Question : OUTSOURCING OF NON-CORE ACTIVITIES



(a) whether the Government has a proposal to take some new steps to increase the efficiency of Railways;

(b) if so, the details thereof;

(c) whether the Railways have any plan to outsource the non-core activities as a part of its programme to increase the efficiency; and

(d) if so, the steps taken in the matter?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI R. VELU)

(a) to (d) : A statement is attached

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF UNSTARRED QUESTION No. 505 BY SHRI DUSHYANT SINGH TO BE ANSWERED IN LOK SABHA ON 03.03.2005 REGARDING OUTSOURCING OF NON-CORE ACTIVITIES.

(a): Yes, Sir.

(b): The working of Indian Railways is kept under continuous review to improve its efficiency. The direction of initiatives and various steps to improve the system are indicated in the Corporate Safety Plan, the 10th Five Year Plan (2002-07) and the budget documents. Some of the important initiatives are as under :



(i) Strengthening of high density network.

(ii) Technological up-gradation of assets for improving efficiency, throughput and increasing average speed of trains.
· Enhanced production of state-of-the-art Technology three-phase locomotives, i.e. WAP-5, WAP-7 and WAG-9. The high speed and high power locomotives will increase the average speed of trains as well as carry more passengers and higher freight loads, thus improving efficiency.
· Increase the efficiency of 3-phase electric locomotives and Electric Multiple Units by adoption of Insulated Gate Bipolar Transistor based traction propulsion system.
· Locotrol operation in freight locos have been proposed for trial. This will increase the speed of heavy haul operation, providing higher freight output and enhanced throughput.
· Regenerative braking feature in three phase locomotives and Electric Multiple Units will increase the energy efficiency of the locomotives and Electric Multiple Units.

(iii) Provision of computer based centralised traffic control especially on heavily worked sections to improve efficiency in train operations.

(iv) Provision of continuous track circuiting and automatic block signalling to augment line capacity.

(v) Simulator based training for electric loco crew and motormen will improve the driving techniques and safety consciousness amongst drivers and motormen.




(c): Yes, Sir.


(d): Ministry of Railways policy on outsourcing - finalised in March, 2004.


(i) As a part of the over-all reform agenda, Railways as a department would deal mostly with the core activities of a national transport organisation in line with its responsibility, both as a commercial transport organisation and a vehicle for social change.

(ii) List, modify, develop and implement non-core activities through outsourcing consistent with the agenda of planned right sizing of the organisation.

Eleven items have been identified for outsourcing in the first stage of non-core restructuring :

(a) Disbursement of salary through Bank.

(b) Outsourcing of engineering surveys, project management and supervision.

(c) Constitution of Rail Land Development Authority.

(d) Transportation of released track material and activities connected with bridge works.

(e) Painting/removal of paint of rolling stock.

(f) Outsourcing of maintenance of IVRS (Interactive Voice Response System).

(g) Unscheduled repair of major electrical assembly of locomotives/Multiple Units/Air Conditioned Coaches.

(h) Unscheduled and Scheduled repairs of house wiring (power supply) and operations of Pumps/Diesel Generator Sets/Stationery Air Conditioned Plants/ Distribution Network of power supply.

(i) Leasing of Second Class Luggage Brake Van space.

(j) Catering Services.

(k) Production Units as independent cost and profit centres.