The Future of Technology Transfers to Indian Companies : Manufacturing for Railways Sector

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 ):

1. PPP Projects : Stations , New Metro Projects , Rail Connectivity to Ports ( Participative Model Policy) 
2. Obsolescence Management : Ageing Fleet of Railways , Replacement of Key Components , Metro Rail – Delhi
3. Last Mile Connectivity : Seamless Travel for Passengers providing Connectivity to Homes , Offices etc 
4. Security & Safety : Data , Passengers , Crossings, & Systems. 
5. Data Management : Big Data
6. Passenger Services : Ticketing , Meals , Safety
7. Civil Engineering : Cost Escalation Management , Project Delivery 
8. Solar Power : Panels Installations on Trains , Stations , Specific Areas
9. Green Initiatives : Energy Efficiency , Wastage Reduction 
10. Logistic Parks : Development in Green Field Areas 
11. Tunneling : Timely Breakthroughs , Higher Capacities
12. Bridges : New Challenges 
13. Rolling Stock : New Parts, Components and Assemblies  
14. 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 : 

1. High Cost of Technology
2. Reluctance by Overseas Companies to part with High Tech technology. 
3. Volumes are limited for Indian market for certain components / parts / services 
4. Unexpected Order Books by Rail Operators / Major Subcontractors 
5. High Investment needed for Expansion , Manufacturing of New Products
6. Human Resources / Training Limitations 
7. Regulatory Requirements 

Bridging the Gap … How ?

1. Technology Transfer Combined with Indigenous Manufacturing .
2. Export Potential ( Projects in Middle East , South Asia , Europe and North America ) 
3. Preference for allotment of tenders to new manufacturers.
4. Homogenization of standards for parts / components.  
5. Training to Skilled Man Power. 
6. Provide manufacture incentives and tax benefits. 
7. Qualitative Manufacturing Focus 
8. International promotion of Make in India drive.
9. Support SMEs to adopt new technologies 
10. Simplified procedures for Closer Partnerships with Technology Providers
    

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    (Sources: PIB , Wikipedia, MAKE in India , Rail Analysis India)