0115 966 7955 Today's Opening Times 10:00 - 20:00 (BST)

Indian Railways Financial Capacity Enhancement

Published: Last Edited:

Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. You can view samples of our professional work here.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

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

  1. Railway stations
  2. Employees
  3. Route length
  4. Locomotives
  5. Total investment
  6. Capital at charge
  7. Passenger service vehicles
  8. Volume of traffic
  9. Other coaching vehicles
  10. 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 .

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

182161

3465.0

1985-86

286.4

205904

4232.2

1986-87

307.3

223097

4990.7

1987-88

318.5

231241

5839.2

1988-89

329.5

230131

6196.7

1989-90

334.3

236917

7460.8

1990-91

341.4

242699

8247.0

1991-92

360.0

256895

9293.1

1992-93

370.9

258131

10663.8

1993-94

377.5

257130

12275.5

1994-95

381.5

252967

13423.6

1995-96

405.5

273516

14972.8

1996-97

423.4

279992

16345.2

1997-98

445.5

286771

19595.0

1998-99

441.6

284270

19675.8

1999-00

478.2

308039

21754.99

2000-01

504.2

315516

23045.41

2001-02

522.2

336445

24586.79

2002-03

542.7

356027

26231.45

2003-04

581.4

384074

27403.15

2004-05

626.2

411280

30489.23

2005-06

682.4

441762

35534.69

2006-07

744.56

483422

41073.21

2007-08

804.11

523196

46425.49

2008-09

836.61

552002

51749.34

2009-10

892.22

601290

56911.51

2010-11

926.43

626473

60687.05

2011-12

975.16

668618

67743.62

2012-13

     

Source: statistical summary- Indian railways

Financial capacity enhancement

  1. Revenues
  2. Net revenue
  3. Rate of return on capital
  4. Dividend on capital

Year

Revenue (in crore)

Net revenue (in crore)

Operating ratio (in%)

Rate of return on capital

Dividend on capital

1980-81

2703.48

127.49

96.07

   

1981-82

3627.76

403.06

89.40

   

1982-83

4483.31

554.29

88.34

   

1983-84

5089.05

378.95

93.52

   

1984-85

5469.09

270.10

96.25

   

1985-86

6590.67

685.87

90.58

   

1986-87

7683.08

680.84

92.20

   

1987-88

8679.46

723.15

92.47

   

1988-89

9528.62

737.33

93.05

   

1989-90

11041.26

982.07

91.52

   

1990-91

12451.55

1113.78

91.97

   

1991-92

14113.73

1540.95

89.48

   

1992-93

16114.73

1955.43

87.36

   

1993-94

18363.30

3102.13

82.93

7.99

3387.08

1994-95

20529.11

3808.11

82.64

8.89

3199.31

1995-96

22813.84

4135.07

82.45

12.15

3667.92

1996-97

24801.31

3624.52

86.22

19.01

4246.18

1997-98

29134.23

3024.43

90.92

20.71

4902.93

1998-99

30233.95

2141.16

93.34

8.80

4717.64

1999-00

33855.68

2735.67

93.31

   

2000-01

36010.95

1071.23

98.34

   

2001-02

39357.81

<

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Request Removal

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to request removal:


More from UK Essays

We can help with your essay
Find out more