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Manoj Sinha, Union Minister of State for Railways, in an exclusive chat with Swarajya over all
things railway, including tomorrows budget
Q: In your view what is the role of the Railways in the India growth story?
A: The Indian Railways (IR), with regards to the infrastructure sector, are the best means of
transport. When it comes to taking bulk commodities as well as container loads from one part of
the country to another, nobody can do it better than the Indian railways. Also, I think, they are
the most important means of transport if you look at it from the objective of striking a balance
between domestic and global economy.
Keeping in mind agriculture and the needs of the farmers, the Railways has taken up the
responsibility of transporting fertilisers and other commodities on a priority basis.
I think that the economy of the country and Indian Railways are mutually complementary and if
Indian Railways improve then the rate of Indias economic growth would also pick up. So if one
were to look at this way, the Railways have a very important role to play.
Q: In his last budget speech, the Railways Minister had said that the legacy of the past
decades would take some time to neutralise. When you took charge of the ministry,
what were the biggest challenges facing the Indian Railways (IR)?
A: I believe that the Indian Railways has been a victim of under-investment. The amount of
investment that should have happened in IR, never happened. And if one were to look at the
details: since independence the IR network has grown by 2.25 times whereas the passenger
traffic has grown by more than 17 times, and freight traffic by more than 9 times. So there was a
massive gap between the trafficboth passenger and freightand the network capacity.
Bridging this gap was our biggest challenge.
The second challenge according to methere were countless projects which used to be cleared
without worrying about when they would be completed, 30 years or 35 years or more. This led
to cost overruns as well as delays. Decisions used to be made keeping in mind political gains.
IR has suffered heavily because of this.
Third, due to the slow growth in network, we have today reached a state where there are about
492 sectors in IR whose utilisation is more than 100 percent. Where ideally only 100 trains could
run, a 150 or 160 are running. So running the trains on time is a big challenge.
These were the important challenges which our government identified and made some instant
decisions in their regard. One, we decided to not take any decisions on the basis of political
gains. Apart from that, we focussed on completing the top-priority projects of IR at the earliest
and undertaking decongestion of IR on a priority basis.
And we have worked to this plan in the last one and a half years.
Doubling, tripling and fourth-line works have been carried out on a large scale; and secondly, if
you look at the investments, in the earlier budget the investment target was 58,000 crore, this
time (Budget 2015-16) it was increased to one lakh crore, an increase of almost 52% in
allocation.
So once the doubling, tripling and fourth line works are finished, Im sure therell be relief.
Third, the Dedicated Freight Corridors (DFC). We have expedited their construction since taking
charge. Tenders worth 17,500 crore were finalised last November, and I think that in the coming
March tenders worth another 17,000 crore would be finalised. When the Prime Minister
undertakes review of projects, the DFC is one the projects he reviews. Even at the level of the
Ministry, the Rail Minister and myself regularly review the progress on the DFC. Everything that
can be done to ensure that the project is completed by 2019, is being done.
Our government thus has a three-pronged approach to the challenges of IR. The first part of this
are the immediate solutions. For example, constructing long loops, or if there is an acute
problem of congestion, easing it by creating satellite stations.
Then there are the medium-term solutions which include completing doubling, tripling and
fourth-line works.
And then come the long-term solutions. The average speed of express trains today is only 6065 km/hr and that of goods train, 25. So weve taken upon ourselves to ensure that by 2019 the
average speed of goods trains is 50 km/hr and of express trains is about 120 km/hr.
Q: You mentioned that decisions were not taken on the basis of political interests. How
difficult was it given that that has been one the main drivers of decision-making in the
railways in the past? Railway ministers have gifted new trains, facilities, factories etc. to
their regions.
A: Given the state of Indian Railways, doing that was necessary. And I think that the strong will
power of the Prime Minister also made it possible for us to take decisions which were for the
interest of railways and the country rather than for political gains.
Q: In the last budget the Railway Minister had a set an investment target of Rs 8.5 lakh
crore. How much of that has the Ministry managed to raise up till now?
A: We have an MOU with the LIC for Rs 1.5 lakh crore. The Ministry of Coal and Energy has
also increased its investment in IR. Apart from this there are more proposals under
consideration with the Ministry. So as regarding the target announced by the Rail Minister in
Parliament, itll surely be met.
Q: The Minister had also talked about monetising assets in the previous budget and has
spoken of it a few times since. What is meant by that and how does IR plan to proceed on
it?
A: Let me start the with land that IR owns. Firstly, there is this misconception that IR owns vast
tracts of land. In reality, 87 to 88 percent of our land bank is along railway lines.
But the remaining 13 percent. How we can make use of that commercially, on a revenuesharing basis and increase the permanent as well as immediate income of IR, that is being
considered. Recently, the cabinet has cleared the development of 400 stations, we have posted
the same on the website as well. So, in that regard, this is a big step forward.
Then there is the IRCTC and other PSUs. How we can derive financial benefits from them is
another issue in the same respect. So, going ahead, these are the two types of assets which
would help in the development of IR.
Q: Recently there has also been talk of monetising data. What should one understand
from that?
A: I doubt if any other rail network in the world has as many passengers as IR, if you look at the
website youll realise it too. So what IR is considering now is how can we use that for
commercial gains.
Q: In last years rail budget, the target for operating ratio for 2015-16 was set at 88.5. How
close to that is the actual figure likely to be?
A: The targets which we had set for ourselves in the last budget with regard to freight and
passenger earnings, we have not been able to meet them. There are many reasons for that and
I do not wish to go into them specifically but one of the reasons is the direct relation of IR with
the Indian economy at large. Iron ore for example, or coal; we used to transport imported coal
but with the increase of productivity of Coal India, our numbers have fallen. Compared to the
last financial year, our revenues have increased but the ambitious target that we had set for
ourselves, that we have not been able to meet. I am hopeful that the Operating Ratio would
come to be around 90.
A new problem that the IR is about to face is the Seventh Pay Commission. We are thinking
over how best to meet the targets imposed by it. Now if the OR were to be calculated after the
implementation of the Pay Commission, then the figure would fluctuate more. . .
Q: Is there a fear that it might cross 100 in FY 2016-17 after taking into account the
implementation of the Seventh Pay Commission?
A: We have not yet estimated it in that respect but it may be that it comes out to be around 100.
Q: The Dedicated Freight Corridors would come under their own corporation (Dedicated
Freight Corridor Corporation of India, registered as a Company). Isnt there a fear that
this would take away the largest source of revenuefreightfrom IR?
A: Not really. There are many corporations with IR like Container Corporation, IRCON etc. In a
sense, they are autonomous while at the same time coming under the Railway Ministry. The
Dedicated Freight Corridors would also function in a similar manner and the role of the Railway
Ministry has been laid down from the outset. There is no need to change that.
Q: Writing for Swarajya, Dr Debroy had mentioned the possibility of private operators on
the DFCs. Is IR considering any such move?
A: Let me clarify one thing here: we are promoting private and foreign investment in railways.
But we not taking railways in the direction of privatisation. And as far as operations are
concerned, that the railways will keep to itself. Say the private sector wants to help in making
sidings, they are most welcome; they want to ally with IR in making PFTs, they are most
welcome. But, operations will stay with IR.
Q: There is a competition between railways and roads for transporting cargo. What is the
strategy of IR to increase the share of railways therein?
A: As a responsible citizen of the country, if I decrease the share of roads in goods traffic, then it
is the country which loses in the end, but of course, I have to worry about increasing the share
of the railways. The main reason for railways lagging behind is absence of certainty. We are
right now unable to assure a time of delivery. We are working to correct this situation and the
DFC would be a milestone in that.
Secondly, we are trying to increase the average speed of goods trains from 25 to 50 km/hr.
Weve undertaken the task of fitting high horsepower engines for goods trains.
To attract more freight traffic especially, if there are any changes required in policy, we arent
hesitant to do that either. Senior officials of the ministry have discussed the issue with various
stakeholders and we have constantly emphasized that our freight operations must be increased.
Q: That brings me to my next question. The automobile industry, for example, has
witnessed substantial growth in the last few years, so has the electronics sector. Why do
we see motorcycles or TVs being transported only via roads? Why cant railways also do
that?
A: We do have a presence in that area. We did have tie-ups with Maruti and a couple of other
automobile companies. But I agree that this needs to be pursued further and we are committed
in that direction.
Q: Moving towards questions of safety; last year saw some unfortunate accidents on the
IR network. Given that, what is the strategy of IR regarding safety?
A: We have set a target of zero accidents for the future but coming to the accidents which have
happened, there were many reasons for them. 40 percent of all accidents happen at levelcrossings. So we have taken up the elimination of level-crossings on a priority basis. There are
about ten thousand of such crossings in India and they have to be eliminated via constructing
ROBs and RUBs (Railway Over-Bridges and Railway Under-Bridges).
If you look at the previous budget, a lot of ROBs and RUBs have been sanctioned and we have
set a goal that by 2019 there be no unmanned level crossings left in India.
Then we are also looking to harness technology to ensure safety. TCAS (Train Avoidance
Collision System), for example, its pilot project is underway and IR is set to use it as widely as
possible.
Track Detection Systems, implementation of that is also in the pipeline, so that if a track is
defective, we get to know that in advance and take instant remedies.
So technology upgradation, elimination of unmanned level crossings and training the workforce;
we are working in these areas to ensure an Indian Railway network without accidents.
Q: You mentioned ROBs and RUBs. As an outsider, one issue that comes to mind is that
IR may be facing problems of land acquisition and of co-ordination with state
governments. How is IR tackling those?
A: This should be looked at at two levels: some of our level-crossings are at national highways,
so we have signed an MoU with the Ministry for Road Transport and Highways under which they
have decided that for all level-crossings falling on national highways, the ROBs and RUBs will
be constructed by them. That I think is a substantial achievement.
Second, we have level-crossings at state highways and at Major District Roads (MDRs) and on
other roads. There the way it works is that half the expenditure for the ROB/RUB is borne by IR
and half by the state government and we take a certificate from them which states that the
district administration will help us in closing the level crossing. In that, there do arise some
difficulties but with better cooperation from state governments, we should be able to take this
forward.
Q: There was also the question of IR shifting from ICF coaches to LHB coaches since the
latter are much safer? What is the rate of progress there? By when can we expect all
coaches to LHB?
A: We are aiming that in 5 years, all IR coaches should be LHB. This is an ambitious target
which would not only increase the speed of our trains, it would also make them safer.
Q: Is IR taking help of indigenous research to improve rail safety?
A: The RDSO (Research Designs and Standard Organisations) in Lucknow has been working in
this direction but of late we have entered into an agreements with many educational institutions
in the country, the main amongst which are Mumbai University, IIT-BHU, IIT Chennai. Each
institution has been assigned a specific theme/problem to work on. IIT-BHU, for example, is
working on material science, IIT-Kanpur along with RDSO is working on movement in fog. We
are also in constant touch with the DRDO.
Take bio-toilets for example. About 8000 of them were fitted into coaches last year and all
coaches being made will come with bio-toilets. Retrofitting of course is undertaken. This way we
are also moving ahead on Swacch Rail, Swacch Bharat.
Q: Are problems of maintenance also adding to worries of safety? The tracks of the IR
network are so busy that there is no time for sufficient maintenance?
A: I think the conventional system of maintenance and inspection in IR is a very effective one. If
it is followed properly, it leaves little probability for accidents. But our tracks are hardly free. So it
is imperative that we use the latest technology in this regard.
And as I just mentioned, TCAS and others, IR is pursuing the use of latest technology with
seriousness.
Q: Turning towards congestion; the Delhi-Calcutta route is the most congested one. What
is the IR doing to decongest it?
A: The Delhi-Howrah route which is one of our trunk routes and in that the MughalsaraiAllahabad section, is very congested. In the last budget, the construction of a third line was
cleared. I think once the third line is complete, there will be a lot of relief and along with that
once the DFCs are finished and the goods traffic moves there, it would be a lot more
convenient.
Apart from this, we are making satellite stations and loops. At the Allahabad junction for
example, trains come at it from six directions, so we have developed two stationsChhimki and
Prayagon that section and diverted 28 trains. Similarly, Manduadih and Banaras City in
Varanasi, Gomti Nagar in Lucknow. Appropriate measures have been and are being taken
because decongestion remains one of our priorities.
Q: The Diamond Quadrilateral project of the Prime Minister, how far has that reached?
A: There are many sectors in which progress is being made with respect to that. One is the
high-speed rail corridor between Ahmedabad and Mumbai. When the Prime Minister of Japan
visited India recently some decisions were taken in this direction and I think this will make a
generational shift for the service quality of IR. This project would be worth 98,000 crore wherein
both the the governments of Maharashtra and Gujarat would have their equities and the rest
would be funded by Japan. The process of selecting the MD for this project has commenced
and we are working towards starting the project by March-April.
The Delhi-Chennai route is being studied by China, other routes are being surveyed as well.
Once the final reports of these are submitted, the government can take a call.
Q: Staying with high-speed rail for a moment, if we talk of urban development and IR,
then one of the possibilities is to connect big cities with smaller ones around it via highspeed rail network. For example, connecting Lucknow to Sitapur, Faizabad, Raebareli
through high-speed trains. This would perhaps be more in the interest of the smaller
cities than the larger ones. Is IR considering such an approach?
A: That approach is a necessity in todays time, given the way the density of population in our
cities is increasing. Providing means of transport to this population has become important. We
are trying to work with state governments in this direction.
There are two kinds of projects which we wish to pursue therein. The first kind are the bankable
projects whose ROR is more than 14 percent. The second kind of projects are those which are
bankable but which are important for social interest. If railways reach a backward area for
example, that leads to economic as well as social development of the area. So if state
government share the work in these projects, then that is in the interest of those backward
areas of the state.
Many state governments are playing an important role in this respect. For one, the government
of Jharkhand. It has not provided land for 7-8 such projects, it is also sharing 50 percent of their
cost. The government of Orissa has also come forward. The Ministry has sent a proposal to the
Cabinet in this regard and the Cabinet is set to clear it.
So well try and sign such MOUs with as many state governments as possible so that backward
areas of states, who hitherto didnt have rail connectivity, can have it. Projects which connect
large cities to smaller ones nearby are also important. Although, we have already started to run
DEMU and MEMU trains for such areas.
Q: This topic of cooperation between IR and state governments brings me to my next
question. Railway security is right now under three forces: RPF, GRP, and state police. Is
the IR trying for better coordination between them or will it move ahead for only one
force being responsible for all rail security?
A: See, law and order is a state subject. Given the federal structure of our country, it is not
possible for the railway to have complete control over it. The GRP and RPF are primarily
entrusted with the security of IR. Half the amount of GRP salaries is paid for by IR. We also
A: That is difficult today. Given the population of our country, and as I told you before, the IR
network has not increased in the same ratio as the population (of passengers). But, for the
policies that we have made, I think three years later we will reach a state where you will get a
ticket when required.
Q: Coming to HR, the eastern part of India is a major source of revenue with reference to
freight, I mean the network in Jharkhand, Chhattisgarh, Odisha. But officials see postigs
in these areas as punishment postings. How does the Ministry plan to remedy this?
A: As far as source of income goes its not that we look only at the eastern sector. But for
loading divisions, if we look at it zone wise then yes, Bilaspur, Bhubaneshwar are very
important, Visakhapatnam too.
The new zones that were created, Hajipur, Gorakhpur, officials were reluctant to go there. That
is true. But slowly this is changing. We are trying to streamline the facilities in that regard and I
dont think this will be an issue going ahead.
Q: For any scholar or scientist, research is normally a life-long project. Given that
shouldnt the five-year term rule of RDSO be changed?
A: Those who will make good contributions in the field of research, the five-year rule will not
apply to them. This change in policy can be made.
Q: Is there a proposal in this regard?
A: This is a question being considered seriously within the ministry. Those who are making
significant contributions in the field of research, the Rail Ministry would have no hesitation in
extending their term.
Q: In the last rail budget, the Railway Minister had announced the setting up of a Malviya
chair at BHU. Firstly, what has been the progress on that? Secondly, BHU had submitted
a proposal for the setting up of an entire cell. Is the Ministry considering it?
A: When the Malviya chair was established, officials from the Rail Ministry and the concerned
people from BHU had sat together and decided on the areas BHU would work on and that has
started. They did give a proposal for a complete cell at BHU and that is under consideration with
the ministry and in the time to call, a decision will be taken on that.
Q: How does IR wish to intergrate with the other projects of the NDA government like
Make in India and StartUp India?
A: Under Make in India, the Rail Ministry has recently cleared two units to produce highhorsepower locomotives at Madhepura and Marhaurah. An investment of around Rs 35,000
Q: What should the people and investors expect from the upcoming rail budget?
A: If I could first draw your attention to some of the highlights from the previous budget and
year: we had aimed at 1200 km of doubling, 500 km of new line, 1600 km of electrification and
800 km of gauge conversion. Today, we have the figures till December 2015 with us. 620 km of
doubling has been done, that is about 47 percent more than last year, and if you compare it with
the year previous to that, this figure would come out to be around 62 percent more. 448 km of
new lines have been laid, that is 162 percent more than last year. 245 km of gauge conversion
has happened too, which is 23 percent more than in the year before. 982 km of electrification
has been done, till December 2015, and that is 47 percent more than previous years figure.
And if you talk of connectivity, important and substantial progress has been made, like provision
of rail network to Barak valley in the Northeast, or to the north bank of Brahmaputra, and
Meghalaya.
Now coming to rail budget 2016-17, we had set out a roadmap for five years in the last budget
itself. There wouldnt be much deviations from that. Our focus remains the same: maximum
doubling, tripling, fourth line and electrification projects to be completed for seamless movement
of traffic.
Passenger facilities, like escalators, lifts, clean drinking water at stations, wi-fi at A1, A and B
category stations are our priorities.
Our freight earnings should increase; we have consulted the relevant stakeholders in this regard
and I think that will be reflected in the budget.