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Unit 19: Sectoral Performance II: Role of Infrastructure in Economic Development

(d) Overaged and obsolete assets : The transport infrastructure in India suffers from over-aged Notes
and obsolete assets. This is true of all modes of transport. For instance, in the case of Indian
railways, about 25 per cent of the total route length, 80 per cent of the equipment in railway
workshops and a large portion of the rolling stock have to be renewed and replaced. Nearly 80
per cent of the buses operated by the SRTUs, nearly half of the shipping tonnage and one-third
of the aircraft of our airline corporations would come up for replacement. This problem of
replacement has assumed enormous proportions and it is now generally realised that this cannot
be done during a single plan.
(e) Technology Upgradation : Transport technology has a great influence on the productivity and
safety of the transport sector. Modernisation of the transport system and the use of emerging
technologies are essential elements of transport planning — these, however, should be based
on the local needs and not imitation of those used in developed countries. Even though, every
five year plan has talked about technology upgradation as a thrust area, the actual progress has
been painfully slow : engine design, multi-axle vehicles, construction of roads, cargo handling
equipment at the ports, navigational and communication facilities at the airports, modernisation
of rolling stock and signalling system in the railways—all these continue to be primitive. Unless
attention is given to these aspects, the productivity of operation and the quality of service,
besides making the transport system more safe and reliable.
Despite impressive expansion over the years, the entire Indian transport network is characterised
by many deficiencies and a major exercise in expansion of capacity and modernisation and
technological upgradution is necessary. The Tenth Plan (2002-07) has proposed a comprehensive
transport policy to tackle the above diverse problems facing the transport sector. The problems
in the transport sector are so huge and the financial resources required are so vast—estimated
at ` 2,00,00 crores—that transport plan programmes of the Tenth Plan are bound to be just
paper plans and nothing more.
Growth of Indian Railways
The Indian Railways had modest beginnings in 1853 when the first railway train journeyed a distance
of 22 miles between Bombay and Thana. From a modest beginning in 1853, the railway development
was very rapid and by 1900 there were nearly 25,000 miles of railway line. Railway construction
slackened and in next 50 years, only 10,000 miles of railway lines were added making up a total of a
little more than 34,000 miles, of railway line in 1950.
Originally, the Railways were operated by private companies owned by Englishmen. The Government
gave certain concessions such as free grant of land, guarantee of a minimum return on capital etc.
There were criticisms and complaints against private ownership and management. In 1925, the
Government of India took over the first railway company. Gradually, the other companies were also
taken over; by 1950 the railways in the former princely States were also taken over by the Government
of India.
The Indian railways have now become a unified State-enterprise. It is the country’s biggest nationalised
enterprise and one of the largest railway systems of the world with a capital base of about ` 58,000
crores, 63,000 route Kms, approximately 8,000 diesel and electric locomotives, 42,000 passenger coaches,
2,22.000 wagons and employing nearly 1.6 million staff. For long haul freight movement in the bulk
and long distance passenger traffic, and for mass rapid transportation in suburban areas, railways
occupy a unique position in the Indian economy.
Railway Development Under the Plans
As the Indian Railways constitute the largest transport agency intimately connected with the
development of the national economy, the main objective of planning in Railways in the past was to
expand railway traffic in such a way as to avoid bottlenecks in the production process and to ensure
an efficient rail transport system. The total outlay on Railways in the first seven plans was ` 24,000
crores. Apart from the general objective of an efficient rail transport system, each Plan had a special
objective, as for example,

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