India’s Railway Sector: Challenges & Reformation

• Recently, India’s Railway Sector reported spending over $22 billion in the current fiscal year (April 2024 to March 2025), highlighting its commitment to modernisation and sustainability. By January 5, 2025, the railways had utilised ₹1.92 trillion ($22.37 billion) out of its total 2.65 trillion rupees budget for the year.
• As part of its long-term sustainability goals, the government is driving efforts to achieve net zero carbon emissions by 2030 through extensive electrification and the expansion of new rail lines. These initiatives are crucial for building a modern, efficient, and environmentally friendly railway network.

About India’s Railway Sector

• Indian Railways, one of the largest and busiest railway networks in the world, plays a crucial role in the country’s economic and social development. With over 68,000 kilometers of track, it serves as the backbone of transportation for both passengers and freight across India.

Key Facts about Indian Railways

1. Extensive Network: With over 68,000 km of track, Indian Railways is the 4th largest railway network globally, after the US, Russia, and China, making it a crucial backbone for national transport.
2. Massive Passenger Traffic: Serving approximately 23 million passengers daily, Indian Railways is vital in connecting remote regions and urban centers, contributing to economic and social mobility.
3. Efficient Freight Movement: So far in this financial year (FY25), freight volumes reached 906.9 MT, marking a 2.2% increase, with significant growth in container (7.7%) and miscellaneous goods and clinker traffic (7%).
4. High Electrification: 97% of broad-gauge lines are electrified, reflecting Indian Railways’ commitment to sustainability and reduced reliance on fossil fuels.
5. Targeted Freight Share: The government aims to increase the freight share from 35% to 45% by 2030, in line with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
6. Rail Safety: Consequential rail accidents have dropped by 80% from 2016-21, a testament to ongoing safety measures. However, over 95% of accidents are still attributed to driver errors, indicating the need for more focused driver training and technological interventions.

Key Issues & Challenges in India’s Railway Sector

• Overloaded Infrastructure: Many routes operate at over 150% capacity, leading to congestion and reduced time for safety inspections and maintenance, increasing the risk of accidents.
• Safety Concerns: Poor infrastructure, outdated technology, human error, & issues like unmanned level crossings contribute to frequent derailments, collisions, and fire incidents, leading to loss of lives & assets.
• Financial Constraints: Internal finances are constrained due to populist pricing policies and a lack of private sector investment, making it difficult to fund infrastructure development, maintenance, and technological upgrades.
• Political & Organisational Bottlenecks: Excessive centralisation of decision-making and political interference result in delays in project approvals, implementation, and a lack of market-oriented reforms.
• Human Resource & Service Quality Issues: The sector faces a shortage of skilled manpower, inadequate training programs, long working hours for staff, and poor customer service, including cleanliness, delays, and poor food quality, affecting overall operational efficiency and passenger satisfaction.

Key Government Initiatives in Indian Railways

1. Finance & Administration: The government introduced dynamic fare pricing and merged the Rail Budget with the Finance Budget for better integration. The Rail Infrastructure Development Fund (RIDF) was created to finance infrastructure, while the Rail Drishti Portal ensures transparency.
2. Organizational Restructuring: Eight Group A services were unified into the Indian Railway Management Service (IRMS). The Railway Board was reorganized, and HR management activities were digitalised for efficiency.
3. Infrastructure and Development: The National Rail Plan (NRP) 2030 aims to build infrastructure for 2050 traffic. The Vande Bharat semi-high-speed train is being indigenously manufactured. Dedicated Freight Corridors (WDFC and EDFC) are funded by the World Bank and Japan to boost freight capacity.
4. Safety and Security: The Railway Safety Fund (RSF) aims to eliminate unmanned level crossings. The Zero Accident Mission and Train Collision Avoidance Systems (TCAS) enhance safety.
   • The “MeriSaheli” initiative ensures women’s security, while the CORAS Railway Commando Battalion combats terrorism and Naxalism.
5. Freight and Logistics: The Freight on Priority Policy promotes customer-centric freight services, while Kisan Rail transports agricultural produce across India. The Gati Shakti Cargo Terminal Policy boosts cargo terminal development.
6. Digitisation and Connectivity: Wi-Fi is provided at 6,045 stations, with digital surveillance systems being installed. The PM Gati Shakti initiative integrates multi-modal logistics for the efficient movement of goods and passengers.
7. Human Resource and Skill Development: The Rail Kaushal Vikas Yojana offers skill development for youth, and ‘Project Saksham’ enhances employee competence through training.
8. Tourism Promotion: The Bharat Gaurav Scheme, focused on theme-based tourist trains, has been launched to promote tourism and enhance passenger experiences across the country.

Reforming India’s Railway Sector: Way Ahead

1. Modernisation of Infrastructure: Upgrade tracks, stations, locomotives, and signalling systems. Focus on high-speed trains and LHB coaches, and integrate ICT for real-time monitoring, mobile ticketing, and improved services. Electrification of nearly 97% of broad-gauge tracks significantly reduces costs.
2. Establish a Railway Safety Regulatory Authority: Set up an independent body for rigorous safety inspections and compliance, addressing accidents at unmanned crossings and derailments. The Anil Kakodkar Committee (2012) recommended strengthening safety oversight.
3. Public-Private Partnerships and FDI: Attract private operators for freight and passenger services and encourage FDI to bring global expertise and technology. This will enhance efficiency, service delivery, and competition in the sector.
4. Corporatisation and Decentralisation: Separate functions like freight and passenger services into independent corporations, decentralising power to Zonal Railways for greater accountability and efficiency. The Bibek Debroy Committee (2015) highlighted the need for a reformed governance structure.
5. Safety Infrastructure Overhaul: Eliminate manned and unmanned level crossings, upgrade signalling systems, and develop dedicated freight corridors.
6. Human Resource Reforms: Address vacancies, improve training programs, and professionalize recruitment. Focus on staff welfare and productivity, as suggested by the Rakesh Mohan Committee (2001), to minimise errors and improve operations.
7. Commercial Utilisation of Railway Land: Optimise the use of railway-owned land and airspace for retail, real estate, and industrial ventures. This can generate non-fare revenue to finance infrastructure upgrades and reduce reliance on passenger fares.
8. Customer Service Improvements: Enhance cleanliness, punctuality, food quality, and ticket booking systems. Implement real-time train tracking and use apps for better passenger convenience, boosting customer satisfaction.
9. Dedicated Freight Corridors: Develop freight corridors to separate freight & passenger traffic, reduce congestion, & lower logistics costs, improving supply chain efficiency speeding up goods transportation.

   Reference: Reuter | PMF IAS: Kavach

UPSC Mains PYQs – Theme – Railways

1. Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)
2. The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways, or the private container operators. (2014)

PMF IAS Pathfinder for Mains – Question 42

Q. Discuss the key safety challenges faced by Indian Railways and examine the role of technological advancements like ‘Kavach’ in addressing these issues. (250 Words) (15 Marks)

Approach

• Introduction: Write a brief introduction about the railway in India and the challenges it faces.
• Body: Discuss the key safety challenges and technological solutions to improve the safety standards.
• Conclusion: Write a way forward & conclude appropriately by recommending a holistic approach.