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Keep Patients Waiting? Not in My Office

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RAILTEL CORPORATION OF INDIA
The Railtel Corporation of India was established in September 2000 as a public sector undertaking (PSU) and a 100 per cent subsidiary under the Ministry of Railways. It has been set up primarily to commercially utilize IR’s communication assets, which often have idle capacity.
Vision: is to become the preferred telecom solutions and services provider for knowledge economy.
Mission: To attain leadership in providing premier telecom infrastructure service by offering the cost-effective state of the art communication solutions.
5.1 Objectives RailTel
 To facilitate Railways in expeditious modernizing of their operation and safety systems and network providing by state of art communication infrastructure.
 To plan, build, develop, operate and maintain a nationwide broadband telecom and multimedia network to supplement national telecom infrastructure to spur growth of telecom, broadband and IT enabled value added services in all parts of country specially rural, remote and backward areas.
 To generate revenue through commercial exploitation of its telecom network.

Investments/Developments
Foreign direct investment (FDI) inflows into railway related components from April 2000 to September 2015 were US$ 652.2 million.
Following are some of the major investments and developments in India’s railways sector: * Japan has offered to provide loan at less than one per cent interest rate for India’s first bullet train between Mumbai and Ahmedabad costing US$ 15 billion, on the condition that India buys 30 per cent of equipment from Japanese firms. * The Madhya Pradesh government has obtained Rs 12,000 crore (US$ 1.85 billion) loan from Japan International Cooperation Agency (JICA) for its Bhopal and Indore Metro rail projects. * Indian Railways has issued a Letter of Award (LoA) to US-based General Electric (GE) for a Rs 14,656 crore (US$ 2.2 billion) diesel locomotive factory project at Marhowra, and to French transport major Alstom for Rs 20,000 crore (US$ 3 billion) electric locomotive project in Madhepura, both in the state of Bihar. * The Government of India will be spending Rs 850,000 crore (US$ 127.62 billion) over the next five years to modernize Indian Railways for which they have received a 30 year loan from LIC. The Cabinet also cleared the Rs 82,000 crore (US$ 12.3 billion) dedicated freight corridor for decongesting existing network. * A memorandum of understanding (MoU) was signed between the Ministry of Railways and Life Insurance Corporation (LIC) in the presence of the Minister of Finance Mr Arun Jaitley and the Minister of Railways Mr Suresh Prabhu. Under this MoU, LIC will make available to the Ministry of Railways/its entities a financial assistance with a limit of Rs 150,000 crore (US$ 22.52 billion) over the next five years for implementing Railway projects. * Encouraging private sector participation in Railways, Mr Suresh Prabhu, in his maiden Railway Budget, amalgamated public welfare with private investment. While investment through public-private partnerships (PPP) was increased to Rs 5,781 crore (US$ 867.94 million), several schemes for improving efficiency of the Railways were kept under this head. * With the objective of cutting energy costs, the Indian Railways has signed a bilateral power procurement agreement with the Damodar Valley Corporation (DVC). Under the agreement, railways will buy 50 MW of power from DVC at Auraiya Grid Sub-station facilitated by Railways Energy Management Co. Ltd, a joint venture of the Indian Railways and RITES, a public sector unit of the Ministry of Railways. * The Ministry of Railways has sanctioned implementation of Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) with freight train speeds of maximum 100 Kmph. * The Government of India sanctioned Rs 1,000 crore (US$ 150.14 million) for a 15 km railway project connecting India and Bangladesh linking Agartala in Tripura and Akhaura in Bangladesh.
- See more at: http://www.ibef.org/industry/indian-railways.aspx#sthash.TEiwvh5i.dpuf

Government Initiatives
Minister of Railways Mr Suresh Prabhu has said that the Ministry of Finance has communicated a Gross Budgetary Support of Rs 40,000 crore (US$ 6.01 billion) for the Railway’s annual plan. Presenting the Railway Budget 2015-16 in Parliament, Railway Minister Mr Suresh Prabhu said Rs 1,645.6 crore (US$ 247.06 million) has also been provided as Railway’s share of diesel cess from the Central Road Fund.
The Ministry of Railways is focusing on its massive US$ 140 billion investment plan to modernise the railways and improve safety, performance and passenger amenities, as per Railways Minister Mr Suresh Prabhu.
The Ministry of Railways in November 2014 issued Sectoral Guidelines for permitting domestic/foreign direct investment (FDI) in construction, operation and maintenance in the following identified areas:-
i) Suburban corridors through public private partnership (PPP), ii) high speed train projects, iii) dedicated freight lines iv) rolling stock including trains sets and locomotive/coaches manufacturing and maintenance facilities v) railway electrification vi) signalling system vii) freight terminals viii) passenger terminals ix) testing facilities and laboratories x) non-conventional sources of energy xi) railways technical training institutes xii) concessioning of standalone passenger corridors (branch lines, hill railways etc.) Xiii) mechanised laundry, xiv) rolling stock procurement, xv) bio-toilets, xvi) technological solution for manned and unmanned level crossings, xvii) technological solutions to improve safety and reduce accidents. The guidelines will encourage foreign investors for making investment under ‘Make in India’ programme. An ‘Investors Meet’ was also held in December 2014 to encourage foreign investors in making investments.
According to Mr N Sreekumar, Chief General Manager of Container Corporation of India Limited, the Indian Railways is coming out with a new rating system. Addressing an event organised by Indian Institute of Logistics, Mr Sreekumar said the government is going to restructure the railway board. He also stated that the total logistics sector in India would undergo a transformation with the east and west freight corridor coming into being.
Promising "watershed development" of Indian Railways, Minister of Railways Mr Suresh Prabhu announced a series of reforms in the rail sector, including the introduction of remote sensing technology to improve safety, rail bookings on mobile phones and wi-fi at railway stations. * During first seven months of FY 2015-16, Indian Railways awarded projects worth Rs 10,594 crore (US$ 1.59 billion), more than double the value of those awarded in the same period last year. Most of these projects involve engineering, procurement and construction (EPC) contracts. * State government of Maharashtra has planned to set up a Special Purpose Vehicle (SPV), Maharashtra Railway Infrastructure Development Company, with a view to ensure that the various development projects are completed in a time bound manner. * A memorandum of understanding (MoU) and an Action Plan have been signed between the Government of India and the Government of China to improve technical cooperation in the railways sector, at delegation level talks between the two countries. Prime Minister Mr Narendra Modi and the visiting President of China, Xi Jinping, were present at the signing. * In August, an MoU was signed between the Ministry of Railways in India and the Czech Railways (Ceske Drahy) and Association of Czech Railway Industry (ACRI) of the Czech Republic on technical cooperation in the field of the railways sector. * The Government of India has cleared a proposal to allow 100 per cent FDI in railway infrastructure, barring operations, via the automatic route. FDI channelled through this route does not require prior government approvals. * The Railway Board is considering the implementation of the 106 recommendations of the High Level Safety Review Committee (Kakodkar Committee) pertaining to general safety matters, empowerment at working level, vacancies in critical safety category, organisational structure, shortage of critical safety spares, human resource development with focus on education and training research, among others. * The Union Cabinet has given its approval for establishing a new rail coach manufacturing unit at Kolar, Karnataka. The unit will produce 500 coaches per annum at a projected cost of Rs 1,460.92 crore (US$ 219.34 million). The Ministry of Railways will provide 50 per cent of the finances with the Karnataka government providing land, free of cost, and the remaining 50 per cent of the project completion cost with escalation.
Road Ahead
The Indian Railway network is growing at a healthy rate. In the next five years, the Indian railway market will be the 3rd largest, accounting for 10 per cent of the global market.
Exchange Rate: INR 1 = US$ 0.0150 as on December 17, 2015
References: Press Releases, Department of Industrial Policy and Promotion, Press information Bureau, Media Reports\
Corporate Safety Plan 1. 'The White Paper on Safety on the Indian Railways' presented in Parliament in April 2003, offered a review of safety performance of the Indian Railways, in terms of accidents occurring on the system during the last 40 years, with a special reference to the last decade. The highlights of the paper revolved around modernization of infrastructure viz. track, bridges, rolling stock etc. and examination of the role of ?human element?, specially that of ?failure of railway staff? in accidents. It has also gone into issues related to accident inquiry, fixing up of responsibility and recommendations made by various inquiry committees and Commissions. The document has also raised certain vital issues, for which public response is expected to facilitate resolving the issues. The White Paper has highlighted all aspects about safety on the Indian Railways, normally not deliberated in public. 2. The need for a Corporate Safety Plan has been experienced for quite some time. It was found necessary to prepare a safety blue print, based on the various factors like technological inputs, work culture, managerial focus and required investments etc. The Railway Safety Review Committee also recommended preparation of a Corporate Safety Plan. 3. The Corporate Safety Plan states the objectives, strategies and targets for which the IR would be striving in the next decade. The document encompasses the priorities of the safety related works and indicates a broad timeframe to complete them along with assessed approximate requirement of financial investments. 4. While the endeavour is to minimize fatalities in accidents, the plan objectives can be treated as an intermediate stage in our efforts to realize a vision of accident-free and casualty-free IR system. Though achieving a situation of accident-free system is a herculean task, a realistic and analytical approach has been adopted while planning all necessary steps projecting the required investments in this labour intensive, resource-strapped mammoth organization. 5. The Corporate Safety Plan of the IR (2003-2013) also envisages a safety action plan directed towards continuous reduction in risk level to its customers, implementation of suggested system reforms, imbibing better safety culture, enhancement of asset reliability etc. This covers continuous rehabilitation and modernization of assets, qualitative changes in men and machines, induction of appropriate technologies in support of human efforts etc. 6. To sustain the public pronouncements that safety is not compromised for shortage of funds, it needs to be appreciated that everything has an inbuilt cost in it. Financially, the IR is out of woods, but is still not in a position of ease, comfort and adequate surplus. Although Budgetary support is increasing still not coming up as per requirement. Market borrowing although has become cheaper yet it has its inherent limitations. Resource mobilization through non-budgetary initiatives is slow moving. Therefore, productivity and efficiency have to attain new peaks of excellence for internal generation of resources. 7. Investment policy and norms are getting re-focussed in this pursuit. Creation of SRSF was the first bold step. To give more and more safety shelter, it appears necessary to reorient our investment policies and sustain the system by not permitting any accumulation of arrears of replacement at any stage. Safety related projects have to be clearly defined, planned, funded and executed. Maximum has to be squeezed from the minimum. At the same time, railway assets must not become bottomless pits for constant investments. 8. Challenges of higher safety are interlinked with work culture, the central point being oft-discredited ?human element?. This is the element, which can turn scarcity into prosperity. Again, this is the component, live and vibrant, which is capable of offering better and economic options, and still usher in greater safety. But this is the element, which also functions under great stress and strain and deserves to be supported by technologies. 9. All this is to aim at reduction in fatalities in train accidents. However, a major share of fatalities is contributed by road vehicle users in mishaps at level crossings. It is essential that greater discipline is enforced, for which cooperation of society at large is solicited. 10. As announced by Hon?ble Prime Minister on 15th August 2003, Indian Railways will go for ?Technology Mission on Railway Safety? in collaboration with Department of Science and Technology (Ministry of Human Resource Development), IIT/Kanpur and the Consortium of Industries for developing appropriate technology to help achieve higher level of safety in train operation. 11. Funds requirement for safety enhancement works outlined in the Corporate Safety Plan is
Rs. 31,835 crores, which includes funds already available under Special Railway Safety Fund (SRSF) and Railway Safety Fund (RSF). Non-budgetary initiatives will have to be stepped up to meet the additional requirement. A special safety scheme may also have to be resorted to in this regard, for which assistance of the Planning Commission and the Ministry of Finance would be sought. | (Nitish Kumar)
Minister for Railways |

Issues the Railways need to Address with Extreme Urgency
I. Matching Customer Requirements : The railways have to provide higher reliability, more flexibility and lesser documentation for their freight services if they are serious about winning back the share that they have lost to other sectors of transport.
II. Clarifying its Purpose : The railways should stop viewing itself as a government department and start operating like a commercial organization, which would be financially self-sufficient.
III. Adopt a Contemporary Business Structure : IR should start focusing on its core competencies and start empowering employees to take quick decisions.

Restructuring of Indian Railway

1. Create an arms length relationship between the railways and the governments. 2. Induct professional management with a commercial focus..
3. Narrowing down business focus and spinning off non-core activities.

The benefits of this restructuring exercise was felt immediately in terms of improvement in market share, productivity and investments.

1. Customer Service: In terms of quality , prices and safety the customer has significantly gained. For example the average delay per passenger in UK fell from
2.5 minutes to 2.2 minutes. In Japan the traveling time reduced by almost 25 percent. Prices in Sweden fell by 5 percent in the passenger segment and 7 percent in the freight segment. Accidents in Japan reduced by fifty percent and in
Britain by 67 percent.
2. Market share : Most railways have arrested the decline in market share and are beginning to grab an increasing share of the pie in both the passenger and the freight segments. For example cumulative traffic in Britain, Germany and Sweden had been declining at 7.5 percent per annum, but post-restructuring it started to grow at 2 per cent per annum.
3. Productivity : post-Restructuring the productivity levels in Japan tripled from
500-passenger ton km per employee in the early 80’s to 1500-passenger ton km per employee five years after restructuring started. In Germany too this figure rose by 95 per cent.
4. Infrastructure Investments : Even with reduced public subsidies infrastucture investments rose in most of the countries. In Japan it increased by 400 percent from $500 million in the mid 80’s. While in UK it doubled from less than $1.4 billion in the late 80’s to $2.8 billion in 1999-2000.

Pricing Structure.
Another way of generating funds is to change the pricing policy. Politics, not the market, dictates the pricing structure in India currently. Politicians force it to subsidise some of its potentially most profitable businesses, like the Bombay suburban routes, which carry 6 million people a day. About 70 million passengers a year do not contribute to revenue because they travel without tickets4
Another issue relevant here is the low demand routes. The expert group has brought out this issue clearly and its applicability in the Indian context is spot on. The government can consider differential pricing. This differential pricing should be based not just on the low demand routes, wherein low prices are charged but also in the off-seasons and nonpeak hours in an otherwise high demand route. Extending this point further the government could go for congestion pricing in routes where there is very high demand for this service and the supply is limited by charging higher prices in these areas.
Privatization Proceeds
This is another attractive option in generating finances. IR can use its strengths to attract private participation in IT, real estate and other areas, it is already doing so, as detailed below. Privatization Through IT
The Railways plans to use its right of way over 63,000 km to lay optic fibre cables along railway tracks. These lines will then be leased out to internet service providers, companies, and media houses for transmitting data and multimedia content. This is a right move in the right direction and could generate huge funds.
Privatization Through IT
The Railways plans to use its right of way over 63,000 km to lay optic fibre cables along railway tracks. These lines will then be leased out to internet service providers, companies, and media houses for transmitting data and multimedia content. This is a right move in the right direction and could generate huge funds.
Horizontal integration
Horizontal integration with modes where the product is inherently weak by methods such as road bridging, extension of siding for providing door-to-door service. This could be done in areas where there are considerable synergies between the various modes of transport in term of meeting the needs of the end customer. This would encourage the freight service users to adopt these modes of transport to maximize his benefit and not just look at it as an issue of transportation of either road OR rail but as the best package.

Pune: In order to achieve significant savings in the foreign exchange outgo, the Union government is mulling bringing in global technology in the production of equipment and systems for the railways, Manoj Sinha, minister of state for railways said on Saturday. Sinha said the manufacturing of smaller components for the railways will be completely indigenised while that of major ones will move to India in joint ventures with the global companies that have the requisite technology. The minister was talking to reporters on the sidelines of a function to inaugurate the railways forgings section of Bharat Forge Limited at its facility in Baramati. The company has geared up to supply crankshafts for locomotives of Indian Railways which it has developed on the basis of in-house technology. Sinha said the country's import bill for small components for Indian Railways runs into Rs 2,000 crore and the overall imports are approximately Rs 10,000 crore. By moving to India, the manufacturing of small components and eventually the other equipment, the country will save substantially on foreign exchange outgo while creating employment opportunities at home, he said. Sinha said the Centre has identified two locations in Bihar where it will invest Rs 10,000 crore to set up greenfield manufacturing facilities to make locomotives in joint venture with Alsthom. The land acquisition for these projects is in progress and the ministry has finalised the first set of tenders. Baba Kalyani, chairman and managing director of Bharat Forge Limited, said the railways business segment is an integral part of the company's plan to grow with India's infrastructure development and is the cornerstone of its diversification strategy. The company has been supplying to all major railways networks across the world including US, Europe, Russia and recently the Indian Railways, he said. "This high-tech locomotive component manufacturing facility will exclusively focus on developing critical and sophisticated components and products for the Railway sector globally. It will not only give Bharat Forge a new growth avenue but also enable the company to contribute to building India's economic backbone, strengthen national manufacturing capabilities and steer the government's 'Make in India' drive," Kalyani said.

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