Railways

Summary
  • The Indian Railways is the largest rail network in Asia and the world’s second-largest under one management.*
  • One Station One Product scheme implemented at 535 stations with 572 outlets.*
  • 59524 km length of Broad Gauge rail line electrified. With this, Indian Railways has completely electrified 6 zonal railways and is rapidly progressing towards its target of 100% electrification and becoming the largest green railway network in the world.*
Reasons to Invest
  • 100 Gati Shakti Cargo Terminal (GCT) to be developed till 2025.*
  • National Rail Plan aims to increase share of freight traffic from current percentage of 27% to 45% by 2051. *
  • By December 2023, the entire rail network will be fully electrified and by 2030, the entire rail network will run on renewable energy.*
  • According to the Minister of State for Railways & Textiles, the government is planning to invest USD 715 bn in Rail infrastructure by 2030.*
  • Vision 2024 has been envisaged to achieve targets of 2024 MT freight loading by 2024. *
  • One of the most vital transportation emissions mitigation strategies agreed to by the Government of India was increasing the share of Indian Railways in the movement of freight from the current ~35-36% to 45% by 2030.*
  • The objective of the NRP Plan is to create capacity ahead of demand, which in turn would also cater to future growth in demand right up to 2050 and also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it. *

Explore more about infrastructure availability in Railways sector >

Key Achievements
  • Railways have earned INR 105905 cr. against INR 91127 cr. over last year which is an improvement of 16% as compared to the same period of last year.*
  • Indian Railways has registered record revenue figures of INR 2.40 Lakh Cr. for FY 2022-23. This is nearly INR 49,000 Cr. more than the previous year, reflecting 25% growth.*
  • FY23 saw highest ever commissioning of New lines and Doubling/Multi-tracking etc of 5243 KMs.*
  • More than 5 lakh train operations were held in FY 2022-23.*
  • The punctuality of Indian Railways for Mail Express trains during the year 2022-23 is about 84% which is about 9% more than the punctuality of about 75% achieved during 2019-20. *
  • During 2014-22, 1544 km (377 km New line, 972 km Gauge conversion and 195 km Doubling) sections, falling fully/partly in North Eastern Region, have been commissioned at an average rate of 193 km per year, which is 190% more than average annual commissioning achieved during 2009-14 (66.6 km per year).*
  • A total of 58,424 RKMs have been electrified, which accounts to 90% of Indian railways.*
Recent Announcements

16th Aug 2023: Cabinet approves Seven Multi-tracking Projects totalling 2339 Kms. across Indian Railways, amounting to around Rs 32,500 crore.

Ministry of Railways

 

11th Aug 2023: Ministry of Railways to establish Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) at some of the railway stations.

PMBJKs

 

06th Aug 2023: PM lays foundation stone for redevelopment of 508 Railway Stations across the country.

Read More

 

09th Aug 2023: In order to push rail infrastructure & promote rail connectivity in tribal dominated regions, "Janjatiya Gaurav Corridor” initiated.

Rail infrastructure

 

01st Aug 2023: Indian Railways crosses the mark of 500 MT freight loading on cumulative basis in first four months of this Financial Year

Freight loading

Statistics
  • Indian Railways has over 11 lakh employees
  •  A total of 58,424 RKMs have been electrified. *
  • Indian Railways records freight revenue of INR 1.62 lakh Cr. during FY 2022-23.*
  • Southern Railway has provided a total of 118 lifts at various railway stations.*
Growth Drivers
  • Wifi facility provided at 6108 railway stations.*
  • To facilitate passengers, Indian Railways has decided to increase the limit of booking maximum 6 tickets in a month to 12 tickets by a user ID which is not Aadhaar linked and the limit of booking maximum 12 tickets in a month to 24 tickets by a user ID which is Aadhaar linked and that one of the passengers in the ticket to be booked is verifiable through Aadhaar.*
  • Thirteen Railway Projects Under PM-Gati Shakti have been undertaken by Ministry of Coal to develop multimodal connectivity and identified missing infrastructure gaps for each projects.*
  • The theme-based tourist circuit trains 'Bharat Gaurav Trains' will showcase India’s rich cultural heritage and magnificent historical places to the people of India and the world.*
  • A unified Vendor Approval System for single-interface approval of vendors is implemented which provides vendors with complete single-window online process for vendor approval starting from submission of application stage to payments, communication and final approvals. *
  • Indian Railways is running 1770 more trips in 2023 compared to total summer special trains run in 2022.*
  • Indian Railways plans 'Make in India' wheels for trains - will set up the manufacturing facility of Forged Wheel Plant with the capacity of 80,000 wheels per annum for next 20 years. *
  • India’s first Vertical lift Railway Sea Bridge will allow the Indian Railways to operate trains at a higher speed.*
FDI Policy
  • The FDI Policy permits 100% FDI in the railway's infrastructure sector. FDI is permitted in the construction, operation and maintenance of the railway transport sector: 6
    1. Suburban corridor projects through PPP model
    2. High-speed train projects
    3. Dedicated freight lines
    4. Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities
    5. Railway electrification
    6. Signalling systems
    7. Freight terminals
    8. Passenger terminals
    9. Infrastructure in industrial park pertaining to railways line/sidings including electrified railways lines and connectivity to the main railway’s line
    10. Mass Rapid Transport Systems
  • The cumulative FDI equity inflow in the Railway related components industry is USD 1.23 bn during the period April 2000 to March 2023. *

Read more about Foreign Direct Investment Policy in India >

Sector Policy
  • The ‘General Purpose Wagon Investment Scheme’ (GPWIS) allows investment by Public Sector Undertaking (PSUs), End users, Port Owners, Mine Owners and Logistics Providers in General Purpose Wagons. The scheme permits investment in a minimum of one rake of General Purpose Wagons by the eligible parties for movement in any of the approved circuit(s) to carry any commodity. During the year 2018-19, 77 rakes have been approved, out of which 2 rakes have been inducted and are in operation. The Ministry of Railways has further liberalized the scheme for prospective investors. 2
  • The ‘Liberalized Wagon Investment Scheme’ (LWIS) allows investments by End Users, i.e., producers, manufacturers and consumers of goods in Special Purpose Wagons (SPW) and High Capacity Wagons (HCW). Procurement of 84 rakes have been approved, out of which 51 rakes have been inducted under the scheme. 2
  • Gati Shakti Cargo Terminal Policy is Launched to fast track the approvals and ease of establishing Cargo Terminals to increase the freight loading share of Indian Railways.
  • The ‘Automobiles Freight Train Operator’ (AFTO) Scheme allows procurement and operation of special purpose rakes by private parties for transportation in the automobile sector. Procurement of 59 rakes has been approved, out of which 19 rakes have been inducted as of March 2019. 2
  • The ‘Special Freight Train Operator’ scheme allows investment in the procurement of High Capacity Wagons (HCW) and Special Purpose Wagons (SPW) for the purpose of transporting non-traditional commodities such as edible oil, caustic soda, molasses, fly ash, alumina, bulk cement, chemicals and petrochemicals. Procurement of 28 rakes has been approved, out of which 7 rakes have been inducted under the scheme. 2
  • The ‘Private Freight Terminals (PFT) Policy’ assists the development of a network of freight terminals with private investment. The focus of the policy is to provide cost-effective and efficient logistics services along with warehousing solutions to the end users. About 109 PFT proposals have been received as of March 2019, out of which 60 PFTs have already been notified/ commissioned. 2
  • “Meri Saheli” initiative by Indian Railways focused action on security of women across all zones with an objective to provide safety and security to lady passengers travelling by trains.  These lady passengers are briefed about all precautions and told to dial 182 in case they face or see any problem in the coach.13

Mission Raftaar

  • Mission Raftaar is a ‘Mission’ envisaged for speed enhancement and to achieve a target of doubling average speed of freight trains and increasing the average speed of Superfast /mail/Express trains by 25 kmph and not a stand alone ‘Project(s)’.
  • As a part of “Mission Raftaar” and during the period 2015-16 and 2021-22, 414 passenger train services have been converted into MEMU services.

Adarsh Station Scheme

  • Railway stations are upgraded/modernized under Adarsh Station Scheme based on identified need of providing better enhanced passenger amenities at stations.
  • 1253 railway stations have been identified for development under Adarsh Station Scheme.

National Rail Plan

  • National Rail Plan (NRP) for India – 2030 is prepared to create a ‘future ready’ Railway system by 2030. The objective of the plan is to create capacity ahead of demand, which in turn would also cater to future growth in demand right up to 2050 and also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it. 

Gati Shakti Multi-Modal Cargo Terminal (GCT)’ Policy

  • A new ‘Gati Shakti Multi-Modal Cargo Terminal (GCT)’ policy has been launched to boost investment from industry through development of additional terminals for handling rail cargos.
  • The locations for GCTs are being identified/finalized on the basis of demand from industry and potential of Cargo Traffic. As on 1st April 2022, 6 GCTs have already been commissioned and around 74 more locations have been provisionally identified for development of GCTs. 

Indian Railway Innovation Policy - “StartUps for Railways”

  • Policy aims to leverage innovative technologies developed by Indian Startups/MSMEs/Innovators/Entrepreneurs to improve operational efficiency and Safety of Indian Railways.

  • Salient details of Indian Railway Innovation Policy are as under:-

    • Grant up to INR 1.5 Crore to innovator on equal sharing basis with provision of milestone-wise payment.
    • Complete process from floating of problem statement to development of prototype is online with defined time line to make it transparent and objective.
    • Trials of prototypes will be done in Railways. Enhanced funding will be provided to scale up deployment on successful performance of prototypes.
    •  Selection of Innovator/s will be done by a transparent and fair system which will be dealt through online portal inaugurated today by Minister of Railways.
    •  Developed Intellectual property rights (IPR) will remain with innovator only.
    •  Assured developmental order to innovator.
    •  De-centralization of complete product development process at divisional level to avoid delays.

Bharat Gaurav scheme

  • Indian Railways had launched the operation of theme-based Bharat Gaurav train in the month of November 2021. *
  • The objective of this theme is to showcase India’s rich cultural heritage and magnificent historical places to the people of India and the world, through Bharat Gaurav Trains. This scheme also aims to leverage the core strengths of the professionals in the tourism sector to run theme-based trains to tap the vast tourist potential of India. *

Amrit Bharat Station Scheme *

  • Total of 1275 railway stations have been identified in the country including border areas for development and modernization
  • Allocation of fund for development and maintenance of stations are done zonal Railway-wise

Indian Railway e-Procurement System (IREPS)*

  • Indian Railways has taken steps to bring Commercial Earning and Non-Fare Revenue contracts under the ambit of electronic auction through Indian Railway e-Procurement System (IREPS).
  • With this new policy, tedious process of tendering would get simplified. Also, it would give opportunities for youth to join the e-auction process. This policy enhances ease of living, promotes transparency and adds to Digital India initiatives in Railways.

Indian Railway e-Procurement System (IREPS)

Explore Government policies/ schemes in Railways sector >

Financial Support
  • The ‘Indian Railway Finance Corporation Ltd.’ (IRFC) is a wholly Government-owned PSU under the administrative control of the Ministry of Railways. It mobilizes market borrowings to finance capital expenditure in the Railways. The Market funds raised by IRFC account for Extra- Budgetary Resources (EBR) for Railway Plan and are invested in rolling stock and projects leased by IRFC to the Ministry of Railways. 

Union Budget 2023-24*

  • The total budgetary allocation for FY 2022-23 towards the   Ministry of Railways is INR  2,41,267.51 cr.
Investment Opportunities

Some key investment opportunities for private players in the Railways sector include the following: 2

  • Suburban corridor projects through PPP
  • High-speed train projects
  • Upcoming dedicated freight lines
  • Rolling stock including train sets and locomotives or coach manufacturing and maintenance facilities
  • Railways electrification
  • Signalling systems
  • Freight terminals or logistics parks
  • Passenger terminals
  • Railways technical training institutes
  • Testing facilities and laboratories
  • Concessions in standalone passenger corridors (such as brand lines and hill railways)
  • Non-conventional sources of energy
  • Mechanized laundry
  • Rolling stock procurement
  • Bio-toilets
  • Technological solutions for manned and unmanned level crossings
  • Technological solutions to improve safety and reduce accidents

 

Explore projects to invest in Railways sector >

Sector Reports
  1. Year End Review 2022: Ministry of Railways
  2. Bharat Gaurav Trains
  3. Annual Plan for Procurement of Goods and Services from Micro and Small Enterprises

 

Foreign Investors
  • Alstom Transport Holdings B.V. (Netherlands)
  • Bombardier (Singapore)
  • Ansaldo STS (Australia)
  • GE Capital International (Mauritius)
  • Inversiones EN Concesiones (Spain)
Agencies
Sources
  1. About Indian Railways, http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1
  2. Indian Railways Annual Report & Accounts 2018-19, http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/Year_Book/Indian%20Railways%20Annual%20Report%20%26%20Accounts%20English%202018-19.pdf
  3. Indian Railways - Vision & Plans, http://www.indianrailways.gov.in/Railways%20Presentation.pdf
  4. Private sector participation in Railway works, Ministry of Railways, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1602428
  5. Year-End Review 2019: Ministry of Railways, https://pib.gov.in/PressReleasePage.aspx?PRID=1598076
  6. Consolidated FDI Policy, https://static.investindia.gov.in/s3fs-public/2020-09/FDI%20Policy%202020%20revised_18%20Sept%202020.pdf
  7. Factsheet on FDI - April 2000 to December 2021, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI%20Factsheet%20December%2C%202021.pdf 
  8. Minister of Railways inaugurates Website of National Rail Plan, 2030, https://indianrailways.gov.in/railwayboard/uploads/directorate/prd/PR/MR_Inaug_Website_08122016.pdf
  9. Expenditure Budget, Ministry of Railways, https://www.indiabudget.gov.in/doc/eb/sbe83.pdf
  10. Indian Railways commissions first Waste to Energy Plant in Bhubaneswar, Ministry of Railways, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1600784
  11. Indian Railways creates a new world benchmark, Ministry of Railways, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1630909
  12. Indian Railways operationalises its most powerful 12000 HP made in India locomotive, Ministry of Railways, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1625158
  13. Indian Railways creates a new world benchmark, Ministry of Railways, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1668560
  14. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1683803
  15. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1685602
  16. News Update, https://www.financialexpress.com/infrastructure/railways/make-in-india-success-indian-railways-clw-creates-record-by-manufacturing-250-locos-in-188-working-days/2160850/
  17. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1707236
  18. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1710137

Have a Query? Connect to us

Print