HISTORY

OF
INDIAN RAILWAYS
K K GOYAL
Prof.( Finance & Investment )
National Academy of Indian
Railways
1

Railway

Discovery of Fire

DISCOVERY OF WHEEL

DISCOVERY OF WHEEL

DISCOVERY OF LEVER

Earlier Modes of Travel

Animals

Bullock Carts
Horse Carts-RATH
Horse
Camel back (600 miles in 9 days)
Palanquins
Boats
Caravans
Big Boats (Ships)
7

Father of History
Herodotus
Nothing in the world Can beat
these messengers

Requirement of Coals

Transportation of Coal

10

Reference of Rail or
Guided Path
1597 : EARLIEST REFERENCE TO
RAIL IN ENGLAND DESCRIBING
WAGON WAY LINKING COAL MINES
WITH RIVER TRENT
Coal was carried in horse drawn
wagons from coal mines to nearest
river or canal.
Wheel were flanged and pulled on
wooden rails on wooden sleepers .
1632: Construction of Taj Mahal
11

Transportation on Guided
Path

12

Steam Engine
IRON HORSE

13

Steam Engine
First practical steam-powered engine was a
water pump
Thomas Savery 1698
First commercially successful engine
Atmospheric engine, Thomas
Newcomen 1712
Paved way for industrial revolution
Only pumped water, not efficient
Used to drain mines

Model Newcomen engine

James Watt (17361819)

15

Watts Engine
75% less coal than
Newcomens
engine
Allowed factories
to move away from
rivers
Accelerated the
industrial
revolution

Pressure Steam Engines

1800 by Richard Trevithick
Much more powerful
Relied on high-pressure steam
rather than a vacuum.
Dominant source of power well into
the 20th century

Moving Steam Engine

In 1813 Steam Engine moving on Rail
was successfully Built by William
Hedley & Timothy Hackworth

18

George Stephenson
Son of an illiterate fireman working in
the collieries of the Grand Altes after
seeing the two moving steam engine
made his own steam engine named
BLUCHER after Prussian General.
It made its first run on July 25, 1814.
CHANGE FROM ANIMATE POWER TO
INANIMATE POWER

19

First Railway Line Great

Britain
In 1821, an act of
parliament passed to
construct Railway Line
to link the Stockton to
Darlington

George Stephensons
Latest
engine

Locomotion no. 1
was used with speed
of 12 Miles per Hour.
20

First Railway Line Great

Britain
On Sept. 27, 1825, the
first engine ran from
Darlington to Stockton,
preceded by a man on
horse carrying a flag
readingPericulum
privatum utilitas
publica(Private risk
and public usefulness).
The Train was carrying
450 persons and run at
a speed of 15 miles (24
km) per hour.
21

22

6th Oct. 1829 at Rainhill

Liverpool

Cost not to exceed 530 pound

Weight Not to exceed 6 tonnes
Hauling 10 tonnes at 10 MPH
It should make 4 trips Up & Down on
1.75 Miles track ( equal to distance
from Liverpool to Manchester that
is 14 miles)

23

Locos in the Competition

SANS PERIL by Timothy Hackworth
PERSERVERANCE by Timothy
Burstal
NOVELTY by Braithwaite and
Ericission
ROCKET BY Robert Stephension

24

ROCKET
Succeeded in pulling 12.75 tons
Reached top speed of 29 mph
( running Light)
paved the way for first passenger
Train

25

1st Passenger Railway in the

world

26

Railways in Western World

France- 1829
Germany -1835
Holland & Italy : 1839
Spain 1848
Russia 1847
In USA in May 1830 but initially
driven by horses.
27

Opposition &
Prejudices

28

John Bull in 1835

Denounced the Railway as a
menace
.................if they succeed ' they
will give an unnatural impetus to
society, destroy all the relations
which exist between man &
man , overthrow all mercantile
regulations,
overturns
the
metropolitan markets, drain the
29

John Bull .
Does anybody mean to say that
decent people............. would
consent to be hurried.............on
the railroad................. being on
the mercy of a tin pipe, or a
copper boiler or the accidental
dropping of a pebble on the line
of way.........................
30

John Bull ..
We denounce the mania as destructive of
the country in a thousand
particulars..................
The whole face of the kingdom is to be
tattooed with these odious deformities- huge mounds are to intersect our beautiful
valleys;
The noise and stench of locomotive steam
engine are to disturb the quietude of
peasants, the farmers and gentleman; and
roaring of the bullocks; the bleating of the
sheep and grunting of the pigs to keep up
31

Queen Victoria
13th June 1842 The Atlas
A long regency in this country would
be so fearful and tremendous an
evil
that we can't but
desire in
common with many others that these
royal excursion should be if possible
either
wholy
abandoned
or
occasionally
resorted
to...................................
concluding it said " There is danger by
the train and therefore queen should
32

Lord Philips
1848
Le Commerce
But the Council of Minister ...............
held a sitting and came to the
resolution that this mode of travelling
is not sufficiently secure to admit of
being used by the king and
consequently his Majesty went to
Bizy by post-horse,
33

INDIA

34

1600 AD
Governor and Companies of
merchant of London Trading into the
East indies.
Peninsular & Oriental Steam
Navigation Company ( 1840)

35

Railway History
Select Committee appointed by
House of commons to enquire
into the state of affairs of the
East India Company and trade
between Great Britain and East
India
Company
submitted
a
Report 27th Jan. 1832
The Report Contain financial and
technical details of constructing
Rail road and canals in Madras
36

Points Under Consideration

The Expense of construction ?

The return which they would earn ?
The difficulties that might be
expected. ?
Committee even estimated cost per
km of a Single Line 8750 per mile in
India compared to 5000 Euro ( Rs
50000) per Miles in England.
37

Railway Line in India

In 1836 , near Chintadripet Bridge
in Madras presidency a, first rail Line
of the Indian subcontinent was laid.
Madras Gazette 4th May 1836
A small Piece of Railway has
been laid near the Chintadaripet
Bridge which is well worth the
Inspection of Good People of Madras
who have not visited England..
38

Different Lobbies
Businessman of Londons for Trade
Companies for Construction of
Railway provide they get the required
return.
Decision is to be taken by East
Indian Company Court of Directors
& Governor General ( British Govt.)

39

Guaranteed Railway
companies
Railway Company
Particular of the
East Indian Railway
Great Indian Peninsular
Railway
Madras Railway Company
Great North of Indi Railway
Great Western Bengal
Railway ( Dwarka Nath
Tagore )

Line
Calcutta to Mirzapur
Bombay to Coringah
Madras to
Wallajnagar
Allahabad to Delhi
( Kolkata to
Rajmahal

40

First Proposal for Railway

in India
Mr Rowland Macdonald Stephenson
in 1844 submitted his first proposal
for Railway Line in India at specified
Return.

41

Railway History ..
George Clark, The Chief engineer of the
Bombay Presidency drawn the scheme in
1843.
The Scheme was investigated by a Special
Committee headed by Chief Secretary

of Bombay , Henry Conyheare and

approved by a meeting of Citizens
of Bombay held at the Town Hall on
19th April 1845.

42

Railway History.
Court of Directors selected Mr
Simms as Consulting Engineers

43

Mr Simms Suggestions

What Govt Should Give

Govt. should Grant lease

empowering Companies to
construct, maintain and hold for
Certain Years
Free of Cost Land
No Tax / Duties
Railway companies to have control
over their servants
44

Mr Simms Suggestions

What Companies should Give

Execute all surveys and plans and

submit to Govt. Consulting Engineers
for approval
Construct as per specification drawn
by Govt. Engineer
Railway from Calcutta to Delhi in 7
years.
Govt, Mail/ Store/ Traffic at
Subsidised Rates
45

Things to be decided ?
Whether Railway is required for India
or not ?
Railway is to be constructed by
Govt. Or Private Companies ?
if by private Companies , Return on
the Capital invested by Companies?
Other Terms and Conditions- Freight
& Fare, and its relation ship with
Govt?
46

James Andrews BrounRamsay

47

 Starting of Postal and telegraph

services in India
Starting of Widow Remarriage in
1856 A.D
Completion of Ganges Canal
Reform in Indian Civil Services
Woods Despatch
CPWD
Railway
48

Noting Dated July 4, 1850

Chini Hill Station HP
After Reading everything that I
have seen written on the subject and
conversing since I have been in India
with everybody who was able to give
an opinion worth having on the
question of Railway in India, I have
come to the Conclusion that No one
yet can safely say whether Railway
will Pay in this Country or not.
49

Noting.
The
Object
of
that
experiment is to prove that
..not only that it is practicable
to construct Railway in India as
Engineering work , but that such
Railways when constructed will
as
commercial
undertaking
afford a fair remunerative return
on the money which has been
expended in their construction, so
that public may therefore
be
encouragd to invest their capital in
50

Noting.. Gauge
The British Legislature fell unconsciously
and perhaps unavoidably into the
mischievous error of permitting the
introduction of two gauges (4-8.5and 7 ft)
into the United Kingdom. The numerous and
grievous evils which arose from that
permission are well known, and will long be
felt throughout all England.
The Government of India has in its power,
and no doubt will carefully provide that
however widely the Railway system may be
extended in this Empire in the time
to
51

Dalhousi Noting .................

I trust they will avoid the error of viewing
Railways merely as private undertakings
and will regard them as national works
over which the government may justly
exercise and is called upon to exercise a
stringent and salutary control.
This control should not be an arbitrary
right of interference, but a regulated
authority declared and defined by law
which is not to be needlessly or
vexatiously exerted, but which, in my
humble judgment, is necessary at
once for
52

Minute of April 20,

1953
The
State
Engineers
Would
Definitely Construct Railway as well
and
possibly
Cheaply
and
Expeditiously as the Companies but
that the
withdrawal from their
duties of large no. of Engineers
would be detrimental to Public
Interest ..
53

Noting
Railway in India , Judiciously selected
and formed would surely and rapidly
give rise within the empire to the
same
encouragment
of
enterprises, same multiplication
of procedure , same discovery of
latent
source, to the same
increase of national wealth and
similar
progress
in
social
improvement .various
54

Working of Railway
Companies

Govt. Agreed to provide land free of

cost, and also guaranteed return of
Capital upto specified rates of interest,
the rates fixed being from 4 to 5 %.
The companies were placed by contract
under the supervision and control of the
Government regarding standard and
details of construction, the rolling
stock to be provided, the number,
time and speed of trains, the rates
and fares to be charged, the
expenditure to be incurred, the
standard of maintenance .

Indian Railway.. Initial

Phase
A company named GIPR ( Great
Indian Peninsular Railway) Was
formed as per the act of Parliament .
GIPR agreed into agreement with
East India Company on Aug 17.1849 ,
to raise capital of 5,00,000 Pound .
Gauge was 56.
First Locomotive on the Indian Soil
was falkland .( Named after the then
Governor of Bombay )
56

Firs Railway 16th April

1853
14 Railway Carriages carrying 400
Guest left Bori Bunder at 3.30 Pm
Salute of 21 Gun & Governors Band
Present .
Reached Thana at 4.45 Pm .
Next Day sir Jamsetjee jeejeebhoy
reserved the whole train

57

THE BEGINNINGS

59

News Paper Report

Nothing couldve been more
magnificent than the train of 20
enormous carriages with their
three stupendous engines, all spick
and span new, with the most
perfect forms engineering could
suggest, and the most beautiful
tints taste could impart, occupying
a line from first to last on close to
four hundred feet.
60

th
The
16
of
April
1853
was,
TOI WROTE ON April 18, 1853
and would long continue to be
one of the most memorable
days, if not the most
memorable day, in the annals
of British India.
This was not the triumph of
nation over nation,
of race over race,
of man over his fellow man.

A LONDON NEWSPAPER
REPORTED
opening of the Great Indian
Peninsular Railway was of much
greater importance than the
victories in the battlefields of
Plassey, Assaye and Gujrath.

62

First Train in Eastern

India

Howrah to Hoogly on 15th Aug 1854 by

Eastern India Railway Company
Three Thousands applications were
received for those who wanted to ride
on first Day.
But few hundreds were accomodated
Ticket was Rs. 3 for First Class & 7
annas for ordinary Class
Line was opened upto Raniganj ( 190
Km) by 3rd Feb 1855
63

South India
1st July 1856 from ARCOT to
Veyasarpaudi

64

Opposition & Prejudices

A Hazardous & Dangerous Venture
or at best a premature and expenive
undertking.
Whether People would be attracted
from Bullock Cart to the Rail and
whether Religious Mendicants, fakirs
Agricultural Labourers, Snake
Charmers and other more or les
destitutes who not posses an Anna
could be persuaded to pay a Train
65

 Englishmen were in their own

Country were more familiar with
railroad than with Canals and they
made the mistake of judging the
need of Indians accordingly.

66

After independence ?

67

68

Punjab Farmers Extend

'Rail Roko' Agitation Till
October 12

69

70

71

72

73

Significance of IR

IR

transports
highest
passenger
throughput
in the
world.

Agricultur
e IR
carries
around 87%
of fertilizer

Mining
IR carries
around 82%
of iron &
other ores

Power
IR carries
around 90%
of the coal
produced in
India

74

GROWTH STORY OF LAST 64

YEARS
ITEM

1950-51

2013-14

%VARIATIO
N

5127

19,887

289%

Running track Kms(all

Gauges)

59,315

89,987

52%

Freight carried(Million
Tonnes)

73

1054

1344%

Passenger Kms(Millions)

66,517

11,58,742

1642%

Passengers Originatiing
(In Millions)

1,284

8,420

556%

87,986

15,28,124

1637%

8,54,678

36,43,423

327%

4.14

13.65

230%

11

5.13

(-)54%

Double and multiple

route length(Kms)

Seat/berth
capacity(suburban)
Seat/Berth Capacity(non
Suburban)
Wagon capacity(Million
Tonnes)
Wagon Turn

 Railways are and will Continue to be

our greatest National Undertaking.
They deal with scores of millions of
people in the country................
It can only be run with the fullest
cooperation of all those engaged
in it, keeping in view always the
good of the public as well as the
good of those engaged in
serving the public through this
76

THANK YOU
&
All the best on this
magnificent Journey
77

INITIAL RAILWAY
CONSTRUCTION
The first railways built in India were
constructed and worked by Private
sterling
companies
who
were
guaranteed a fixed rate of exchange and
a specified return on the capital invested
by them.
During
1854-60,
contracts
for
theconstruction of railways in India were
made by the East India Company or (after
1858) by the Secretary of State for India.

Early Railways Companies

The East Indian Railways Company,
the
Great
Indian
PeninsulaRailwayCompany,
theMadrasRailwayCompany
the Bombay Baroda and Central India
Railway Company,
The Sind (afterwards the Sind, Punjab
and Delhi) Railway Company,
The Eastern Bengal Railway Company,
The Great Southern India (afterwards the
South Indian) Railway Company
The Calcutta andSouthEasternRailway

Working of Railway
Companies

The East India Company (later, the

Secretary of State for India) agreed to
provide land free of cost, and also
guaranteed return of Capital upto
specified rates of interest, the rates fixed
being from 4 to 5 %.
The companies were placed by contract
under the supervision and control of the
Government regarding standard and
details of construction, the rolling
stock to be provided, the number,
time and speed of trains, the rates
and fares to be charged, the

Early Railways.
Public opinion both in India and in
England, official as well as non-official, was
highly critical of the above- terms which
were characterized as unduly generous for
the British Investors at the expense of the
Indian tax payers.
It was felt that private companies with a
State guarantee of profits were not likely
to observe economy in the outlay since
the shareholders got their guaranteed
profits even if the companies were
extravagant
and
wasteful
in

Early Railways.
Sir John Lawrence, a former Viceroy of
India stated in 1873 in his testimony
before
a
Parliamentary
Committee--

it is notorious in India among

almost every class that I ever
heard talk on the subject, that
the
Railways
have
been
extravagantly made ; that they
cost a great deal more than they
are worth, or ought to have cost

Early Railways.
Attempts were made in 1862 to secure
the constructions of Railways, on terms
more favorable to the Government
than before and to induce private
investors to construct Railways at
their own risk and cost, and accept terms
which provided for land being given to
them free of cost and a specified subsidy
for a given period.
The terms failed to attract private Capital,
and the only two companies, viz., the
Indian Branch Railway Company and
the Indian Tramway Company, which

Early Railways.
Consequently, in 1867, a contract
was entered into with the Indian
Branch Railway Company on terms
similar to those offered to guaranteed
Companies.
The Indian Tramway Company
went into liquidation in 1870 and
was absorbed in a new company
called
the
Carnatic
Railway
Company with which the Secretary
of State for India entered into a

Early Railways.
Before 1900

For several years after 1969,the

capitalexpenditure on Railways was
mainly incurred directly by the
Government and nofresh contracts were
made with guaranteed companies except
for small extensions.
However, consequent on severe famine
in 1878, the necessity of rapid
extension of the Railway system was
felt by Government and it was decided to
use private enterprise to the extent
possible with such guarantees as would
secure investmentof capital without

Early Railways.
Before 1900

On this basis, a number of companies were

formed between 1881 and 1892.,
The guarantees which were given to some
of these companies weremuchmore
favorable to Government than in the case
of companies formed prior to 1869.
For Companies formed before 1869 and
with those formed in 1881 and
subsequently fresh contracts were
signed (after termination of the earlier
contract ) or these companies were
purchased by Govt.

Early Railways.
Before 1900
Some of the Company Railwayswere
transferred to Government management
after purchaselike the Eastern Bengal,
theOudhandRohilkhand, the SindPunjab and Delhi, and the Southern Punjab
Railways,.
The management of some of the other
purchased lines was, however, entrusted
to working companies constituted under
contracts which determined
therelationshipbetweentheGovern
ment andthe Working Companies.

Relationship Between Govt. & Rly.

Companies
The lines worked by the Companies were
the property of the State.
When funds were required for further
capital expenditure, Government had the
option either of providing them or of
calling on the company to provide them.
All the contracts were terminable at the
option of the Secretary of State at
specified dates ; and on termination the
company's capital was repayable at par.

Relationship Between Govt. & Rly.

Companies
The company was bound to keep the line in
good repair, in good working condition and
fully supplied with rolling stock, plant and
machinery ; to keep the rolling stock in good
repair and in good working condition ; and to
maintain a sufficient staff for the purpose of
the line ; all to the satisfaction of the
Secretary of State.
The Secretary of State might require the
company to carry out any alteration or
improvement in the line or in the working that
he may think necessary for the safety of the
public for the effectual working of the line.

Relationship Between Govt. & Rly.

Companies
The train service was to be such as the Secretary
of State might require.
The Secretary of State retained power to settle
the classification of goods and maximum and
minimum rates to be charged from the public for
the conveyance of passengers and goods of each
class.
The company had to keep such accounts asthe
Secretary of State might require, and these were
subject to audit by the Secretary of State.
All expenditure by the company had to be stated
and submitted for the sanction of the Secretary of
State.
In all Other matters relating to the line the
company was made subject to the supervision

 The contracts with the working companies were

terminated in due course and themanagement of
the companies was taken over directly by the
Government
The East Indian Railway---1st January ,1925
(2)The Great Indian Peninsula Railway--1st
July, 1925
(3)The Bombay Boroda and Central India
Rly.---1st Jan, 1942
(4)The Assam Bangal Railway1st
January, 1942
(5)Oudh and Tirhut Railway...1st January,
1943
(6) The Madras and Southern Maharastra
Railway..1st April, 1944

The Indian Railways Act 1890

With the progress of construction of the Railways, it
became necessary to consolidate, amend and add to
the law relating to railways in India and to provide
for a suitable machinery for controlling and
regulating the working of the various railways
system.
The Indian Railways Act, 1890 (Act No. 9 of 1890)
was accordingly enacted on 21st March, 1890 to
take effect from 1st May, 1890.The Act is a
comprehensive legislation and lays down the statute
regarding construction and maintenance of works,
opening of railways, responsibilities ofRailway
Administrations as carriers, railway accidents

and a number of other matters ancillary to

railway working.

Railway in 1900
Route Kilometer. 41,000
33 separate Railway administrations (4 by
Govt., 5 by Indian Princely states & 24 by
Pvt. Companies).
The Non-Government Railwaysoperated
under varying degrees of Government
supervision. Their regulation and control
vested in the Railway Branch of the
Public Works Department of the
Government of India.
Department was headed by an officer of
the ICS who was a member of the Viceroy
and Governor General's Executive
Council.

Railways in 1900.
He was assisted In the Railway
Branch, by one Secretary, three
Deputy Secretaries (one each for
Traffic, Accounts and Construction),
The entire Railway system was
divided into seven circles, and a team
of one Consulting Engineer, and one
Government Examiner of Accounts
was posted to each of these seven
circles.

HISTORICAL BACKGROUND
Oct 1901 Sir Thomas Robertson
appointed as Special Commissioner
of IR
Report in 1903
Setting up of Railway Board
Chairman & 2 Members
March 1905-Control given to Railway
Board
Examiner of Accounts

HISTORICAL BACKGROUND
1908, Railway Finance Committee
Independent of Department of
Commerce and industry: Post of
Accountant General Railways created
Based on recommendations of
Acworth Committee (1921),
appointment of Financial
Commissioner (Railways) in April
1923

HISTORICAL BACKGROUND
Objective-Economy in expenditure of
public money; coordination of
Railway policy with general financial
policy.
Separation convention of 1924
Evolution in five stages

HISTORICAL BACKGROUND
Stage I: Railway finance part of
Finance Department; accounting
by AG
Stage II: Appointment of Financial
Commissioner (Railways) in 1923
Stage III: Separation process
complete in 1929, AG replaced by
Controller of Railway Accounts
(under FC(Rlys.)) and Director of
Railway Audit under Auditor
General

99

Contd.
1951 Southern Railway, Central Railway &
Western Railway created
1952 Northern Railway, Eastern Railway &
North Eastern Railway created
1955 South Eastern Railway created
1958 North Frontier Railway created
1966 South Central Railway created
2002 East Central Railway & North Western
Railway created
2003 South Western Railway, West Central
Railway, North Central Railway, South East
Central Railway & East Coast Railway created
100
2010 Kolkata Metro added as 17th railway

 Railway are and will Continue to be

our greatest National Undertaking.
They deal with scores of millions of
people in the country................
It can only be run with the fullest
cooperation of all those engaged
in it, keeping in view always the
good of the public as well as the
good of those engaged in
serving the public through this
101

GROWTH STORY OF LAST 64

YEARS

ITEM

1950-51

2013-14

%VARIATIO
N

5127

19,887

289%

Running track Kms(all

Gauges)

59,315

89,987

52%

Freight carried(Million
Tonnes)

73

1054

1344%

Passenger Kms(Millions)

66,517

11,58,742

1642%

Passengers
Originatiing(In Millions)

1,284

8,420

556%

87,986

15,28,124

1637%

8,54,678

36,43,423

327%

4.14

13.65

230%

11

5.13

(-)54%

Double and multiple

route length(Kms)

Seat/berth
capacity(suburban)
Seat/Berth Capacity(non
Suburban)
Wagon capacity(Million
Tonnes)
Wagon Turn

THANK YOU
ALL THE BEST FOR YOUR JOURNEY

103

104

Two Mishaps
Ship Bringing the first model of
Railway Carrige HMS Goodwin Sank
at Sandheads
The Ship Bringing the First
Locomotive was misdirected to
Australia.
Railway Line have to cross French
Colony of Chandernagore and
boundary dispute is to be resolved.
105

Contd.
1951 Southern Railway, Central Railway &
Western Railway created
1952 Northern Railway, Eastern Railway &
North Eastern Railway created
1955 South Eastern Railway created
1958 North Frontier Railway created
1966 South Central Railway created
2002 East Central Railway & North Western
Railway created
2003 South Western Railway, West Central
Railway, North Central Railway, South East
Central Railway & East Coast Railway created
106
2010 Kolkata Metro added as 17th railway

ORGANISATION
A union subject and governed by the
provision of the 1989 Railways Act which
repealed the old 1890 Indian Railways Act.
Railway Ministry responsible for
formulating and responsible for all railway
transport related policies as well as
presenting the annual Railway Budget

107

Contd.
RAILWAY BOARD
Set up by the 1905 Act responsible to the Minister
of railways for assisting in formulation and
implementation of budget and policies and
operation and maintenance of the rail network
Headed by a Chairman and assisted by six
members e.g., the Members Electrical ,Engineering,
Mechanical, Staff & Transportation and the Financial
Commissioner who is a representative of the
finance ministry. Assisted by the secretary railway
board for administrative matters.
The chairman and the board members along with
financial commissioner have the dual role of
heading the department of the central government
and therefore are also secretarys to the GOI
108

Contd.
ZONES
Headed by a General Manager, a
statutory authority under the 1989
Railway's Act and in charge of
operating, maintaining and construction
of works conforming to the policies and
budgetary control of the Railway Board.
Assisted by an Additional General
Manager, principal heads of
departments (PHODs) in charge of
various departments of the railways and
in turn assisted by other lower levels
officers.
109

Contd.
DIVISIONS
Headed by the Divisional Railway
Managers and responsible for the
operation and maintenance of the
rail related network in their
jurisdiction
Assisted by the Divisional Officers of
various departments

110

Division
Divisional Railway Manager
Additional Divisional Railway Manager
Branch Officers of the various branches
Assisted by SS/JS officers
Supervisors and staff

111

UNITS WITH CORE CUSTOMER

INTERFACE
STATIONS
(StationManager/Supdt./Master)
BOOKING OFFICES (Chief Booking
Supervisor)
RESERVATION OFFICES ( Chief Res. Sup.)
PARCEL OFFICES(Chief Parcel
112

Contd.
PRODUCTION UNITS
CLW set up in 1950 for production of
broad gauge steam locomotives now
produces only electric locomotives
ICF , Perambur set up in 1955 for
production of steel body passenger
coaches
DLW ,Varanasi for MG diesel locos in 1962
and BG from 1964
113

Contd.
PRODUCTION UNITS
DCW, now DMW(Diesel loco
Modernization Works) Patiala set
up in 1981
WAP, now RWF (Rail Wheel
Factory) Bangaluru set up in 1984
RCF (Rail Coach Factory)
Kapurthala set up in 1988
Wagons have been manufactured
by units in both public and private
114

PUBLIC SECTOR UNDERTAKINGS

RITES, 1974
IRCON, 1976
IRFC, 1986
CONCOR, 1988
KRCL,1990
MRVC, 1999
IRCTC, 2001
RAILTEL, 2000
CRIS, 1986
PRCL, 2001
RVNL, 2003
RLDA, 2005
DFCCIL, 2006
HSRC, 2013

115

OTHERS
RDSO Lucknow
TRAINING INSTITUTES (both for
officers and Staff, like ZTCs and CTIs
e.g. NAIR, formerly known as Railway
Staff College)

116

Some Landmarks
1985
1987
1989
2011
1984
1998
2002
2011

Steam Locos phased out

Computerized Reservation started
4-digit train numbers standardized
Rechanged to 5-digits
Kolkata Metro started
Konkan Railway became operational
Delhi Metro started
Bengaluru Metro
117

Why are Indian Railways called

Life Line to the nation

118

LIFE LINE TO THE NATION

TOUCH THE LIFE OF EVERY INDIAN

MOST AFFORDABLE MEANS OF TRANSPORT TO COUNTRYMEN, IN

A COUNTRY OF CONTINENTAL SIZE

STRATEGIC SIGNIFICANCE

CORE SECTOR

119

GIGANTIC DIMENSIONS OF
IR
65,500 ROUTE KILOMETERS
64,000 COACHING VEHICLES
10,000 LOCOMOTIVES
2,50,000 WAGON-UNITS
7,172 STATIONS
13,07,000 WORK FORCE
120

Railway Orgnision

121

Governor General in
Council
4 members council
Members were in charges of
Different Departments
Department were headed by
Secretaries

122

EXECUTIVE CONTROL
Upto 1854- MILITARY BOARD
1854- Control was transferred to
CPWD through a Consulting Engineer
1866- Deputy secretary in Charge of
Railway was Introduced in the PWD
Secretrait.
Secretary of state nominated a
Director in each Company Board.
123

Early Admin..........
18691874-Detailed Control was taken
away from PWD Secretariat and a
Railway Directorate was established
under a Director who work as a Head
of the Department under Govt. of
India
However all important matters
were required to be referred to Dy.
124

Railway Admin
1877- Three Directors of Territorial
Systems ( Central, Western & North
Eastern) and one Director of State
Railway Store
1880- Post of Director General was
created in lieu of three Directors.

125

INDIAN RAILWAY ACT 1890

CONSTRUCTION AND MAINTENANCE OF
WORKS
SECTIONS OPENING OF RAILWAYS
TRAFIC FACILITIES
WORKING OF RAILWAYS SECTIONS
LIMITATION OF EMPLOYMENT OF RAILWAY
SERVANTS
RESPONSIBILITY OF RAILWAY
ADMINISTRATIONS AS CARRIERS
PENALTIES AND OFFENCES.
ACCIDENTS
126

1892
Director General for Railway
associated by
Director Traffic
Director Store ( Store & Rolling
Stock)
Consulting Engineer
Accountant General ( PWD)
127

1897
Post of Director General was
abolished and instead Post of
Secretary to GOI in the PWD was
created.
Director of Construction & Store
Director of Railway Traffic &
Statistics
Two Under Secretaries
Two Assistane Secretaries
One Mechanical Assistants
Accounts to be taken care by
128

1905- Creation of Railway

Board
Railway Board was established
instead of Raiway Branch of PWD
One Chairman and Two Members
Railway Was placed under
department of Commerce &
Industry.
in 1908 , Railway Became separate
Department independent of
Commerce & Industry.
129

Acworth Committee
1920 Sir William Ackworth, an outstanding
British railway economist commission of
enquiry set up.
Recommended complete state ownership and
management of India's railways. Railway
budget and finances be separated from the
general budget and finances of the
government.
GOI accepted the report in 1924 and starting
with EIR completed the process for state
130
owned and managed railways. This
was a big

 Railway are and will Continue to be

our greatest National Undertaking.
They deal with scores of millions of
people in the country................
It can only be run with the fullest
cooperation of all those engaged in
it, keeping in view always the good of
the public as weell as the good of
those engaged in serving the public
through this vast organisation.
131

132

THE BEGINNINGS
Plans for a rail system in India
were first put forward in 1832 and
the Madras Presidency got the first
experimental railway line.
In 1844, governor general
Hardinge allowed private
entrepreneurs to set up a rail
system if they guaranteed an
annual return of up to 5% in the
133

THE BEGINNINGS
The first passenger train was the
product of efforts of Parsi
businessman Sir Jamsetjee
Jejeebhoy and Nana Shankarsheth,
who formed the Indian Railway
Association. This eventually
merged into the Great Indian
Peninsula Railway. Jejeebhoy and
Shankarsheth were the only two
Indian directors in the 10-member
134

THE BEGINNINGS
Before that, in 1851 Steam
locomotive was used from Piran
Kaliyar to Roorkee hauling
construction materials in goods
wagon for Solani viaduct of the
Ganges Canal project.
First passenger railway line
became operational between CNB
and ALD on March 3rd 1859
135

BACKGROUND
1844 R Macdonald Stephensons Report upon
the Practicability and Advantages of the
Introduction of Railways in India
Development of markets for import
Facilitate sourcing of raw materials, like cotton
for exports
Administrative requirement
Strategic defense requirement
136

RIDERS
In 1848 Governor General Lord Dalhousie(184856) while advocating railway construction in
India also said, No one can safely say whether
railways in this country will earn or not.
He later averred, he had unleashed in India,
"great engines of social improvement, which
the sagacity and science of recent times had
previously given to Western nations- I mean
Railways, uniform Postage, and the Electric
137
Telegraph.

METHODOLOGY
Private funding
1832 proposal of construction of railways in
Madras-------not considered
1845 East India Railway company formed
1849 Great Indian Peninsular Railway
incorporated by an Act of British Parliament

138

Contd.
1849 Guarantee system providing free land and
guaranteed rates of return(5%) to the private
English companies willing to work on building
railways. Companies to manage their operations
while Government of India would exercise highlevel supervision of railway policy
99 years lease arrangement with Govt. having
option of buying them earlier.(BOT Model)
Drain on state resources-----unscrupulous
financers

139

Contd.
EIR from Calcutta to Delhi remunerative
All other railways by 1869 had secured 15
million pounds worth of state aid.
Review of policy in 1869-70
(a) any additional railways in India to be
built and operated by the government
(b) contracts with the older companies to be
revised

140

Contd.
1870-1879 Construction by State
engineers proved that they could indeed
build railways just as well as the private
enterprise and operate them at least as
efficiently.
1879---Famines and Afghanistan war
drained the Government of India's
finances,this led to end of trial of state
railways except for military lines.
141

Contd.
Modified system 1880-1924-----ownership
government, management private. Review to be
exercised after the stipulated twenty-five year
period
Model negotiated with EIR
Eighty percent shareholders paid-off balance and
formed new companies retaining the name of the
old , guarantee reduced to 4%. Surplus profits
above 4% private owners entitled to a share.

142

Contd.: The Fallout

By 1882 the rail network connected almost all
major cities and engineers were getting confident
to connect Hill stations.
This dramatically re-ordered the economic
geography of the country. Agricultural
commodities could now be exported from
hinterland while manufactured imports could be
brought in cheaply. (Famines)
In many places traditional artisan economy
suffered a major shock even as the old caravan
routes became redundant.
For example Marwari merchants

143

Contd.: The Fallout

It was however not a seamless and integrated
network. It was built in a hurry by different
companies, agencies and princely states, using
different standards and gauges and with varied
objectives.
This caused all kinds of operational inefficiencies
which could not be ironed out even in next one
hundred years.
Yet the change was dramatic and perennial.

144

Independence & Partition

United India had 66300 route Kms
Multiplicity of gauges
Free India left with 53000 route Kms
Post partition 21 railway systems----10 owned by
the GOI and balance by princely states.

145

146

Contd.
Total integration of princely state railways
completed by first April 1950.
Principles of regrouping:(a) each railway to serve a compact system
(b) large enough to support a headquarters
(c) minimum disturbance of existing system

147