Page 39 - CII Artha Magazine

Sector in Focus

reach 1.5 billion by 2030,
logistic support for various with major expansion in tier Developing • Enhancing Domestic with commercial capacity plant set up at Bina planned to run on select can accrue over a time cycle saturated, the surging
industries but has also enabled technological capabilities organizations and global need to be looked at. These narrow gauge or heritage as long as 35 years with the INDIAN RAILWAYS IS domestic economy, booming
the urbanization of rural areas 2 and 3 cities. The increase Industry In the current scenario research institutes, market need to go beyond pilot routes. application of better Wheels of Progress: THE BACKBONE OF infrastructure construction
of the country. in urban passenger traffic where the know-how of need-based developments, models and implementation technologies. This will also THE COUNTRY'S and growing international
has initiated the
working on upgrading their
implementation, and
which will also use the huge
At this backdrop, the requirement of new types of Ecosystem for critical technology is focus on ease of taken up at a large scale, • OPEX based models encourage vendors to keep LOGISTICS SECTOR trade has necessitated the
concentrated in the hands of
conception of Dedicated
government, over the past few Air-Conditioned Electrical Growth of a few global OEMs, it is development of human land bank beside the railway Recently several mega offerings and help in building Powering Freight Corridors (DFCs)
rolling stock such as
years, has identified and pertinent that a level playing resource competence for tracks that is presently lying tenders for rolling stock capability.
developed plans for a Multiple Units (EMUs), Rail-based field for homegrown the industry. unutilized. have come out on the along the Eastern and
generational change in in the Mainline EMUs, RRTS, companies is created. Make MCMA (Manufacturing cum The outlook for the Indian Railways take Western arms of the Golden
sector, majorly focusing on Monorail, Metrolite and Neo Economy In India policy is being • Transitioning towards Newer green technologies Maintenance Agreement) railway industry is very Quadrilateral. The planning,
infrastructure upgradation, metro. To further expand implemented in all tenders, greener and more efficient like green hydrogen and model, with 35-year optimistic, but at the same time Indian Railways’ the lead in development, mobilisation of
induction of state-of-the-art the network of railways and its contribution is more technologies battery-operated rolling maintenance included in the is also creating challenges for financial resources,
rolling stock, greater metros in small cities with Execution and from the manufacturing The Railways have taken an stock are also being scope of the equipment players in the sector. It is the freight traffic construction, operation &
deployment of population of over 2 million, implementation of new perspective and does not ambitious target of being a explored. However, with supplier. While these provide right time for the industry to Sustainable maintenance, and business
telecommunications & solutions for Light products and models, necessarily ensure the Net Zero Carbon emitter most tracks already having visibility and scale to come together and collaborate, development of the DFCs is
information technology, and Rail/Monorail are under creation of railways transfer of technology. To by 2030. To support this been electrified, their vendors, these tenders are and fora like CII, provide the Freight traffic accounts for being implemented through
moving towards greening the exploration. manufacturing ecosystem support Hon’ble PM’s vision, it has embarked upon deployment needs to be purely CAPEX driven, and necessary and much required nearly 70 per cent of the total Dedicated Freight Corridor
railways. would be essential. This clarion call for an aggressive electrification viewed holistically, as this determined based on the platform for the same. A Growth revenue of Railways. The Corporation of India Limited
• Innovative Business Models could be possible through: Aatmanirbharta, it is drive of its broad-gauge would require huge lowest price of the symbiotic relationship between Railways carry more than 1.4 (DFCCIL), a special purpose
Some of the themes that Model of Public Private essential that domestic tracks for reducing investments by suppliers in equipment quoted. To reap the railways and the industry vehicle formed by the
will pave the way in the Partnership in train • Greater Industry companies are supported by dependence on fossil fuel. both capacities and the advantage of newer and participants will indeed lend billion tonnes of freight traffic Government.
coming years are: capabilities and should have efficient technologies, these power and speed to the every year over an extensive
operations is being Participation way of favorable contractual However, to further reduce need to be evaluated on a network of 68,000 km. From
reworked by government to conditions for technology emissions, direct feed solar the volumes to support the successful implementation of bulk commodities like coal, DFCCIL’s stated mission is to
• Logistics and Cost provide assorted projects Industry participation at absorption and friendly plants for traction same. At present hydrogen mix of both CAPEX & the grand vision both have for build corridors with modern
Effectiveness the planning stage would operated trains are being OPEX, as huge advantages the nation. iron ore, iron & steel, food
for the private sector that qualification criteria, applications like the 1.7 MW grains, cement, petroleum technology that enables
National Rail Plan (NRP) would bring in investments, align the demand cycle especially for new national integration. Starting products and fertilizer to Indian Railways to regain its
Indian manufacturing sector is 2030 focuses on capacity modern and clean with supply capabilities. developments. The The growth from the first train journey other commodities carried in market share of freight
expected to shoulder a large building to increase rail technology. This model is Visibility of high demand development of KAVACH is between Mumbai and Thane containers, Railways offer transport by creating
part of the responsibility of share in freight, leading to also expected to improve over the long term, along a success case that story back in 1853, to the current additional capacity and
facilitating the required GDP lower fuel consumption and the operational efficiency of with the stability of policy demonstrates the cost eco-friendly land guaranteeing efficient, reliable,
push and in meeting the environmentally sustainable the railways. Railways has will ensure suppliers plan advantage and the capability network of 12,000 trains transportation across the safe and cheaper options for
earlier mentioned targets. This solutions. also adopted long term investments, capacities and of domestic suppliers, and A round the world, roads carrying 2,30,00,000 length and breadth of the
fter 75 years of sector currently accounts for manufacturing cum capabilities accordingly. This such models need to be are reaching a tolerance passengers daily, Indian country mobility. The 3,381 km route
independence, India has ~15 per cent of the country’s • Faster, safer, and newer maintenance model for will ensure continuous and expanded and replicated. Railways have traversed a long passing through nine states
become the fifth largest GDP and less than 2 per cent technologies big-ticket procurements like smooth availability of limit and there is an journey. Be it transportation Even as the Railways golden will allow longer freight trains
economy in the world, a of global manufacturing. This the recent tenders for Vande products/ systems for the There are very limited increasing reliance on quadrilateral linking the four with double the haulage
beacon of hope in an share could further be Capital investments targeted Bharat Trainsets. railways, without creating approved vendors for some Railways for sustainable of bulky goods, connecting metro cities of Delhi, Mumbai, capacity to travel at much
otherwise unstable global enhanced, with the right at railway track crucial components/ movement of passengers and the ports to the hinterlands Chennai and Howrah is highly faster speeds.
scenario. The country is poised initiatives taken by electrification, upgradation • Policy Initiatives stress in the supply chain. assemblies, this could create goods. In India, rapid or providing disaster relief,
to be the fastest growing large both the and expansion of rail bottlenecks which may urbanisation and surging Railways have always played a
economy in the near future Government network, dedicated freight The Gatishakti initiative, is Indian Rail equipment require timely resolution. A economic activity are notably vital role and have emerged
with one of the world’s most and private instance, PLI incentive The pivotal corridors, procurement of expected to further industry is largely working shorter time for approvals, impacting the transportation today as the main vehicle for
lucrative markets, driven by an sector in scheme, promoting advanced rolling stock, strengthen and integrate in an environment where a (e.g. by reducing field trial socio-economic development
aspirational population with tandem. ease of doing domestically developed train transport infrastructure. single benefactor buyer times, etc.) may be adopted network. Being the primary
increased spending power and For business and role of Indian protection and signaling Likewise, ’Mission Raftaar’ is determines the contract on case-to-case basis, carrier of people and goods of the country.
desirous of an improved increased Railways as system, etc. would uplift the expected to enhance the terms. The very nature of depending on the criticality over long distances, Indian
standard of living. The penetration of face of the Indian railways. speed with initiatives such as such a structure warrant of the item. Railways serve as the
government has been initiating technology, could Conceptualization of bullet dedicated freight corridors. that the involvement of all backbone of
to meet these aspirations strengthen the the growth train and the new semi & transportation and act as
through major infrastructural manufacturing high-speed Vande Bharat stakeholders is ensured in • Collaborative Technology wheels of progress.
investments, focus on sector, going driver trains along with the policy formulation to avoid Excellence
technological advancements, ahead. indigenous development of undermining the interests To develop a growth and
and a slew of policy Indian Railways is the largest KAVACH are already of suppliers. Frequent value-enabled manufacturing Connecting every corner
interventions, all set to railway network in Asia and generating unprecedented industry feedback and a ecosystem, establishment of of the country, Railways also
transform the nation into a the fourth largest in the world. investment attraction in the collaborative approach national centers for act as a critical channel for
“New India” and enable it to Not only has it provided country. would be necessary for the technology excellence need
reach the goal of being a US$5 success of the novel to be explored which shall
trillion economy by 2025 and • Diverse Urban Solutions endeavors of Indian focus on development and Mr. Gunjan Vakharia, Head of Mobility Business
US$20 trillion by 2047. Railways. applied research, partnership Siemens Limited
Indian population is likely to

38 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 39
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023