is carried through Railway Board. The entire network is divided into 16 railway zones (Table 25.VIII) which are subdivided into divisions. These divisions are the basic operating units for the Indian Railways.

Rail Traffic

Due to population growth, urbanisation, in­dustrialization and economic development there has been phenomenal increase in the passenger and freight traffic of the railways. Passengers originat­ing had increased from 1,284 million in 1950-51 to 5,416 million in 2004-05. Similarly goods originat­ing had increased from 93 million tons in 1950-51 to 581 million tons in 2003-04. As regards revenue earning freight traffic during this period the increase had been eight fold (602 million tons in 2004-05).

This growth-trend is also sub­stantiated by the increase in the number of railway coaches and wagons. A closer study of rail traffic highlights following characteristics:

1. The density of traffic is higher on the broad gauge route than on the meter gauge route.

2. The density of traffic is also higher on the trunk routes than the branch lines.

3. There is much concentration of traffic, especially passenger traffic, in the commuting zones of the major metropolises like Mumbai, Kolkata, Delhi, Chennai, Hyderabad and Bangalore. In some of these areas suburban local trains cover long dis­tances (from Kolkata to Asansol and Kharagpur, and from Mumbai to Pune and Bhusaval) where separate tracks have been laid down to facilitate their move­ment.

4. The trunk routes connecting metropolitan cities like Mumbai, Kolkata, Chennai and Delhi have attracted higher flow of rail traffic. Next in importance come trunk routes joining million cities and state capitals.

5. Highest density of passenger traffic is no­ticed in the Ganga Plain followed by the Tamil Nadu Plain.

6. Haora-Gaya-Mughal Sarai route shows the highest density of goods traffic. Infect there is maxi­mum flow of freight traffic over the trunk lines falling within Mumbai-Kolkata-Delhi triangle.

7. The rail routes passing through the mineral belts of the country exhibit high density of freight traffic. Some of these lines also show unbalanced traffic, e.g. Grand Chord line of the eastern railway showing empty coal wagons on return journey to­wards east.

8. The inward flow of freight traffic to four premier metropolises in the form of raw materials and food items is higher than outgoing manufac­tured goods. The Mumbai-Vadodara section is ex­ception to this general trend.

9. The tracks passing through mainly agricul­tural areas depict low freight traffic density.

10. The freight traffic composition of the railways is dominated by coal (45.03 per cent in 2004-05), followed by raw materials for steel plants (7.33 percent), cement (9.01 %), mineral oils (5.38%), fertilizers (4.71%), food grains (7.67%), iron ore for exports (6.04%), pig iron and steel (2.47%) and other goods (12.36%).

11. Road transport is offering stiff competi­tion to the railways as a result of which railways’ share in country’s passenger and freight traffic is gradually declining.

Effect on Indian Economy

The construction and expansion of the railways have proved beneficial for the country’s economy. It has played significant role in the development of cotton textile industry in Mumbai, jute industry near Kolkata, coal industry in Jharkhand and tea plantations in Assam and West Bengal. In post-Independence days railways have helped in the setting of industries to backward areas.

Railways have also been very helpful to the development of Indian agriculture. Now farmers can send their agricultural goods to distant places and even sell them in world market fetching remunera­tive prices. Railways also help in maintaining uni­form price level for agricultural products through better movement and play vital role in mitigating sufferings during natural calamities like droughts, famines, earthquakes etc. and avoiding starvation deaths.

Railways have removed isolation between country-side and cities and have played significant role in disseminating innovations, new ideas and also removing social evils like untouchability etc. They are good means of national integration.

Railways have helped in the easy movements of bulky goods and perishable commodities to dis­tant places. Coal is now easily transported to every part of the country. The markets of fish, eggs, milk, fruits and vegetables have expanded due to railway traffic.

Railways, since their inception, are playing significant role in running country’s administration and safeguarding its freedom and integrity from
external aggression. It facilitates easy movement of police, troops and defense equipments to different parts of the country.

Problems and Prospects

Railways are the largest public sector under­taking of the country. Hence, its problems are also varied and complex. Some of its problems are high­lighted here.

1. Railways were initially constructed to move passenger traffic, agricultural commodities and con- summerwoods to selected areas. Its present network is overburdened and inadequate to meet the new chal­lenges of the present times.

2. There are still numerous areas which are beyond the reach of railways due to unfavourable topography, backwardness and low return. For re­moving regional inequalities in economic growth there is a need to open up such areas to railway traffic which would need heavy investment.

3. Railways are facing stiff competition from road transport as a result of which its share in country’s passenger and goods’ traffic is gradually declining. In many parts of the country roads are running parallel to the rail lines and the concept of developing road transport complementary to the railways has yet to take concrete form in India.

4. Railways have about 16 lakh employees on its regular pay role and are overburdened with surplus staff. About 42 per cent of the total man power is unskilled. About 56 per cent of the working ex­penses go towards the payment of salaries and wages to its employees. This exercises economic burden on the system and its development is hindered. Rail­ways will have to find solution to this problem so as to improve staff productivity and reduce the surplus staff.

5. Due to political pressure and interference the railways has introduced several projects which are not commercially viable. These are generating constant losses.

6. Railways have huge outstanding from power stations amounting to over Rs. 950 crores. The state electricity Boards are also reluctant to accept coal rakes, refuse to deposit adequate funds with the railways to meet their freight charges and avoid payments.

7. State Electricity Boards and NTPC often increase their tariffs disproportionate to the increase in the cost of generation and distribution. This adds financial burden on the electric traction. Railways are the largest consumer of diesel. The increase in its price has adverse effect on the finances of the rail­ways.

8. Administration and decision making for railways are under the hands of the Central Govern­ment in which Railway Minister has an upper hand. This at times leads to bad decisions whose effects are detrimental to the organisation. Its running cost is increasing day by day but the government does not permit to increase fare and tarrif. This leads to mounting deficit in railway budget.

9. A number of equipments used by railways are now obsolete and need replacement. Track re­newal, improvement in signaling, communication system and safety measures are the need of the hour.

But despite these problems and shortcomings there is no substitutes for railways because these are six times more energy efficient, four times more economical in land use than roads, lower social cost on environmental considerations and lower capital cost of construction by a factor of six vis-a-vis the road (The Hindu Survey of Indian Industry, 1998, p. 344). There is a need to devise new strategy for the ‘renaissance of the rail industry” by aiming for a higher growth trajectory.

This will necessitate a re­view of priorities and relocation of resources to make the system both efficient and competitive. There has to be a sharpening of marketing capabil­ity, strengthening of the high-density network, cut­ting down of overheads, withdrawal from activities not connected to the main function of moving people and goods and evolving a financing strategy to deploy the available resources efficiently and effec­tively.

A scheme for commercial exploitation of Railway lands across the country must be worked out. Efforts should also be made to make room for more private sector participation and depoliticize Railway Boards. It is the need of the hour to think for granting autonomy to the Railways.