Industrial Policies of India
● 1948: First Industrial Policy:
○ State Role: Entrepreneur and authority in a mixed economic model.
○ Industry Classification:
■ Strategic (Public Sector): Central government monopoly (e.g., arms,
atomic energy, rail).
■ Basic/Key (Public-cum-Private): Government-led (e.g., coal, steel,
ship-building).
■ Important (Controlled Private): Private-led, centrally controlled.
■ Other (Private & Cooperative): Open to private sector.
○ Industries (Development and Regulation) Act, 1951: Implemented 1948
policy.
● 1956: Industrial Policy Resolution:
○ Reservation:
■ Schedule A: 17 sectors for central government monopoly.
■ Schedule B: 12 sectors for state initiatives with private follow-up.
■ Schedule C: Open to private enterprise.
○ Licensing Regime: Licence-Quota-Permit system to prioritize heavy industries,
reduce regional disparities, support small industries/agriculture.
Import Substitution in India
● Objective: Replace imports with domestic production for self-reliance.
● Protection Mechanisms:
○ Tariffs: Increased import costs.
○ Quotas: Limited imported goods to protect local industries.
● Rationale:
○ Protected nascent industries.
○ Conserved foreign exchange.
○ Focused on domestic market; export focus began in mid-1980s.
● Impact (1951-1991):
○ Industrial GDP share grew from 13% (1950-51) to 24.6% (1990-91).
○ Diversified from textiles to electronics and automobiles.
○ Boosted small-scale industries.
● Criticisms:
○ Public sector inefficiencies in areas suited for private sector.
○ Permit-License Raj: Stifled innovation, favored large firms.
○ Low-quality products due to lack of foreign competition.
● Shift to Liberalization (1991):
○ New Economic Policy introduced reforms for deregulation, competition, and
global trade integration.
● 1991: New Industrial Policy:
○ De-reservation: Only atomic energy and railways reserved for public sector.
○ De-licensing: Licensing abolished except for aerospace, defense, hazardous
chemicals.
○ Disinvestment:
■ Token: Sale of ≤49% PSU shares, retaining government control.
■ Strategic: Sale of ≥51% PSU shares, transferring control.
■ Managed by Department of Investment and Public Asset Management
(DIPAM).
○ Foreign Investment: Liberalized to encourage FDI.
National Manufacturing Policy, 2011
● Goals:
○ Manufacturing growth of 12-14% (medium term).
○ Contribute 25% to GDP by 2022.
○ Create 100 million jobs by 2022.
○ Enhance domestic value addition, technological depth, global competitiveness,
sustainability.
● GVA Growth (FY14-FY23):
○ Chemicals: 9.6%, Pharmaceuticals: 6.7%, Machinery: 8.3%, Transport
Equipment: 6.5%, Manufacturing Overall: 5.3%.
Labour Laws in India
● Constitutional Context: Labour is a concurrent subject.
● New Labour Codes: Consolidated 29 laws into four codes:
○ Code on Wages, 2019:
■ Nationwide minimum wage, states can set higher rates.
■ Defines wage components (basic pay, dearness allowance).
■ Wages payable within two days of wage period end.
○ Occupational Safety, Health and Working Conditions Code, 2020:
■ Unifies 13 labour laws.
■ Sets workplace health, safety, welfare standards.
■ Empowers inspectors, mandates safety committees.
○ Social Security Code, 2020:
■ Merges nine laws for simplified benefits access.
■ Covers organized/unorganized sectors.
■ Enhances benefit transferability, transparency via centralized systems.
○ Industrial Relations Code, 2020:
■ Unifies laws on trade unions, disputes, standing orders.
■ Introduces fixed-term employment, easier retrenchment.
■ Expedites dispute resolution via conciliation/arbitration.
■ Mandates worker committees for establishments with ≥100 workers.
National Investment and Manufacturing Zones (NIMZs) and Special Economic Zones
(SEZs)
● NIMZs (National Manufacturing Policy, 2011):
○ Objective: Accelerate industrialization, job creation, increase manufacturing
GDP share.
○ Features:
■ Minimum 5,000 hectares, no upper limit.
■ Integrated townships with schools, hospitals, utilities.
■ Focus on high-value manufacturing ecosystems.
■ State conducts Environmental Impact Assessment (EIA).
■ Incentives similar to SEZs but broader industrial focus.
○ Approved NIMZs: Prakasam (Andhra Pradesh), Sangareddy (Telangana),
Kalinganagar (Odisha).
Industrial Growth and Manufacturing in FY24
● Economic Growth: India’s economy grew 8.2% in FY24; industrial growth at 9.5%.
● Sector Performance:
○ Manufacturing and construction: Double-digit growth.
○ Mining, quarrying, electricity, and water supply: Positive growth.
● Manufacturing Contribution:
○ 14.3% of Gross Value Added (GVA) in FY23.
○ 35.2% of total output; 47.5% used as inputs for productive activities.
○ Supplies 50% of inputs for agriculture, industry, and services.
● Growth Trends (Last Decade):
○ Average annual manufacturing growth: 5.2%.
Public Sector Undertakings (PSUs)
● Definition: Government-owned companies with ≥51% equity held by Union/State
governments.
● Categories:
○ Miniratna Category I:
■ Criteria: Continuous profit for 3 years, net profit ≥₹30 crore in one year.
■ Autonomy: Capital expenditure up to ₹500 crore or net worth (whichever
is lower).
○ Miniratna Category II:
■ Criteria: Continuous profit for 3 years, positive net worth.
■ Autonomy: Capital expenditure up to ₹300 crore or 50% of net worth.
○ Navratna:
■ Criteria: Miniratna-I status, “Excellent”/“Very Good” MoU rating in 3/5
years, composite score ≥60 in six performance indicators.
■ Autonomy: Invest up to ₹1,000 crore, enter joint ventures/mergers without
approval.
■ Examples: Bharat Heavy Electricals Ltd, BPCL, Power Grid Corporation.
○ Maharatna:
■ Criteria: Navratna status, net worth >₹15,000 crore, turnover >₹25,000
crore, operating profit >₹5,000 crore for 3 years, listed on Indian stock
exchange, global presence.
■ Autonomy: Invest up to ₹5,000 crore, form joint ventures abroad, raise
project resources independently.
■ Examples: Coal India Ltd, Indian Oil Corporation, ONGC.
● Performance: Profit-making CPSEs increased from 178 (FY19) to 193 (FY23);
loss-making decreased from 70 to 57.
Micro, Small, and Medium Enterprises (MSMEs)
● Small-Scale Industry:
○ Karve Committee (1955): Promoted small industries for rural development; initial
investment limit ₹5 lakh, later raised to ₹1 crore.
○ Labor-Intensive: Generated jobs, supported by tax benefits, low-interest loans,
and reserved product categories.
● MSMED Act (2006):
○ Manufacturing Enterprises: Produce goods.
○ Service Enterprises: Provide services.
● Classification:
○ Micro: Investment ≤₹1 crore, turnover ≤₹5 crore.
○ Small: Investment ≤₹10 crore, turnover ≤₹50 crore.
○ Medium: Investment ≤₹50 crore, turnover ≤₹250 crore.
● Economic Contribution:
○ GVA share in GDP: 30.1% (2022-23). Trend - Zig Zag
○ Manufacturing output: 35.4% (FY22).
○ Exports: 45.7% of all-India exports (2023-24).
○ Productivity: GVA per worker rose from ₹1,38,207 to ₹1,41,769; GVO per
establishment from ₹3,98,304 to ₹4,63,389 (2021-23).
● Formalisation:
○ Udyam Registration Portal (July 2020): 4.69 crore registered MSMEs (July
2024).
○ Benefits: Priority sector lending, access to government schemes.
● Initiatives:
○ Samadhaan Portal: Addresses delayed payments.
○ Sambandh Portal: Monitors procurement.
○ Champions Portal: Facilitates grievance resolution.
Industries Requiring Compulsory Licensing
● Drugs and pharmaceuticals.
● Hazardous chemicals, gunpowder, industrial explosives.
● Aerospace and defense-related electronics.
● Alcohol drinks, tobacco, cigarettes.
One District One Product (ODOP) Initiative
● Launched: 2018.
● Objective: Promote unique district products for regional economic balance.
● Achievements:
○ 1102 products across 761 districts.
○ Unity Malls for ODOP and GI-tagged products.
○ Global visibility via G20 events.
● Success Stories:
○ Bhatinda (Punjab): Honey, 30% production rise.
Coal Sector
● Nationalization: Coal sector nationalized (1971-73) under Indira Gandhi.
● Coal Mines (Special Provisions) Act, 2015: Enabled coal mine allocation via
auction/allotment for private sector sales.
● Role in Energy:
○ Supplies >55% of India’s primary commercial energy, 70% of power generation.
○ FY24 Metrics:
■ Production: 997.2 million tonnes (MT).
■ Consumption: 1233.86 MT.
■ Imports: 261 MT.
○ Improved domestic production-to-consumption ratio over the last decade.
● Trends (CAGR):
○ FY14-FY19: Production (5.2%), Consumption (5.6%), Imports (7.1%).
○ FY19-FY24: Production (6.5%), Consumption (5.0%), Imports (2.1%).
○ FY24 (YoY): Production (11.7%), Consumption (10.7%), Imports (9.8%).
● Initiatives:
○ Coal Gasification: Target to gasify 100 MT by 2030; ₹8,500 crore scheme
(2023-24) for viability gap funding.
○ Integrated Coal Logistics Policy (2024): Cost-effective, tech-advanced coal
evacuation.
○ Amended Coal Blocks Allocation Rules (2023): Streamlined allocation
procedures.
○ Renewable Energy by CIL: 3,000 MW renewable capacity for mining by FY26;
8.60 million solar units in 2023-24.
○ First Mile Connectivity: Enhanced coal evacuation via high-capacity
plants/silos.
○ Critical Minerals: Focus on acquiring lithium and cobalt assets.
● Challenges:
○ Limited indigenous modern mining equipment.
○ Regulatory delays (forestry, environmental clearances, land acquisition).
○ Coking Coal: 85% imported for steel industry; rising demand requires better
beneficiation (Coking Coal Mission).
● Opportunities:
○ Cleaner coal technologies to reduce emissions.
○ Coal as green energy via Coal Mine Methane (CMM), Coal Bed Methane (CBM),
coal-to-liquid, coal-to-methanol.
● Production-to-Consumption Ratio:
○ FY14: 76.6%, FY19: 78.6%, FY24: 80.8%.
National Coal Index
● Purpose: Calculates government revenue share from coal mine auctions.
● Developed by: Indian Statistical Institute, Kolkata.
Make in India and Startups
● Make in India (2014):
○ Objectives: Boost manufacturing growth, create 100 million jobs by 2022,
achieve 25% GDP share by 2025.
○ Make in India 2.0: Focuses on 27 sectors (15 manufacturing, 12 services).
● Startup India (2016):
○ Promotes entrepreneurship, innovation in technology/services.
○ Offers tax exemptions, simplified regulations.
● Stand Up India (2016):
○ Facilitates loans (₹10 lakh-₹1 crore) for SC/ST and women borrowers per bank
branch for greenfield enterprises.
○ Encourages entrepreneurship in manufacturing, services, agri-allied, trading.
● Startup Ecosystem:
○ DPIIT-Recognized Startups: >1.25 lakh by March 2024 (from 300 in 2016).
○ Sectors: 13,000+ in AI, IoT, robotics, nanotechnology (FY24).
○ Geographic Spread: >45% from Tier 2/3 cities.
○ Gender Diversity: >47% startups with at least one woman director.
○ Patents: 12,000+ patent applications (2016-March 2024).
○ Patent Growth: From 5,978 (FY15) to 103,057 (FY24); designs from 7,147 to
30,672.
● Initiatives:
○ Patent Rules, 2024: Simplified patent acquisition/management.
○ Anusandhan National Research Foundation (ANRF) Bill, 2023: ₹50,000 crore
(2023-28) for industry-academia-research collaboration.
○ Fund of Funds for Startups: ₹10,500 crore to 135 AIFs, investing ₹18,000 crore
in startups (FY24).
○ Bharat Startup Knowledge Access Registry: Unified platform for startup
ecosystem stakeholders.
● Global Innovation Index (GII): India ranks 1st among lower middle-income and
central/southern Asian economies; top in domestic market scale.
Production-Linked Incentive (PLI) Scheme
● Objective: Boost domestic manufacturing, reduce import dependency, promote exports
under Aatmanirbhar Bharat.
● Scope: Covers 14 key sectors with ₹1.97 lakh crore outlay.
● Achievements (May 2024):
○ Investment: >₹1.28 lakh crore.
○ Production/Sales: ₹10.8 lakh crore.
○ Employment: 8.5 lakh direct/indirect jobs.
○ Exports: ₹4 lakh crore (electronics, pharmaceuticals, food processing, telecom).
● Incentives:
○ Financial rewards based on incremental production/sales.
○ Promotes large-scale production, technological advancements, global
competitiveness.
○ Open to domestic and international manufacturers.
● Example: PLI for speciality steel attracted ₹15,519 crore, adding 24,780 thousand
tonnes capacity.
UDAN (Ude Desh ka Aam Naagrik) Regional Connectivity Scheme
● Objective: Enhance regional connectivity, make air travel affordable for common people.
● Key Features:
○ Subsidized airfares for regional routes linking smaller cities to urban centers.
○ Targets underserved/unserved airports, especially in remote/rural areas.
○ Develops smaller airports with improved infrastructure for accessibility.
○ Connected >100 airports, boosting regional economic integration and tourism.
PM Gati Shakti National Master Plan
Introduction
● Launch: October 13, 2021, by Prime Minister Narendra Modi.
● Objective: Integrated infrastructure development for seamless multi-modal connectivity
to boost economic growth and global competitiveness by union govt, state govt and pvt
players. (39:39:22)
● Scope: ₹100 lakh crore initiative for holistic infrastructure development over five years.
● Developed by: Bhaskaracharya National Institute for Space Applications and
Geoinformatics (BISAG-N) using a GIS-based digital platform.
Key Features
● Digital Platform: Integrates 16 ministries (e.g., Railways, Roadways, Shipping, Aviation)
for coordinated planning and execution.
● Multi-Modal Connectivity: Links roads, railways, ports, airports, waterways, and mass
transport.
● GIS-Based Tools: Uses ISRO satellite imagery and over 200 data layers for spatial
planning and real-time monitoring.
● Incorporated Schemes: Bharatmala, Sagarmala, UDAN, inland waterways, dry/land
ports.
● District-Level Expansion: District Master Plan (DMP) portals for 27 aspirational
districts, targeting 750 districts by March 2025.
Objectives
● Enhance ease of living and ease of doing business.
● Reduce logistics costs (from 13-14% to -7.5% of GDP).
Achievements
● Infrastructure Projects: Assessed 293 projects worth ₹13.59 lakh crore across 57
ministries.
● Road Transport: Ministry of Road Transport and Highways planned 8,891 km of roads.
● Railways: Planned 27,000 km of railway lines; 449 Final Location Surveys (FLS) in
FY22 vs. 57 in FY21.
● Petroleum and Gas: Electronic Detail Route Survey (DRS) reduced report generation
time from 6-9 months to 1 day.
● Renewable Energy: 13 GW Green Energy Corridor from Leh to Kaithal optimized for
interstate transmission.
● Social Sector:
○ Health: Mapped internet shadow areas for new healthcare facilities.
○ Education: Uttar Pradesh used State Master Plan for school site selection; PM
Shri Schools linked to local industries.
○ Skill Development: Training institutes planned near economic clusters.
● Rural Development: Integrated PMGSY and PMAY-G for better asset planning.
● Disaster Management: Goa used the platform for flood-prone area planning along the
Amona River.
● Global Outreach: Showcased to 30 countries at UNESCAP and Asia Pacific Business
Forum.
Key Facts
● Launch Year: 2021.
● Focus Areas: Transport, logistics, energy, IT, urban planning.
● Key Targets: Reduce logistics costs, improve supply chain efficiency, boost economic
growth.
● Institutional Mechanism: Network Planning Group (NPG) for synchronization; Unified
Logistics Interface Platform (ULIP) for transparency.
Industrial Corridors
● Overview: Government of India is developing 11 Industrial Corridor Projects under the
National Industrial Corridor Programme in phases.
● Key Corridors:
○ Delhi-Mumbai Industrial Corridor (DMIC):
■ Reduces logistic costs, creates smart cities from Delhi to Mumbai.
■ Supported by Japan.
○ Chennai-Bengaluru Industrial Corridor (CBIC):
■ Connects Tamil Nadu, Andhra Pradesh, Karnataka for industrial growth.
■ Supported by Japan.
○ Bengaluru-Mumbai Industrial Corridor (BMIC):
■ Spans Maharashtra and Karnataka.
■ Supported by the UK.
○ Amritsar-Kolkata Industrial Corridor (AKIC):
■ Links Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand,
West Bengal.
○ East Coast Economic Corridor (ECEC):
■ Connects West Bengal, Odisha, Andhra Pradesh, Tamil Nadu.
■ Supported by the Asian Development Bank.
SMILE - Strengthening Multimodal and Integrated Logistics Ecosystem
Type & Funding
● Programmatic policy-based loan from Asian Development Bank (ADB).
● $350 million for second subprogram.
Objectives
● Strengthen inter-ministerial coordination for multimodal logistics projects (MMLPs).
● Promote private sector participation.
● Support India’s National Logistics Policy (NLP) goals.
Key Features
● Promotes smart & automated systems to enhance external trade logistics efficiency.
● Focus on policy reforms and institutional frameworks rather than only building
infrastructure.
● Supports both brownfield and greenfield projects - not exclusive to greenfield.
● Complements PM GatiShakti for integrated infrastructure planning.
Expected Outcomes
● Reduce India’s logistics cost from 13-14% of GDP to global benchmark 8-9%.
● Improve ease of doing business & trade competitiveness.
Prelims Pointers:
● Loan from ADB, not World Bank or AIIB.
● Covers brownfield + greenfield, not greenfield only.
● Focuses on reforms + efficiency + automation, not just infrastructure construction.
India’s Port Sector
Major Ports & Governance
● Governed by Major Port Authorities Act, 2021.
● Operate under Landlord Port Model:
○ Port Authority - owns land & acts as regulator.
○ Private Players - handle operations (cargo handling, terminal management).
● Upcoming example: Vadhvan Port (Maharashtra) - will be India’s 13th major port and a
deep-water container port.
Sagarmala Programme
● Launched: 2015.
● Objective:
○ Port-led industrialization.
○ Reduce logistics costs.
○ Improve export competitiveness.
● Focus Areas:
○ Port modernization.
○ Port connectivity enhancement.
○ Coastal shipping & inland waterways.
○ Promotion of coastal economic zones (CEZs).
● Implementation:
○ Sagarmala Development Company (SDC): Provides equity support for projects.
○ State governments establish state-level committees for implementation
Corporatized Port
● Kamarajar Port (Ennore Port), Tamil Nadu:
○ Only major corporatized port in India.
○ Registered under Companies Act.
○ Different from other major ports governed directly by port authorities.
Key Data
● Share in India’s trade:
○ -95% by volume.
○ -70% by value.
Prelims Pointers:
● Landlord model - asset ownership with port authority, operations with private operators.
● Sagarmala is not just port modernization - it integrates industrialization & logistics cost
reduction.
● Only one corporatized major port - Kamarajar.
Cruise Bharat Mission (CBM)
Launch Year: 2024
Aim:
● Double cruise passenger traffic by 2029.
● Increase cruise calls from 254 (2024) - 500 (by 2030).
● Position India as a leading global cruise tourism hub.
Key Segments (3)
1. Ocean & Harbour Cruises - deep-sea, coastal cruises, yacht tourism.
2. River & Inland Cruises - rivers, canals, backwaters, lakes.
3. Island Cruises - inter-island travel, lighthouse tours.
Implementation
● Lead Ministry: Ministry of Ports, Shipping and Waterways (MoPSW).
● Works in collaboration with states, port authorities, and private players.
● Aligned with Sagarmala Programme for port-led development.
Expected Outcomes
● Boost cruise infrastructure & tourism ecosystem.
● Strengthen coastal and inland waterways tourism.
● Support growth of India’s cruise tourism market (CAGR -14.2% by 2030).
Prelims Pointers:
● CBM is MoPSW-led, not the Ministry of Tourism.
● Covers both coastal & inland cruise tourism.
● Focus on passenger & cruise call growth by set timelines.
Bharatmala Pariyojana
● Objective: Improve India’s road infrastructure under an umbrella program.
● Key Aspects:
○ Develops economic corridors for national and international trade.
○ Focuses on Greenfield (new roads) and Brownfield (upgrades to existing roads)
projects.
○ Builds border and coastal roads for economic and defense purposes.
● Impact: Addresses road infrastructure challenges, reduces logistics costs.
Dedicated Freight Corridors (DFCs)
● Objective: Specialized railway tracks for freight to improve speed and capacity.
● Key Corridors:
○ Eastern Dedicated Freight Corridor (EDFC):
■ Connects Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand, West
Bengal.
■ Funded by the World Bank.
○ Western Dedicated Freight Corridor (WDFC):
■ Spans Haryana, Rajasthan, Gujarat, Maharashtra, Uttar Pradesh.
■ Funded by Japan International Cooperation Agency (JICA).
● Impact: Streamlines freight movement, enhances logistics efficiency.
National Infrastructure Pipeline (NIP)
● Objective: Implement ₹102 lakh crore worth of infrastructure projects by 2024-25.
● Key Features:
○ Covers economic and social infrastructure.
○ Funding ratio: Centre (39%), States (39%), Private Sector (22%).
● Implementation:
○ Guided by the Atanu Chakraborty Committee report for effective execution.
Critical Minerals and District Mineral Foundation (DMF)
● Import Dependence: India relies on imports for 7/12 critical minerals (e.g., lithium,
cobalt, rare earths), except light rare earths and beryllium.
● Applications: Electric vehicles, aerospace, defense, smartphones, medical imaging,
nuclear energy.
● Global Supply: China leads in 6/12 critical minerals for India by 2030.
● DMF:
○ Purpose: Welfare of mining-affected people/areas.
○ Contributions:
■ 10% royalty for leases after Jan 12, 2015.
■ 30% royalty for leases before Jan 12, 2015.
○ Fund Usage: 60% for high-priority areas (education, health), 40% for
infrastructure.
○ Gram Sabha Approval: Required in Schedule V/VI areas.
○ Note: States cannot issue mineral exploration licenses.
National Monetisation Pipeline (NMP)
Announcement & Period
● Announced in Union Budget 2021-22.
● Covers FY 2022-25 (4 years).
Objective
● Monetise brownfield infrastructure assets (already operational assets) to generate
resources for new infrastructure creation.
● Monetisation without transfer of ownership - only operating rights leased/licensed for
a fixed period. Assets revert to government after concession period.
Coverage
● 13 sectors targeted.
● Top contributors:
○ Roads - 27%
○ Railways - 25%
● Total indicative pipeline: ₹6 lakh crore.
Mechanism
● Implemented via concession agreements, InvITs (Infrastructure Investment Trusts),
PPP models.
● Risk-sharing between government & private sector.
National Land Monetization Corporation (NLMC)
● Special Purpose Vehicle (SPV).
● Task: Monetise surplus land of Central Public Sector Enterprises (CPSEs) and other
government bodies.
Challenges
● Delays in land record digitization.
● Regulatory & legal hurdles.
Key Facts
● Only brownfield assets (not greenfield).
● No asset ownership transfer.
● NLMC - land monetisation of CPSEs.
● Largest share - Roads & Railways.
National Industrial Corridor Development Programme (NICDP)
Objective
● Develop futuristic smart industrial cities with:
○ ‘Plug-n-Play’ infrastructure (ready-to-use facilities).
○ ‘Walk-to-Work’ concept (integrated residential & industrial zones).
● Enhance global manufacturing competitiveness & attract investment.
First Corridor
● Delhi-Mumbai Industrial Corridor (DMIC) - approved 2007.
● Spans 6 states, major boost to manufacturing & connectivity.
Implementation Structure
● Lead Bodies:
○ National Industrial Corridor Development and Implementation Trust
(NICDIT) - policy oversight & coordination.
○ National Industrial Corridor Development Corporation Ltd. (NICDC) - project
execution.
● Under DPIIT, Ministry of Commerce & Industry.
● Apex Monitoring Authority chaired by the Finance Minister.
Recent Developments
● Union Budget 2024-25: Proposal for 12 new industrial nodes/cities across 10 states.
Key Facts
● Plug-n-Play = Ready-to-use industrial facilities.
● Walk-to-Work = Live-work integrated township design.
● First corridor - DMIC (2007).
● NICDP not implemented solely by NICDC - NICDIT also involved.
● Under DPIIT (not Ministry of Heavy Industries).
Railway Safety Initiatives
Rashtriya Rail Sanraksha Kosh (RRSK)
● Launched: 2017-18.
● Fund Size: ₹1 lakh crore over 5 years.
● Objective: Upgrade critical railway safety infrastructure.
● Key Focus Areas:
○ Track renewals.
○ Signaling system upgrades.
○ Level crossing elimination.
○ Safety-related rolling stock improvements.
KAVACH System
● Type: Indigenous Automatic Train Protection (ATP) system.
● Functions:
○ Automatically applies brakes to prevent collisions.
○ Works effectively in foggy weather and high-speed operations.
○ Ensures adherence to speed limits.
● Status: Progressive deployment on high-density routes.
Linke Hofmann Busch (LHB) Coaches
● Origin: German design, now manufactured in India.
● Safety Features (vs ICF coaches):
○ Anti-telescopic design - prevents coaches from piling over each other in
accidents.
○ Better crashworthiness.
○ Fire-retardant materials.
● Conclusion: Safer than ICF coaches, contrary to the incorrect claim in statement 3.
Key Trends & Concerns
● Railway accidents declined from 473 (2000-01) to 48 (2022-23).
● Derailments remain the most common cause.
● Priority: Faster rollout of KAVACH across the network.
Prelims Pointers:
● RRSK - ₹1 lakh crore, 5 years, safety infra upgrade.
● KAVACH - ATP system, indigenous, prevents collisions.
● LHB is safer than ICF - anti-telescopic + fire safety.