4.6. Challenges and Suggestions

Indian Railways have suffered from the absence of a comprehensive framework for capacity expansion over the last 60 years.

Consequently only incremental changes have taken place in form of gauge conversion, doubling of lines, some modernisation of signals etc., along with continuous addition of new lines on uneconomic routes.

A significant blot is the increasing number of railway accidents. Nearly 25 per cent of the total railway track in India is considered over-aged and is due for replacement. A multi – pronged approach is essential with focus on introduction of newer technologies (Train Collision Avoidance System, Train Protection Warning System (TPWS), Vigilance Control Device) mechanization of maintenance, early detection of flaws etc. to reduce human dependence in the first place, along with upgrading the skills of human resources alongside periodical safety audits.

Indian Railways have to play a dual role of revenue earning as well as meeting the social obligations ("Split Personality disorder"). However, with saturation of trunk routes and low quality of services and reliability, the revenue growth has registered a slowdown.

Presently, the network is plagued by infrastructure and carrying capacity constraints and most of the routes on the High Density Network (HDN) have already reached saturation in line capacity utilisation. Network expansion and expansion freight handling capacity is largely the need of the hour.

The expenditure on railways as a percentage of total transport sector expenditure has declined considerably over the last two decades. The Twelfth Plan pointed out how urgent investments in the railways were needed and said “If consistent growth of 7-10 per cent per annum is to be achieved over the next 20 years, there is a pressing need for unprecedented capacity expansion of the railways for both freight and passenger traffic in a manner that has not taken place since Independence.”

While, the railways have been suffering from severe capacity constraints and remains underinvested, the road sector has witnessed a surge in investments (both private and public). As a result of severe capacity constraints and distortions in relative allocation of resources, Indian Railways has seen a fall in share of both passengers and goods transported.