Subject category:
Finance, Accounting and Control
Published by:
Indian School of Business
Version: September 24, 2021
Length: 8 pages
Data source: Published sources
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https://casecent.re/p/185921
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Abstract
The Indian Railways (IR), the country's largest transporter, is considering a plan to fully electrify its network. The move will cut its fuel expenditure by a whopping 50%. However, the project will require a capital investment of INR350 billion (approximately USD4.9 billion). The proposed investment also requires the IR management to overcome numerous operational changes in areas such as rolling stock, crew, usage of fueling depots, training, disposal of usable diesel locomotives, etc. The electric-based platform appears to be where the industry is headed worldwide, and potential future cost savings may also be possible if the IR moves to this platform. The board of the IR is tasked with examining various aspects of the proposed electrification project and deciding whether or not to approve the idea. The case requires students to determine whether or not the savings are worth the investment and resource allocation.
About
Abstract
The Indian Railways (IR), the country's largest transporter, is considering a plan to fully electrify its network. The move will cut its fuel expenditure by a whopping 50%. However, the project will require a capital investment of INR350 billion (approximately USD4.9 billion). The proposed investment also requires the IR management to overcome numerous operational changes in areas such as rolling stock, crew, usage of fueling depots, training, disposal of usable diesel locomotives, etc. The electric-based platform appears to be where the industry is headed worldwide, and potential future cost savings may also be possible if the IR moves to this platform. The board of the IR is tasked with examining various aspects of the proposed electrification project and deciding whether or not to approve the idea. The case requires students to determine whether or not the savings are worth the investment and resource allocation.