Analysis Of National Railway Plan 2030

Policy Update
Mohd Asif

From Infrastructure to Innovation: How Indian Railways have fortified in last 9 Years - Kartavya Blogs

Background

National Railway plan is a plan to develop a ‘future-ready’ railway system by 2030. The National Rail Plan (NRP) 2030 seeks to devise strategies that focus on enhancing operational capacities and implementing commercial policy measures to boost the Railways’ share in freight transport to 45%.

Indian Railways is the fourth largest railway network in the world by size, with a total track length of 121,407 km or 75,439 miles, and its route spans 67,368 km. Indian Railways carries an average of 8.26 billion passengers annually and transports 1.16 billion tonnes of freight. Its revenue is estimated to be 1.874 trillion, or US $26 billion, of which 1.175 trillion (US $16 billion) comes from freight and 501.25 billion (US $7.0 billion) from passenger fares.

To develop Indian Railways into a world-class system that can maintain the pace of growth while supporting economic development, the Ministry of Railways has planned for the year 2030 and beyond, extending up to 2050. For this purpose, the Ministry has directed Rail India Techno Economic Services (RITES) to provide advisory services, which will further appoint a consultant.

Indian Railways – Growth History

In April 2018, Indian Railways marked 165 years since it launched its first passenger train services. This section provides a brief overview of the long and intricate history of one of the world’s largest railway employers, tracing its evolution from the British colonial era to modern-day operations.

1853-1869: Inception of Passenger Rail Services

Although discussions about rail services in India began in the 1830s, the journey truly began on 16 April 1853, when India’s first passenger train embarked on a 34-kilometer route between Bombay’s Bori Bunder station and Thane. The train, consisting of 14 carriages pulled by three steam locomotives, carried 400 passengers. This route, constructed through a collaboration between the Great Indian Peninsular Railway (GIPR), founded in 1849, and the East India Company, laid the foundation for future railway projects. Its success led to the establishment of railways in eastern and southern India, culminating in a 4,000-mile network that spanned the subcontinent.

1869-1900: Growth Amidst Famine and Economic Expansion

From 1869 to 1881, the British government took direct control of railway construction, taking over from private contractors. The network was expanded to address the country’s severe droughts and famines, with railway lines reaching 9,000 miles by 1880. The railways extended inward from the major ports of Bombay, Madras, and Calcutta, playing a pivotal role in combating famine and facilitating economic growth.

1901-1925: Centralisation and Challenges

By 1901, after years of investment, the railways started generating profits. The government nationalized major lines and leased them back to private operators. The establishment of the Railway Board in 1901 marked a new era, and by 1905, its authority was formalized. However, World War I diverted resources from Indian railways to support British military efforts, leaving the network in a state of disrepair by the war’s end. By 1924, the railways were separated from the general budget, receiving their first independent financial allocation in 1925.

1925-1946: Electrification and Hardships

On 3 February 1925, the first electric train ran between Bombay and Kurla, signaling the beginning of electrification efforts that would expand in the coming years. By 1929, the rail network stretched to 66,000 kilometers, transporting approximately 620 million passengers and 90 million tonnes of goods annually. However, the financial strain and global events in the following decades brought significant challenges.

1947-1980: Partition and Reorganisation

Indian independence in 1947 brought the partition of the nation, leading to the loss of over 40% of the railway network to the newly formed Pakistan. Important lines like the Bengal Assam and North Western Railways were severed from India’s system, while infrastructure was damaged by violence during the partition. In the years that followed, Indian Railways took control of most railway franchises (1949-1950) and reorganized the network into zones in 1951-1952. The Samjhauta Express began operating between Amritsar and Lahore in 1976, symbolizing a brief moment of cooperation between the two nations. Efforts to modernize the railways accelerated, with the adoption of 25kv AC traction in the 1950s driving further electrification.

1980-2000: Technological Advances and the End of Steam

The 1980s saw the complete phase-out of steam locomotives as energy crises in the 1970s spurred greater electrification. Approximately 4,500 kilometers of track were electrified between 1980 and 1990. During this period, the country’s first metro system was introduced in Calcutta in 1984. Although economic stagnation in the 1980s slowed the railways’ growth, the Konkan Railway—spanning 738 kilometers—was inaugurated in the 1990s, connecting India’s western coast to the rest of the nation. Another major innovation came in 1985 with the launch of an online passenger reservation system, which later expanded into the nationwide CONCERT system in 1995, allowing passengers to book and cancel tickets from any terminal.

2000-2017: The Shift to Online Services

Since the early 2000s, Indian Railways has expanded metro systems in cities like Delhi (2002), Bangalore (2011), Gurgaon (2013), and Mumbai (2014). One of the most significant advancements was the introduction of online train reservations through the IRCTC platform in 2002, revolutionizing ticket booking and customer service.

Findings of NITI Aayog on the current system

Since 1951, the railways’ share in India’s freight transportation has been steadily decreasing.
In 2020, the railways accounted for just 18% of freight transportation, while roads held a dominant 71%. This imbalance is largely due to inadequate rail capacity, particularly on certain high-density routes.
As off 2021 there are just 8,479 freight trains.
Road-based freight transport, which consumes more energy and generates higher emissions, has expanded at the cost of the Indian Railways.

Objective of NRP 2030

A strategy should be devised that further enhances operational and commercial capacity, so that the railway’s contribution to freight transport increases to 45%.”
“Reduce the transit time for freight, and to achieve this, increase the average speed of freight trains to 50 km/h.”
Under the National Rail Plan, it includes 100% electrification, laying multi-tracks on congested routes, increasing the speed to 160 km/h on the Delhi-Howrah and Delhi-Mumbai routes, upgrading the speed to 130 km/h on all Golden Quadrilateral and Golden Diagonal routes, and eliminating all level crossings on these GQ/GD routes.
Identify new Dedicated Freight Corridors.
5 Identify new High Speed Rail Corridors.
Assess the requirement of rolling stock for passenger travel and wagons for freight transport.
Assess the requirement of locomotives to achieve 100% electrification (green energy) and to increase freight capacity.
Assess the total investment based on the breakup of intervals.
Private sector participation in the operation and ownership of rolling stock, development of freight and passenger terminals, and the development and operation of track infrastructure.

Estimated funding requirements for capacity enhancement plans under NRP (2030-2051)

Indian Railways’ strategy to enhance railway infrastructure, as highlighted earlier in this study, necessitates significant investments from 2022 to 2051 to alleviate capacity limitations and optimize multi-modal transportation. These investments are designed to align with both current and planned transport infrastructure within the country.

Earlier modules of the National Rail Plan (NRP) have estimated capital expenditure needs across three main asset categories: tracks, terminals, and rolling stock, with corresponding data displayed in the following exhibits.

From now until 2031, investments in track infrastructure—which includes spending on Dedicated Freight Corridors (DFC), High-Speed Rail (HSR), and Core Track Infrastructure such as doubling and signaling works across High-Density Network (HDN), High-Utility Network (HUN), and other networks, as well as the construction of flyovers and bypasses—will represent the largest share of total capital expenditures, approximately 66%. Year-on-year growth is projected in spending on DFC and HSR. Rolling stock, including wagons, coaches, and locomotives, is expected to account for about 29% of total capital expenditures, while terminal infrastructure development (both passenger and freight terminals) will make up the remaining 5%.

This trend is expected to persist beyond 2031 through 2051. Track infrastructure investments will still dominate at around 60% of total capital expenditure, while spending on rolling stock will rise to approximately 39%, with terminal infrastructure development continuing to account for the remaining portion.

Potential Source of Funding

India operates under a state-owned monopoly model for its railway track infrastructure, where both the “Above the rail” and “Below the rail” segments are managed by a single entity, Indian Railways. Given this structure, it is challenging to isolate revenues from individual projects or assess returns for projects that are integrated into a broader network. As a result, the most viable method for recovering the costs of track development and maintenance is through internal funds generated from passenger and freight services. However, with Indian Railways facing a high operating ratio, financing these track infrastructure projects solely through internal accruals would be difficult.

Steps taken by government

In 2020-21, 657 km of the Eastern and Western Dedicated Freight Corridors (DFC) were commissioned.
Freight train speed doubled to 46 kmph from 23 kmph.
12,000 HP indigenously manufactured electric locomotives were introduced for freight.
Real-Time Information Systems (RTIS) were installed in 2,700 electric locomotives for tracking.
Key corridors include the East Coast (Kharagpur to Vijayawada), East-West (Bhusawal to Dankuni), and North-South (Itarsi to Vijayawada).
-The Vision 2024 plan aims to develop infrastructure and increase Indian Railways’ freight share by 2024.
Critical capacity enhancement projects like doubling and multi-tracking have been prioritized for timely completion.
505 projects, including 263 for doubling, 185 for new lines, and 57 for gauge conversion, are in progress.
The Kisan Rail initiative facilitates transporting perishables like fruits, vegetables, and dairy from surplus to deficit regions.

Way Forward

The draft National Rail Plan (NRP) needs to be publicized across various government levels and discussed with key stakeholders for final feedback. Based on traffic survey data, future demand has been forecasted and mapped onto the current rail network, identifying congested sections and potential demand corridors. Rail infrastructure development proposals, along with phasing and cost estimates. As the NRP is dynamic, it requires ongoing data updates and priority adjustments, necessitating the creation of a dedicated, self-sustained cell within the Railway Board. Railway Board staff must be trained for these updates, and final approval of the NRP’s financial outlays will be sought from the Government of India.