RAILWAYS YEAR END REVIEW – 2024

RAILWAYS YEAR END REVIEW – 2024

NEWS: Railway Developments and Safety Initiatives

 

WHAT’S IN THE NEWS?

Railway Safety Initiatives

  1. Implementation of the Kavach System:
    • Indian Railways has launched a phased roll-out of Kavach, an indigenous train collision prevention and avoidance system, to enhance rail safety and reduce accidents.
    • By 2030, the system will cover 66,000 route kilometers (rKM) on key and high-density routes, representing the majority of the network’s total 68,000 rKM.
    • Cost Estimates:
      • ₹50 lakh per rKM for track installations.
      • ₹80 lakh per locomotive for onboard installations.
    • Phased Roll-Out Plan:
      • Phase I (Current Phase): Bids invited for 14,735 rKM.
      • Phase II (FY26): Plans for 17,000 rKM are under development.
      • Phase III (FY27-FY28): Coverage will expand to an additional 30,000 rKM.
    • The system will be pre-installed on 10,000 locomotives, including the new Vande Bharat trainsets.
  2. Decline in Train Accidents:
    • Train accidents have significantly decreased from 473 incidents in 2000-01 to 40 incidents in 2023-24, showcasing the effectiveness of ongoing safety measures.
    • The accident rate per million train kilometers has dropped from 0.65 in 2000-01 to 0.03 in 2023-24, highlighting improvements in safety performance.
  3. Investment in Safety Infrastructure:
    • ₹1,547 crore has been utilized for Kavach installation in FY25, surpassing the allocated budget of ₹1,112.57 crore.
    • Deployment Progress: Kavach has already been installed on 1,548 rKM across the South and North Central Railway zones.
  4. Additional Safety Enhancements:
    • Track Renewals: Comprehensive upgrades to ensure the durability and safety of railway tracks.
    • Modern Signaling Systems: Deployment of advanced signaling technologies, including electronic interlocking systems, at railway stations to improve operational efficiency and safety.
    • Coach Upgrades:
      • Replacement of older ICF (Integral Coach Factory) coaches with LHB (Linke Hofmann-Busch) coaches known for their superior crashworthiness.
      • Since April 2018, Indian Railways has exclusively produced LHB coaches to enhance safety standards.

 

Introduction of Vande Bharat and Hydrogen Trains

  1. Vande Bharat Trains:
    • Indian Railways currently operates 136 Vande Bharat train services, primarily for short- and medium-distance journeys, achieving 100% occupancy rates due to their popularity and reliability.
    • Development of Vande Bharat Sleeper Trains:
      • To cater to long- and medium-distance travel, 10 Vande Bharat sleeper train prototypes have been manufactured, with production of 200 sleeper rakes awarded to technology partners.
      • These sleeper trains will enhance passenger comfort for overnight journeys.
  2. Hydrogen-Powered Trains:
    • Hydrogen trains are under development as part of the ‘Hydrogen for Heritage’ project, aimed at reducing environmental impact and utilizing cleaner energy sources.
    • Cost Structure:
      • Each hydrogen train will cost ₹80 crore.
      • Supporting ground infrastructure will cost ₹70 crore per route.
    • Pilot Project: A hydrogen fuel cell is being retrofitted into an existing diesel-electric multiple unit (DEMU) rake to evaluate feasibility and performance.

 

Freight Operations and Connectivity

  1. Freight as a Revenue Driver:
    • Freight services remain a critical component of Indian Railways’ revenue, contributing 26% of total income.
    • Development efforts are focused on specialized Vande Cargo Trains and double-stack cargo trains to enhance freight capacity and efficiency.
  2. Freight Corridors:
    • Several freight corridors dedicated to energy, minerals, cement, port connectivity, and other high-traffic commodities are under development.
    • These corridors are part of the PM Gati Shakti Mission, which aims to integrate multi-modal connectivity across India.
  3. Cargo Terminals Expansion:
    • Under the Gati-Shakti Multi-Modal Cargo Terminal (GCT) Policy:
      • A target of commissioning 100 GCTs by May 2024 has been set; 82 terminals have already been completed, and 192 proposals are in progress.
    • Future Plans:
      • Construction of 350 Rail Private Freight Terminals and Gati Shakti Cargo Terminals.
      • Goal to achieve freight loading of 3,000 million tonnes (MT) by 2030.

 

Railway Financial Performance

  1. Operating Ratio Challenges:
    • The operating ratio—a key metric reflecting expenditure relative to income—stood at 98.43% in FY24, indicating that Indian Railways spent ₹98.50 to earn ₹100.
    • Despite a slight increase from 98.10% in FY23, this marks an improvement from 107.39% in FY22, suggesting progress in cost management.
    • The budget estimate for FY25 projects an improved operating ratio of 98.22%.
  2. Revenue Concerns:
    • The Parliamentary Standing Committee noted that net revenue for FY23 and FY24 has been negligible, reflecting challenges in profitability.
    • Low revenue from the passenger segment has been identified as a primary factor contributing to financial strain.
    • The FY25 net revenue target is ₹2,800 crore, necessitating focused efforts to boost income from passenger services.

 

Significance of Railway Developments

  1. Safety First:
    • The roll-out of Kavach and other safety upgrades demonstrates Indian Railways’ commitment to minimizing accidents and ensuring passenger safety.
  2. Technological Advancements:
    • Introduction of modern trains, such as Vande Bharat sleepers and hydrogen-powered trains, positions Indian Railways as a leader in innovation and sustainability.
  3. Freight Optimization:
    • Expansion of freight corridors and terminals aligns with India’s infrastructure goals and supports the growing demand for multi-modal logistics.
  4. Financial Sustainability:
    • While challenges persist, focused investments in modern infrastructure, technology, and safety systems aim to improve efficiency, revenue, and overall financial health.