The Railway Sector in India provides a huge opportunity for manufacturing in India.
Although Indian Companies are adopting more innovative approaches to meet the rising demand of the Rail Sector in India , Foreign Companies have a big role to play in the development of this sector bringing in technologies , experience and human capital .
Different Railway Projects Under Development ( Projects ) :
- Mass Transit Projects : Metro , Light Rail ETC
- Freight Corridors : DFCC , Logistic Parks
- Semi – High Speed Rail Project
- High Speed Rail Projects : MAHSR
- Modernization of Traditional Systems
- Up Gradation of Existing Railway Tracks
- Expansion of Network
- Railway Station Modernization
Technologies / Expertise Required ( Opportunities The Above Projects Bring for Companies ):
- PPP Projects : Stations , New Metro Projects , Rail Connectivity to Ports ( Participative Model Policy)
- Obsolescence Management : Ageing Fleet of Railways , Replacement of Key Components , Metro Rail – Delhi
- Last Mile Connectivity : Seamless Travel for Passengers providing Connectivity to Homes , Offices etc
- Security & Safety : Data , Passengers , Crossings, & Systems.
- Data Management : Big Data
- Passenger Services : Ticketing , Meals , Safety
- Civil Engineering : Cost Escalation Management , Project Delivery
- Solar Power : Panels Installations on Trains , Stations , Specific Areas
- Green Initiatives : Energy Efficiency , Wastage Reduction
- Logistic Parks : Development in Green Field Areas
- Tunneling : Timely Breakthroughs , Higher Capacities
- Bridges : New Challenges
- Rolling Stock : New Parts, Components and Assemblies
- Electrification : Complete Electrification
Indian Companies Can Definitely Scale up / Adopt Latest Technologies to Manufacture / Provide Services in India For the above projects.
The Role of “Make in India” :
The Government of India ( GoI) now has put immense importance of manufacture / procure 70 % of the components for the projects in India Under the “Make in India” Initiative .
The Make in India initiative was launched by Prime Minister in September 2014 to provide a common platform about policies and procedure to enable ease of business for companies looking to manufacture in India .
The effects of this could be felt when , among other things , This initiative led to India jumps 30 points to reach top-100 club in the Ease of Doing Business 2018 rankings ( 31 Oct , 2017 ) .
Technology Transfer By Experienced Companies in EU , Asia or Else:
Technology Transfer (also called Transfer of Technology (TOT) ) ( in this context ) is the process by which technologies can be transferred / shared between experienced companies from Europe / Asia and Other parts of the world to Companies in India for development and utilization of these technologies in India .
For Technology Innovation and Adoption , Developed countries follow the route:-
Research -> Development -> Design -> Production
While less advanced and developing countries follow the reverse route and can change from depending on the project .
Challenges faced during Technology Transfers :
- High Cost of Technology
- Reluctance by Overseas Companies to part with High Tech technology.
- Volumes are limited for Indian market for certain components / parts / services
- Unexpected Order Books by Rail Operators / Major Subcontractors
- High Investment needed for Expansion , Manufacturing of New Products
- Human Resources / Training Limitations
- Regulatory Requirements
Bridging the Gap … How ?
- Technology Transfer Combined with Indigenous Manufacturing .
- Export Potential ( Projects in Middle East , South Asia , Europe and North America )
- Preference for allotment of tenders to new manufacturers.
- Homogenization of standards for parts / components.
- Training to Skilled Man Power.
- Provide manufacture incentives and tax benefits.
- Qualitative Manufacturing Focus
- International promotion of Make in India drive.
- Support SMEs to adopt new technologies
- Simplified procedures for Closer Partnerships with Technology Providers
(Sources: PIB , Wikipedia, MAKE in India , Rail Analysis India)