Indian Railways in strong financial health, Covid losses recovered: Ashwini Vaishnaw

Railways Minister Ashwini Vaishnaw assured the Rajya Sabha on Monday that Indian Railways is in sound financial condition, having successfully recovered from the losses incurred during the Covid-19 pandemic.

Speaking during a debate on the working of the Railways Ministry, he highlighted ongoing efforts to enhance financial stability and operational efficiency.

Indian Railways reported revenue of approximately Rs 2.78 lakh crore in the financial year 2023-24, against expenses of Rs 2.75 lakh crore. The major cost components included staff salaries (Rs 1.16 lakh crore), pensions (Rs 66,000 crore), energy expenses (Rs 32,000 crore), and financing costs (Rs 25,000 crore).

Vaishnaw emphasised that the railways is self-sufficient in covering its expenses due to strong financial performance. "The financial condition is stable, and we are continuously working towards further improvement," he stated.

The minister reiterated that passenger fares remain heavily subsidized, with the actual cost per kilometer at Rs 1.38, while passengers pay only 73 paise per kilometer. This subsidy amounted to nearly Rs 57,000 crore in 2023-24.

Despite increasing fuel prices and rising wage costs following the implementation of the Seventh Pay Commission, passenger fares have not been raised since 2020. Instead, Indian Railways has offset these costs through revenue generated from cargo operations.

Vaishnaw also pointed out that train fares in India are significantly lower than in neighboring countries. For a 350-km journey, the fare in general class is Rs 121 in India, compared to Rs 400 in Pakistan and Rs 413 in Sri Lanka.

Indian Railways is set to become one of the world’s top three freight carriers by March 31, 2024, with a cargo capacity of 1.6 billion tonnes, following only China and the United States.

The minister outlined key infrastructure achievements, including:

- Replacement of 50,000 km of railway tracks

- Construction of over 12,000 underpasses and flyovers

- Rebuilding of 14,000 bridges

- Manufacturing of 41,000 Linke-Hofmann-Busch (LHB) coaches

Additionally, he announced that in the next term, Integral Coach Factory (ICF) coaches will be phased out and replaced with LHB coaches to improve safety and efficiency.

Railway safety remains a priority, with advancements such as longer rails, electronic interlocking, fog safety devices, level-crossing gates, and the rapid rollout of 'Kavach' - an advanced collision-avoidance system.

India is now producing 1,400 locomotives annually, exceeding the combined production of the United States and Europe. Over 2 lakh new wagons have been added to the railway fleet.

Indian Railways has also expanded its global presence, exporting passenger coaches to Mozambique, Bangladesh, and Sri Lanka, and locomotives to Mozambique, Senegal, Myanmar, Sri Lanka, and Bangladesh. Furthermore, components like bogie under-frames are being shipped to the UK, Saudi Arabia, France, and Australia, while propulsion systems are being exported to France, Mexico, Germany, Spain, Romania, and Italy.

Vaishnaw highlighted Indian Railways' commitment to environmental sustainability, stating that by 2025, the railway will achieve Scope 1 Net Zero, with Scope 2 Net Zero targeted for 2030. This means that the railway will offset its carbon dioxide emissions through its environmental initiatives.