Indain Railway Five Year Plan

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  • Published : September 20, 2008
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Indian Railways: Five Year Strategic Plan1

The Indian Railways has a capital base of about Rs. 100000 crore and is often referred to as the lifeline of the Indian economy because of its predominance in transportation of bulk freight and long distance passenger traffic. The network crisscrosses the nation, binding it together by ferrying freight and passengers across the length and breadth of the country. As the Indian economy moves into a high growth trajectory the Railways have also stepped up developmental efforts and are preparing themselves for an even bigger role in the future.

Review of the Tenth Plan
The Tenth Plan has seen an increased reliance on internal resources and market borrowings. The actual mobilization of internal resources went up from a meager Rs. 3,113 crore to a sizeable contribution of more than Rs. 12,000 crore in the final year of the Tenth Plan. The table below shows the significant increase in internal resource generation in the last two years of the plan. In the final year of the plan internal generation and market borrowings account for over 65% of the total resource mobilization. For the plan period as a whole these two account for nearly 55% of the resources generated. Tenth Five Year Plan Growth in Freight and Passenger Traffic TrafficUnitTargetAchievement

Originating FreightMillion Tonnes624726
Freight Net Tonne KmsBillion396479
Originating PassengersMillion56866242
Passenger KmsBillion593700

The Railways have exceeded most of the targets set for the Tenth Five Year Plan. Efficiency improvements and a customer-focused approach have been major drivers of the growth. It is difficult for capacity enhancement to keep pace with the growth in traffic due to the gestation lags. Most of the major traffic-carrying routes are under severe strain. Many initiatives have been taken in this regard in the Tenth Five Year Plan and to sustain the growth momentum, this needs to be continued in the next phase also. Hence, while proposing our strategic plan for the Indian Railways, we have focused on the following key prospective areas, namely:

1. Infrastructure
2. Freight Business Segment
3. Information Technology

Indian Railways: Five Year Strategic Plan2

Vision and Objectives

Vision: To improve and develop infrastructure and deploy IT intrinsically in its daily work to meet its customers, and its own requirements and expectations.

The following are the main objectives of the Five-Year plan: • Creation of adequate transportation capacity to handle the growth of both passenger and
freight traffic and provide improved services to both segments. • To improve the performance of rolling stock through deployment of better technologies
and maintenance practices so as to improve overall productivity. • To deploy IT in the day to day working so as to bring in efficiency and provide cost- effective solutions to meet with its customers, and its own requirements and expectations.

Key areas to be focused in the plan:
• Infrastructure: Better utilization of existing infrastructure and implementing newer
technologies in future projects to achieve higher standards. • Freight Business: Increasing the market share in both bulk and non-bulk freight traffic by
improving the quality of service with reduction in transit time and better reliability and
• Information Technology: To deploy IT to improve customer service, signaling, tracking,
and safety levels.

Indian Railways: Five Year Strategic Plan3


Indian Railways (IR) is Asia’s largest and the world’s second largest network under one management, with a separate Ministry and its own annual budget. The key activities of IR are transportation of freight and passengers. The network carried about 15.7 (14.7*) million passengers and 1.8...
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