High-tech Train of Thought: All You Need to Know About Railways' Innovation Policy

The Central government has on April 21 reportedly introduced an “innovation policy” for technical improvements in the Indian Railways.

It is believed the policy will engage innovators, start-ups and entrepreneurs to work with the railways.

According to Hindustan Times, an unnamed railways official said this was the first time the Indian Railways has proposed such a policy with the goal of generating inventive ideas that will help in its technological development.

“We had gathered necessary vital inputs from all areas. This policy will help in getting rid of old and long procedures and getting new people and ideas to the railways,” the official further said.

Another official familiar with the matter said: “The process of selection of innovation partners will be executed online in an open, fair and transparent manner through a dedicated portal, which is likely to be activated by the end of April.”

According to the second official, the policy establishes an enabling environment for Indian innovators, start-ups, entrepreneurs, micro, small, and medium companies (MSMEs), research and development organisations and technology developers to collaborate with the Indian Railways to create innovative technological solutions.

A letter sent to all general managers said the policy documents provide a comprehensive framework for the ministry of railways’ interaction with innovators in the development of railway technology, goods and need-based solutions.

However, as per the policy, entrepreneurs and innovators would be granted financial assistance in the form of project awards. One of the officials stated the railways will be responsible for half the project’s total cost and it will provide a significant boost to new business owners.

The person added, “Once approved, the innovator will have high chances of being awarded more contracts.”

Lalit Chandra Trivedi, an ex-officer of the Indian Railway Service of Mechanical Engineers and the Chairman of the Rail Division of the Indian chapter of the Institute of Mechanical Engineers, had spoken to News18 regarding this policy.

While calling it a “much-awaited”, he said, “So far, the IR is dependent upon Transfer of Technology (TOT) arrangements with multinationals based in developed countries. In fact, till recently, the IR, in its procurement tenders, used to award a lower rate to developmental sources, which has recently been reversed. As follow-up measures towards India’s ‘Atmanirbhar Bharat’ policy initiative, it’s a step in the right direction.”

“This policy will help the railways in cutting down the cost of procurement of costly spares. In addition, in today’s world, which is full of geopolitical uncertainties on account of pandemic, war etc., this policy will ensure reliable indigenous supplies of critical spares for the industry,” he added.

Trivedi further said: “The government is taking initiatives in multiple areas to improve the business ecosystem. In IR, for almost all projects, the funds are guaranteed today. Recently, a wagon procurement tender worth Rs 35,000-crore was issued, which envisages procurement of 30,000 wagons each year for the next three years, providing visibility to the wagon and associated industries.”

“Tenders for procurement of whole train sets are being awarded to the private sector to broaden the manufacturing base of railway coaches, which was so far restricted to the railways’ production units. The Mumbai Railway Vikas Corporation’s (MRVC) tender for 200 air-conditioned rakes for local train services is also understood to be in the offing. Most of these measures will result in improved reliability of supplies and also provide boost to export of spares and engineering goods,” he said.

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