Indian Railways Reports Strong Financial Health, Minister Ashwini Vaishnaw Informs Rajya Sabha

Railways Minister Ashwini Vaishnaw informed the Rajya Sabha that Indian Railways' financial health is stable, with ongoing efforts to enhance it. During a discussion on the Railways Ministry's operations, Vaishnaw highlighted the recovery from pandemic challenges, noting increased passenger and cargo traffic. The national transporter has seen a resurgence in train travel, contributing to this positive outlook.

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In the fiscal year 2023-24, Indian Railways generated a revenue of around Rs 2,78,000 crore while incurring expenses of Rs 2,75,000 crore. The major expenditure areas include staff salaries at Rs 1,16,000 crore, pensions at Rs 66,000 crore, energy costs at Rs 32,000 crore, and financing expenses at Rs 25,000 crore. Vaishnaw stated that the railways are meeting their expenses through their own income due to strong performance.

Passenger Subsidies and Fare Comparisons

The minister pointed out that Indian Railways subsidises passenger fares while earning from freight operations. The actual cost per kilometre is Rs 1.38, but passengers pay only 73 paise. This results in a passenger subsidy of about Rs 57,000 crore for 2023-24. Vaishnaw stressed that Indian train fares are the lowest in comparison to neighbouring countries.

For instance, a 350 km journey costs Rs 121 in India's general class compared to Rs 400 in Pakistan and Rs 413 in Sri Lanka. He noted that fares have remained unchanged since 2020. Energy costs have stabilised between Rs 30,000-32,000 crore due to electrification initiatives started after 2019.

Infrastructure Achievements and Future Plans

Vaishnaw outlined several achievements of Indian Railways. By March 31 this year, it is expected to be among the top three countries globally in cargo capacity at 1.6 billion tonnes, following China and the United States. Other accomplishments include replacing approximately 50,000 km of tracks and constructing over 12,000 underpasses and flyovers.

The rebuilding of 14,000 bridges and manufacturing of 41,000 Linke-Hofmann-Busch (LHC) coaches are also notable achievements. In the third term, Integral Coach Factory (ICF) coaches will be replaced with LHC coaches. Additionally, around 1,400 locomotives will be produced this year as India begins exporting metro coaches.

Overall, Indian Railways is on a path of continuous improvement with a focus on financial stability and infrastructure development. The efforts to maintain low passenger fares while enhancing revenue from freight operations demonstrate a balanced approach to growth.