Why we are obsessed with money

What a way to exist!

For most of us, practically the whole day all we are thinking is about money and more specifically how to have more money!

As if money was the only thing in life. Unfortunately for most of us, circumstances just do not permit any other thought!

We are running behind money most of the time which is almost akin to have become obsessed with money. Everything that we are doing in life is centred around money.

Unfortunately, this is because we need money for anything and everything that we do. There’s nothing wrong and what are you doing, however the problem is that over time, it becomes a compulsive habit to keep earning more.

That’s where the danger is. The problem is that there is a point where from we chase money as an addiction, we chase money because we like to do so. If we did not chase money we would not know what to chase now because we get out identity from money and the amount of money we have.

Another thing is that right from childhood we are always taught and our minds are conditioned that everything that we are doing is going to be for the sake of earning money.

There is no one who told you that money is just a means, and then there is something greater in life to achieve. Some examples are legacy; building something, charity; to giving something / helping someone, passion; pursuing something and living; simply to enjoy life and your money

We have got addicted to this and how!

There are three reasons for this:

First, we are what we do. It is the human behaviour. I know I should exercise and I don’t. I know I should eat healthy and I don’t. I know I should spend time with my kids and I don’t. I know that, yes, money isn’t going to make me happy and I still keep trying to make money.

We live by the laws of inertia, in a pattern which is hard to break. But we have to break it. For ourselves and for the sake of people and reasons for which we are chasing money.

Secondly, we need signals of progress. Money is a measure of how far you have progressed in life. The more the money you have the more you can make sure your progress. It’s simply the logic of evolution. People need validation of their success. Bigger house, bigger car, branded goods and list goes on.

Thirdly, it’s the easy way out. It’s only human to avoid difficult things. Important things are very difficult to measure.  Have I been a good father or husband? Have I groomed my child well?  Such things take years to measure and we still don’t have answers.

So, should we not be focused on creating money for ourselves?

I’m not saying that. Definitely create. Take care of yourself for sure!! Use it to the maximum to make yourself happy!!! You need a certain amount and beyond that is extra.

The definition of their certain amount is naturally different from one person to another. If that extra is going to happen easily, without stress and without your involvement, then its fine. Basically don’t kill yourself for that extra. Be Smart.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a certified financial planner, wealth manager and financial freedom coach.

How the RBI actually helps you

RBI

Most of us in Mumbai, see this huge structure called the Reserve Bank of India and wonder what it really does. It’s also a tourist attraction!! It has so many other offices and again one wonders why they need to have so many offices. I’m going to try and highlight a very interesting part of RBI’s work and how it helps us directly on a day-to-day basis.

The RBI does a review of the monetary policy of the country at frequent intervals during the year. So how does the monetary policy help us investors to take smart decisions?

Monetary policy is a tool by which the RBI decides to raise interest rates or reduce interest rates or keep them steady.

In our country, as we’re an oil importing nation, this decision is very closely linked to Oil. Oil to a large extent contributes to inflation. We all know what happens when inflation keeps rising. We in India unfortunately do not see too much of inflation falling and things becoming cheaper.

Oil is Not Well

So when oil prices rise i.e. we see a rise in crude oil prices almost instantly we can expect rising food prices. This is because there is going to be a rising cost pressure for manufacturing & services. This rise obviously gets passed onto the retail consumers.

When this happens RBI adopts a hawkish stance, tries to pull money out of the system by raising interest rates. Now when interest rates rise no one seems to be interested in borrowing. This immediately puts a brakes on money circulation.  Less money chasing goods decreases the demand for money. This way it controls inflation.

There is yet another tool that the RBI has and that is known as the CRR or the cash reserve ratio.  This ratio in simple words means the amount of cash that the bank must maintain with the RBI as the percentage of the total assets. So when this increases banks are forced to park more with the RBI and this is also a way to control inflation.

On the other hand when things look dull, when there is a recession of sorts, the RBI comes to the rescue and gets into action to kickstart growth in the country. It does this by lowering the interest rates. This we all will understand quite easily because we see a direct benefit of this happening. We see a fall of interest outgo in our EMI’s for the home loan that we are carrying. New loans become cheaper.

Individuals are motivated to go out and make purchases, whether it is for a washing machine or a piece of real estate. Businesses are motivated to go out and borrow to buy more machinery, to expand capacity, to hire more staff and manpower and basically do everything that will add to the growth of business.

Economic growth results as a result of all this. It is also during this time that stock market rises, we see a rally in stock prices and mutual fund NAV’s jumping higher and higher each day. There is prosperity all around.

Critical Role

As you can see that the central bank of the country has a very very important role to play.  If it makes a mistake, things can go really wrong.  Imagine like the USA or Japan if our interest rates were very low; everyone would run to borrow, they would borrow more than they require because it would be cheap and easy to borrow. And that is very individuals would run into what is known as the debt trap, because someday you’ll have to pay back.

Each day the central bank attempts to make sure that everything in our country remains stable and financially there’s nothing that goes wrong dramatically.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

The year of the bond, once again!

We are not talking of James Bond, we are talking of investment bonds.

We are in a situation where the fixed deposit rates are at a general low and there is a lot of discontent among depositors of fixed deposits.

Whenever we see a situation like this, one way or the other, the bond markets come to the rescue. It comes to the rescue of smart depositors, who are agile to move their money from fixed deposits to bond funds.

Let’s understand what is happening and why.

What Exactly is Happening in the Bond Markets?

It is likely that in this year, investors of bond funds will make handsome gains. Bond prices may rise and there may be capital gains. Investors of bond funds not only earn the rate of interest, but also earn capital gains. So that way, they make more than the return they would make on fixed deposits. The returns could be a high single digit or sometimes as high as double digits.

Over three years, this will become practically tax free or the tax would be a very small amount. So, basically, I am thinking that a rally will happen in the bond market. There are three main reasons for this — reduction in government borrowing (which is favourable), recovery of trading losses (which is favourable) and no change in monetary policy (which is neutral).

A word of caution, however, that such bond market investments are also subject to bond-market volatility and should be considered ideally with the help of a financial expert.

Before proceeding further, let us, therefore, quickly explain a bond, bond fund and bond market. We need to do this because few people understand the bond markets and even fewer invest in the bond markets.

Bond is nothing, but a commercial transaction where the borrower is issuing a bond to the lender and the lender will earn a certain rate of interest. When interest rates fall, everyone becomes interested in owning that bond.

As a result, the demand for the bond increases, the price of the bond increases and the bondholder makes capital gains.

A bond fund is a fund where ordinary investors pool in their money and a fund manager buys them a portfolio of bonds.

Moving onto the Reasons For a Rally in Bond Funds…

Now, the fundamental reason for a rally is reduction in interest rates as it stimulates economy and growth.

Firstly, the government is a massive borrower of funds. So a reduction in government borrowing reduces the demand for money in the economy. As a result, prices of bonds rise and this contributes to capital gains for bond holders.

Secondly, the Reserve Bank of India (RBI) recently announced that the commercial banks and RBI, which are the largest lenders to the government, will have another year to offset losses they have incurred on account of buying government bonds in the past. This action will lead to a rise in the price of bonds and this contributes to capital gains for bond holders.

Lastly, on one side due to the rise in oil prices, there is more inflation and thus more money is needed for circulation in the economy. On the other side, many government bonds are maturing, which will provide money supply. So, it is likely that we see a neutralising effect and thus RBI will take no action. This inaction here will support capital gains as explained above. Hence, this year might be a year of good gains for the bond investors.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Five new financial goals for you this summer

I am going to try and explain to you why the summer holidays of April and May are great months to get a lot of things started, financially speaking.

This time period in a way resets the financial clock. You also have the option to hit the reset button on everything you have done so far; financially speaking of course and hope to do better things better than you did last year.

Let’s look at some of the new and unusual things to do in April.

  • Make a learning budget

Learn something about money or anything you like. The best way to make money is to learn something about money. Just like if you wanted to learn cooking you will get into the cooking class. If you wanted to learn swimming you would enrol in the swimming class. If you find learning about money is too daunting task than learn something which is close at to your heart or related to your work. If you learn something new, there’s a possibility that you will use your new ideas to generate new income and in turn that will generate new wealth for you.  So make a budget, enrol somewhere and spend that budget. How about a % of your annual income? Spend it for sure!

  • Plan a unique holiday 

When you’re by yourself and without your mobile phone you will have the opportunity to think! When you have time to think, suddenly good ideas will come to your mind.  You may think this is silly but you can be sure that you will be amazed if your drivers experiment just once. So it might be a good idea to go for a holiday just by yourself. If you find that too intimidating, join a group of strangers. You can combine that with the adventures experience if you like.  Be extra careful if you’re going with your special buddies. Do this only if they are going to be in a position to help you discuss your idea and make it bigger. They must play the role of complimenting your thoughts. So make a schedule to do this holiday and obviously make a budget to make it happen. Think & create new ways of making wealth.

  • Make a prediction and make it happen

Be brave. Let’s aim to grow and multiply net worth by 50% by the time you come to the end of this financial year. This is not a joke and it is easier than you can imagine.  I’m speaking about NETWORTH and I’m not talking about return on investment. If your networth is Rs. 100 today, all I’m saying is that let’s aim to make this a 150 by the end of this year. This networth comprises of all your savings till date. This can be achieved by simply saving aggressively every month for the next twelve months. Just put this into a recurring deposit or liquid fund so you don’t spend it.  We just have to prove to ourselves that this is possible. Where and how we will invest this money will think about that later.

  • Eliminate a negative belief 

I want to give you an exercise here. Write down all your negative beliefs you have about money and wealth. Most people are not able to achieve the desired level of wealth because they think about wealth negatively. So even if you are earning a good amount of income you will never see yourself becoming wealthy. Examples are money causes problems, money causes a fight, managing money is complicated etc. Then for each negative thought, you have written down the positives i.e. the opposite for a few months. Soon negatively biased feelings will evaporate.

  • Make a new investment; something you have not done before

Again here you do not have to be a financial expert. The idea is to learn something new. There are hundreds of investment options. Our objective here is to learn something new. Talk to your advisor and seek his or her guidance. Just a word of caution here; don’t do anything which is speculative or is something that you just can’t understand. Do what do find easy you understand and do that then.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Seeking financial freedom? The time is NOW!

John Lewis famously remarked, “If not now, then when? If not us, then who?” This is so appropriate in the current financial world that we live in.

That statement will leave to rest every other argument that is conservative and against the idea of wealth creation. We are often faced with the situation where there is no option but to create wealth. Read on to know why!

Interest rates are painfully low. For all those diehard fans of guaranteed investment returns, there’s hardly any place to go to. Thinking of fixed deposits? Feeling happy with 7%? And fully taxable? That period is over. Period.

That doctrine of investing into pure fixed deposits and similar instruments is unfortunately standing challenged. There is no option but to sprinkle it with a combination of a little something that will add to the returns earned from fixed income type of securities. In fact this category of investors are in a way, best placed in terms of the current tax laws.

They can earn about 9-10% with minimal or near zero tax over about five years and more. Starting to generate rate of return above the inflation level of 7% is starting to create wealth. So there it is; there is no option but to move in the direction of creating wealth.

For more evolved investors, who invest in equities and who and still sitting on the sidelines tend to run out of patience every now and then. They are sometimes waiting for the right time, sometimes waiting for correction, sometimes waiting for valuation and sometimes waiting for just nothing. Sometimes, just too busy to take action!

I totally understand not wanting to lose hard-earned money. But if the money does not move it will stagnate. That’s the problem with money.

Hit the Ground Running

Inaction and inactivity kills it. Makes it costly to hold. Makes us lose opportunities, sometimes small and sometimes significant. I know of many people including my dad, who just kept investing into equities and holding forever. No doubt they were hugely (big HUGELY) better off then the people in the same time zone. I think they could have done far better with some smart lessons on asset allocation. This is because if they compare the growth rate of their holding over a period of 20 or maybe 30 years the compounded rate of return earned is often not impressive.

It is just marginally better or a few percentage points above the fixed deposit rate. Hence the need for asset allocation, which simply put is not to have all eggs in one basket at any given point in time. These sections of investors anyways create wealth, and, asset allocation is the tool that ensures that the process of wealth creation continues uninterrupted. So again there it is; even for this section there is not option but to start enhancing their wealth creation activities, else returns will continue to remain forever mediocre.

Then there are skeptics and there is nothing much for skeptics of everything, except that they need a serious dose of financial education. Perhaps what if needed is a proof of concept and for that, which better country to live in other than India where financial transparency in investments is so high that I sometimes feel, it comes from another planet.

 Your Money Needs Action

Today, there is a whole lot of variety to choose from and we have never been more spoilt for choice. But the most important thing in all this is to understand that your money needs action. It needs activity and for that the time is now!

And furthermore, if you asked me this question 10 years ago; I would have said that, the Time is NOW. If you ask this question 10 years hence, I will still say the Time is NOW. Any time is the right time to start the process of creating wealth. All that is important is that you take your first step; then continue it all the way with zeal and determination… till you have the level of wealth that you desire. And if you accumulate more than you need, still do it and share it with the world.

If you want your financial freedom; then the Time is NOW!

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager and Financial Freedom Coach.

Young Turks: Here’s the success story of venture fund Aspada

Venture fund Aspada was co-founded by Kartik Srivatsa and Thomas Hyland in 2012 and has made 17 investments so far across Fin-tech, agriculture, health and edu-tech startups.

Young Turks takes a look at their investment thesis, their differentiated VC model and meet three of their portfolio companies – Capital Float that underwrites unsecured loans to startups and SMEs; Dunzo, a hyper local concierge and delivery player that is also Google’s first direct startup investment in India; WayCool, a Chennai-based agriculture-tech startup.

Demo post

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Empowering India With Next-Generation Financial Infrastructure

Early August, India’s apex financial institution, the Reserve Bank of India announced setting up an ‘Innovation Hub’ to address the chronic challenges to financial inclusion in the country and promote efficient banking services. The drive is primarily through National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfers (DBTs) of subsidy since August 2014. The objective: providing universal banking services to every unbanked household, securing the unsecured, funding the unfunded and serving the unserved and underserved areas.

Driving India’s Inclusive Growth

Technology has been the backbone of this initiative of financial empowerment. Hitachi, a global leader in Social Innovation Business, has been at the forefront of it. Hitachi Payment Services Pvt. Ltd., a Hitachi Group Company, has been leveraging the group’s advanced OT (Operational Technology) X IT solutions to augment the government’s vision and further develop the payments infrastructure in the country. Innovation in both cash and digital payment solutions has made Hitachi Payment Services (HPY) one of the cornerstones of partnerships with government and private institutions.

Mr Bharat Kaushal, Managing Director, Hitachi India, says “We believe that a robust payment infrastructure can architect a technologically sound financial backbone of the nation. Hitachi is at the forefront of driving, collaborating, and supporting the Indian government’s mission of financial and digital inclusion. We are Powering Good by mobilizing the nation’s progress through Social Innovation Business solutions that are consistently enhanced to promote steady welfare and provide additional benefits for the people of India.”

A key joint venture (JV) initiative illustrates this. State Bank of India (SBI), the nation’s largest commercial bank and Hitachi Payment Services entered into a joint venture (JV) to build a state-of-the-art card acceptance and future-ready digital payment platform. The JV, SBI Payments offers a comprehensive suite of payment options to customers and merchants focusing on the roll-out of a nationwide card acceptance infrastructure, quick response (QR) code acceptance, Unified Payments Interface (UPI), mass transit sector and e-commerce businesses.

FINANCIAL INCLUSION
The ‘National Strategy for Financial Inclusion for India 2019-2024’(1) document released by RBI speaks volumes about the success of various initiatives. Over 10 crore PMJDY accounts were created in over 2 years, till March’19. The number of card acceptance devices of Point of Sale (POS) has increased by over 26 lakhs in 5 years. The process and progress is continual.

In the banking sector, Hitachi has made an indelible mark in advancement and inclusive growth. First, the government’s efforts to ensure financial sustainability resulted in the advent of smaller financial institutions cementing their presence along with multi-varied cash dispensing platforms being set up in the rural sector, seamlessly shifting from conventional ATMs to cash recycling machines (CRMs) and setting up of White Label ATMs (WLAs). Hitachi Payment Services, under the license from RBI as a designated non-bank entity, established WLAs under the brand ‘Hitachi Money Spot’, primarily engaging Tier 3 to Tier 6 towns. Ever since, the popular Hitachi Money Spot ATM has empowered citizens through improved payment infrastructure and revolutionized banking environment in the country’s hinterland.

Mr. Rustom Irani, Managing Director and Chief Executive Officer, Hitachi Payment Services says, “Committed to building a robust and secure payment infrastructure for India, Hitachi Payment Services offers the nation’s most comprehensive range of cash and digital payment solutions. Utilizing advanced and innovative technologies, our end-to-end solutions help meet the changing needs of society while driving payment penetration and further expanding the payment ecosystem in the country.”

Building a technologically sound financial backbone

In architecting a technologically sound financial backbone for India, Hitachi Payment Services offer the nation’s most comprehensive suite of cash and digital payment solutions. This suite furthers the agenda of developing a robust payment infrastructure with end-to-end advanced solutions that caters to financial institutions, merchants and the general population at large. Along with deployment of WLAs that drive ATM penetration, Hitachi’s one of the most disruptive innovations has been in transforming ATMs to CRMs, taking advantage of National Payments Corporation of India’s recommendation on allowing interoperability of cash deposits in the banking sector.

Hitachi CRMs today are virtually mini bank branches, enabling financial institutions the opportunity to extend to the nation’s masses 24×7 cash deposit and withdrawal facility, among other services. Hitachi has more than 50 (2) per cent of the CRM market share in India and its services are designed to support the Digital India initiatives through the display of Bharat QR code for card-less withdrawal, soft-keyboard for data entry of UPI transactions and Aadhaar-enabled biometric functionality.

Hitachi with its advanced technological solutions and in-house developed future-ready digital payment platform is bridging this gap by delivering innovation and value to the merchants, thus contributing towards the Government of India’s vision to transform India into a digitally empowered society and knowledge economy.

Hitachi Payment Services is constantly growing the payments ecosystem, meeting the changing needs of society, helping India’s financial service sector to grow faster and driving financial empowerment for the masses. Currently it manages over 55,000 ATMs (includes 19,000 cash recycling machines), 3,900 WLAs and 1.3 million POS devices (includes mobile POS & QR), besides toll and transit solutions (3).

Powering good, changing life

Hitachi Payment Services’ technologically advanced payment solutions offer high levels of information security, reliability and a seamless experience, transforming the ease with which payment transactions happen in India today – be it in cash or digital. Overall, Hitachi’s Social Innovation Business is POWERING GOOD by enhancing the Quality of Life (QoL) for citizens and improving the social and economic values of all its stakeholders for a sustainable future.

Know more about Hitachi Social Innovation

Know more about Payment Solutions In India

See Powering Good in Action

Related Case Study

Source 1:
https://rbidocs.rbi.org.in/rdocs/content/pdfs/NSFIREPORT100119.pdf
Source 2:
As per internal estimates, based on data as of September 2020
Source 3:
Data as of September 2020

This is a partnered post.

Sharing in The Dream, Co-Creating Mobility of The Future

Statistics abound that India, the world’s fifth largest economy (1) as per International Monetary Fund October 2019, World Economic Outlook, will likely emerge as the second largest after China by 2030 (2). The present day pandemic may have impeded the race to this milestone, but not stopped it. Conjoined with one of the youngest demographics and a burgeoning middle class society, this race puts India’s high-octane growth through several challenges, volatile business environment being one. The intense pressure of urbanization is another. With India planning to scale up and surge ahead on the economic front, greater emphasis should and, is being given, to infrastructure development. A robust and effective urban mobility solution, with sustainability and social innovation as its key ingredients, pivots this development.

The Indian Government has unleashed a development of scale. Under the “Smart Cities Mission (3)”, among key efficiencies, it has focused on world- class urban mobility and public transport, and a robust IT connectivity and digitalization. It is necessary to build a futuristic urban mobility solution, particularly a sustainable mass transit system, given the increasing population and the pressure on the country’s resources.

Deploying Mobility of the Future

Overhaul and upgradation of the transportation system are imperative in addressing the new and burgeoning demands of urban living, especially with the influx of rural/semi-rural masses in the metro cities. It is also crucial to re-shape the way citizens will travel in the future. The development of a comprehensive mobility plan for tier 2 and 3 towns is imperative as well. And technology needs to play a catalyst in connecting the dots that define smart mobility. From infrastructure (state-of-the-art trains, with driverless operations enabled by smart signalling with dynamic headway, face recognition, people flow management, passenger information systems) to operations contactless ticketing, digital payments, asset management, remote train tracking and its efficiency (asset sweating) to process digitalization (employee productivity and work output) to even reducing accidents-smart mobility triumphs. India set the ball rolling on smart mobility quite some time back, in which Hitachi Rail has continued to play a significant role.

Reinforcing the value and commitment that the company brings to the nation, Mr Bharat Kaushal, Managing Director, Hitachi India, says, “Hitachi India has a key role in India’s urban mobility transformation plan as it tries to adapt to the evolving market dynamics. We are focused on offering smart mobility solutions, optimizing existing resources and aggregating last-mile connectivity across the country. These solutions are not only aligned with Government’s Make in India initiative, making India Self-Reliant but are also synergized with Hitachi’s commitment to ‘Powering Good’ by co-creating solutions that enhance social, environmental and economic values for the society and customers in India.”

Hitachi Rail’s partnership with the Indian government dates back to the 1950s – it delivered the country’s first steam locomotive and was one of the first companies to deliver the electric locomotive. This partnership at various levels has grown from strength to strength. With the implementation of metro rail systems, Hitachi has consistently demonstrated the comprehensive urban mobility solutions to contribute to peoples’ Quality of Life in India. Pioneering capabilities in technology deployment through advanced train control, Communication-Based Train Control (CBTC) signalling and telecommunication systems, trains (rolling stock) and seamless.

While Hitachi has strengthened its urban mobility business at the global level, Hitachi India is driving the transformation at the regional level in India and emerging as one of the global leaders in Social Innovation Business, which translates into ‘Powering Good,’ is now exhilarated to deploying globally proven technologies for the upcoming Urban Rail Transit Systems like Regional Rapid Rail, and Mass Transit opportunities of Metrorail and Metrolite (Trams). In a nutshell, Hitachi’s smart mobility technologies and solutions are remarkably transforming India’s transport ecosystem across metro cities, tier-1 and tier-2 towns, solving varied infrastructure challenges.

Making a difference through Social Innovation

Digital transformation has amplified the possibility of innovation, even in the optimization of resources. It is being pursued not only in mobility but across varied industries like manufacturing, agriculture, healthcare, retail, financial services, banking, national defence, and security to public utilities. By harnessing Operational and Information Technologies (OT x IT), Internet of Things (IoT) and big data analytics, India is redefining the way it engages with its citizens, thus improving their quality of life.

Hitachi is driving this transformation phenomenally. Hitachi’s innovative and globally recognised OT x IT solutions, data analytics, IoT-enabled interactive devices, Artificial Intelligence (AI) and robotics are changing lives of people in India.

Hitachi’s partnership with the Government of India on initiatives such as ‘Make in India’ and ‘Digital India’ is fast-tracking a predominantly agrarian India into the IoT era, a leap that is critical to the nation’s emergence as global production and economic powerhouse centres.

Hitachi’s global legacy and expertise on technological innovation have no less ignited a social revolution here. All these under Hitachi’s vision of Social Innovation Business, which demonstrates capabilities to connect the cyber and physical spaces and make them interact mutually, where professional knowledge and experiences matter the most.

Enabling Transformation in Rail Infrastructure

Hitachi India is transforming mobility in India. Through its proven capabilities that are globally trusted, Hitachi Rail India is ‘SHARING IN THE INNOVATION’ and co-creating a nation of the future. Globally, Hitachi has been providing safe, comfortable and environmentally friendly railway services to 18.5 billion people (4) every year. In India, Hitachi has been a long-standing partner to the Government of India providing solutions, services, and products that utilize cutting-edge digital technology at each step of the governance.

A case in point is the recent modernization of the signalling and telecommunication systems on the Ghaziabad–Kanpur section of Indian Railways, in the largest state of Uttar Pradesh. Hitachi Rail was involved in the critical project of design, engineering, supply, installation, testing and commissioning of equipment and associated accessories for the replacement and upgradation of signalling and telecommunication systems through modern Computer-controlled Electronic Interlocking System on the entire route. The solution involved providing an automatic block signalling system (Auto Signalling) and supplying and commissioning a fibre-optic cable (OFC) system. For the Ghaziabad-Mughal Sarai section, Hitachi’s mandate was also to build a GSM-R radio and telecommunication network to upgrade the system. Overall, Hitachi was instrumental in vastly increasing the section’s capacity, throughput, punctuality of freight and passenger trains operations ensuring full safety with its integrated Centralised Traffic Control (CTC) located at Tundla.

Hitachi Rail‘s indigenously manufactured Electronic Interlocking system controls more than 1,000 stations across the nation including Asia’s largest electronic interlocking system at Kharagpur Railway Station on the South Eastern Railway.

Hitachi Communication-Based Train Control (CBTC) signalling and telecommunication system is making daily travel faster, easier and safer for the many commuters who travel each day between Noida and Greater Noida on the Aqua Line metro.

This technology is also being deployed on the Kolkata East-West Metro, which is now in full operation between Salt Lake and Phoolbagan, and when completed will provide vital connectivity between the twin cities of Kolkata and Howrah.

Hitachi Rail has also been actively partnering the Government of India in evolutionary high-capacity, high-speed infrastructure projects for running 1,500m long-haul and double-stacked container freight trains. One such is the Western Dedicated Freight Corridor (WDFC). Hitachi is executing two projects-one, a complete signalling and telecommunication system for the 915 km (Rewari in Haryana to Vadodara in Gujarat) line involving 31 stations with facilities to connect and interchange with Indian Railways tracks running in parallel; the other is the installation of automatic train protection based on ETCS system of train protection and warning system (TPWS) for 1337 km (Rewari-Haryana-JNPT-Mumbai) line involving 43 stations and on-board system to be deployed on first 200 electric locomotives. A notable achievement has been the receipt of approval for Hitachi making Electronic Interlocking system for deployment on a larger network of DFCs under feasibility. This will also pave the way for wider use of Hitachi making Electronic Interlocking system in the modernization of bigger yards of Indian Railways due to its high capacity and compact design to suit bigger yards with 300 to 800 routes.

The Western Dedicated Freight Corridor once implemented will be able to operate freight trains with double-stack containers at speeds up to 100 kmph with hauling capacity up to 15,000 tonnes, a significant shift in the ways of freight operations on Indian Railways. It is also expected to substantially improve the freight movement capacity of the Railways and decongest the existing lines that are currently used for mixed traffic of freight and passenger trains. No doubt, the Dedicated Freight Corridor Corporation of India Limited (under the Ministry of Railways and as a key customer for Hitachi) will play a major role in India’s mass mobility growth in the years to come.

Sharing in the Innovation

Keeping mobility intrinsically, through innovative and cutting-edge IT solutions, Hitachi is committed to social empowerment, and is Powering Good by actively partnering with India’s visionary planners, implementers and operators to usher an environment-friendly transport infrastructure in India and co-create a better future helping people lead a richer, fulfilling life.

Know more about Hitachi Social Innovation

Know more about Mobility Solutions In India

See Powering Good in Action

More Related Content

Source 1:
https://www.weforum.org/agenda/2020/02/india-gdp-economy-growth-uk-france/
Source 2:
https://www.weforum.org/agenda/2019/01/india-will-overtake-the-us-economy-by-2030
Source 3:
https://www.india.gov.in/spotlight/smart-cities-mission-step-towards-smart-india
Source 4:
https://www.hitachi.com/sustainability/sdgs/business/index.html

This is a partnered post.

Sharing in The Dream, Co-Creating Mobility of The Future

Statistics abound that India, the world’s fifth largest economy as per International Monetary Fund October 2019, World Economic Outlook, will likely emerge as the second largest after China by 2030. The present day pandemic may have impeded the race to this milestone, but not stopped it. Conjoined with one of the youngest demographics and a burgeoning middle class society, this race puts India’s high-octane growth through several challenges, volatile business environment being one. The intense pressure of urbanization is another. With India planning to scale up and surge ahead on the economic front, greater emphasis should and, is being given, to infrastructure development. A robust and effective urban mobility solution, with sustainability and social innovation as its key ingredients, pivots this development.

 

 

 

 

 

 

The Indian Government has unleashed a development of scale. Under the “Smart Cities Mission”, among key efficiencies, it has focused on world- class urban mobility and public transport, and a robust IT connectivity and digitalization. It is necessary to build a futuristic urban mobility solution, particularly a sustainable mass transit system, given the increasing population and the pressure on the country’s resources.

Deploying Mobility of the Future

Overhaul and upgradation of the transportation system are imperative in addressing the new and burgeoning demands of urban living, especially with the influx of rural/semi-rural masses in the metro cities. It is also crucial to re-shape the way citizens will travel in the future. The development of a comprehensive mobility plan for tier 2 and 3 towns is imperative as well. And technology needs to play a catalyst in connecting the dots that define smart mobility. From infrastructure (state-of-the-art trains, with driverless operations enabled by smart signalling with dynamic headway, face recognition, people flow management, passenger information systems) to operations contactless ticketing, digital payments, asset management, remote train tracking and its efficiency (asset sweating) to process digitalization (employee productivity and work output) to even reducing accidents-smart mobility triumphs. India set the ball rolling on smart mobility quite some time back, in which Hitachi Rail has continued to play a significant role.

 

 

 

 

 

Reinforcing the value and commitment that the company brings to the nation, Mr Bharat Kaushal, Managing Director, Hitachi India, says, “Hitachi India has a key role in India’s urban mobility transformation plan as it tries to adapt to the evolving market dynamics. We are focused on offering smart mobility solutions, optimizing existing resources and aggregating last-mile connectivity across the country. These solutions are not only aligned with Government’s Make in India initiative, making India Self-Reliant but are also synergized with Hitachi’s commitment to ‘Powering Good’ by co-creating solutions that enhance social, environmental and economic values for the society and customers in India.”

Hitachi Rail’s partnership with the Indian government dates back to the 1950s – it delivered the country’s first steam locomotive and was one of the first companies to deliver the electric locomotive. This partnership at various levels has grown from strength to strength. With the implementation of metro rail systems, Hitachi has consistently demonstrated the comprehensive urban mobility solutions to contribute to peoples’ Quality of Life in India. Pioneering capabilities in technology deployment through advanced train control, Communication-Based Train Control (CBTC) signalling and telecommunication systems, trains (rolling stock) and seamless

 

 

 

 

 

*The train in the picture is only for Italy and not for sale in India transit systems are some of its transformational contributions. While Hitachi has strengthened its urban mobility business at the global level, Hitachi India is driving the transformation at the regional level in India and emerging as one of the global leaders in Social Innovation Business, which translates into ‘Powering Good,’ is now exhilarated to deploying globally proven technologies for the upcoming Urban Rail Transit Systems like Regional Rapid Rail, and Mass Transit opportunities of Metrorail and Metrolite (Trams). In a nutshell, Hitachi’s smart mobility technologies and solutions are remarkably transforming India’s transport ecosystem across metro cities, tier-1 and tier-2 towns, solving varied infrastructure challenges.

Making a difference through Social Innovation

Digital transformation has amplified the possibility of innovation, even in the optimization of resources. It is being pursued not only in mobility but across varied industries like manufacturing, agriculture, healthcare, retail, financial services, banking, national defence, and security to public utilities. By harnessing Operational and Information Technologies (OT x IT), Internet of Things (IoT) and big data analytics, India is redefining the way it engages with its citizens, thus improving their quality of life.

 

 

 

 

 

Hitachi is driving this transformation phenomenally. Hitachi’s innovative and globally recognised OT x IT solutions, data analytics, IoT-enabled interactive devices, Artificial Intelligence (AI) and robotics are changing lives of people in India.

Hitachi’s partnership with the Government of India on initiatives such as ‘Make in India’ and ‘Digital India’ is fast-tracking a predominantly agrarian India into the IoT era, a leap that is critical to the nation’s emergence as global production and economic powerhouse centres.

 

 

 

 

Hitachi’s global legacy and expertise on technological innovation have no less ignited a social revolution here. All these under Hitachi’s vision of Social Innovation Business, which demonstrates capabilities to connect the cyber and physical spaces and make them interact mutually, where professional knowledge and experiences matter the most.

Enabling Transformation in Rail Infrastructure

Hitachi India is transforming mobility in India. Through its proven capabilities that are globally trusted, Hitachi Rail India is ‘SHARING IN THE INNOVATION’ and co-creating a nation of the future. Globally, Hitachi has been providing safe, comfortable and environmentally friendly railway services to 18.5 billion people every year. In India, Hitachi has been a long-standing partner to the Government of India providing solutions, services, and products that utilize cutting-edge digital technology at each step of the governance.

A case in point is the recent modernization of the signalling and telecommunication systems on the Ghaziabad–Kanpur section of Indian Railways, in the largest state of Uttar Pradesh. Hitachi Rail was involved in the critical project of design, engineering, supply, installation, testing and commissioning of equipment and associated accessories for the replacement and upgradation of signalling and telecommunication systems through modern Computer-controlled Electronic Interlocking System on the entire route. The solution involved providing an automatic block signalling system (Auto Signalling) and supplying and commissioning a fibre-optic cable (OFC) system. For the Ghaziabad-Mughal Sarai section, Hitachi’s mandate was also to build a GSM-R radio and telecommunication network to upgrade the system. Overall, Hitachi was instrumental in vastly increasing the section’s capacity, throughput, punctuality of freight and passenger trains operations ensuring full safety with its integrated Centralised Traffic Control (CTC) located at Tundla.

 

 

 

 

 

Hitachi Rail‘s indigenously manufactured Electronic Interlocking system controls more than 1,000 stations across the nation including Asia’s largest electronic interlocking system at Kharagpur Railway Station on the South Eastern Railway.

Hitachi Communication-Based Train Control (CBTC) signalling and telecommunication system is making daily travel faster, easier and safer for the many commuters who travel each day between Noida and Greater Noida on the Aqua Line metro.

This technology is also being deployed on the Kolkata East-West Metro, which is now in full operation between Salt Lake and Phoolbagan, and when completed will provide vital connectivity between the twin cities of Kolkata and Howrah.

 

 

 

 

 

Hitachi Rail has also been actively partnering the Government of India in evolutionary high-capacity, high-speed infrastructure projects for running 1,500m long-haul and double-stacked container freight trains. One such is the Western Dedicated Freight Corridor (WDFC). Hitachi is executing two projects-one, a complete signalling and telecommunication system for the 915 km (Rewari in Haryana to Vadodara in Gujarat) line involving 31 stations with facilities to connect and interchange with Indian Railways tracks running in parallel; the other is the installation of automatic train protection based on ETCS system of train protection and warning system (TPWS) for 1337 km (Rewari-Haryana-JNPT-Mumbai) line involving 43 stations and on-board system to be deployed on first 200 electric locomotives. A notable achievement has been the receipt of approval for Hitachi making Electronic Interlocking system for deployment on a larger network of DFCs under feasibility. This will also pave the way for wider use of Hitachi making Electronic Interlocking system in the modernization of bigger yards of Indian Railways due to its high capacity and compact design to suit bigger yards with 300 to 800 routes.

 

 

 

 

 

The Western Dedicated Freight Corridor once implemented will be able to operate freight trains with double-stack containers at speeds up to 100 kmph with hauling capacity up to 15,000 tonnes, a significant shift in the ways of freight operations on Indian Railways. It is also expected to substantially improve the freight movement capacity of the Railways and decongest the existing lines that are currently used for mixed traffic of freight and passenger trains. No doubt, the Dedicated Freight Corridor Corporation of India Limited (under the Ministry of Railways and as a key customer for Hitachi) will play a major role in India’s mass mobility growth in the years to come.

Sharing in the Innovation

Keeping mobility intrinsically, through innovative and cutting-edge IT solutions, Hitachi is committed to social empowerment, and is Powering Good by actively partnering with India’s visionary planners, implementers and operators to usher an environment-friendly transport infrastructure in India and co-create a better future helping people lead a richer, fulfilling life.

Know more about Hitachi Social Innovation
Know more about Mobility Solutions
More Related Content

Sources:
https://www.weforum.org/agenda/2020/02/india-gdp-economy-growth-uk-france/

https://www.weforum.org/agenda/2019/01/india-will-overtake-the-us-economy-by-2030

https://www.india.gov.in/spotlight/smart-cities-mission-step-towards-smart-india

https://www.hitachi.com/sustainability/sdgs/business/index.html

 

 

 

 

 

 

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