Leading the ERA of India’s INFRASTRUCTURE TRANSFORMATION

The Indian Railways, often referred to as the lifeline of India, operates on one of the largest rail networks in the world.  Every year, it transports an incredible 8.1 billion passengers and 1.5 billion tons of freight across its 68,000+ kilometres of tracks. Recognizing its pivotal role in shaping the nation's infrastructure and economy, the Railways has embarked on a transformative journey of modernization, ushering in an era of advanced technology, upgraded stations, and enhanced services.

Indian Railways has made remarkable strides on its transformative journey, evidenced by a slew of records and achievements in 2023 with Indian Railways achieving an all-time high freight loading of 1,588 million tonnes (MT) in FY 2023-24. Accompanying this success was a substantial rise in revenue, with Indian Railways earning a staggering USD 19.2 billion from freight alone. Passenger patronage surged by over 80%, reaching 6.2 billion in FY 2022-23 compared to 3.4 billion in FY 2021-22. Moreover, the Gross Budgetary Support skyrocketed to USD 28.7 billion for the fiscal year 2023-24, marking a thirty-fold increase over 2004-05 levels and an eight-fold increase over 2013-14. The Gross Budgetary support for Railways during 2024-25 is a record USD 30 billion. The recent Government strategy prioritises increasing capacity, incorporating new technology, and enhancing safety measures.

In terms of infrastructure, electrification efforts have been commendable and the deployment of innovative technologies like Kavach for safety enhancements on key corridors, coupled with the rollout of more than 100 Vande Bharat train services (as of January ‘24), with an impressive overall occupancy rate of 96.62% during 2022-23, showcases Indian Railways' commitment to modernization. Additionally, the Amrit Bharat scheme has identified 1,309 stations for redevelopment, with four stations already redeveloped to significantly enhance passenger amenities. Foundation stones for more than 500 stations have been laid in the year 2023 by the Prime Minister. With each milestone achieved, Indian Railways continues to epitomize progress and efficiency in the realm of transportation. This momentum was fuelled by the highest-ever capital utilization rate of 75% recorded in the first 9 months of the fiscal year 2023.

Policy initiatives driving growth

The modernization of Indian Railways is guided by several visionary policy initiatives aimed at upgrading infrastructure, enhancing safety, and promoting sustainability. Central to this is the National Rail Plan 2030, which provides a comprehensive roadmap for future growth. The plan’s main objectives include increasing capacity to accommodate both freight and passengers, reducing carbon emissions, and implementing state-of-the-art technology.

To bolster India's global competitiveness and improve the ease of living for its citizens, the government is committed to reducing the cost of logistics to a single digit percent of GDP. Indian Railways plays a pivotal role in achieving this target by aiming to increase its modal share in freight transportation from 27% to 45% by 2050 and develop the capacities by 2030. This endeavour encompasses infrastructure development, including the creation of Dedicated Freight Corridors, policy reforms to attract freight from non-traditional sources, and the induction of a significant number of wagons to meet the growing demand. It is also noteworthy that in 2021, India’s leadership flagged off world’s first Double Stack Long Haul 1.5 Km long container train hauled by electric traction.

In the current budget, one of the key highlights is implementation of three major economic railway corridor programmes namely energy, mineral and cement corridors; port connectivity corridors; and high traffic density corridors. Overall, through these three corridors, about 40,000 km of new tracks will be laid which will significantly increase railway capacity and reduce pollution as railway can save up to 90% of CO2 emissions in a cost-effective manner. This will bring a big transformation in the country’s economy in an efficient, productive, and sustainable manner.

Enhancing passenger experience

Over and above the freight transportation, Indian Railways is enhancing passenger travel by upgrading tracks and introducing semi-high-speed trains. The ambitious bullet train project, currently under implementation between Mumbai and Ahmedabad, promises to revolutionize travel with a substantial reduction in travel time. Additionally, marquee railway stations are undergoing redevelopment into hubs for transit-oriented development, offering world-class amenities and generating non-fare box revenue through innovative financing models.

In the last decade, 6,108 railway stations across the nation started offering free and high-speed Wi-Fi facilities for the passengers and for enhanced security integrated CCTVs were installed across 743 major railway stations. New Amrit Bharat Trains for the convenience of passengers are being launched. The Amrit Bharat train is an LHB push pull train. This train has locos at both ends for better acceleration. It provides improved facilities for rail passengers like beautiful and attractive designed seats, better luggage rack, mobile charging point with suitable mobile holder, LED lights, CCTV, public information system, among others. On the other hand, the Vande Bharat trains represent a significant advancement in India's railway infrastructure, boasting enhanced safety features, faster acceleration, and improved passenger amenities. Equipped with automatic plug doors, reclining ergonomic seats, and mobile charging sockets for every seat, these trains offer a comfortable and convenient travel experience.

Safety and sustainability

To reiterate safety remains a top priority for Indian Railways, exemplified by the elimination of unmanned level crossings and the adoption of modern signalling systems. To enhance the level of safety, Indian Railway have taken a number of steps, some of the important interventions such as electrical/electronic interlocking systems with centralized operation of points and signals have been provided at 6589 stations (June 30, 2024) and Interlocking of Level Crossing (LC) Gates has been provided at 11048 level crossing gates up to 30.06.2024. Locomotives are equipped with Vigilance Control Devices (VCD) to ensure alertness of Loco Pilots. A Global Positioning System (GPS) based Fog Safety Device (FSD) is provided to loco pilots in fog affected areas which enables loco pilots to know the distance of the approaching landmarks like signals, level crossing gates etc.

To capture the environmental & economic benefits of electric traction, Indian Railways plans to achieve 100% electrification of its broad-gauge routes by the end of 2024. With more than 94% of the route already electrified, 100% electrification is expected to result in an annual energy savings of around USD 1.55 billion. Indian Railways has set a target of becoming a ‘net-zero carbon emitter’ by 2030, by generating energy through renewable sources. It aims to set up 20 GW capacity solar power plants on its land, to power its network and infrastructure. In this regard, as of 31 October 2023, 200+ MW solar rooftop capacity has been installed in more than 1490 railway stations in the country. Several initiatives to reduce the carbon emissions have been taken which include use of energy efficient technologies like completely switching over to production of three phase electric locomotives with regenerative features, use of head on generation (HOG) technology, use of LED lights in buildings and coaches, star rated appliances and afforestation. Further, India earned the distinction of being the world’s first nation to achieve the conversion of a diesel locomotive to an electric one.

The way forward

Indian Railways' journey towards modernization and efficiency embodies a paradigm shift in the way transportation infrastructure is designed and implemented. With a relentless focus on innovation, sustainability, and customer-centricity, Indian Railways is poised to not only meet the evolving needs of 'New India' but also emerge as a global benchmark in the realm of transportation. As the nation progresses towards its aspirations, Indian Railways stands as a beacon of progress, connecting millions and driving the nation towards a brighter future.

Karan Sethi
Vice President, Invest India

Pratyush Kumar
Senior Manager, Invest India