Indian Railways is the world's largest employer and carries 18 million passengers daily, yet has remained profitable despite the global recession. Under Minister Lalu Prasad Yadav's leadership from 2004-2009, reforms were introduced that increased annual revenues from $13.9 billion to $20.5 billion through measures like increasing passenger and freight volumes carried rather than raising fares. New services like the Garib Rath express provided affordable air-conditioned travel for all. However, issues remain such as aging infrastructure, outmoded technology, and competition from roads.

1. CASE STUDY 1

2.  IR was spending 91% of its income just on
salaries and maintaining an aging
organization
 Indian Railways (IR) is the world's largest
employer, providing 1.6 million jobs, one of
the largest and busiest rail networks in the
world, carrying 18 million passengers daily.
Yet it has, so far, stayed ahead of global
recession.
 Thanks to Mr. Lalu Prasad Yadav for a job well
done. He has surprised many by emerging as
one of the top performing ministers in Prime
Minister Manmohan Singh’s cabinet.

3.  In last four years, IR has turned in a
cumulative cash surplus before dividend of Rs
68,778 crore ($13.9 billion). Out of this Rs
15,898 crore($ 3.18 billion approx) has been
paid as dividend, Rs 39,215 crore has been
invested in rail infrastructure and Rs 13,665
crore has been added to fund balances to
reach Rs 20,483 cr.

4. • TRAVEL WITHOUT TICKETS :-Indian railways have
to bear extra loss of about rs 5 crore every year
on accounts of travelling wihouts tickets.
• LACK OF MODERN MANAGEMENTS :-There is a
lack of modern management as railways failed to
attract adequate incentives and suitable talents.
• OUTMODED TECHNOLOGY :-This has made
railways incapable of coping with increasing
transport demand and of raising and improving
the traffic volume and flows at the lower cost of
operation.

5.  PROBLEM OF REPLACEMENT :-The problem of
repalcement of old railways engine , wagons
and other equipment has created a serious
problem in india .
 COMPETITION WITH ROAD TRANSPORT :-The
lack of cordination between railways and road
transport has lowered the earning capacity of
the railways.

6.  Lalu and his officers have introduced simple but
effective techniques. For example, they
introduced the passenger profiling system,
enabling the railways to increase or decrease the
number of coaches in a train according to
demand.
 So a service to Jaipur may need fewer coaches
during summers when traffic is low. However,
these coaches can be added to a Dehradun-
bound train where there is a rush in these
months

7.  The Garib Rath express train is one of the premier
trains which was introduced by the Indian Railways in
2005 by railways Minister Lalu Prasad Yadav to offer
completely air-conditioned journey to those travelers
who could not pay for the costly tickets of the fully
air-conditioned posh and classy trains like Rajdhani
Express and Shatabdi Express.
 The Garib Rath, whose name denotes the train for the
poor people, was launched with the services of being
wholly air-conditioned and moving at a faster pace
than normally other super-fast express trains moving
currently. The highest speed of Garib Rath trains is
130 km per hour which is the approximately the
same as Rajdhani''s highest speed.

8.  Garib Rath trains are also lined up to have
many facilities such as fridge, microwave
oven... They will also have non stop running
electronic display which will exihibit the
distance which is left , the name of the next
station and anticipated time to reach there.
 The compartments will also be adorned with
attractive paintings of Indian heritage

9.  Increased the load carried by a goods wagon from 81
tonnes to 90 tonnes. This gave an additional earning
of Rs 7,200 crore.
 If seats were going vacant in the upper class. So,
waitlisted passengers could be allotted seats.
 Maintained passenger profile so that bogies could be
taken off or added to trains according to seasonal
demand.
 Lalu says “I approached the ministry like a common
man with no technical expertise. I was clear about
one thing—I would not increase passenger or freight
fares. It did not require rocket science to understand
that the railways could increase its earnings by
carrying more passengers and freight. The solution
lay in increasing volumes and not the cost.....

10. PRESENTED BY:-
SURENDRA SINGH
ANKIT ARORA
ANKUR THAKUR
VINAY