Indian Railways: Issues and Proposed Reforms

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January 29, 2025

Indian Railways: Issues and Proposed Reforms

The recent train tragedy in Jalgaon, Maharashtra has brought to light critical issues surrounding passenger safety and negligence in Indian Railways.

  • The Standing Committee on Railways, in its latest report, has highlighted several concerns regarding the operational and financial health of Indian Railways. 

Indian Railways at a Glance

  • The history of Indian Railways dates back to over 160 years ago. 
  • On 16th April 1853, the first passenger train ran between Bori Bunder (Bombay) and Thane, a distance of 34 km.
  • Network Size: Indian Railways operates over 67,000 km of track across the country, making it the 4th largest rail network in the world (after the United States, Russia, and China).
  • Number of Stations: There are more than 7,300 railway stations across the country.
  • Passenger Traffic: Indian Railways carries over 8 billion passengers annually.
  • Freight Traffic: Indian Railways handles around 1,200 million tonnes of freight every year, making it one of the largest freight carriers in the world.

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Organizational Structure of Indian Railways

  • Indian Railways (IR) is one of the largest rail networks in the world, and its organizational structure is complex, with multiple layers designed to manage its vast operations. 
  • Ministry of Railways: At the top of the hierarchy is the Ministry of Railways.
    • The Ministry of Railways is headed by the Minister of Railways and assisted by the Minister of State for railways.
  • Railway Board: The Railway Board is the apex body responsible for framing policies and overseeing the implementation of programs and projects across Indian Railways. 
    • The Railway Board reports to parliament through the Ministry of Railways.
    • The board’s structure includes Chairman and several members with specific areas of responsibility.

Indian Railways

Key Issues Highlighted by the Standing Committee on Railways

  • Low Average Speed of Freight Trains:
    • The average speed of freight trains over the last 11 years has been only 25.14 km/h.
    • This slow speed is seen as a major bottleneck in increasing the earnings of Indian Railways.
      • Freight services contribute significantly to IR’s revenue.

Steps taken to improve Low Average Speed of Freight Trains

  • Construction of two Dedicated Freight Corridors (DFCs):
    • Eastern DFC (Ludhiana to Sonnagar – 1,337 km) is completed.
    • Western DFC (JNPT, Mumbai to Dadri – 1,506 km) is partially completed, with 102 km remaining, expected by December 2025.
  • The Committee urged the Railways Ministry to speed up work on new DFCs.

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  • Revenue from Freight Services:
    • Freight services are the major source of income for Indian Railways.
    • In 2023-24, IR earned Rs. 1,68,293 crore, with a target of Rs. 1,80,000 crore for 2024-25.
    • Higher freight speeds and improved logistics are essential to meet revenue targets.
  • Slow Progress in ‘Kavach’ Safety System Implementation: 
    • Kavach is an Automatic Train Protection (ATP) system that helps prevent collisions by automatically applying brakes if a loco pilot fails to do so.
  • Underutilization of Research & Development Funds
    • Research Design & Standards Organization (RDSO) is responsible for R&D of Indian Railways.
    • Budget allocation of R&D for FY 2024-25 is Rs. 72.01 crore, which is relatively low.
    • Funds utilization in previous years has been poor:
      • 2022-23: Out of Rs. 107 crore, only Rs. 39.12 crore was spent.
      • 2023-24: Out of Rs. 66.52 crore, only Rs. 28.34 crore was spent.
    • The Committee stressed that R&D is a long-term investment and the Railways should ensure proper utilization of funds.
  • Declining Net Revenue of Indian Railways:
    • The committee noted that Indian Railways’ net revenue has been negligible in recent years:
      • 2022-23 and 2023-24: Net revenue was minimal.
      • 2024-25: The budget estimate for net revenue is just Rs.2,800 crore.
    • The primary reason for this is low revenue from the passenger segment, particularly AC classes. 
    • The committee recommended a review of passenger fares and strategies to reduce losses in this segment.

Other Issues Faced by Indian Railways

  • Overburdened Tracks: Around 60% of routes operate at over 100% capacity, leading to delays and accidents.
  • Train Accidents: Derailments, collisions, and level-crossing accidents continue despite safety measures.
    • In the 2023-24 financial year, there were 313 passenger deaths and four railway employee fatalities in 40 train accidents. 
  • Outdated Signaling System: Many sections still use manual signaling, leading to inefficiencies.
  • Slow Adoption of AI & Automation: Unlike global rail networks, IR lags in AI-based predictive maintenance.
    • The Shift2Rail program, part of the EU’s initiative to modernize rail transport, has used AI for Predictive maintenance to monitor the health of train components, Real-time monitoring of rail infrastructure and Optimizing train scheduling and route planning.
  • Environmental Concerns: Expansion projects often lead to ecological damage.
    • Udhampur-Srinagar-Baramulla Rail Link has seen protests from environmentalists due to their impact on local flora and fauna.
  • Project Delays & Bureaucratic Hurdles:  Infrastructure projects often face land acquisition delays, litigation, and bureaucratic inefficiencies.
  • Political Interference: Decision-making is influenced by regional and electoral considerations rather than national interest.

Steps Taken by the Government to Enhance Passenger Safety in Railways

  • Rashtriya Rail Sanraksha Kosh (RRSK): Introduced in 2017-18 with a corpus of Rs. 1 lakh crore for five years to replace, renew, and upgrade critical safety assets.
  • Electrical/Electronic Interlocking Systems: Installed at stations to prevent accidents caused by human error.
  • Retro-reflective Sigma Boards: Installed on masts to warn loco pilots about signals ahead during foggy weather.
  • Elimination of Unmanned Level Crossings (UMLCs): All Broad Gauge (BG) UMLCs were eliminated by January 2019.
  • Rolling Block Concept: Introduced in November 2023, this system plans maintenance, repair, and replacement work up to 52 weeks in advance on a rolling basis.
  • Kavach – Automatic Train Protection (ATP) System:  Kavach is a highly advanced ATP system that automatically applies brakes if the loco pilot fails to do so.

Committees made to Enhance Railway Safety

  • Kakodkar Committee (2001): The Kakodkar Committee was set up by the Indian government in 2001 to review the safety measures of Indian Railways.
    • The committee’s focus was on identifying the causes of rail accidents and recommending corrective actions to improve safety. 
  • Vinod Rai Committee (2012): The Vinod Rai Committee was formed after a series of rail accidents and aimed at improving the safety of railway operations.
  • Bibek Debroy Committee (2014): The Bibek Debroy Committee was tasked with recommending reforms for the Indian Railways, with a specific focus on improving efficiency and safety. 

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Way Forward

  • Infrastructure Modernization: Implement Dedicated Freight Corridors (DFCs) and High-Speed Rail projects.
    • The Mumbai-Ahmedabad bullet train, supported by Japan’s Shinkansen technology, will reduce travel time between the cities from 8 hours to 2 hours.
  • Financial Reforms: Rationalize fares, explore PPP models, and improve operational efficiency.
    • UK’s Network Rail has implemented several PPPs for infrastructure development and station upgrades, leading to improved efficiency and investment in the rail sector.
  • Safety Enhancements: Expand Kavach (anti-collision system), modern signaling, and better staff training.
    • Europe’s ETCS (European Train Control System) provides real-time speed control and automatic braking to prevent accidents, contributing to one of the safest rail networks in the world.
  • Passenger-Centric Reforms: Improve hygiene, ticketing systems, and station amenities.
    • The Swachh Rail, Swachh Bharat campaign focuses on cleanliness and has introduced more waste bins and cleanliness inspectors in trains and stations.
    • The Amrit Bharat Station Scheme aims to upgrade more than 500 stations, providing better facilities like waiting lounges, free Wi-Fi, and clean toilets.
  • Environmental Sustainability: Focus on electrification, solar-powered stations, and waste management.
    • The Indian Railways has set a target of becoming a “Net Zero” entity by 2030 by completing electrification of all railway tracks.

Conclusion

While Indian Railways remains a vital part of India’s economy, addressing these challenges through modernization, financial restructuring, and technological advancements is crucial for its long-term sustainability and efficiency.

Kavach: India’s Automatic Train Protection System

  • Kavach is an indigenously developed Automatic Train Protection (ATP) system designed by the Research Design and Standards Organisation (RDSO) in collaboration with the Indian industry. 
  • It was tested by South Central Railway (SCR) to enhance safety in train operations across Indian Railways.

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Privatisation of Indian Railways
Pros Cons
Increased Efficiency: Privatization can lead to better management, improved services, and operational efficiency due to competition. Loss of Accessibility: Private players may focus on profitable routes, neglecting less profitable, remote, or rural areas.
Better Infrastructure: Private companies may invest in modern technology and upgrade facilities, leading to improved infrastructure and passenger experience. Higher Fares: Privatization could lead to fare increases, making travel less affordable for certain sections of society.
Innovation & Technology: Private operators may introduce innovative technologies, like high-speed trains, modern ticketing systems, and better maintenance protocols. Job Losses: There could be job cuts or changes in labor conditions, affecting the livelihood of current railway employees.
Boost to Economic Growth: Enhanced efficiency and infrastructure could result in increased trade, tourism, and economic activity. Profit Motive Over Public Good: Private operators may prioritize profits over passenger welfare, compromising service quality and safety.
Reduced Government Burden: The government may be able to reduce the financial burden by transferring the responsibility of maintenance and development to private entities. Safety Concerns: Privatization could lead to safety risks if cost-cutting measures are taken at the expense of proper maintenance and regulations.
Current Scenario:

The Indian government has taken steps towards partial privatization and corporatization of certain services within Indian Railways. For example:

  • Indian Railway Catering and Tourism Corporation (IRCTC): A subsidiary of Indian Railways, IRCTC handles catering, tourism, and online ticketing. It has been partially privatized and is listed on the stock exchange.
  • Private Trains: The government has introduced private train operators on certain routes to improve service quality and efficiency.
    • Lucknow – New Delhi Tejas Express, which was inaugurated is India’s first train operated by private operators, IRCTC.
  • Station Modernization: Private players have been invited to participate in the modernization and development of railway stations.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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