Railways March 20171

RAILWAYS
MARCH 2017 (As of 31 March 2017) For updated information, please visit www.ibef.org 1
RAILWAYS
Executive Summary .....3

Advantage India.....5
Market Overview and Trends...7
Porters Five Forces Analysis .......................21
Strategies Adopted .......................................23
Growth Drivers.....25
Opportunities.....49
Success Stories.............................................53
Useful Information........57
MARCH 2017 For updated information, please visit www.ibef.org 2

RAILWAYS
EXECUTIVE SUMMARY
Worlds third-largest rail As of August 2015, Indian Railways had 12,617 passenger trains carrying over 30 million
passengers daily. On the commercial front, 1101 million tonnes of freight was transported
network via trains in FY15 and the same is targeted to reach 1,186 million tonnes in FY16
Private sector companies are being encouraged to participate in rail projects, which were
largely in the public domain. The Cabinet approved participative models for rail-
connectivity & capacity augmented projects, which allows private ownership of some
Growing public-private railway lines
Launch of Foreign Rail Technology Cooperation Scheme
partnership
PPP to be revamped to get better results
Setting up of Joint Ventures with major public sector customers for fulfilling the
requirements of new lines
Availability of clean & hygienic drinking water at low cost, in March 2017, to save & cut
down on water bill by up to US$59.5 million, Indian Railways announced its plans to buy
recycled water from private companies for non drinking purposes, so as to reduce its
consumption & conserve water.
Growth initiatives Introduction of e catering phase-I in 45 railway stations. Meals can be ordered at the
time of booking tickets from the IRCTC website
Number of mobile charging facilities to be increased in sleeper coaches
Setting up of waste to energy conversion plants to dispose off wastes in an environment
friendly manner
Source: Make in India, TechSci Research

RAILWAYS
EXECUTIVE SUMMARY
Indian Railways launched mobile ticketing services, which enable customers to receive
tickets on Short Message Service (SMS). Additionally, it plans to upgrade its current
systems to support bookings of 7,200 tickets per minute compared with the current
capacity of 2,000 tickets
Funds amounting to USD82.5 billion are expected to be spent on projects in next 10 years
Indian Railways is planning to launch an integrated mobile application for availing all
Modernisation/ travel-related services such as hiring taxis, pre-ordering a meal, requesting for porter
services, lodging at a retiring room, etc.
Technology upgradation
After the successful trial of Spanish made Talgo train, Indian Railways is considering
introduction of light weight aluminium coaches in the rail network to reduce the travelling
time between metropolis. The trains are expected to be launched in early 2018
Production of old designed conventional coaches to be fully stopped from 2018-19, and
manufacturing of Modern Linke Hofmann Busch (LHB) coaches will take place from 2017-
018 at Integral Coach Factory near Chennai. The new coaches are equipped with modern
technology & during derailment, can prevent capsising of coaches
Source: Make in India, TechSci Research

RAILWAYS
ADVANTAGE INDIA
RAILWAYS
ADVANTAGE INDIA
FY16 Growingdemand
Growing demand Attractive opportunities FY20F
Increasing urbanisation & rising Freight traffic is set to increase
Gross incomes (both urban & rural) are significantly due to investments &
Gross
revenue driving growth in the passenger private sector participation revenue
USD25.19 segment USD44.5
Metro rail projects are being
billion Growing industrialisation across the envisaged across many cities over the billion
country has increased freight traffic next ten years
over the last decade
Advantage
India Policy support
Higher investments
The government has increased the
The government has been investing
scope of PPP to beyond providing
heavily to upgrade railway infrastructure
maintenance and other such
Cumulative FDI Inflows from April 2000 supporting roles
to September 2016 stood at USD724.03
Government has allowed 100 per cent
million
FDI in the railway sector
Private Investment in MRTS is expected
Introducing technology portal that
to increase from 13 per cent to 42 per
would provide innovative technological
cent during 2012-17
solutions
Source: Railway Budget 2014-15, Press Information Bureau, Department of Industrial Policy & Promotion; TechSci Research
Notes: 2017F MRTS - Mass Rapid Transit System, Forecast 2017, MT - Million Tonnes,
FDI - Foreign Direct Investment, FY is Indian Financial Year (AprilMarch), F Forecast
RAILWAYS
MARKET OVERVIEW AND TRENDS

RAILWAYS
INDIAN RAILWAYS HAS TWO MAJOR SEGMENTS
Indian Railways (IR) is:
A departmental undertaking of the Government of India (GOI), which owns and operates most of India's rail transport
Overseen by the Ministry of Railways
As of March 2016, IR has a total route network of about 66,030 kilometres spread across 8,500 stations
It operates more than 22,300 trains daily
It has 2.45 lakh wagons, 63,045 coaches and 10,773 locomotives
As on FY16, over 13,000 passenger trains are in operation

Passenger Over 23 million passengers travel by trains daily in India. The
passenger traffic stood at 8151 million in FY16
Railways
Around 1,107 million tonnes of freight was transported via

trains in FY16 and 2,165 million tonnes is expected in FY20
Freight These include a huge variety of goods such as mineral ores,
iron and steel, fertilisers, petrochemicals and agricultural
produce
Source: Ministry of Railways, Make In India, Railway Budget

FY15-16, Railway Budget FY16-17, TechSci Research

RAILWAYS
EVOLUTION OF RAILWAYS IN INDIA
India has the world's third-largest railway network under single management
Total revenues
59 25,190
(USD million)
FY16
Passenger revenue
22 6,932
earnings (USD million)
Freight traffic
(million tonnes) 73.2 1,107
Number of stations 5,976 8,500
Running track
(kilometres) 59,315 FY1951 117,9961
Source: Ministry of Railways, TechSci Research

Notes: 1 Data for FY17
RAILWAYS
STRONG REVENUE GROWTH FOR INDIAN RAILWAYS
Gross revenue trends over the years

Revenue growth has been strong over the years; (USD billion)
during FY0716, revenues increased at a CAGR of
6.4 per cent to USD25.2 billion in FY16
44.5
Revenues from the sector are estimated to reach to
USD44.5 billion by the end of FY20 CAGR: 9.07%
Revenues would expand at a CAGR of 9.07 per cent

26.4 25.2
during FY0720E 23.2 23.8
21.2 22.7
18.2 17.7 18.8
Indian Railway sector aims to boost passenger 14.4
amenities
In March 2017, Railways started a new segment of

revenue generation channel through auctioning for
advertising & branding contracts on 1000 trains. The FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20E
front running brands are to sign this contract for 5
years. Source: Vision 2020, Ministry of Railways, TechSci Research
Notes: CAGR Compound Annual Growth Rate, E Estimates,
FY Indian Financial Year (AprilMarch)

RAILWAYS
SEGMENT-WISE REVENUE GROWTH FOR INDIAN RAILWAYS
In the last eight years, revenues from the passenger segment expanded at a CAGR of 6.9 per cent, with the total revenue
earnings in FY16 totalling to around USD6.9 billion
Indian Railways generated USD16.9 billion in earnings from commodity freight traffic during FY16
Increasing carrying capacity, cost effectiveness, improving quality of service will support the increment in the share of Railway
in the freight movement from 35 per cent to 50 per cent by 2020
As of February 2017, Indian Railways to manufacture semi high-speed, 160 kmph world-class train under Make in India
initiative, comprising 16 fully air-conditioned coaches. The new train will be manufactured at half of the import cost, at the
Integral Coach Factory, Chennai, Tamil Nadu.
Earnings from freight (in USD billion)

Passenger earnings (in USD billion) 17.7
16.9
7.1 6.9 15.4 15.2
14.5
6.0 6.1 13.3
5.6 5.8 12.0
11.5 11.2
4.9 4.7 4.9
9.1
3.8
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Notes: CAGR Compound Annual Growth Rate,
FY Indian Financial Year (AprilMarch), F - Forecast
RAILWAYS
FREIGHT ACCOUNTS FOR MORE THAN TWO-THIRDS OF RAILWAYS REVENUES
Freight business for Indian Railway is supported by 9 Revenue break-up by segment (FY16)
commodities: coal, iron, steel, iron ore, food grains,
fertilizers, petroleum products etc 2.68%
2.72%
Freight remains the major revenue earning segment for
the Railways, accounting for 67.09 per cent of total Freight
revenues in FY16, followed by the passenger segment
27.52% Passenger
Profits from the freight segment are used to cross-
subsidise the passenger segment
Other Coaching
To achieve targets of Vision 2020, 2 dedicated freight
corridors, Eastern & Western, would be operational by 67.09% Sundry
FY20
Source: Railway Budget 2015-16, Railway Budget 2016-17

Ministry of Railways, TechSci Research
Note: Other Coaching includes service coaches such as pantry
cars, parcel vans, mail vans, etc.

RAILWAYS
PASSENGER VOLUMES WITNESS HEALTHY GROWTH (1/2)
Train travel remains the preferred means of long-distance
travel for majority of Indians, a fact reflected by volume & Trends in passenger volumes (in billions)
growth of passengers over the years
Increase in the demand for passenger trains is supported by
15.2
urbanisation, improving income standards, etc
During 2007-16, passenger volume increased at a CAGR of
2.58 per cent CAGR: 2.58%
During FY16, passenger traffic using Indian
Railways reached 8152 million 8.22 8.42 8.39 8.22 8.1
7.24 7.65
Passenger traffic is expected to increase to 15.18 6.52 6.92
6.12
billion by FY20
By 2020, Indian Railways plans to achieve speed of 160 to
200 kmph from current level of 130 kmph or 110 kmph to
reduce the journey hours between important stations
India Railways is collaborating with Russian Railways to
work on 575-km long stretch between Secunderabad & FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20
Nagpur, which would allow the trains to run at speeds of Source: Make In India, Ministry of Railways, TechSci Research
more than 200 km/hr Notes: CAGR Compound Annual Growth Rate,
In January 2017, the Indian Railways & UNESCO signed an E Estimated, FY Indian Financial Year (AprilMarch)
agreement, for setting up a rail link between neighbouring
countries like Bhutan, Nepal, Bangladesh & Myanmar.
In March 2017, the government signed the TIR Transport
Internationaux Routiers or International Road Transports,
under the United Nations Economic Commission for Europe
(UNECE), to ease trade with other countries.

RAILWAYS
PASSENGER VOLUMES WITNESS HEALTHY GROWTH (2/2)
Suburban passenger booking in FY16 reached 4,459 million from 4,504 million in FY15
Non-suburban passenger volume in FY16 was recorded at 3,693 million
The 12th Five-Year Plan estimates suburban & non-suburban passenger volumes to increase to 5.9 billion & 5.8 billion
passengers, by FY17, respectively.
Indian Railways aims to increase passenger boarding of suburban & non suburban passengers at a CAGR of 6.8 per cent
(cumulative) from 6,920 million suburban & non suburban passengers in FY09 to 11,710 million passengers by FY17.
Number of suburban passengers originating Number of non-suburban passengers originating

(in millions) (in millions)
5917 5793
CAGR: 5.68% CAGR: 8.05%
4449 4473 4550 4504 4459

3876 4061 3823 4016 3876
3802 3590 3730 3693
3370
3118
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Source: Vision 2020, Ministry of Railways, TechSci Research
Notes: CAGR Compound Annual Growth Rate, E- Estimated F Forecast,
RAILWAYS
STRONG GROWTH IN FREIGHT TRAFFIC
Freight traffic (million tonnes)

Indian Railways carried 1,107 million tonnes of
revenue-earning freight traffic in FY16, from 1,101.30
million tonnes in FY15
During FY07-FY16, freight traffic is expected to grow CAGR: 8.6%

at a CAGR of 4.5 per cent
2165.00
Indian Railway estimates originating loading for freight
business segment would increase to 2,165 MT by
FY20
1107.00
1101.30
1058.81
1014.15
975.16
926.43
892.22
836.61
804.11
744.56
Coal is the leading commodity for the freight business
segment (49.35 per cent of the total freight in
September 2015)
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20E
Source: Ministry of Railways, Vision 2020, Press Information Bureau,

TechSci Research
Notes: CAGR Compound Annual Growth Rate, E- Estimated F Forecast

RAILWAYS
KEY PLAYERS SUPPORTING INDIAN RAILWAYS
Company Business description
Navratna PSU under Indias Ministry of Railways

Carrier, terminal operator and warehouse operator
SPV set up under the Ministry of Railways

Undertakes planning and development; mobilisation of financial resources; and construction,
maintenance and operation of the Dedicated Freight Corridor (DFC)
SPV created by the Government of India

Builds engineering works required by Indian Railways
Mini Ratna PSU with one of the largest neutral telecom infrastructure providers in the country
Strives to modernise train control operation and safety system of Indian Railways
Source: Relevant Company Annual Reports and websites, TechSci Research

Notes: PSU Public Sector Undertaking, DFC Dedicated Freight Corridor, SPV Special Purpose Vehicle

RAILWAYS
PRIVATE PLAYERS MOVE UP THE VALUE CHAIN
Railway projects in India have typically been in the public sector domain
Private players were involved in allied activities such as track laying and maintenance, maintenance of coaches and
wagons, construction of bridges, stations, signalling and telecommunications works
Company Project details
Construction of eight metro stations in Bengaluru

Construction of two elevated Metro stations at MG Road and Trinity Circle in Reach-1 (inaugurated in
September 2011)
Construction of elevated stations at Mysore Road Terminal , Deepanjali Nagar and Magadi Road in
Reach 2 (Completion by December 2014)
Gauge conversion of VilluPuram-Mayiladuthurai section

Installation and commissioning of signalling and telecommunications facilities at NTPC
Design, Manufacture, Supply, Installing, Testing and Commissioning of Automatic Fare collection
system for Bangalore Metro Rail Corporation Ltd
Executing an order for development of railway siding, involving engineering, procurement and
construction work for a dedicated railway line of 38 km
L &T Metro Rail started Mainline Testing of Trains on Stage 2 (from Miyapur to KPHB) of the
Hyderabad Metro Rail Project
Construction of a six-lane bridge over the Ganges river has been awarded to the joint venture company
L&T - Daewoo and the construction begins in 2016
Source: Relevant Company Annual Reports and websites, TechSci Research
Notes: NTPC National Thermal Power Corporation, km Kilometres; KPHB: Kukatpally Housing Board
RAILWAYS
EXPANDING SCOPE OF PPP
In December 2012, the Cabinet approved the new policy of participative models for rail-connectivity & capacity augmented
projects. The policy addressed private investors concerns, which included ownership of the railway line & repayment of
investment
The policy led to renewed investor interest in the rail sector. Since then, railway authorities have received various proposals
from private investors & have already given approval (can now acquire land & begin construction) for 4 port connectivity
projects, which would ease congestion
Areas proposed for private investment during this period would include elevated rail corridor in Mumbai, some parts of
dedicated freight corridor, freight terminals, redevelopment of stations & power generation/energy saving projects
Other measures taken/proposed include:
Setting up of a modern signalling equipment facility at Chandigarh through the PPP route
Construction of new lines Bhupdeopur-Raigarh (Mand Colliery) & Gevra Road-Pendara Road & doubling of
Palanpur-Samakhiali section through the PPP route
Setting up of 2 locomotive plants through PPP route is crucial for the development of infrastructure sector
Setting up of Joint Ventures with major public sector customers for fulfilling the requirements of new lines
Indian Railways started the PPP mode of funding & has already awarded projects which amounted to around USD1.73
billion in the 1st 7 months of FY16. Moreover, 400 stations are also being planned to be redeveloped by the government, as
per the Rail Budget 2016-17
For FY17, PPP investment is expected to reach USD2.7 billion as per the revised estimates
Setting up of MUTP-III is expected to begin in FY17 for which government is targeting an investment of USD1.63 billion from
the World Bank. The project would be executed by Mumbai Railway Vikas Coorporation (MRVC)
In January 2017, Indian Railways has signed a joint venture agreement with the Government of Jharkhand to develop the
states railway infrastructure.
Source: Ministry of Railways, Make in India, TechSci Research

Note: PPP Public Private Partnership; MUTP-III: Mumbai Urban Transport Project-III
RAILWAYS
NOTABLE TRENDS IN INDIAN RAILWAYS(1/2)
There is a rapid increase in demand for urban mass transportation systems in the country
Several metro rail projects are in progress to improve connectivity within cities; the Delhi Metro has
Demand for urban
emerged as an internationally acclaimed venture
transport
Prime Minister Narendra Modi inaugurated Pune Metro Rail project & laid the foundation stone on
December 24, 2016. The metro line would have 30 stations & the 1st phase would cover a
distance of 31.25 km. The project is estimated to be completed at a cost of USD1.67 billion.
M-ticketing and In FY15, e ticketing scheme has been introduced to support 7,200 tickets per minute from the
e-ticketing current capacity of 2,000
IR has attracted increasing foreign investments through strategic alliances with various countries
over the last few years
International Investment In September 2015, Japan has invested USD140 billion to modernise the Indian Railways by 2020
6 major global players have shown keen interest in developing ultra high-speed trains in India
Travel Insurance Railways has rolled out its insurance scheme for passengers, under which they can buy a
Scheme premium of 1.52 cents while booking a ticket to get an insurance cover of up to USD 1.5 thousand.
Source: Ministry of Railways, Railway Budget 201516, Railway Budget 201617, TechSci Research
Notes: km/h kilometre per hour
RAILWAYS
NOTABLE TRENDS IN INDIAN RAILWAYS(2/2)
IR plans to build seven high-speed rail corridors to provide faster rail connectivity across the country
along with making a provision of USD17 million, for high speed train project
High-speed trains As part of Railway Budget 2016-17, the government launched a new train Mahamana Express
projects connecting Varanasi & Delhi
The government is also considering to increase the average speed of freight trains to 50 km/h and mail or
express trains to 80 km/h by the end of 2020
In collaboration with the Government of Japan, a high speed passenger train corridor, between
Ahmedabad to Mumbai, has been undertaken, as per Railway Budget 2016-17. The construction of the
project is likely to start in 2017
IR intends to look for cost effective options to increase speed to 160200 km per hour on existing routes
Semi high-speed such as DelhiChandigarh and DelhiAgra
trains projects Companies from France, China and Russian have joined hands with Indian Railways to bring three semi-
high speed rail corridor projects on track.
Policy providing sub quota of 33 per cent to women within reserved categories for the allotment in
catering units
New Services Launch of the new Train at a Glance & new Time Table effective from 1st October 2016.
Launched To promote religious tourism in the country, Indian Railways plans to launch the Aastha Circuit Tourist
train on February 17, 2017. The train would start its journey from Guwahati covering the shrines in
Odisha & West Bengal.
The Ministry of Railways is planning to build a 240 km broad gauge railway line to connect Port Blair &
Diglipur, in Northern Andaman island at an estimated cost of US$ 359.01 million. This proposed line will
immensely improve the tourism sector on the island
Source: Ministry of Railways, Railway Budget 201516, Railway Budget 201617, TechSci Research
RAILWAYS
PORTERS FIVE FORCES ANALYSIS

RAILWAYS
PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
Competitive rivalry is low as any other mode of transportation is

significantly expensive
Rail connectivity is available in remote areas, unlike other transport Threat of New
facilities Entrants
(Low)
Threat of New Entrants Substitute Products
Enormous capital requirements Substitutes include road and air

to set up a network, acts as an transport; however, railways is Bargaining Competitive Substitute
entry barrier the cheapest mode of travel Power of Rivalry Products
Customers (Low) (Low)
(Low)
Bargaining Power of Suppliers Bargaining Power of Customers

Bargaining
Has monopoly and can buy Lower bargaining power as no Power of
products from any supplier other cheap mode of transport Suppliers
available (Low)
Usually contracts are large-
sized, which gives suppliers
less bargaining power

RAILWAYS
STRATEGIES ADOPTED
RAILWAYS
STRATEGIES ADOPTED
Provision of online rail bookings, hotel reservations & retiring rooms by IRCTC adds to revenues of
Indian Railways
Revenue-based Indian Railways are focusing on internal tourists & have also come up with many tour packages for
strategies foreigners
Fare revision in 2014 is expected to bring additional revenue of USD1.3 billion per year
No fare hikes have been announced so far in the Railway Budget 2016 17
Fare for premium classes were reduced so as to compete with the airlines, luxury buses & personal
transport vehicles
The length of popular trains was increased from 1618 coaches to 2426 coaches
Private participation is encouraged & information technology was used to make ticket reservation more
feasible to passengers
Turnaround An airline-style upgradation from lower class to higher class has been introduced for passengers
strategies for Increasing speed of the trains in 9 railway corridors to 160 & 200 kmph so that inter-metro journeys be
passenger traffic completed overnight
In January 2017, India Railways awarded a contract to the SBI for installing 10,000 point of sales (POS)
machines, at the PRS (Passenger Reservation System) & UTS counters, across India, facilitating
cashless payment for ticket booking.
Axle load was increased from 20.3 tonnes to 22.9 tonnes & 25 tonnes for selected routes
Freight discounts are allowed to customers offering high tariffs
Turnaround The average speed of freight trains would increase to 50 km/h & Mail/Express trains to 80 km/h by the
strategies for end of 2020
freight traffic Freight rates on cement, coal, urea, kerosene, LPG & food grain & pulses have been hiked by upto 10
per cent to bring an additional revenue of USD655.1 million per year
Source: Ministry of Finance, Railway Budget 2016, TechSci Research, News articles
Note: IRCTC Indian Railway Catering & Tourism Corporation
RAILWAYS
GROWTH DRIVERS
RAILWAYS
STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS
Government
focus on
infrastructure
building
Increasing Growth of freight

private sector traffic due to
participation industrialisation
Improved safety Rising demand

and for urban mass
modernisation transportation

RAILWAYS
RISING INCOME AND URBANISATION DRIVING PASSENGER TRAFFIC GROWTH (1/2)
Passenger traffic is expected to increase to 15.18 billion by FY20
Increasing incomes in urban and rural areas have made rail travel affordable to a large number of Indians
Urban population in India grew to 33 per cent of total population in 2015, leading to increase in traffic between urban and
rural areas in the country
Improvement of urban-rural connectivity has been another major contributor to the growth of Railways industry in the country
During FY07-FY16, freight traffic is expected to grow by 4.5 per cent
Source: Ministry of Railways; Railway Budget 2015, TechSci Research

RAILWAYS
RISING INCOME AND URBANISATION DRIVING PASSENGER TRAFFIC GROWTH (2/2)
Indias rural & urban population growth Indias per capita income at current prices (USD)
(% of total population)
3000.0 11.00%
9.00%
2500.0
31% 31% 32% 32% 32% 33%
7.00%
2000.0
5.00%
1500.0 3.00%
1.00%
69% 69% 68% 68% 68% 67% 1000.0
-1.00%
1387.9
1455.7
1456.2
1576.8
1581.6
1747.5
1874.9
2026.7
2207.6
2402.4
1444.3
500.0
-3.00%
0.0 -5.00%
2010 2011 2012 2013 2014 2015
Rural Poplation (in %) Urban Poplation (in %)
GDP, per capita, current prices Growth Rate
Source: Ministry of Railways, World Bank, IMF, TechSci Research

Notes: E Estimates, F Forecast

RAILWAYS
PASSENGER SEGMENT OFFERS DIVERSE SERVICES
Train Description
Non-stop point-to-point rail services

Duronto Express
Connects metros and major state capitals of India
Air-conditioned trains linking major cities to New Delhi
Rajdhani Express
One of the fastest trains in India with very few station stops
Shatabdi, Jan Shatabdi Express Intercity seater-type trains for travel during day
Fully air-conditioned trains designed for those who cannot afford to travel in
Garib Rath
expensive trains such as Rajdhani and Shatabdi
Trains that have an average speed greater than 55 km per hour

Superfast Mail/Express
Additional super-fast surcharge
More stops than their superfast counterparts
Mail/Express
Stops only at relatively important intermediate stations
Slow trains that stop at most stations along the route

Passenger, Fast Passenger
Low-cost alternative
Operate in urban areas

Suburban trains
Usually stops at all stations and have unreserved seating accommodation

RAILWAYS
NEW SERVICES 2015-16
Premium trains are a type of express trains that connect metros with other important cities.
Premium trains
In the Railway Budget 201415, five new Premium Trains were announced
Express trains or fast trains make small number of stops unlike other trains. Thirty-three
new Express trains were announced in 201415, of which six trains would be AC express
Express trains trains
Six new express trains have been introduced under Railway Budget 2015-16
Eight new passenger trains were declared in 201415.

These trains are Paradeep-Howrah Express, Gunupur-Visakhapatnam Passenger,
Passenger trains Tiruchendur-Tirunelveli Passenger, Hatia-Rourkela Passenger, Mannargudi-Bhagat ki
Kothi (Jodhpur) Express, Jaynagar-Mumbai Jansadhran Express, Ferozpur-Chandigarh
Express & Byndoor-Kasargod Passenger
MEMU trains In 2014-15, two new Mainline Electric Multiple Unit (MEMU) trains were announced
DEMU trains In 2014-15, five new Diesel Electric Multiple Unit (DEMU) trains were announced
Extension of trains As of 2016, three new trains were to be extended as per the Railway Budget 2016-16
Source: Railway Budget 201415 and Railway Budget 2015-16

RAILWAYS
NEW SERVICES 2015-16
Advanced stage of feasibility study is being performed for high speed rail between
Mumbai Ahmedabad and its report is expected by mid 2015. The bullet train route
proposes to cover Ahmedabad Vadodara Surat - Mumbai cities. The project is likely to
commence construction in 2017
Studies are being commissioned for other high speed routes in the diamond quadrilateral
Bullet Trains
Average speed of faster trains will increase from the existing 110 & 130 kmph to 160 &
200 kmph respectively
In February 2017, drilling of the 7 km undersea route of the Mumbai-Ahmedabad rail
corridor, for 1st bullet train is underway. The estimated value of the project is US$ 14.52
billion, which will reduce the duration of the journey by 2 hours. Construction of the
corridor is expected to complete by 2023
Indian Railways have proposed a very modern train system which would save 20 per cent
of the journey time and can run without an engine to haul them.
Train Sets Similar in design to bullet trains and provides superior riding experience
Expected to be running on track by 2017
Freight Trains As per Railway Budget 2016-17, the speed of freight trains would be increased to 50 km/h
as well as Mail/Express trains would be increased to 80 km/h
In coordination with Japanese government, a high speed passenger train corridor,

High Speed Rail between Ahmedabad to Mumbai, is being undertaken. Construction of the project is likely
to commence in 2017
Source: Railway Budget 201516, Railway Budget 201617
RAILWAYS
TATKAL SEVA SCHEME
The Tatkal Seva Scheme was introduced by Railway Minister Nitish Kumar in December 1997. This scheme benefits those
passengers who plan their journeys at a very short notice and to save such passengers from touts
The scheme was revised in August 2004 and in 2009, 2011 and 2012. As per the Railway Budget FY14, tatkal charges
have been revised
In June 2015, timings for booking of tickets in tatkal in AC and non AC has been changed in order to reduce the load on
the ticketing website and booking window. Reservations for AC and non-AC will open at 10 AM and 11 AM respectively on
the previous day
Tatkal charges have been fixed as a percentage of fare, at 10 per cent of basic fare for second class and 30 per cent for all
other classes subject to minimum and maximum levels provided below
25 per cent of the fare amount will be deducted if cancellations are made 12 to 48 hours prior to departure and 50 per cent
will be deducted if cancellations made 4 to 12 hours prior to departure. Waiting list and Reservation against cancellation
tickets will not get any refund if cancellations are made 30 minutes prior to departure.
MobiKwik (Mobile payments network) has collaborated with IRCTC to launch e-cash payments for tatkal bookings
Classes of travel Minimum tatkal charges (USD) Maximum tatkal charges (USD)
Second (sitting) 0.15 0.23
Sleeper 1.37 2.67
AC Chair Car 1.53 3.06
AC 3 Tier 3.82 5.35
AC 2 Tier 4.58 6.11
Executive 4.58 6.11
Source: Ministry of Railways

RAILWAYS
INCREASING INDUSTRIALISATION LEADING TO HIGHER FREIGHT TRAFFIC
During FY16, freight traffic increased and reached to 1107 million tonnes, portraying a positive and healthier impact in the
core sector of the economy
The rise in traffic is due to increasing levels of industrialisation across the country, as is evident from the growth in the Index
of Industrial Production (IIP) over the last decade
Indian Railway estimates originating loading for freight business segment would increase to 2,165 MT by FY20
Coal freight rates have increased by 6.3 per cent which is likely to impact power retail tariff and the transportation cost for
power producers
According to Ministry of Coals vision 2025, coal production is expected to increase to 1,060 MT from 470 MT in FY09
Increasing freight traffic is generated from these industries spread out across India
Source: Ministry of Railways, Ministry of Coal, TechSci Research

Note: MT - Million Tonnes

RAILWAYS
DEDICATED FREIGHT CORRIDOR (1/4)
DFCCIL, a special purpose vehicle, was set up for implementing the DFC project under the administrative control of the Ministry
of Railways
The plan is to construct dedicated freight lines along the Eastern (1856 km route length) & Western (1504 km route length) parts
of India
Total length: 3,360 kilometres; total estimated cost: USD12.44 billion as on July 2016;
According to the 12th Five-Year Plan, the government allocated USD5 million for the 2,700-km Dedicated Rail Freight Corridor
Project
Total Capital Expenditure incurred was USD1003.97 million during FY15
World Bank granted loan of USD1,100 million for EDFC-2 & have sanctioned a loan of USD650 million for EDFC-3 in June, 2015
Western Corridor Eastern Corridor
Uttar Pradesh -> Haryana ->

Punjab -> Haryana -> Uttar
Rajasthan -> Gujarat ->
Pradesh -> Bihar -> West
Maharashtra
Bengal/Jharkhand

Notes: DFC Dedicated Freight Corridor, DFCCIL Dedicated Freight Corridor,
Corporation of India Limited, JV Joint Venture,
EDFC Eastern Dedicated Freight Corridor

RAILWAYS
Increase rail
freight share
through
customised
logistic
services Segregate
Reduce unit
freight and
cost of
passenger
transportation
lines for
and increase
focused
productivity
approach
Objectives
Adopt high- Create

end additional
technology freight
for real-time capacity to
data analysis meet demand
Introduce
time-tabled
freight
services to
ensure better
services

RAILWAYS
Freight traffic via DFC would increase at a CAGR of 5.4 Freight traffic projections on DFC (in MT)
per cent to 182 MT in 202122 from 140 MT in 201617
Container traffic would probably be an important
constituent of the WDFC and is expected to grow to 5.3 CAGR: 5.4%
million TEUs in 202122 from 3.8 million TEUs in 201617
According to the operational strategy as mentioned in the 91
Vision 2020, dedicated freight corridors and speed raising
64
projects would be completed in time bound manner
By 2020, 30,000 km of route would be double/multiple
lines
91
76
As per Railway Budget 201617, three dedicated freight
corridors, North-South connecting Delhi to Chennai, East-
West connecting Kharagpur to Mumbai & East Coast
connecting Kharagpur to Vijayawada, will be completed on 2016-17 2017-22
priority EDFC WDFC
Source: KPMG
Notes: CAGR Compound Annual Growth Rate,
DFC Dedicated Freight Corridor,
EDFC Eastern Dedicated Freight Corridor,
WDFC Western Dedicated Freight Corridor,
MT Million Tonnes

RAILWAYS
Due to the DFC project, added capacity and efficiency of new infrastructure would result in an increased share of railway
network to 87 per cent in 202122 from 84 per cent projected in 201617
Dedicated Freight Corridors are expected to come on route of Delhi-Kolkata, Mumbai-Delhi, Kolkata-Mumbai, Delhi-Chennai
DFC model mix (201617) DFC model mix (201722)
16% 13%
Road Share Road Share
Rail Share Rail Share
84% 87%
Source: KPMG, TechSci Research

RAILWAYS
POLICY AND REGULATORY FRAMEWORK (1/5)
An outlay of USD95.6 billion has been approved by the Planning Commission for
Railways. The Railway Ministry proposed an outlay of USD100.9 billion
Details of the outlay are as under:
(i) Gross budgetary support USD35.8 billion
12th Five-Year Plan
(ii) Internal generation USD19.3 billion
(iii) Extra budgetary resources USD40.5 billion
In the Railway Budget 2015-16, there is a proposal to increase the plan outlay under
budgetary sources by USD16.6 billion
This policy supersedes the R3i and R2CI policies notified earlier
The policy provides for supplementing governments investment in rail infrastructure
Participative models projects by private capital flows
for rail connectivity and
The policy contains the following models: non-government railway; joint venture with
capacity augmented
equity participation by railways; capacity augmentation through funding by customers;
projects
capacity augmentation annuity model applicability; and BOT
As on August 2015, Indian Railways have undertaken 154 new line projects
44 new projects worth USD13.8 billion is likely to be implemented in FY17

Notes: R3i Railways' Infrastructure for Industry Initiative,
R2CI Railways Policy for Connectivity to Coal and Iron Ore Mines,
BOT Build Operate and Transfer

RAILWAYS
To increase its share in automobiles transportation, Indian Railways notified a new scheme in
March 2013, Automobile Freight Train Operator (AFTO). The scheme provides logistic service
providers & road transporters an opportunity to introduce their own special wagons to run on
the railways network & avail of freight rebates in return. The requirements for the scheme are
laid down as under:
Companies with minimum net worth of USD3.7 million or annual turnover of USD5.5 million
are eligible to participate in this scheme
A registration fee of USD0.9 million is required to be paid to the Railway Ministry on approval
as AFTOs
Automobile Freight
Train Operator Scheme Companies are required to introduce at least 3 rakes & make them operational within 6
2013 months from the commissioning of the 1st rake
The freight rates would be notified from time to time for specific stock to be moved by AFTOs
The freight rebate would be incorporated in the freight rates specified for transport of
automobiles
Special wagons would be designed & developed by Research, Design & Standards
Organisation (RDSO) for induction by 3rd-party logistics providers & road transporters
Each rake is to have a capacity to carry 318 small cars. The rake should be tested by RDSO
Maruti Suzuki, the railways biggest automotive client, is the only automaker to have placed
orders for rakes under this scheme in 2013
Source: Times of India, Ministry of Railways, TechSci Research

RAILWAYS
The policy aims to attract private sector participation in rail connectivity projects to create
R3i policy additional rail transport capacity
The policy allows for 4 models: (a) Cost Sharing-Freight Rebate (b) Full Contribution-
Apportioned Earnings (c) Special Purpose Vehicle (SPV) & (d) Private Line
This new policy was initiated to improve rail connectivity to coal and iron ore mines
The policy offers the developer involved in the construction of the line to levy a surcharge on the
R2CI freight over a period of 1025 years
The policy has 2 models: Capital Cost & SPV Models. The Capital Cost Model is relevant when
there are 2 players, whereas the SPV Model is intended for a large number of players
Public Private Connectivity to the major ports through PPP funding

Partnership (PPP) Approval has been granted for 7 ports amounting to USD0.7 billion
Development of the major stations to equip them with international level of amenities & services
Foreign Direct
100 per cent FDI under automatic route is permitted for approved list of projects
Investment
Source: Ministry of Railways, Make in India website, TechSci Research

Notes: R3i Railways' Infrastructure for Industry Initiative, SPV Special Purpose Vehicle,
R2CI Railways Policy for Connectivity to Coal and Iron Ore Mines

RAILWAYS
Revenue generation is targeted at USD27.6 billion during FY17

A fund of USD13.8 billion has been allocated for introduction of 44 new projects covering
about 5,300 kms in the budget
Indian Railways is planning to generate more than 65,000 berths, 2,500 water vending
Railway Budget
machines, 17,000 bio-toilets in trains along with launching Mahamana Express
201617
As a part of Budget 2016-17, the Government of India recorded earning from goods at
USD17.6 billion, with earnings from sundries & other coaching expected to be USD1.4
billion & USD0.9 billion, respectively
In FY17, planned outlay of USD18.1 billion has been allocated for the railway sector
Indian Railways launched the Wagon Investment Scheme in 2005 to offer freight rebates
& supply a guaranteed number of rakes for a period of 7 to 15 years for different types of
Wagon investment wagons
scheme The Ministry of Railways proposed to set up 5 wagon factories in Secunderabad,
Bardhaman, Bhubaneswar/Kalahandi, Guwahati and Haldia under the JV/PPP model.
The Ministry plans to procure 16,800 wagons during FY16
Under the Railway Budget 2015-16, the scheme is to be reviewed for private investment
Source: Ministry of Railways, Railway Budget 2015-16,

Press Information Bureau, TechSci Research
Notes: kms Kilometers,

RAILWAYS
Introduced a new scheme for passengers travelling unreserved, Operation 5 minutes scheme,
which provides the passengers the time to purchase tickets within 5 minutes
Installing bio toilets by 2015. So far (till 2016), 37,000 bio toilets have already been installed
Introducing 24/7 All India helpline number through which passengers could address their
problems on a real time basis. Toll free number, 138 has been launched as 24/7 All-India
helpline number
Availability of Toll - free number, 182, for security related complaints
Development of multi lingual e ticketing portal
Moving towards paperless ticketing and charting. In the coming years, SMS on mobiles would be
Key modernisation taken as proof instead of tickets promoting paperless tickets throughout India.
initiatives
Train protection warning system and train collision avoidance system have been installed on
selective routes
Setting up a new department that would ensure the railway stations & trains are kept clean.
Improving North-East and J&K connectivity.
Extension of built-in dustbin facility has been approved for non-AC coaches. Setting up of 5 year
safety plan
In an initiative to decarbonize rail transport, Indian Railways will be collaborating with various
public sector enterprises to speed up the process of electrification of railway tracks
Source: Ministry of Railways, Railway Budget 2015 16, News Articles; Press Information Bureau, TechSci Research
RAILWAYS
SIGNIFICANT INVESTMENTS IN RAILWAYS
Investments (USD billion)
Approved
outlay
200708 200809 200910 201011 201112 2012 - 13 2013 - 14 2014-15 2015-16
Gross
Budgetary
Support
15.8 2.2 2.2 3.7 4.3 4.5 3.9 4.8 5.4 6.6
Internal
Generation 22.4 3.7 4.1 2.6 2.5 1.9 1.8 1.6 2.5 2.9
Extra
Budgetary
Resources
19.8 1.3 1.6 2.1 2.1 3.5 2.8 2.5 3.0 2.9
Total
58.0 7.2 7.9 8.4 8.9 9.9 9.3 9.0 10.9 12.4
Source: Railway Budget 2015 16, TechSci Research

RAILWAYS
INCREASING FDI INFLOWS
Since FY08, cumulative FDI inflows into the sector has Cumulative FDI inflows
increased five-fold (April 2000 to March 2016) (USD million)
From April 2000 to December 2016, FDI in Railways related 710.98 724.03
components industry stood at USD789.03 million, in India 643.54
507.30
247.8 270.3
109.6 132.8
57.3 75.3
1
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: Department of Industrial Policy & Promotion, TechSci Research

Notes: FDI Foreign Direct Investment
Note: FY1771) Data Till September 2016

RAILWAYS
MODERNISATION STRATEGY (1/3)
To modernise Indian Railways, the focus is on 2 Key focus areas

fundamental drivers, Safety & Growth & along with a
5-pronged strategy: Core Track and Rolling Stations and
Signalling
assets bridges stock terminals
Modernise core assets They are key revenue
generating assets Dedicated
Revenue High-speed
PPPs Land freight
Explore new revenue models To meet the models trains
corridors
funding needs for modernisation & growth
Review projects To ensure financial viability, Projects Review of existing and proposed projects
social benefits & timely implementation
Focus on enablers For a holistic & long-term Indigenous
Enablers ICT Safety
approach to modernisation & execution development
Mobilise resources To capitalise on an Resources Funding

Human
Organisation
opportunity resource
Information Technology To improve operational
efficiency
Notes: ICT Information and Communication Technology,
PPP Public Private Partnership

RAILWAYS
MODERNISATION: NEW THEME OF INDIAN RAILWAYS (2/3)
Track upgradation and welded rails Sleepers and bridges
Sleepers have been upgraded from wooden, Adequate capacity for production of concrete
steel & CST-9 to PSC sleepers sleepers to meet IRs present requirement has
been developed
Heavier section & high tensile strength rails
are being used (52 kg/60 kg 90 UTS rails are During FY12, 6.9 million broad-gauge mono-block
being used in place of 90 R/52 kg 72 UTS concrete sleepers and 10,359 sets of PSC turnout
rails) sleepers were manufactured
As on 31.03.2014, total length of welded tracks
Under Railway Budget 2016-17, steel sleepers on
on IRs main lines was 81,505 km, of which
70,898 km included long-welded rails & the steel bridges will be replaced with environment
rest short-welded rails. However, according to friendly composite sleepers made of recycled
the Railway Budget 2015-16, the government plastic waste
has decided to increase track length by 20 per Modern bridge inspection & management system
cent over the next 5 years (by 2020) has been adopted, which includes non-
There is a progressive shift to flash butt destructive testing techniques, under water
welding, which is superior in quality to inspections, fibre composite wrapping & integrity
Aluminothermic (AT) welding testing
Replacing analogue type machines with digital
type machines
Promotion of better & improved welding
techniques Source: Ministry of Railways, TechSci Research
Notes: Km Kilometres, IR Indian Railways, UTS Ultimate Tensile Strength,
CST9 Central Standard Trial-9, PSC Pre Stressed Concrete

RAILWAYS
MODERNISATION: NEW THEME OF INDIAN RAILWAYS (3/3)
Increasing operational efficiency Unreserved Ticketing Services (UTS)
Design and development of 5500 HP WDG5 diesel UTS was made functional at 5,778 locations with
locomotive for faster, longer and heavier trains 10,760 terminals, as of April 2015
Development of high-sensitivity thermal imaging More than 90 per cent of unreserved tickets are now
camera with online scanning facility to improve the generated through UTS
reliability of electric traction system
The Indian Railways have introduced a mobile app
Development of 25 KV HV connector for multiple utsonmobile in Chennai which would allow the
operation of WAP5 locomotives with one passengers a paperless ticketing system. The
pantograph in raised condition Indian Railways are in talks to extend the services
in all metros.

Notes: WDG5 (W Wide/broad gauge, D Diesel-powered,
G Made for hauling goods, 5 above 5000hp); UTS: Unreserved Ticketing Services

RAILWAYS
POLICY FOCUS ON BETTER STATIONS: THE INDIAN RAILWAY STATION DEVELOPMENT CORPORATION
Salient features Need and importance

The corporation was created with the view of making Indian
To meet with the aspirations of rail users & to facilitate
Railways stations world class as a PublicPrivate
them with better facilities
Partnership venture (PPP)
To augment and improve passenger related amenities at
A Memorandum of Understanding (MoU) for the SPV was
stations to high standards
signed between 2 railway PSUs, the Ircon international
Limited (IRCON) & the Rail Land Development Authority To have modern stations that would be functional,
(RLDA) customer-oriented & well equipped with proper
circulation area & railway operation facilities
The SPV has a share capital of USD22.93 billion, with 51:49
equity between IRCON & RLDA Designed to provide well-designed concourses, high-
quality waiting spaces, easy access to the platforms,
Total revenues for FY15 earned by the Indian Railway Station
congestion-free platforms, modern catering facilities,
Development Corporation Limited stood at USD26.4 billion
hotels & other facilities
As per Railways Budget 2016-17, EPC implemented 20
projects during FY17, wherein, it endeavours to award EPC
contracts of worth USD44.8 million by the end of FY18
Source: Press information Bureau, GOI and News websites

Notes: SPV Special Purpose Vehicle,
PSU Public Sector Undertaking

RAILWAYS
OPPORTUNITIES
RAILWAYS
FREIGHT PROVIDES AN ATTRACTIVE OPPORTUNITY
Freight traffic (million tonnes)
The government is investing heavily in building rail
2165.00
infrastructure in the country. The government
plans to invest USD153 billion during the 12th Five- CAGR: 8.6%
Year Plan
With increasing participation expected from private
1107.00
1101.30
1058.81
1014.15
players, both domestic and foreign, due to
975.16
926.43
892.22
836.61
804.11
744.56
favourable policy measures, freight traffic is
expected to grow rapidly over the medium to long
term
Railways has set a target of having a freight
market share of 50 per cent by 2020 from 35 per
cent in FY09
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY20E
Freight traffic increased at a CAGR of 8.6 per cent during

FY07-20E
With rapid economic growth and increasing
industrialisation, freight traffic reached 1,107 million tonnes
in FY16 and is estimated to reach 2,165 million tonnes by
FY20
Source: Railway Budget 2016-17, Press Information Bureau

RAILWAYS
GROWING NUMBER OF METRO PROJECTS IN INDIA (1/2)
Investments expected in metro rail networks in India: USD137 billion by 2020
Amount invested so far: USD16.7 billion
Budget 2015, anticipating diamond shaped metro projects connecting major metro cities and growth centres
Prime Minister Narendra Modi inaugurated Pune Metro Rail project and laid the foundation stone on December 24, 2016. The
metro line would have 30 stations and the first phase would cover a distance of 31.25 km. The project is estimated to be
completed at a cost of USD1.67 billion.
Estimated cost Length of project (Estimated) Date

Name of project Undertaking
(USD billion) (kilometres) of completion
Delhi Mass Rapid Transit System Government of India, Delhi
2.2 65.1 November 2006
Phase I Metro Rail Corporation
Delhi Mass Rapid Transit System Government of India, Delhi

1.1 124.6 August 2011
Phase II Metro Rail Corporation
Government of India; Metro

Kolkata Metro Rail Project 1.1 14.7 201415
Railway, Kolkata
Government of India and
Bengaluru Metro Rail Project 2.4 42.3 September 2012
Karnataka
Government of India-
Hyderabad Metro Project 2.5 71.2 2013
Hyderabad Metro Rail Limited
Jaipur Metro Phase I 0.5 12.1 2014-21 Jaipur Metro Rail Corporation
Source: Ministry of Urban Development, Concor, TechSci Research

RAILWAYS
GROWING NUMBER OF METRO PROJECTS IN INDIA (2/2)
Estimated cost Length of project (Estimated) Date

Name of project Undertaking
(USD billion) (kilometres) of completion
Delhi Metro Rail Corporation
Chennai Metro Rail Project 2.3 45.1 201415 Limited, Chennai Metro Rail
Limited
Reliance Energy Ltd, Veolia

Mumbai Metro Project Phase I 0.5 11.07 2015
Transport co.& MMRDA
Mumbai Metro Project Phase II 1.7 40 2016 PPP, MMRDA
Delhi Metro Rail Corporation

Chennai Metro Rail Project 2.3 45.1 201415
Limited
Infrastructure Leasing &

Rapid Metro (Gurgaon) Phase I 0.2 5.1 2012
Financial Services Ltd
Infrastructure Leasing &

Rapid Metro (Gurgaon) Phase II - 7.0 2015
Financial Services Ltd
Government of India &

Kochi Metro Project 0.7 25.6 2016
Government of Kerala
Source: Ministry of Urban Development, Concor, TechSci Research

Note: MMRDA - Mumbai Metropolitan Region Development Authority

RAILWAYS
SUCCESS STORIES
RAILWAYS
CROSS-SUBSIDISING MAKES PASSENGER TRAVEL AFFORDABLE
Freight revenue accounts for major share of total railway revenues in India (67.09 per cent share in FY16)
Major freight Railways such as the US, China and Russia have one-fourth the freight rate compared with India
Indian Railways charges higher freight tariff to cross-subsidise passenger fares and make them affordable to the public.
Thus, passenger fares were not increased in tandem with the rising costs over the years; in fact, fares have declined in
some cases
Average rate per tonne kilometre (in Rupees)

Average rate per passenger kilometre (in Rupees)
1.4
0.368 1.3
0.315
0.285 1.0 1.0
0.261 0.259 0.263 0.270 0.9 0.9
0.245 0.247 0.257 0.9 0.9
0.8
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Note: Figures mentioned in the graph is as per latest data available

RAILWAYS
DELHI METRO: A RUNAWAY PUBLIC SECTOR SUCCESS (1/2)
Revenues from traffic operations increased at a CAGR of Revenues from traffic operations (USD million)
37.9 per cent during FY0715 to USD583.4 million
The total ridership in January 2015 was 73.4 million
During 201213, Delhi Metro registered its highest daily

ridership of over 2.3 million. In 2015, it carried more than 2.4
million passengers on a single day 583.4
CAGR: 37.94% 530.5
494.8
On 17 August, 2016, Delhi metro created a record of highest
415.4
number of commuters travelling using metro in a day (3.36
million)
187.7
Total operational network across Phase I & Phase II spans
105.4
190 kilometres and covers 143 stations 63.4 78.6
44.5
Phase III of the project was approved in August 2011 and

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
covers a route length of 159.33 km and 107 stations
Source: Delhi Metro website, Annual Report,
TechSci Research
Finalised Phase IV of the project would cover an area of more
than 115 km and it is expected to be completed by 2021
Automatic Fare Collection Gates have installed an additional

200 gates at various stations
Average speed of trains have seen a positive growth from 33

kmph to 36 kmph

RAILWAYS
DELHI METRO: A RUNAWAY PUBLIC SECTOR SUCCESS (2/2)
Key success factors Salient features
Coordinated and well-collaborated effort from various The capital cost of completion of Phase III was
government agencies for timely completion of the estimated at USD4.5 billion, saving about USD173
project million from the budgeted expenditure
Availed overseas financing to cover 60 per cent of the The phase was completed three years ahead of
costs to ensure expedition of the projects execution schedule
Involvement of consultants from across the world with Average duration of major tenders was 19 days
extensive experience both technological and compared with the three to nine months, which is the
managerial in the field norm
Rapid development of the city, demographic

translations such as changing of land use with
commercialisation of residential areas and increasing
suburbanisation are all crucial factors for the systems
success
Source: Press information Bureau,

Delhi Metro Rail Corporation, GOI and News websites

RAILWAYS
USEFUL INFORMATION
RAILWAYS
INDUSTRY ASSOCIATIONS
Manufacturers Association for Information Technology (MAIT)

4th Floor, PHD House, Opp. Asian Games Village,
New Delhi 110 016, India
Tel: 91 11 26855487
Fax: 91 11 26851321
E-mail: [email protected]
Website: www.mait.com
Consumer Electronics and Appliances Manufacturers

Association (CEAMA)
5th Floor, PHD House
4/2, Siri Institutional Area, August Kranti Marg
New Delhi 110 016
Telefax: 91-11-46070335, 46070336
E-mail: [email protected]
Website: www.ceama.in

RAILWAYS
GLOSSARY
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
FY: Indian Financial Year (AprilMarch)
FY12 implies April 2011 to March 2012
DFC: Dedicated Freight Corridor
DFCCIL: Dedicated Freight Corridor Corporation of India Limited
PPP: Public-Private Partnership
IIP: Index of Industrial Production
R2CI: Railways Policy for Connectivity to Coal and Iron Ore Mines
R3i: Railways' Infrastructure for Industry Initiative
CST 9: Central Standard Trial-9,
SPV: Special Purpose Vehicle
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number

RAILWAYS
EXCHANGE RATES
Exchange rates (Fiscal Year) Exchange rates (Calendar Year)
Year INR equivalent of one USD Year INR equivalent of one USD
200405 44.81
2005 43.98
200506 44.14
2006 45.18
200607 45.14
2007 41.34
200708 40.27
2008 43.62
200809 46.14
2009 48.42
200910 47.42
2010 45.72
201011 45.62
201112 46.88 2011 46.85
201213 54.31 2012 53.46
201314 60.28 2013 58.44
2014-15 61.06 2014 61.03
2015-16 65.46 2015 64.15
2016-17 (E) 67.23 2016 (Expected) 67.22

Source: Reserve bank of India,
Average for the year
RAILWAYS
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared
by TechSci in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of TechSci and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission
on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

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RAILWAYS

Executive Summary .....3

MARCH 2017 For updated information, please visit www.ibef.org 2

Source: Make in India, TechSci Research

Source: Make in India, TechSci Research

MARCH 2017 For updated information, please visit www.ibef.org 4

MARKET OVERVIEW AND TRENDS

Overseen by the Ministry of Railways

It operates more than 22,300 trains daily

It has 2.45 lakh wagons, 63,045 coaches and 10,773 locomotives

As on FY16, over 13,000 passenger trains are in operation

Around 1,107 million tonnes of freight was transported via

Source: Ministry of Railways, Make In India, Railway Budget

MARCH 2017 For updated information, please visit www.ibef.org 8

Number of stations 5,976 8,500

Source: Ministry of Railways, TechSci Research

Gross revenue trends over the years

Revenues would expand at a CAGR of 9.07 per cent

In March 2017, Railways started a new segment of

MARCH 2017 For updated information, please visit www.ibef.org 10

Earnings from freight (in USD billion)

Source: Ministry of Railways, TechSci Research

Source: Railway Budget 2015-16, Railway Budget 2016-17

MARCH 2017 For updated information, please visit www.ibef.org 12

MARCH 2017 For updated information, please visit www.ibef.org 13

Number of suburban passengers originating Number of non-suburban passengers originating

4449 4473 4550 4504 4459

Freight traffic (million tonnes)

During FY07-FY16, freight traffic is expected to grow CAGR: 8.6%

Source: Ministry of Railways, Vision 2020, Press Information Bureau,

MARCH 2017 For updated information, please visit www.ibef.org 15

Company Business description

Navratna PSU under Indias Ministry of Railways

SPV set up under the Ministry of Railways

SPV created by the Government of India

Source: Relevant Company Annual Reports and websites, TechSci Research

MARCH 2017 For updated information, please visit www.ibef.org 16

Company Project details

Construction of eight metro stations in Bengaluru

Gauge conversion of VilluPuram-Mayiladuthurai section

Source: Ministry of Railways, Make in India, TechSci Research

PORTERS FIVE FORCES ANALYSIS

Competitive rivalry is low as any other mode of transportation is

Threat of New Entrants Substitute Products

Enormous capital requirements Substitutes include road and air

Bargaining Power of Suppliers Bargaining Power of Customers

MARCH 2017 For updated information, please visit www.ibef.org 22

Increasing Growth of freight

Improved safety Rising demand

MARCH 2017 For updated information, please visit www.ibef.org 26

Passenger traffic is expected to increase to 15.18 billion by FY20

During FY07-FY16, freight traffic is expected to grow by 4.5 per cent

Source: Ministry of Railways; Railway Budget 2015, TechSci Research

MARCH 2017 For updated information, please visit www.ibef.org 27

Rural Poplation (in %) Urban Poplation (in %)

GDP, per capita, current prices Growth Rate

Source: Ministry of Railways, World Bank, IMF, TechSci Research

MARCH 2017 For updated information, please visit www.ibef.org 28

Non-stop point-to-point rail services