Indian Railways Financial Capacity Enhancement

Indian Railways Financial Capacity Enhancement Physical and financial capacity enhancement/capacity building of Indian railways over years To analyze how the physical capacity of Indian railways has enhanced over years. To examine financial capacity enhancement of Indian railways over years In our research we have considered two types of Capacity enhancements one is physical capacity and another one is financial capacity. Capacity enhancement has been defined in multiple ways; its ultimate purpose is to leave behind better skilled and oriented individuals, more responsive and effective institutions, and a better policy environment for pursuing development goals. Capacity enhancement at the institutional or policy level has three main ingredients The country’s resources and capabilities An enabling institutional environment Motivations and incentives/pressures that promote and help to sustain behavioral change Capacity utilization: Capacity utilization is a concept in economics and managerial accounting which refers to the extent to which an enterprise or a nation actually uses its installed productive capacity. Thus, it refers to the relationship between actual output that is produced with the installed equipment and the potential output which could be produced with it, if capacity was fully used. If market demand grows, capacity utilization will rise. If demand weakens, capacity utilization will slacken. Economists and bankers often watch capacity utilization indicators for signs of inflation pressures. The capacity utilization rate is also an indicator of how efficiently thefactors of productionare being used. Economic efficiency: In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another (in relative terms) if it can provide more goods and services for society without using more resources. In absolute terms, a situation can be called economically efficient if: No one can be made better off without making someone else worse off (commonly referred to asPareto efficiency). No additional output can be obtained without increasing the amount of inputs. Production proceeds at the lowest possible per-unit cost. Technical efficiency: Technical efficiency means that natural resources are transformed into goods and services without waste, Situation where it is impossible for a firm to produce, with the given know how, (1) a larger output from the same inputs or (2) the same output with less of one or more inputs without increasing the amount of other input. Technical efficiency is the effectiveness with which a given set of inputs is used to produce an output. A firm is said to be technically efficient if a firm is producing the maximum output from the minimum quantity of inputs, such as labor, capital and technology. Productivity: Productivity is a measure of the efficiency ofproduction. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input. Physical capacity Railway stations Employees Route length Locomotives Total investment Capital at charge Passenger service vehicles Volume of traffic Other coaching vehicles Wagons (To calculate efficiency and productivity we must apply models and tests. Dan bogart and lathika have used cobb douglas production function to calculate efficiency in the operations. Alivelu used a model to calculate productivity. DEA may be used) Locomotives, coaches, wagons and other type of railway vehicles are together called as rolling stock, rolling stock originally referred to the vehicles that move on a railway, it usually includes both powered and unpowered vehicles (Wikipedia). In In some countries the term is usually use to refer only to unpowered vehicles, specifically excluding locomotives which may be referred to as running stock, traction or motive power. In India all the railway vehicles are called as rolling stock. In simple language locomotive is also called as engine, it is a rail transport vehicle that provides the motive power for a train. The word locomotive originates from the Latin word loco which means from a place and motivus which means causing motion. A locomotive has no payload capacity of its own and its sole purpose is to move the train along the tracks. A wagon is a large container on wheels which is pulled by a train. Goods wagons or freight wagons are unpowered railway vehicles that are used for the transportation of cargo. OTIF definition: a railway vehicle not provided with a means of traction, which is intended to carry goods. A passenger car is also known as bogie in India. It is a piece of railway rolling ,stock that is designed to carry passengers. The term passenger car is also associated with a sleeping car, baggage, dining, railway post office and prisoner transport cars. EMU DMU DHMU (EMU) A set of electrically powered self-propelling passenger rail vehicles able to operate in multiple with other such sets (DMU) A set of diesel-powered self-propelling passenger rail vehicles able to operate in multiple with other such sets. Such units, especially those consisting of a single vehicle, are sometimes termed railcars . A  diesel multiple unit  or  DMU  is a multiple-unit train powered by on-board diesel engines. A DMU requires no separate locomotive, as the engines are incorporated into one or more of the carriages. They may also be referred to as a railcar or railmotor, depending on country. Diesel-powered units may be further classified by their transmission type: diesel-electric (DEMU), diesel-mechanical (DMMU) or diesel-hydraulic (DHMU). Diesel-mechanical In a diesel-mechanical multiple unit (DMMU) the rotating energy of the engine is transmitted via a gearbox and driveshaft directly to the wheels of the train, like a car. The transmissions can be shifted manually by the driver, as in the great majority of first-generation British Rail DMUs, but in most applications gears are changed automatically. Diesel-hydraulic In a diesel-hydraulic multiple unit, a hydraulic torque converter, a type of fluid coupling, acts as the transmission medium for the motive power of the diesel engine to turn the wheels. Some units feature a hybrid mix of hydraulic and mechanical transmissions, usually reverting to the latter at higher operating speeds as this decreases engine RPM and noise. Diesel-electric In a diesel-electric multiple unit (DEMU) a diesel engine drives an electrical generator or an alternator which produces electrical energy. The generated current is then fed to electric traction motors on the wheels or bogies in the same way as a conventional diesel electric locomotive. [1] In modern DEMUs, such as the Bombardier Voyager family, each car is entirely self-contained and has its own engine, generator and electric motors. [1] In older designs, such as the British Rail Class 207, some cars within the consist may be entirely unpowered or only feature electric motors, obtaining electrical current from other cars in the consist which have a generator and engine. Year No. of railway stations Employees (in thousands) Route length (in kilometers) Total investment (in crore) Capital at charge 1980-81 7035 1572 61240 7448.4 6096.3 1981-82 7072 1575 61230 8164.3 6698.1 1982-83 7068 1584 61385 8882.2 7251.1 1983-84 7065 1592 61460 9401.4 7567.8 1984-85 7093 1603 61850 10377.3 8285.6 1985-86 7092 1613 61836 11492.0 9078.1 1986-87 7105 1611 61813 13306.9 10373.1 1987-88 7084 1618 61976 15177.6 11622.2 1988-89 7083 1626 61985 17239.4 12987.5 1989-90 7076 1647 62211 19730.6 14629.5 1990-91 7100 1652 62367 22200.5 16125.8 1991-92 7116 1654 65458 24808.4 17712.5 1992-93 7043 1646 62486 28524.3 20123.2 1993-94 7050 1625 62462 32212.0 22620.6 1994-95 7056 1602 62660 35618.2 24924.8 1995-96 7068 1587 62915 39816.0 27712.89 1996-97 6984 1584 62725 44627.3 30911.77 1997-98 6929 1579 62495 49057.8 33846.33 1998-99 6896 1578 62809 53657.6 36829.34 1999-00 6867 1577 62759 58353.4 39772.06 2000-01 6843 1545 63028 63341.01 43051.88 2001-02 6856 1511 63140 70117.47 47147.35 2002-03 6906 1472 63122 77915.78 51099.09 2003-04 7031 1442 63221 87474.50 56061.79 2004-05 7133 1424 63465 98490.02 59346.93 2005-06 6974 1412 63332 112180.41 66878.37 2006-07 6909 1398 63327 130168.71 76030.69 2007-08 7025 1394 63273 151434.35 88521.14 2008-09 7030 1386 64015 176726.41 104301.25 2009-10 7083 1362 63974 203315.37 123000.69 2010-11 7133 1328 64460 231615.25 143220.57 2011-12 7146 1306 64600 257958.35 161447.97 2012-13 2013-14 Source: statistical summary- Indian railways Year Passenger carriage EMU DMU DHMU Other coaching vehicles (in units) Wagons (in units) Locomotives(in units) steam diesel electric 1980-81 27410 2625 8230 400946 7469 2403 1036 1981-82 27192 2658 8058 392062 7245 2520 1104 1982-83 26894 2765 7840 383431 6292 2638 1157 1983-84 27311 2837 7751 374757 6217 2800 1194 1984-85 27793 2957 7789 365392 5870 2905 1252 1985-86 27735 2965 7543 359617 5571 3046 1302 1986-87 27629 2988 7336 354041 4950 3182 1366 1987-88 27466 2977 7274 346844 4427 3298 1433 1988-89 27715 3052 7077 345821 3826 3454 1533 1989-90 27969 3100 6861 349661 3336 3610 1644 1990-91 28677 3142 6668 346102 2915 3759 1743 1991-92 29469 3366 6491 346394 2492 3905 1871 1992-93 30298 3444 6158 337562 1725 4069 2012 1993-94 30537 3537 5955 312405 911 4192 2117 1994-95 30036 3618 5536 291360 358 4259 2302 1995-96 29472 3691 5694 280791 209 4313 2387 1996-97 29978 3846 5460 272144 85 4363 2527 1997-98 30739 3971 5432 263981 64 4496 2646 1998-99 31554 4076 5338 252944 58 4586 2785 1999-00 32208 4266 4891 234397 56 4651 2810 2000-01 33236 4668 4731 222193 54 4702 2810 2001-02 34338 4876 4827 216717 53 4815 2871 2002-03 34871 4957 4904 214760 52 4699 2930 2003-04 35654 5278 5519 227752 45 4769 3004 2004-05 37087 5388 5600 222409 44 4807 3065 2005-06 38156 5894 5612 207983 44 4793 3188 2006-07 38855 6454 5905 207723 43 4816 3294 2007-08 40696 6641 6180 204034 44 4843 3443 2008-09 42079 6984 5985 212835 43 4963 3586 2009-10 43526 7487 6477 220549 42 5022 3825 2010-11 45048 8053 6500 229997 43 5137 4033 2011-12 46688 8617 6560 239321 43 5197 4309 2012-13 Source: statistical summary- Indian railways Capacity enhancement in Passenger service Year No. of passenger origination( in million) Passenger kms (in million) Passenger earning (in crore) 1980-81 3613 208558 827.5 1981-82 3704 220787 988.6 1982-83 3655 226930 1161.6 1983-84 3325 222935 1351.9 1984-85 3333 226582 1456.8 1985-86 3433 240614 1719.4 1986-87 3594 256535 1939.7 1987-88 3792 269389 2058.1 1988-89 3500 263731 2453.4 1989-90 3653 280848 2666.4* 1990-91 3858 295644 3144.7* 1991-92 4049 314564 3681.6 1992-93 3749 300103 4311.2 1993-94 3708 296245 4891.2 1994-95 3915 319365 5458.8 1995-96 4018 341999 6113.0 1996-97 4153 357013 6616.1 1997-98 4348 379897 7554.0 1998-99 4411 403884 8526.7 1999-00 4585 430666 9555.6 2000-01 4833 457022 10483.2 2001-02 5093 490912 11162.2 2002-03 4971 515044 12540.8 2003-04 5112 541208 13259.8 2004-05 5378 575702 14072.52 2005-06 5725 615614 15080.77 2006-07 6219 694764 17176.01 2007-08 6524 769764 19783.25 2008-09 6920 838032 21866.48 2009-10 7246 903465 23414.44 2010-11 7651 978508 25705.64 2011-12 8224 1046522 28246.43 2012-13 Source: statistical summary- Indian railways Capacity enhancement in freight service Years Total traffic Tonnes originating (in millions) Total traffic net tonne kms (in millions) Earnings from freight carried 1980-81 220.0 158474 1550.9 1981-82 245.8 174202 2250.3 1982-83 256.0 177767 2865.9 1983-84 258.0 178446 3234.3 1984-85 264.8