Indian Railways’ Financial Position is Strong, Providing More Subsidy to Passengers: Railway Minister
Indian Railways’ Financial Position is Strong, Providing More Subsidy to Passengers: Railway Minister
- The cost of train travel per kilometer is ₹1.38, but passengers are charged only 73 paise
- This year, 1,400 locomotives were produced, exceeding the combined production of the U.S. and Europe
- By March 31, Indian Railways will be among the world’s top three freight carriers with 1.6 billion tons of cargo
- All ICF coaches will be converted to LHB during Prime Minister Narendra Modi’s third term
- Ten crucial steps have been taken to prevent incidents like the New Delhi railway station accident
- Our commitment is to the poorest of the poor: Railway Minister
17th March 2025
Union Minister for Railways, Information & Broadcasting, Electronics & IT, Ashwini Vaishnaw, highlighted the achievements and future plans of Indian Railways during a discussion in the Rajya Sabha on Monday. He stated that Indian Railways is providing safe and high-quality services to passengers at affordable fares while securing a leading position globally. Comparing Rail fares, he mentioned that fares in Pakistan, Bangladesh and Sri Lanka are higher than in India, while in Western countries, rail fares are 10-20 times higher than in India.
On the subsidy provided to passengers, the Railway Minister said that while the cost of train travel per kilometer is ₹1.38, passengers are charged only 73 paise, meaning a subsidy of 47% is provided. In the financial year 2022-23, passengers received a subsidy of ₹57,000 crore, which increased to approximately ₹60,000 crore in 2023-24 (provisional figures). He emphasised that the goal is to provide safe and improved services at minimal fares.
Highlighting the benefits of Railway electrification, the Minister noted that despite an increase in the number of passengers and cargo, energy expenses have remained stable. Indian Railways aims to achieve Scope 1 net zero emissions by 2025 and Scope 2 net zero emissions by 2030. This non-fossil energy-based goal will completely offset the Railway’s carbon emissions.
The Railway Minister also announced that locomotives manufactured at the Madhepura factory in Bihar will soon be exported. Indian Railways is exporting passenger coaches to Mozambique, Bangladesh and Sri Lanka, while locomotives are being exported to Mozambique, Senegal, Sri Lanka, Myanmar and Bangladesh. Additionally, bogie underframes are being exported to the United Kingdom, Saudi Arabia, France and Australia, while propulsion parts are being sent to France, Mexico, Germany, Spain, Romania and Italy.
This year, India produced 1,400 locomotives, surpassing the combined production of the U.S. and Europe. Additionally, 200,000 new wagons have been added to the fleet. The Railway Minister stated that in FY 2024-25, Indian Railways will transport 1.6 billion tons of cargo, making it one of the world’s top three freight carriers, alongside China and the U.S. This underscores the increasing capacity of Indian Railways and its crucial role in the logistics sector.
He further stated that 41,000 LHB coaches have been manufactured with a strong focus on railway safety. During Prime Minister Narendra Modi’s third term, all ICF coaches will be replaced with LHB coaches. The implementation of long Rails, electronic interlocking, fog safety devices and the ‘Kavach’ safety system is progressing rapidly.
Expressing gratitude to Prime Minister Narendra Modi, Mr. Vaishnaw mentioned that earlier, Indian Railways received ₹25,000 crore in financial support, which has now increased to ₹2.5 lakh crore. This funding has led to significant infrastructure improvements, including the construction of 50 Namo Bharat trains designed for short-distance travel, offering both AC and non-AC options.
Regarding the recent incident at New Delhi Railway Station, the Railway Minister informed the House that a high-level committee is investigating the unfortunate accident. All CCTV footage and relevant data have been secured and approximately 300 individuals have been interviewed to verify facts. Ten critical measures have been taken to prevent such incidents in the future.
The Railway Minister reiterated the government’s commitment to serving the poorest sections of society. He emphasised that the number of general coaches is being increased to 2.5 times that of AC coaches. Under the current production plan, 17,000 non-AC coaches are scheduled for manufacturing. He also stated that Indian Railways’ financial position is strong, with continuous efforts to improve it. The Railway sector has successfully overcome challenges posed by the COVID-19 pandemic, with passenger numbers increasing and growth observed in both passenger and freight transportation.
He reminded that Indian Railways has an annual revenue of approximately ₹2.78 lakh crore and expenditures of ₹2.75 lakh crore. The Railway’s major expenses are being met through its own income, which is a result of its strong performance.
Concluding the discussion, Railway Minister Ashwini Vaishnaw assured that Indian Railways will continue to evolve into a more modern, safe and environmentally friendly transportation system in the future.
