APR Constructions Limited - Saffron Capital

Highest ever Plan Outlay at Rs 41,426 Cr., an increase of Rs 1142 Cr. over 2009 – 10.
New Lines – Rs 4411 Cr.
Passenger Amenities – Rs 1302 Cr.
Metro Projects – Rs. 1001 Cr.
Additional budgetary support of Rs 3701 cr sought for 11 National Projects.
Surveys for 114 socially desirable projects connecting backward areas to be taken up.
54 surveys for new lines, 2 for gauge conversion, 7 for doubling and 5 others to be taken up.
Master Plan for the development of rail infrastructure in the Northeast region to be drawn up in consultation with
the Northeast Development Council and the state authorities concerned.
1021km of New Lines to be completed. 9 new line projects announced.
800 km of gauge conversion and 700km of doubling targeted.
Several projects being taken up on cost sharing basis with State Governments and on PPP mode.
(Source: www.indianrailways.gov.in)
Regulatory Framework
Ministry of Railways:The Railway Board manages operations of Indian Railways; it handles policies and regulations
pertaining to railways and is supervised by the Ministry of Railways (MoR). Railways operations and management is
vested in the hands of 16 zonal offices. Each of the zonal office is a geographical monopoly, which interchanges
traffic from all other zones. Each zone has 67 divisions, headed by a divisional manager.
PSU set up to meet its operational needs: Indian Railways has set up several public sector undertakings (PSUs) for
dealing with different operational aspects. These include Rail India Technical and Economic Services Ltd .(RITES), a
consultancy service; Ircon International Ltd, for construction; The Indian Railways Finance Corporation (IRFC), that
augments financial resources; Container Corporation of India Ltd (CONCOR), handles domestic and international
cargo and RailTel Corporation of India, which is into telecom.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
Demand
Despite continued dominance of the roadways (>70 per cent value share) in the overall freight transport in India,
railways dominate freight movement regarding several bulk products. Bulk commodities constitute almost 80 per cent
of the railways‟ freight traffic due to better cost economics as compared to road transport.
Railways is working on more than 100 per cent capacity utilisation, highlighting the need to augment its freightcarrying
capacity for handling increase in volume of traffic in the coming years. Given the strained capacity
utilisation, Indian Railways needs to step up its investments.
The railway working committee has proposed an investment of Rs 2,510 billion in various projects over the Eleventh
Plan period (2007-08 to 2011-12); close to three times the Tenth Plan outlay.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
Supply
The route network of Indian Railways has expanded very slowly in the past having added nearly 10,000 kms over 62
years.
(Source: Railways Vision 2020 Document, Ministry of Railways)
In order to surmount strain in capacity utilisation, it is necessary to augment the freight-carrying capacity of railways
for handling increase in traffic volume in the coming years. Considering the overwrought capacity utilisation, it is
essential to step up investment by Indian railways.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
While doubling of lines, gauge conversions, electrification and many other positive things did happen during the last
six decades, the overall expansion of the Indian Railways to areas it did not serve earlier has been unacceptably slow.
90