Spoke to HT’s Shishir Guptaand Faizan Haider on his plans to make Indian Railways safe and profitable. Edited excerpts:

It’s been five months since you took over. What were your big priorities then and how have you done?
I think there were two main issues, if one was to look at the macro picture, on September 4 (when he took charge of the ministry). Clearly, the first had to do with safety; my resolve to make a huge and permanent difference to safety is only getting stronger by the day. And the second, if I have to summarise a variety of objectives in one line, I wanted to bring the charm back to rail travel. I wanted to make sure that rail travel once again becomes a delight for passengers.

I realise that a lot of thought had gone into both these aspects, and a lot of work was already done by Suresh Prabhu-ji and Sadanand (Gowda) ji (the two rail ministers before Piyush Goyal). So, in that sense, it was a much simpler job than starting with a clean slate.

Taking that unfinished agenda forward, if one was to look at safety, in my very first meeting I was able to take a decision that we should completely stop manufacturing ICF (Integral Coach Factory) designed coaches. By June, ICF-designed coaches will no more be manufactured. We will only make LHB (Linke Hofmann Busch) coaches. The difference between the two largely is that LHB coaches are much more sturdy, and historical data tells us that LHB coaches have not led to fatalities. In ICF coaches, if there is an accident, there is greater possibility of fatalities.

However we don’t rest there. LHB itself is a 30-year-old design; the world has moved on to stainless steel, aluminum, which are lighter and have more safety features. So we are looking at train sets, an entire train set is kind of coupled and prepared as one train; it has better safety features.

Have you identified the countries from where you can acquire such train sets?
There are not too many options; you have Switzerland, Spain, you have Japan — four-five options only. I sent out teams to interact with companies around the world to see what the latest technologies are. We want to connect Indian railways with the most modern technologies. We don’t want to settle for something less anymore.

Another safety measure is with unmanned level crossings; across the country the amount of underpasses and Road Over Bridges (ROBs) that have been done in the last three years is absolutely unprecedented. Probably, this much work was not done in 50-60 years.

I took a decision that by next Ganpati (Ganesh Chaturthi, a festival in September), we will make sure that if at all there are any unmanned level crossings in the main routes, we will make sure they are manned.

What about signalling?
About three months ago, as I was reviewing each zone, each department, the signalling people were asked to give me a presentation — What is the most modern signalling system in the world and to see how we can implement it here? So they made a presentation that ETCS (European Train Control System) is the most modern signalling system in the world.

The ETCS has a version 1, version 2 and version 3, which is under testing and hasn’t been implemented anywhere. Version 2 is slightly more superior than version 1, so we have made a plan that over the next 20 years we should go with ETCS. It took me 30 seconds… I don’t even think the presentation was fully complete by the time I made my decision known that the railways will immediately go for 100% ETCS over the next six years, and we will give the contract at one shot so that the supplier has the benefit of economies of scale, and can then manufacture in India.

There will be competition among suppliers; there are six companies in the world (that make ETCS) who came to our meeting. I interacted with all of them, I said, “Sell at a loss also because then you will become a world leader.” In the whole world today only 20,000km of ETCS has been installed. China has 10,000, which they have done over the last 10 years. India will do 60,000 route km and 118,000 line km in six years. Now, by the time six years get over, we would have expanded our network by another 40-50% — the speed at which we are doubling and adding new lines, so then, sixth to tenth year again you will have potential to do business.

And by that time the world will start accepting ETCS because prices would have fallen. So India will have a natural advantage to supply to the whole world.

With this ETCS, fog as a problem will be history. In fog also, my train can run at full speed, because trains can talk to each other electronically. So I’ll add hugely to safety, I’ll add hugely to line capacity — it’s the cheapest way to add line capacity, with no land acquisition. Because today the headway between two trains is almost between station to station, is almost 15 minutes; it can come down to less than half.

Then I am promoting Make in India, providing jobs to people and preparing India to export this technology to the whole world, because we will become the cheapest source. You know the LED story, it’s similar to that. Finally, in order to do this, I need proper wifi across the route; so I can give wifi at every station in the country. I will have a CCTV network across the country.

Now, I’ll tell you to the next angle to this holistic thinking. When I take wifi to remote areas of the country, I’ll let children and women from villages around the station come to the station and use wifi free of charge on a kiosk.

Under our government, we moved it to 3,000 or something. This year, we will make history; we are going to do track renewal, maintenance, replacement of nearly 4,300km (2017-18). I became minister on September 4; April to August the average per month track renewal was 233km; on September 7, I did my safety review meeting.

That day, I took a decision to shift whatever rail is available for track renewal. What will I get in laying new rail lines if I cannot ensure safety on old lines? In December, we did 470-odd km, January we did 576km track renewal in one month, and February and March will not be any different. By March we are going to do 4,300km.

The target in the budget was 3,600km. We will do 20% over budget.

Last year you couldn’t utilise the money; it was Rs 41,813 crore in the revised estimate, down from the Rs 55,000 crore allotted.
I didn’t need it. We didn’t need it since we have extra budgetary resources also whenever we need more capex. Another thing you must notice is that what we are trying to do is all going to result in huge savings in our investment. For instance, the preliminary estimate for the signalling system was $12 billion. I want that 12 billion to become eight billion or six billion, which is why I am throwing the carrot — 60,000 route km, 1.18 lakh line km. You mark my words, we will do it for less than $12 billion.

What is the optimal amount of track renewal you need to do?
We will need 5,500-6,000km every year. By 2019-end or the middle of 2020, I’ll make sure there will be no backlog in this country. Which is why we are importing steel also — SAIL not having enough capacity.

The unions don’t seem to be happy with some of the things you want to outsource, like printing tickets.
We will have a conversation with them. We have 11 presses. Five or six of them will be closed in the first phase. Why should railway not be focusing on core competence? Why should we be doing our own printing? I also have a plan to go 100% digital. If at all anybody wants a printed ticket, it will be available through kiosks at the railway station. I am going to give all my travelling ticket examiners a POS (point of sale) machine, I am going to give all my caterers POS machines. And to my mind it is possible as we expand our wifi network.

Your goods trains actually move at a speed of 15-18km per hour. Have you looked at this aspect — how you can make the freight business more productive by increasing this speed?
That is why we are pushing the dedicated freight corridor (DFC). Recently we approved 2,500km work on the DFC; I have a plan to identify 5,000-6,000km more for the high volume freight corridors. And as the signalling system gets upgraded, we will have more capacity on the normal routes.

The Union budget has provided for suburban railway expansion in Bengaluru. Can you provide some details regarding that?
Nobody has ever cared for Bengaluru. And you see the traffic; it takes two hours to go to the airport. This will be the most intelligently planned railway suburban network, because we are not focusing on land acquisition. What we have done is wherever we have land we will use that, wherever land is a problem, we will elevate. So, 68km is going to be elevated and 92km on ground.

What is the status of the bullet train between Mumbai and Ahmedabad?
Alignments have been finalised. Survey of land is done. We have given the requisition for land procurement. That process is going on. Simultaneously, the technical drawings are being prepared.

What are the other avenues for revenue generation that you are looking at?
A lot of things are happening. In terms of non-fare revenue, there is huge potential of advertising across the country. There is huge amount of land that we are planning to monetise. I won’t be surprised if we assess the real worth and value of land that can be monetised, it may run into a few lakh crores.

Of course, we are looking at monetising land especially around railway stations because they are economic hubs. Even on the bullet train projects, each of the stations is going to be the hub of economic activity. Similarly across the country, take Bengaluru for example, I have written to the state government to allow us higher FSI (floor space index) under the Transit Oriented Development policy. Then, instead of an 80:20 share between the state and Centre, we can do 50:50 for the suburban project.

Source: https://www.hindustantimes.com/india-news/wanted-to-bring-the-charm-back-to-rail-travel-says-minister-piyush-goyal-full-interview/story-7NB28RT1hPS8sp03jjRFzL.html

India could spend up to $12 billion in upgrading the signalling system on its entire rail network over the next six years to the contemporary European Train Control System (or ETCS), rail minister Piyush Goyal said in an interview.

The contract for the entire 60,000 route km will be given in one go, he added, and companies will be encouraged to make in India. Goyal expects this, and the significant economies of scale that will come about given the volume of the contract to actually result in the eventual cost coming down from $12 billion.

“I am promoting Make in India, providing jobs to people, and preparing India to export this technology to the whole world, because we will become the cheapest source,” Goyal said.

The legacy signalling system of the Indian Railways is seen as one factor compromising the safety of the rail network. Another is the poor state of tracks. Goyal said in the year to March 31, the railways would have relaid 4,300 km of track and that it will catch up with its backlog for track relaying and maintenance by the end of 2019 or the middle of 2020.

Safety was one of his primary priorities when he took over in September last year, Goyal said, and it remains so. “The other is to bring the charm back to rail travel,” he added.

Source: https://www.hindustantimes.com/india-news/12-billion-in-six-years-big-upgrade-in-works-for-safer-railways-says-piyush-goyal/story-HT1jX3DIEdwaOioWLpkuwM.html

Concerned over cases of maintenance workers being run over by trains while patrolling the tracks, the Railway Board has now decided to add a personal safety device to their gear, along with their usual boots, gloves, rain coats, winter jackets and tool kit. The board, last week gave its nod to ‘Rakshak’ – a handheld walkie-talkie device – to be used in high density areas as a pilot project for all trackmen. The device provides alerts through LED indication along with a buzzer and vibration of approaching trains which would help trackmen move away from tracks. “Keeping in view the large number of run-over cases of trackmen that occur during discharge of their duty on track, putting in pace a ‘Rakshak’-type protection system is essential and needs to be expeditiously implemented. “However, since the system is still in infancy stage, deployment on entire rail network may not be feasible right now.

However, keeping in view large number of run-over cases, it has been decided to deploy ‘Rakshak’-type protection system on the entire high density network on a crash basis,” the board said in a letter to all zonal railways, a copy of which is with PTI. Rakshak has been deployed in South Central Railways on a 24-km stretch and has been successful in pre-warning trackmen about incoming trains. The board, taking congnisance of the recommendations made by a committee of general managers appointed to suggest ways to improve the working condition of trackmen including their uniform and tool kit, said that the device adopted by SCR has been found useful. Railway unions which have pushed for such protection for the trackmen for years say that around 400 trackmen die annually after being run over by trains.

In more good news, along with the Rs 5,000 annual dress maintenance approved by the 7th Pay Commission, trackmen will also be compensated for their shoes, gloves and other climatic requirements they need to do their job in adverse conditions. They will now be compensated by their respective divisions for raincoats, safety helmets, tool kit bag, LED torch once a year, winter jackets, snow boots caps for sub zero temperatures, once in two years and safety shoes and luminous vests once every six months, the Railway Board letter said. Indian Railways, which maintains 115,000 km of track around the country, is manned by around 2 lakh trackmen.

Source: http://www.financialexpress.com/infrastructure/railways/railways-to-provide-personal-safety-tool-rakshak-for-trackmen/1061717/

India’s industrial production registered robust growth for the second straight month, growing at 7.1% in December, while retail inflation slowed to 5.07% in January, signalling that the Indian economy may be stabilizing.

The pickup in factory output was driven by a 8.4% growth in the manufacturing sector. Electricity and mining, the two other categories, expanded 4.4% and 1.2%, respectively, data released by the Central Statistics Office on Monday showed.

It is likely that the recovery in factory output will augur well for the fiscal third-quarter gross domestic product (GDP) data due to be released on 28 February.

In another signal that economic sentiment may be improving, the quarterly Business Confidence Index, released separately on Monday by the Delhi-based economic think tank National Council of Applied Economic Research (NCAER), registered a growth of 9.1% in January, after declining for two consecutive quarters.

In November, the index of industrial production (IIP) grew 8.8% and consumer price index-based (CPI-based) retail inflation quickened by 5.21% in December.

Though a low base last year is partially responsible for the pickup, higher growth in production of cement, diesel and two-wheelers signal a revival in economic demand.

Gross value-added growth is likely to improve to around 6.8% in the third quarter from 6.1% in the preceding September quarter, led by manufacturing, construction and services, Aditi Nayar, principal economist at Icra Ltd, said in a statement.

Anis Chakravarty, partner and lead economist at Deloitte India, said while IIP growth was expected to be around the high-single-digit range, the breakup shows that overall growth in the Indian economy has bottomed out and is now slowly improving.

“The trend suggests that the impact of GST (goods and services tax) has most likely waned,” Chakravarty said in a statement.

While output of consumer non-durables grew at a robust 16.5% in December, production of consumer durables continued to remain sluggish, growing at 0.9%.

However, economists warned against reading too much into expansion in the volatile capital goods segment (16.4%), which has been registering positive growth for the past five months.

“It remains somewhat premature to attribute the recent double-digit growth in capital goods to a pickup in investment activity, as it benefits from the rebuilding of inventories for sub-sectors such as commercial vehicles as well as a favourable base effect related to the 6.2% contraction in December 2016,” Nayar said.

While food inflation softened in January, higher oil (7.7%) and rent allowance (8.3%) limited a larger correction in price pressures.

Radhika Rao, India economist at DBS Bank, said the inflation data is along the lines of Reserve Bank of India’s (RBI’s) revised projections, with CPI expected to remain elevated for the next six months due to base effects. “The central bank has already indicated that it will look through near-term prints and today’s numbers don’t warrant any change in their neutral policy stance,” she added.

RBI last week kept interest rates unchanged and warned that inflation risks were skewing upwards. It raised its March quarter CPI inflation forecast to 5.1% and projected an inflation range of 5.1%-5.6% in the first half of the next fiscal year.

However, RBI posits a revival in growth, projecting an acceleration in economic growth to 7.2% in 2018-19 from a level of 6.6% in the current fiscal year. It premises this on a host of factors including revival in investment demand and strengthening exports.

Source: http://www.livemint.com/Politics/AwPFFExedtdBFYKxle2H9M/Indias-inflation-in-January-at-507-IIP-for-December-at-7.html

The general budget of union government for 2018-19 has made provisions to improve, enhance and modify passenger amenity facilities in Southern Railway in general and Palakkad division in particular. Projects have been sanctioned as umbrella works combining similar works at different locations. Southern Railway has been provided an umbrella sanction of Rs 450 crore, for provision of foot over bridges, extension and raising and improvement of platforms.

Accordingly, Rs 66.71 lakh has been allotted for development of new passenger reservation building and allied facilities at Mangaluru Central station which is an old sanctioned work for which tender has been opened recently. An amount of Rs 40 lakh each has been allotted for additional platform work at Kannur and Mangaluru Central and Rs 75 crore allotted for the ongoing doubling-work between Mangaluru Junction and Panambur.

Likewise, an amount of Rs 21 crore has been allotted for the Nethravathi- Mangaluru Central (1.5 km) doubling work. Out of the umbrella sanction of above-mentioned Rs 450 crore, Rs 68.28 crore has been allotted this year. In addition, an umbrella sanction of Rs 300 crore has been allotted for soft upgrades and improvements at stations for Southern Railway such as charging of points, seats/benches/facade, circulating area improvement, landscaping and drinking water.

The division-wise distribution of both above umbrella funds will be decided at zonal headquarters. Giving umbrella sanction thus gives flexibility to zonal railways to prioritise works and has been adopted in Railway budget for the first time. A sanction of 2859 escalators at an estimated cost of Rs 2859 crore for escalators and 1000 lifts at 500 stations at an estimated cost of Rs 404 crore for entire Indian Railways has also been conveyed under two separate umbrella works.

As regards track works, the budget allotment for 2017-18 was Rs 175 crore. Due to the shortage of supply of rails from Bhilai, the fund booking will be less, divisional authorities stated. This will be made good next year as the tentative targets for 2018-19 are 120 km of sleeper renewals and 160 km of rail renewals apart from 170 sets of points and crossing renewal. The requirement of funds in 2018-19 will be more than 2017-18 on this account, the authorities added.

Source: https://timesofindia.indiatimes.com/city/mangaluru/general-budget-allocates-funds-for-amenities-at-mangaluru-central/articleshow/62838590.cms