Indian Railways: Riding the Tracks to Financial Success

Indian Railways demonstrates robust financial health as it withstands pandemic challenges, with rising passenger and cargo traffic. Despite passenger fare subsidies, its revenue in 2023-24 amounted to Rs 2,78,000 crore. Key expenditures include staff costs and energy expenses, with electrification post-2019 bringing stability. Infrastructure improvements and coach manufacturing boost railways' achievements.

Indian Railways, under the stewardship of Railways Minister Ashwini Vaishnaw, is showcasing solid financial performance amid continuous improvement efforts. Addressing the Rajya Sabha, Vaishnaw highlighted the resilience of Indian Railways in overcoming pandemic-induced challenges with a successful uptick in passenger and cargo traffic.

For the fiscal year 2023-24, Indian Railways reported a revenue collection of Rs 2,78,000 crore against an expenditure of Rs 2,75,000 crore. The expenditure largely encompasses staff costs amounting to Rs 1,16,000 crore, pension payments at Rs 66,000 crore, and energy expenses around Rs 32,000 crore. Despite subsidizing passenger fares, the railways have maintained financial stability through freight operations.

With electrification initiatives post-2019, energy costs have stabilized, propelling the railways financially. Achievements include increased cargo capacity, track and infrastructure enhancements, robust coach manufacturing, and upcoming locomotive production. By March-end, Indian Railways is expected to rank third globally in cargo capacity, solidifying its growth trajectory.

(With inputs from agencies.)