Railway: a Key Driver for ‘Make in India’ Program (Download PDF)

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Railways’ procurement is compliant with Public Procurement Policy (Preference to Make in India) Order, 2017. Approximately more than 97 % of the Railways requirement is met from indigenous sources

Image Of Indian Railways Rolls

Image Of Indian Railways Rolls

Image Of Indian Railways Rolls

The following areas have been identified to reduce import further through Make in India: -

  • Manufacturing of new modern rolling stock such as High Horsepower Locomotive, Trainsets, Light Weight Coaches, Special Spares and Components of Rolling Stock.

  • Signaling and Telecom equipment.

Introduction About Railways

  • The Indian Railways is among the world’s largest rail networks.

  • The Indian Railways route length network is spread over 115,000 km, with 12,617 passenger trains and 7,421 freight trains each day from 7,349 stations plying 23 million travelers and 3 million tonnes (MT) of freight daily.

  • India’s railway network is recognised as one of the largest railway systems in the world under single management.

  • The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy efficient and economic mode of conveyance and transport. Indian Railways was the preferred carrier of automobiles in the country with loading from automobiles traffic growing 16 per cent in 2017 - 18.

Make in India Project

  • In addition several items under the categories of Track, Civil, Electrical and Signal & Telecommunication and Rolling Stock have also been identified for ‘Make In India’ in the course of implementation of Mumbai-Ahmedabad High Speed Rail (MAHSR) Project.

  • While many projects have been undertaken by private sector under Make In India, following projects have been undertaken with investment of Government or on the basis of assured off take by Government: -

    • High Horsepower Electric Locomotive factory at Madhepura.

    • High Horsepower Diesel Locomotive factory at Marhowra.

    • Forged wheel factory at Rae Bareli.

  • Total investment made so far for these three factories is approximately 1500 crore. Past experience has shown that indigenisation reduces the cost considerably compared to import.

  • However, precise saving in manufacturing cost due to implementation of Make in India initiative cannot be quantified at present.

Government Initiatives

  • Few recent initiatives taken up by the Government are:

  • As of December 2018, the Government of India is considering a High Speed Rail Corridor project between Mumbai and Nagpur

  • As of November 2018, Indian Railways is planning to come out with a new export policy for railways.

  • The Government of India is going to come up with a ‘National Rail Plan’ which will enable the country to integrate its rail network with other modes of transport and develop a multi-modal transportation network.

  • A ‘New Online Vendor Registration System’ has been launched by the Research Designs & Standards Organisation (RDSO), which is the research arm of Indian Railways, in order to have digital and transparent systems and procedures.

  • The Government of India has signed an agreement with the Government of Japan under which Japan will help India in the implementation of the Mumbai-Ahmedabad high speed rail corridor along with a financial assistance that would cover 81 per cent of the total project cost.

Road Ahead

  • In the next five years, the Indian railway market will be the third largest, accounting for 10 per cent of the global market.

  • Indian Railways is targeting to increase its freight traffic to 3.3 billion tonnes by 2030 from 1.1 billion tonnes in 2017.

  • It is projected that freight traffic via the Dedicated Freight Corridors will increase at a CAGR of 5.4 per cent to 182 MT in 2021–22 from 140 MT in 2016–17.

- Published/Last Modified on: February 12, 2019

Govt. Schemes/Projects, Railways

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