Indian Railways IT Interface
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Indian Railways IT Interface
A Report
Presented to
Prof G Raghuram
Prof Rekha Jain
Prof Sebastian Morris
In
Partial Fulfillment of the Course Requirements of the
Infrastructure Development and Financing Course
On
August 24, 2001
By
Abhishek Kumar
Amit Gadgil
Ananta Satapathy
Rajesh Upadhyayula
Sandeep Prabhudesai
Group 3
Section B
Executive Summary This report focuses on various aspects of Indian Railways and Information Technology (IT) interface. Our project has three objectives viz. to examine the Railway and IT interface from the perspective of Railways, to identify uses of IT for improving effectiveness and efficiency of Railways and to evaluate issues pertaining to railways developing and offering IT infrastructure for public use. We have covered in this report the history of IT interface, various developments in Railway IT interface till date. We have studied the various uses of IT in railways like PRS, IMPRESS, CONCERT, FOIS and CRIS. We have also covered the RailNet, it’s objectives, various phases of implementation, utility of RailNet and various issues in RailNet. In the next part of the report, we have studied the RailTel, the corporation formed for implementation of OFC network for railways. We have focused on issues like need for Railtel, demand potential, estimated market share, investment required, debt equity options available, revenue model on the basis of one of these options, SWOT analysis for RailTel and competitor analysis. In the final part of this report, we have looked at the Railway IT interface across the globe that may be useful to identify the various uses of IT in Indian Railways.
Table of Contents
Objectives Of The Project ________________________________________________ 1
History Of IT Interface __________________________________________________ 1
Need For IT In Railways _________________________________________________ 2
Background Of IT In Railways ____________________________________________ 2
Earlier Developments____________________________________________________ 3
Computerized Passenger Reservation System (PRS) ___________________________ 4
Freight Operations Information System (FOIS) ______________________________ 7
Center for Railway Information Systems (CRIS) ______________________________ 9
Need For CRIS _____________________________________________________ 10
RAILNET ____________________________________________________________ 10
Tools Provided By Railnet ____________________________________________ 11
Objectives__________________________________________________________ 11
Architecture________________________________________________________ 12
Problems With Transfer Of Messages & Files____________________________ 12
Phases Of Railnet ___________________________________________________ 12
Phase - I (Completed) _______________________________________________ 12
Phase - II (Tender to be finalized shortly) _______________________________ 13
Phase – III (Sanctioned) _____________________________________________ 14
Utility Of Railnet____________________________________________________ 15
Hardware Components (Phase-I) ______________________________________ 16
Software Components (Phase-I) _______________________________________ 17
Internet Access _____________________________________________________ 17
Strengths __________________________________________________________ 17
Limitations_________________________________________________________ 17
Remedies_________________________________________________________ 18
Future Scope ______________________________________________________ 18
Issues In Railnet ____________________________________________________ 18
Introduction __________________________________________________________ 21
Communication Requirements for Railways ________________________________ 21
Current Status of Railways’ communication network _________________________ 22
Potential _____________________________________________________________ 22
Creation of Railtel _____________________________________________________ 23
Objectives of Railtel ____________________________________________________ 23 Demand Potential______________________________________________________ 23 Estimated Sector Sizes ______________________________________________ 24 Bandwidth Demand ________________________________________________ 25 Technical Plan for Network Deployment ___________________________________ 25 Introduction________________________________________________________ 25 ISP/NLDO Business _________________________________________________ 26 Estimated Market Share _____________________________________________ 26 Railways’ Asset Contribution ____________________________________________ 26 Asset Contribution Breakup __________________________________________ 27 Investment ___________________________________________________________ 27 Business Financials and Revenue Model for Railtel __________________________ 28 Implementation Plan ___________________________________________________ 29 Synergy with Railways __________________________________________________ 30 Possible Synergies with PSUs of the Department of Telecommunication__________ 30 Competitor Analysis ____________________________________________________ 30 Facilities Assessment_________________________________________________ 31 Existing OFC Infrastructure __________________________________________ 31 Planned Facilities ___________________________________________________ 31 Right of Way (RoW) _________________________________________________ 32 Main Competitors ___________________________________________________ 32 Department of Telecommunications____________________________________ 32 Power Grid Corporation of India Limited _______________________________ 33 Gas Authority of India Limited________________________________________ 36 Cellular Operators__________________________________________________ 38 Private Basic Services Operators ______________________________________ 39 Videsh Sanchar Nigam Limited (VSNL) ________________________________ 40 SWOT Analysis of RailTel_______________________________________________ 40 Railway-IT Interface around the Globe ____________________________________ 42 South and East Africa________________________________________________ 42 East Japan Railway Company (JR East) ________________________________ 43 European Train Control System (ETCS) ________________________________ 48 Appendix 1 ___________________________________________________________ 53 Appendix 2 ___________________________________________________________ 54 Appendix 3 ___________________________________________________________ 55
Appendix 4 ___________________________________________________________ 56 Bibliography __________________________________________________________ 62
Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Objectives Of The Project
?? To examine the Railway and IT interface from the perspective of Railways
?? Identifying uses of IT for improving effectiveness and efficiency of Railways
?? To evaluate issues pertaining to railways developing and offering IT infrastructure
for public use
History Of IT Interface
60’s
?? A dedicated skeletal communication network was developed by IR, as a basic
requirement for train operation
?? Plan to progressively computerize railways working was accepted in principle by
Management and Labor Unions
70’s
?? Pay-rolls, Inventory control and Operating statistics
?? Deployment of Computers for productivity improvement through building up
operational data bases
80’s
?? Computerization of Passenger Reservation Arrangement
?? Developing a Freight Operations Information System
?? Replacing the existing Computers at the Zonal Railways
?? Production Units with the State-of-the-art Computer systems
?? Provision of Computers at Divisions, New Production units, Work-shops, Sheds
and Depots and Training Institutes
?? Quantum improvement in the use of Computers in the offices
90’s
?? Enterprise wide Computer system
?? IT Applications for Passenger Business Area
-1-Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Need For IT In Railways
Transportation Industries such as Railways operate in a dynamic and constantly changing
environment. This requires a continuous update of information about current status and
location of these assets. The optimum utilization of material resources, which they
deploy, would require collection and collation of accurate data on their current utilization
and an inventive analysis of the information collected.
Information Resource is a critical managerial tool for confronting and tackling the
business challenges on a real time basis. Transportation industries are also service
industries and they thrive and flourish on Information - rich soil that provides them the
vitally needed link to their customers and other major stakeholders. Railways being
multi-locational, multi-functional and multi-divisional organization provide an ideal
backdrop for Computer Networks, which can allow sharing of resources across the
Corporation and information with their customers.
Railway Industry, being an age-old industry, finds many of its existing business and
operational practices inadequate for adjusting in the current fast changing business
environment. Unless, Railways also develop capabilities to harness information resources
through the use of exploding information technology, as other industries are doing, its
continued presence as a viable industry in future may become a question mark. On the
contrary, if the railway system can exploit Information Technology to modernize their
operations and practices to suit the needs of their customers, they can gain tremendous
competitive advantage in the present and future business environment.
Background Of IT In Railways
Indian Railways (IR) is the principal mode of transport in the country. IR today has
62,660 route km of rail track. The total investment on IR has been Rs. 356.2 billion. Last
year, IR moved 390.5 million tonnes of freight, generating a traffic output of 272 billion
tonne kms. At the same time the system carried 4,068 million passengers generating a
traffic output of 339 billion passenger kms. This output was produced with the help of
over 7,000 locomotives and 300,000 wagons. The efficiency index of Wagon utilization
measured in terms of net tonne kms per wagon per day stood at 1,780, which is one of the
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
highest in the World. IR's network has 7,050 Railway Stations and its employees number
a little over 1.6 million - making it the largest single employer in India.
Over the last four and half decades, the freight transport has increased by about 5.75
times and passenger output by about 4.2 times. The growth in traffic output has not been
evenly matched by the growth in inputs in the form of track and rolling stock. The high
density has been further accentuated by the imbalance of the traffic flows. The BG routes
though forming 63.2% of the route, carry 95% of freight traffic and 89% of passenger
traffic of IR. Among the BG routes, the six corridors connecting the four major
metropolises of Mumbai, Calcutta, Delhi and Chennai and the two diagonals comprising
15.8% of total network carry in excess of 56% of the total freight transport output and
47% of passenger traffic, thereby causing serious congestion on the golden quadrilateral.
The perennial constraint of resources has adversely affected Railway's development
resulting in diversion of traffic from rail to road at an overall higher cost to the economy.
Currently, Railways carry only 40% and 15% of the overall freight and passenger traffic
respectively. Rapid growth in the demand for bulk transport has compelled the railways
to evolve operating strategies and technology for running unit trains to match this
demand. The emphasis of the railways on running of unit trains is denying the use of cost
effective rail transport to a large number of smaller volume customers and this has been
hastening the decline of market share on the part of Railways.
Indian Railways have reached today a significant phase and are at a threshold of an
uncertain future. IR will be required to make necessary competitive adjustments to deal
with the pressures of market forces in a liberalized economic environment, not only to
remain financially viable, but to be able to satisfy the growth in demand for rail transport.
As Railways stare into the dark-tunnels, the only source that can probably shed the light
to carry it - blazing into the future is the Information Technology tool, which many
successful organizations are using to their profit.
Earlier Developments
Realizing the important role that information plays in Railways operations, IR had
embarked on its Computerization Program, earlier than many other organizations in the
country. Towards the end of 60's, two positive developments took place in Indian
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Railways. Firstly, even though, computerization was perceived by many as a labor saving
measure, IR could realize its potential advantage and the plan to progressively
computerize Railways was accepted in principle by Management and the Labor Unions.
Secondly, a dedicated skeletal communication network was developed by IR, as a basic
requirement for train operation, even though the future development of the merger of
computers and communication to give birth to Information Technology was not actually
visualized at that time. After the early introduction of regular flavor computer
applications such as Pay rolls, Inventory control and Operating statistics, Railways were
poised in the mid 70's for deployment of computers for productivity improvement
through building up operational databases. However, certain administrative issues and
political development came in the way of bringing about any further developments in the
field of computerization. The period between mid 70's to early 80's were however utilized
by IR to develop a blue print for further computerization. During the beginning of the
80's IR decided on
?? Computerization of the Passenger Reservation Arrangement.
?? Developing a Freight Operations Information System.
?? Replacing the existing Computers at the Zonal Railways and Production Units
with the State-of-the-art Computer systems enabling the organization to
computerize more applications and increasing the volume of users.
?? Provision of Computers at Divisions, New Production units, Workshops, Sheds
and Depots and Training Institutes.
?? Quantum improvement in the use of Computers in the offices.
In the last 10 years, IR has made significant progress in Computerization. Out of these
developments, we shall examine some of the systems that are currently being
used/developed on IR.
Computerized Passenger Reservation System (PRS)
Out of the total passengers carried by IR, inter-city passengers constitute a mere 9% of
the total volume. But, this small proportion, out of the total, generated 176 billion
passenger-km out of a total of 341 billion passenger-km, about 52% of the total. They
also bring in a revenue of Rs. 42.9 billion in a total passenger revenue of Rs. 60 billion,
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
constituting roughly 72% of the total. It is a matter of comfort for IR that this market
segment is a well-patronized one and in order to meet the situation of demand over
running supply, the customers have been provided with the facility of making their
reservation on these trains, 30 days in advance.
The seats/berths reservation system on trains is a fairly complex activity, not only
because of volume involving more than 600,000 seats/berths reservations per day, but
also because of seven different categories of trains operating, using 72 types of coaches
with seven classes of reservation, more than 40 types of quotas and more than 80 kinds of
concessional tickets. The method of calculation of fare is also quite complex as charges
are based on the distance, comfort level provided and the transit time. Because of this
complexity and sheer volume involved, IR undertook management of Reservation work
through computers.
A pilot project consisting of a few popular trains implemented at New Delhi in November
1985 came out successful and was well received by the customers. By May 1987, the
entire New Delhi Reservation Load was computerized. The stand-alone VAX Computer
Systems were further implemented at remaining three metropolitan cities, namely,
Mumbai (June '87), Calcutta (July '87) and Chennai (October '87) and they account for
over 40% of reservation volume. The last stand-alone Cyber Computer System was
implemented at Secunderabad (July '89), which was subsequently replaced by VAX
computer system (Jan '95).
Many other stations having advance reservation arrangements were connected as remote
terminals to the existing five computer systems for accessing the entire database of the
host computer. In the computerized system, IR decided that technical and service
considerations would be used to determine the host to which a station would be linked up.
To improve the service levels further, by providing better access to customers, remote
terminals from the host computers are also being provided at satellite locations in the
Metropolitan cities. In some major cities, satellite terminals from five host computer
systems were also provided, thus allowing customers access to reservation databases
residing there. A teleprinter interface to PRS called AUTOMEX, is also in place to
enable those stations which are not connected by remote terminals, to access the
reservation database.
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
The Passenger Reservation System Software is given the name Integrated Multi-train
Passenger REServation System (IMPRESS) and consists of roughly 2,700 Sub routines.
Developed through 30 man years of programming effort in the language of FORTRAN,
the software functions as an integrated system of four main modules, which handle the
functional requirements of Reservation, Enquiry, Accounting and Charting. The system
has full scale back up and recovery facilities.
The entire computerized PRS system, thus, functions as five stand-alone systems. The
stand-alone architecture does not allow reservation at a terminal from databases in two
different host computers. The provision of remote terminals at major stations from more
than one host computer partially takes care of this, though the customer has to stand in
two or more queues. IR now plans to inter-link the five host computers using networking
software and distributed transaction processing. This will provide access to databases in
all the five host computers at any terminal in the country. The entire system can then
cover almost all reservation quotas on IR, with the databases distributed over five
computer locations, providing reservation access all over the country.
As a first major step towards the goal of single image passenger reservation system, the
first prototype of PRS Networking Software, CONCERT (COuntrywide Network of
Computerized Enhanced ReservaTion) using FORTRAN (30%) and C (70%)
languages was implemented at Secunderabad in January '95. CONCERT is written,
keeping in mind the Client-Server architecture of Computer System to achieve easy
hardware expansionability in future. Its message routing feature for WAN (Wide Area
Network) implementation is achieved through RTR software and Router hardware,
connected directly to an ethernet backbone. As a first phase of CONCERT
implementation, the IMPRESS software version at the two stand-alone PRS systems at
Secunderabad and New Delhi has been replaced with CONCERT and work is in progress
for networking these two systems, using 64 kbps channels. The network application
modules, once successfully completed, are expected to get extended to PRS at Calcutta,
Chennai and Mumbai. After the full-scale implementation, the requirement of
communication channels will come down, as there will be no need for extending circuits
for connecting remote terminals to particular PRS location only, in view of every terminal
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becoming universal. CONCERT will also add multiple lap functionality resulting in
better customer service.
Freight Operations Information System (FOIS)
The market share of IR in the total freight traffic carried in the country has been declining
in the last 20 years mainly due to the inability of IR to carry all the traffic offered to it.
This inability arises from the fact that the railways have been consistently facing severe
shortage of Rolling Stock for carrying all traffic and serious constraints in line capacity
for moving the traffic.
While considerable inputs are needed for augmenting the capacity of rolling stock as well
as line capacity, the optimum utilization of existing resources is considered more
imperative for carrying additional volume of traffic. It is of common knowledge that
railway systems all over the world have profitably used computerization for improving
the utilization of rolling stock assets of their systems.
Realizing the significant contribution that computerization can make in improving the
utilization of rolling stock assets, Indian Railways have been planning from the early
stages for the introduction of use of computers in the freight operations. In the early 70's
the advance transmission of CONSIST from marshalling yard to marshalling yard was
attempted but the inherent limitations of the hardware available at that time and the non-
availability of reliable communication lines thwarted the early attempts.
The administrative issues and political developments which were responsible for
stagnancy in the area of computerization during late 70's also played a major part in
delaying further introduction of computers in freight operations. Ultimately, Indian
Railways decided in 1986 to go in for an integrated computer communication system
called Freight Operation Information System (FOIS) with an objective to computerize the
information relating to all operational activities and monitor the performance of all
activity centers connected with freight traffic management.
FOIS will maintain data banks of all fixed and rolling stock assets of the IR with their
characteristic features, to help proper evaluation and optimization of their use. All the
data will be captured dynamically, as an event is happening. Such data banks will be used
to improve the quality of decision making and for producing management information
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
reports on all aspects of freight operations, without the need to collect past data, every
time. For this, FOIS will have many sub-systems for handling individual activities. It was
anticipated that the introduction of FOIS would bring about a minimum of 10%
improvement in Wagon utilization and 5% improvement in Locomotive utilization.
The FOIS architecture is two tier, with a central system at Railway Board level,
processing all identified core functions relating to moving assets and Zonal Systems at 5
locations processing all local functions carried out at Activity Reporting Centers such as
Goods Sheds and Sidings, Transhipment Points, Yards, Stations, Interchange Points,
Wagon Repair Depots, Locomotive Sheds, Fuelling Points, Crew Changing Points,
Carriage & Wagon Workshops, Locomotive Workshops etc. While the central computer
system is located in New Delhi, the five Zonal Computer Systems are located at New
Delhi, Mumbai, Calcutta, Chennai and Secunderabad.
For implementing FOIS, after surveying the similar technologies available in world
railways, it was decided to import software from Canadian National Railroad for the data
processing at the central computer. This software called TRACS (Traffic Reporting and
Control System) ran on IBM compatible machines and had been implemented earlier in
Southern Pacific Railroad, Canadian National Railroad and British Rail.
The Central System handles the core functions like control of wagon movement, control
of train movement, locomotive movement, scheduling and routing of traffic, empty
wagon distribution, container traffic, safety management, marketing applications, total
system performance statistics, corporate planning etc. The Zonal Systems handle
distributed field functions like yard management, local area management (inclusive of
Goods sheds, Transhipment sheds, Invoice preparation and invoicing), maintenance and
repairs of wagons and locomotives, crew management, fuel management, safety
management, statistical (query based, scheduled, off-line and message) reports,
accounting, billing, costing and apportioning of revenue among the Zonal Railways etc.
The assessment of the cost of FOIS Project has ranged from Rs.2.1 billion (1979) to Rs.5
billion (1982), to Rs.17 billion (1986). The cost has since been revised down to Rs.11
billion in 1988, at 1986 prices. The major reason for cost fluctuations were the
uncertainty over creation of supporting communication infrastructure to cater the need of
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
reliable and speedy computer communication across the length and breadth of IR,
spanning all over India.
Presently, a pilot project is under implementation on Northern Railway using Central and
Zonal Computer Systems installed at New Delhi. On the basis of the experience gained
from the field trial, FOIS network will be expanded in future. This, however, will need a
strong organizational will at all levels to accept the project, quicker decision making at
every stage of project implementation and availability of adequate funds, in time.
The traditional method of "Repetitive and periodic reporting" being followed at present
by Indian Railways for train operation is unable now to cope up with the ever increasing
demand of public transport coupled together with increase in speed and safety standards.
To reap the benefit of explosion in IT worldwide and also to take the advantage of
liberalized policy of Government of India towards Information Technology, Indian
Railways have establish a ‘Corporate Wide Information System’ (CWIS) between
Railway Board, Zonal Railways Head Quarters, Production Units and Centralized
Training Institutes, etc. called as ""RAILNET". It will be able to provide smooth flow of
Information on demand for administrative purposes from the important operational
locations up to top level and vice-versa, which will help in taking quicker and better
decisions.
Center for Railway Information Systems (CRIS)
In 1986, the Ministry of Railways established CRIS to be an umbrella for all computer
activities on Indian Railways. They also entrusted it with the task of design, development
and implementation of FOIS, along with its associated communications infrastructure.
The Center started functioning from July 1987. It is an autonomous organization headed
by the Managing Director. CRIS is mainly a project-oriented organization engaged in
development of major computer systems on the Railways. CRIS has acquired special
knowledge and expertise in the field of informatics. With such a rich practical
experience, a dedicated team of professionals and its own R&D effort, CRIS aims to be a
leader in this fast developing field.
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Need For CRIS
A separate organization was considered better suited to take up all computer activities on
IR mainly for the following reasons:
?? To avoid duplication of efforts by individual Railways.
?? To ensure standardization of computer hardware and software on the Railways.
?? To undertake design and development of major applications on Railways
requiring higher levels of expertise, faster decision making and system wide
applicability.
?? To insulate the organization from day to day working of the Railways so that its
objectives are not lost sight of.
?? Need for a combined effort of Railways and Computer Specialists, considered
best suited for the development of the computer applications on Railways.
?? Need for development of expertise in highly specialized fields like Operation
Research, Simulation, Expert System, CAD/CAM, Process Control etc.
?? Need for greater flexibility to keep pace with the fast changing technology.
RAILNET
RAILNET has the potential for transfer of messages, files, e-mails between the important
locations on Indian Railways. In addition, the internal web site in Railway Board and
Zonal Railways Headquarters supports codes, manual procedure orders, policy directives
and other important information for day-do-day use by various officials. Detailed
estimate amounting to Rs.7.81 crore for the work of RAILNET was sanctioned in
Nov.’98 by the Railway Board. The structure of RAILNET is as under:
- 10 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
RAILNET will provide computer connectivity between Railway Board and Zonal
Railways, Production Units, Centralized Training Institutes, RDSO, CORE,
MTP/Calcutta & 46 Major Training Institutes.
Tools Provided By Railnet
?? Email
?? EDI
?? WWW
?? Telnet
?? FTP
Objectives
?? Eliminate the need to move paper documents between different offices
?? Change from ‘Periodic Reporting’to ‘Information on Demand’
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
?? Expedite & facilitate quick & efficient automatic status update between Railway
Board & Zonal Railways
Architecture
?? To have internet access at Delhi, Mumbai, Chennai & Kolkata.
?? Capability to monitor & control usage of RAILNET & Internet.
?? Expedite & facilitate quick & efficient automatic status updates between Railway
Board Zonal Railways.
Problems With Transfer Of Messages & Files
?? Manual system of transfer of messages & files are time consuming &
unbelievably slow.
?? Sometime the messages are illegible (due to poor photocopy quality or poor hand
writing)
?? The messages sometimes do not reach the concerned person.
?? Sender is not sure whether the message has reached the correct person.
Phases Of Railnet
Phase - I (Completed)
This consisted of interconnecting LANS at the following locations:
?? Railway Board
?? Existing Zonal Railway Headquarters
?? Production Units
?? Clw / Chittaranjan
?? Dcw / Patiala
?? Dlw / Varanasi
?? Icf / Perambur
?? Rcf / Kapurthala
?? W & Ap/ Bangalore
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
The contract for Phase-I was awarded to M/s Tata Infotech Limited. The scope of work
included Supply,Installation,Testing and Commissioning of Servers, Routers, Centralized
Switches, Modems etc. including Internet/Intranet software. The work has been
completed except for NFR, DLW and DCW because of non-availability of
site/connectivity.
Phase - II (Tender to be finalized shortly)
This consists of interconnecting LANS at the following locations:
?? New zones (6 nos.)
?? Rdso / Lucknow
?? Core, Allahabad
?? Mtp , Calcutta
?? Centralized training institutes
?? Rsc/ Vadodara
?? Irieen / Nasik
?? Irimee / Jamalpur
?? Iriset / Secunderabad
?? Iricen / Pune
- 13 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
This phase will also consist of the following centers to facilitate interconnections:
?? Major training centres (46)
?? Zonal training centres (9)
?? Supervisor training centres(9)
?? S&T training centres (9)
?? Electrical training centres (9)
?? Civil training centres (9)
?? RPF training centre (1)
?? All divisional HQs (yet to be sanctioned)
Phase – III (Sanctioned)
This phase will interconnecting LANS at the following locations:
?? All Sub Division Hqs(Aen/Hq Etc.)
?? Workshops
?? Mechnical
?? Loco
?? C&W
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
?? S&T
?? Engg/Bridge
?? Stores Depots
?? Major Stations (I.E. Cat ‘A’stations)
?? Passenger Complaint Centres
Utility Of Railnet
?? Railnet users can exchange mail
?? Commercial Deptt. is extensively using Railnet for their ‘Complaint Centres’
applications
?? Railways have launched their web pages
?? Authorised users can access the internet through Railnet either in LAN or through
Remote Dial-up on Rly. Telephone.
?? Defined users in the LAN can share their resources.
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Hardware Components (Phase-I)
?? Compaq Servers
?? CISCO Routers, Switches & Hubs
?? Structured cabling using ‘AMP Net Connect’Components
o UTP-Cat 5 cabling (10 Mbps)
o Maximum distance permissible 100 meters between
?? Nodes and Hubs
?? Hubs & switches
?? Switches & Server/Router
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Software Components (Phase-I)
?? MS Windows NT Server
?? MS Windows NT Workstation 4.0
?? Internet Information Server 3.0
?? Front Page Express 98
?? Lotus Nodes Clients 4.6
?? Cisco Works with SNMPC
?? Cisco Pix Firewall
?? NMS
Internet Access
Internet Access (128 Kbps) has been provided in Delhi & Mumbai, which will enable the
authorised Railnet users to
?? Exchange E-mail. The Railnet user will have the same E-Mail address for Internet
also.
?? Browse the World Wide Web
Strengths
?? Uses Internet Technology, hence scaleable from PC-LAN-WAN-Internet.
?? Universal browser Interface gives ‘Single’Viewing Window.
?? Freedom of Choice enables it to be implemented on dissimilar systems.
?? Saving Money.
?? Reduced Development Time.
?? Performance
?? Improved Business Processes.
Limitations
?? Security, End-user Acceptance
?? Network Security - Major Concern
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
?? Possible Hazards
Downloading classified information
Disable network
Corrupt data
Introduce virus etc.
Remedies
?? User authentication- Password
?? Virus scanner
?? Internet access at Delhi & Mumbai provided through Firewall
?? Use of licensed and authentic software
Future Scope
Railnet can also be used for
?? Voice Communication
?? Video Communication
?? Video Conferencing
Voice over Railnet was sucessfully demonstrated during a General Managers’ conference
in Rail Bhawan. Video conferencing over Railnet was successfully demonstrated between
the Minister for Railways, Chairman & members of the Railway Board and General
Manage, Mumbai on 01.02.99
Issues In Railnet
?? Accessibility of Contents of Web Pages
?? Internet users
?? Railnet users: Unrestricted; Restricted
?? Development, Design & Maintenance
?? Inhouse
?? Through External agency
?? Coordinated efforts
o Similarity
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Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
o Compatibility
o Compilation
?? Various Applications
?? Quasi Static
o Codes
o Manuals
o Gazettes
o Various Status
o Seniority List
?? Dynamic
?? Punctuality
?? Logging of Trains
?? Progress of works
?? Training Schedules/Nominations etc
?? Work Flow
?? Internet Access
?? Uniform Policy
?? Level of Eligibility
?? Time Limit
?? Security - Firewall
?? Bandwidth Constraint
o 128 K - Rs. 8.7 Lacs
o 256 K - Rs. 11.9 Lacs
o 2MB - Rs. 47.0 Lacs
?? Maintenance
?? Proper Strategy for O&M
?? Data Links - Including timely payment of DOT leased circuits
?? Man power - Redeployment and Training
?? Computer Hardware
?? System and Application Software
?? General
- 19 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
?? PC’s, Ethernet Card, Modem
?? Sufficient no. of Dial-Up Ports
?? Railnet Connectivity - On Demand
?? Training of Maximum S&T Personnel
?? Increase usage by putting more & more applications
- 20 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Railtel Corporation of India Limited
Introduction
Railways have various communication needs. It is very important for railways to have a
reliable communication system since it is essential for efficient and safe operations of
trains. As such, formation of Broadband Telecom and Multimedia Corporation was
considered by Ministry of Railways. The Corporation registered as Railtel Corporation of
India Limited was incorporated in September 2000.
Communication Requirements for Railways
Railways have various communication requirements as follows:
1. The primary requirement is for control and block communication. Control
communication is required for monitoring from central control office; the running
of trains on a section of 200 to 300 Km. The central control office is connected to
all the stations. Block communication is necessary for safe movement of trains
from one station to the next.
2. Administrative communication requirements that include:
?? Connecting divisional headquarters with important stations
?? Connecting Zonal headquarters with the divisions
?? Connecting Railway Board with Zones
?? Emergency communication for crew of disabled train to talk to section
controllers
3. Use of communication channels for data transmission for:
?? Passenger Reservation System
?? Freight Operation Information System
?? Management Information System
?? Passenger Information System
?? Railnet
- 21 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Thus, as can be seen from above, it is very essential for Railways to have an efficient
communication system. Since DOT was unable to meet the stringent requirements of
Railways’ communication, Railways have started developing their own communication
network.
Current Status of Railways’communication network
At present Railways have obsolete and over aged communication systems like overhead
alignment, analog microwave, and underground copper cables. Now, these systems are
being replaced by Optical Fiber Cable (OFC) and digital microwave. Further, OFCs are
to be provided in lieu of overhead alignment on sections that are being electrified (as
OFC is not affected by the electro – static and electro – magnetic interference caused by
25 KV electrified lines).
Railways are now providing for Synchronous Digital Hierarchy (SDH) transmission
equipment. This system creates a minimum bandwidth of 155 mbps whereas; railways
are using only 2 mbps at wayside stations. Further, analog microwave links of 120
channels are being replaced by digital microwave links that have 34 mbps system (480
channels).
Thus, it can be seen that OFC and digital microwave links have resulted in generation of
surplus telecom capacity at railway stations as well as at major junctions. However, this
excess capacity is being unutilized at present.
Potential
Railways have uninterrupted Right of Way (ROW) along 62,800 Route Km of railway
track passing through 7000 stations. Further, the stations at major cities are located in the
central business districts (CBDs). OFC is a preferred transmission media for data and
voice over long distance. Right of Way is critical for laying OFC and hence railways are
ideally suitable for laying of OFC for creating nationwide network. Considering these
factors and the resource crunch that Railways is facing, it has been decided by Railways
to use surplus telecom capacity and ROW to build nationwide OFC based broadband
telecom and multimedia network.
- 22 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Creation of Railtel
Railway Budget 2000 - 2001 provided for implementation of this plan through a separate
professionally managed corporation viz. Railtel Corporation of India Limited (RCIL).
RCIL is set up as a 100% PSU and is registered with the Registrar of Companies under
the Companies Act, 1956.
Objectives of Railtel
Following are the main objectives of Railtel Corporation
1. To modernize railways train control, operational and safety systems and networks.
2. To create a nationwide broadband telecom and multimedia network to supplement
national telecom infrastructure to spur growth of telecom internet and IT enabled
value services in all parts of the country specially rural, remote and backward
areas.
3. To generate the revenues needed for implementing Railway’s developmental
projects, safety enhancement and asset replacement programs.
4. To significantly contribute to realization of goals and objectives of National
Telecom Policy, 1999.
Demand Potential
Nature of demand: Demand in long distance telecom market is geographically dispersed.
Demand for long distance voice and data traffic is expected to grow on account of the
following reasons:
?? Increase in number of telephone subscribers - both fixed and mobile
?? Additional facilities like internet, WAP being provided to mobile users will lead
to an increase in the demand for bandwidth
?? Opening of domestic long distance traffic for competition and reduction in long
distance tariffs
?? Increase in data traffic due to rise in internet subscribers and due to value added
services like video conferencing etc.
- 23 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
TRAI and CRIS INFAC study
Cumulative annual growth rate of 11% in 5 years from 1993-98 was observed with total
long distance communication traffic estimated at Rs.12,000 Crores.
As per independent rating agency CRIS INFAC: CAGR of 14% for voice traffic for
Domestic Long Distance (DLD) market. Market size for voice and fax traffic is estimated
to be Rs.20,400 Crores by 2004-05. Following tables show the estimated growth in
various sectors:
Estimated Sector Sizes
Estimated Size (Rs.
CAGR
Crores)
TRAI Study:
Long distance voice 11% in last 5 years 12,000
Communication traffic
CRIS INFAC: 14% 20,400 (by 2004-05)
DLD market for voice traffic
ISP/data services market1 67% in next 5 years 5,891 (by 2005)
- Internet access market 75% with no. of Internet 5,392
users to increase from 1.7
to 18 million
- Virtual Private Network 37% in next 5 years 282
- Corporate leased lines 27% in next 5 years 216
National inter circle long 12% 5,508 (by 2005)
distance voice market
1
Consultant’s estimates
- 24 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Bandwidth Demand
2000 2005 2000 (Rs. 2005 (Rs.
CAGR2
(Gbps) (Gbps) Crores) Crores)
Total Market 59% 18 186 801 3,145
ISP 116% 3 142 286 2,284
NLDO 28% 4 13
Basic intra circle 17% 10 23 472 680
Demand
Cellular 52% 1 8 43 181
Technical Plan for Network Deployment
Introduction
Out of the 155 MBPS bandwidth available, Railways will require 2 –8 MBPS and the
remaining capacity will be utilized for providing Internet, STD/ISD services or other
purposes at rural and remote areas.
Under this plan, RCIL will initially provide bandwidth to the service providers as
following:
?? Phase 1: A network connecting the four metros and four other important cities,
viz. Ahmedabad, Pune, Hyderabad and Bangalore will be implemented (10,020
Route Km)
?? Phase 2 – 4: 25,323 Route Km will be covered in the space of seven years3
?? Out of the above, 4,899 Route Km OFC has been laid, 15,163 Route Km is Work
In Progress
2
For the period 2000 - 2005
3
Refer Appendix 2
- 25 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
ISP/NLDO Business
?? To fulfill the roll – out obligation of National Long Distance Operations (NLDO),
RCIL has to establish Optical Fiber Cable (OFC) network on 38,000 Route Km –
35,000 Route Km along the railway tracks (covering 287 out of the 325 Long
Distance Charging Areas (LDCAs)) and the remaining 3,000 Route Km on those
Right of Way (ROW) where it is currently not available with the railways
?? Presently, RCIL plans to lay OFC along 33,000 Route Km only. The remaining
LDCAs will be covered by providing wireless/leasing bandwidth
?? If the communication is extremely poor in certain sections, RCIL will provide the
OFC. However, this will be provided by the corporation and the rentals will be
provided by the Railways on cost plus basis
Estimated Market Share
Segment Market Share Revenue (Rs. Crores)
Backbone Bandwidth Sale 19% 606
- ISP 20% 471
- Basic/ NLDO operators 7.8% 52
- Cellular Services 30% 54
- Corporate Leased Line 13% 29
ISP/Data Services 9.1% (by 2005) 538
Long Distance Voice
9.4% (by 2005) 516
Services
Internet Access Market 7.68% 417
Corporate Virtual Private
24% 67
Network
Leased Lines 25% 54
Railways’Asset Contribution
?? Leasing of ROW will be done. Microwave stations, land and building use will
also be leased to the corporation
- 26 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
?? The valuation of this lease/transfer of assets by the Railways, the Konkan Railway
Corporation and IRCON International Limited (which has OFC network along the
Ahmedabad – Vadodara – Surat section) is at Rs. 606 Crores. The decision on
whether this contribution by the two corporations will be a part of their equity in
RCIL or it will be the Railway’s equity alone with compensation to KRCL and
IRCON is to be taken
Asset Contribution Breakup
Rs. (Crores)
Right of Way 375
Optical Fiber Cable 108
Work In Progress 60
Land/ Building 47
Microwave Capacity and Infrastructure 16
Investment
The total investment required for the proposed 33,000 Route Km of OFC is Rs. 3,461
Crores. However, RCIL intends to adopt the Smart Build Approach wherein another
company will be laying the OFC along the railway track using Railway’s ROW in return
for the dark fibers to RCIL and thus reducing the cost of building of the network. Though
this introduces another competitor, RCIL hoped to market its telecom products better due
to its reduced network creation cost. With this, RCIL hopes to reduced its investment to
Rs. 2561 Crores and the required year wise investment is as follows:
Year 2001 2002 2003 2004 2005 2006 2007
Investment 410 146 892 146 547 61 359
RCIL will lay 15,000 Route Km OFC initially on its own and then employ the ‘Smart
Build’Approach. This may put in an additional expenditure of Rs. 182 Crores, which
should be partially offset by a reduction in the cost of electronic equipment.
- 27 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Initially, Railways will hold 100% equity, which will be reduced to 51% in the short
term. As Railways are transferring their rights and assets worth Rs. 606 Crores, part of
this value of assets will form Railway’s equity and the remaining will be debt.
Following are the three options of the debt equity ratio that have been considered by
Railways:
? ? Option 1: Out of assets worth Rs. 606 crores transferred to Railtel, Rs. 350
Crores is kept as debt and the remaining Rs. 256 Crores is equity. Further the
equity to the JV partner is issued at a premium of 1:2. Thus for issue of equity of
Rs.150 Crores, Rs. 300 Crores will be the premium on equity. The requirement of
bridge financing for paying back the debt to the Railways will be Rs. 350 Crores.
The JV will be 62 – 38 in favor of the Railways.
? ? Option 2: Rs. 150 Crores is kept as debt and the remaining Rs. 456 Crores is
equity. Conservatively estimating the JV equity to be at par at Rs. 150 Crores, the
need for bridge financing will be Rs. 150 Crores. The JV will be 67 – 33 in favor
of the Railways.
? ? Option 3: Entire Rs. 606 Crores is kept as equity. The bridge financing
requirements will be zero no debt is being repaid to the Railways. JV partner(s) is
expected to bring Rs. 150 Crores equity at par. The JV will be 67 – 33 in favor of
the Railways.
After due deliberation and the following considerations, option 2 is considered as the best
suitable:
1. In the initial stages, the expectation that the JV partner will be subscribing to the
equity at a premium of 1:2 may not be achievable. As such, option 1 is not
achievable.
2. If the promoters have less equity, the business proposition will not be considered
attractive by the lenders.
Business Financials and Revenue Model for Railtel
- 28 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
As seen above, the Option 2 is considered as the most suitable option. As such, the
financial statements have been developed for Railtel considering this option. Following
are the main features of the revenue model developed for Railtel4.
?? Revenues: Revenues to Railtel comprise of Wholesale Bandwidth sale revenues
and Services Revenues. Wholesale Bandwidth sale revenues constitute revenues
from sale of capacity for long distance voice, sale of capacity to ISPs, sale of
capacity to Cellular operators and sale of capacity for corporate leased lines.
Services revenues include revenues derived from services to NLDO, Corporate
leased lines, Corporate VPN and revenue from retail ISP to corporates. Total
Revenues for Railtel are expected to be 61.66 crores in 2001 and are expected to
grow to Rs. 1660 crores in 2005 and to Rs.2372 crores in 2007.
? ? Profits: Railtel is expected to have negative EBITDA i.e. cash loss to the extent
of Rs.39 crores in 2001. However, it is expected to have cash profit from 2002
onwards. EBITDA is expected to rise from Rs.298 crores in 2002 to Rs.1137
crores in 2005 and to Rs.1680 crores in 2007. Railtel is expected to suffer total
loss to the extent of Rs.201 crores in 2001. It is expected to have Earnings after
tax of Rs.53 crores in 2002 that are expected to increase to Rs.389 crores in 2005
and to Rs.779 crores in 2007.
? ? Net Present Value (NPV): The potential of RCIL in terms of NPV has been
assessed at Rs. 2,775 Crores
? ? Return on equity: On the basis of revenue plan developed on the basis of option 2
as mentioned earlier, return on equity is expected to be 24% by Year 2005.
Implementation Plan
1. The telecom assets and the ROW will be immediately transferred/leased to the
Corporation
2. The Corporation will start completing the missing links for connecting the four
metros viz. Delhi, Mumbai, Chennai and Kolkata as well as the four important
cities viz. Ahmedabad, Hyderabad, Pune and Bangalore.
4
For projected income statement of RailTel, refer Appendix 3
- 29 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
3. The Corporation will take IP – II Licence immediately so as to sell the surplus
capacity available on the existing OFC links, which will be transferred, to the
Corporation. The surplus bandwidth on the microwave links will also be
leased/rented to the service providers. This will be transferred to OFC in due
course of time as and when commissioning takes place.
4. The Corporation will apply for NLDO licence as soon as Phase I is completed
Synergy with Railways
RCIL will be serving the communication needs of the Railways by modernizing
Railways’ communication infrastructure. The availability of bandwidth on the railway
stations will facilitate Railways in providing passenger amenities like information
system, reservation through Internet, Internet and STD/ISD kiosks on stations, etc.
Possible Synergies with PSUs of the Department of
Telecommunication
RCIL will have the right of way for creating nationwide optical fiber cable backbone for
becoming a long distance operator. In case of a JV with Mahanagar Telephone Nigam
Limited or with Videsh Sanchar Nigam Limited there will be synergies between the
infrastructure, technical know – how and customer base of MTNL for basic services,
VSNL for internet services and OFC based backbone of RCIL. Such a venture may also
utilize the NLDO licence available with VSNL for providing long distance services.
Competitor Analysis
The following parameters will be utilized to evaluate the competition that RCIL may face
in the future.
- 30 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
Facilities Assessment
The facilities for long distance communication are switches, transmission media and
transmission systems. Optical Fiber Cable (OFC) offers advantages over other
transmission media for DLD carriage. Technological developments are making it
possible to create higher capacities over a single pair of fibers, resulting in connectivity
acquiring greater significance than system capacities. Further, an entity requires Rights
of Way (RoW), if it has to deploy OFC along a route. RoW is a critical asset since it
entails costs and time spent on obtaining approvals from various authorities.
Existing OFC Infrastructure
At present, most of the DLD infrastructure in the country is with DoT, which has
76,000 Rkm of OFC in comparison to 3,000 Rkm with other agencies. The Railways
have approximately 1,500 Rkm of OFC. Basic and cellular licensees have also
established limited infrastructure in their circles, since they are allowed to carry long
distance calls of their subscribers within their service areas. Further, there are certain
organizations that use captive telecommunication networks, mainly for their internal
operational purposes. Railways, Power Grid Corporation of India Ltd. (PGCIL) and
GAIL are principal among these.
In comparison, the state-level infrastructure of private operators is tuned to telecom
traffic requirements. Bharti Telenet Ltd (BTL), the basic operator in Madhya Pradesh,
has around 1,700 Rkm within the state.
Planned Facilities
If plans of all the private network owners (including utilities and operators) fructify by
2003, alternative OFC network in the country will be around 70,000 Rkm. Meanwhile,
as per its perspective plan, DoT plans to add 1,36,000 Rkm of OFC by 2003.
NTP ’99 permits usage of existing backbone networks of public and private power
transmission companies, Railways, GAIL, ONGC and others immediately for national
- 31 -Indian Railways IT Interface
Abhishek Kumar, Amit A Gadgil, Ananta N Satapathy, Rajesh U, Sandeep R Prabhudesai
long distance data communication and from January 1, 2000 for national long distance
voice communications.
Right of Way (RoW)
Deployment of OFC requires access to space along the routes, since it is a terrestrial
medium. OFC can be laid underground or strung along poles and either option requires
access to ways along routes.
DoT has the RoW due to the statutory authority granted to it by the Indian Telegraph Act.
There are several other organizations with transmission and distribution networks such as
Indian Railways (Railways), State Electricity Boards (SEBs) and, Ministry of Surface
Transport (MOST), which have the RoWs by virtue of their existing networks.
RoW represents an important asset, which the owner could either sell for a price or
leverage to enter the telecom business. MOST charges private operators for deploying
their cables along the National Highways. With organizations such as MOST charging
Rs. 50,000 per km, access to RoW offer considerable cost advantages. Power Grid
Corporation of India Limited (PGCIL) is entering into an arrangement with SEBs to
utilise their RoW for creating telecom transmission infrastructure.
A few organizations have access to RoW and therefore are better placed to build
facilities. Also the technological developments are leading to availability of much higher
capacities on a single fiber.
Main Competitors
Department of Telecommunications
DoT’s long distance infrastructure is presented in the following table.
DoT Infrastructure
1993 1994 1995 1996 1997 1998
Transmission Systems
Coaxial (Rkm) 28,439 29,287 30,526 30,957 30,957
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