Lower Energy Cost, Better Maintenance Practises and Increased Freight Led to Surplus in Railways: Ashwini Vaishnaw

Union Railways Minister Ashwini Vaishnaw on Friday said the financial health of Indian Railways has improved significantly over the past decade and the national transporter is now generating a small revenue surplus after meeting all operational costs.

Replying to supplementary questions during Question Hour in the Rajya Sabha, Vaishnaw said sustained efforts to increase freight traffic, enhance passenger revenue and control expenditure have strengthened the Railways’ finances over the last 10 years.

“Under the leadership of Prime Minister Narendra Modi, there has been a lot of improvement in the financial health of the Indian Railways in the last 10 years,” the minister said while responding to a question by senior BJP member Laxmikant Bajpayee.

Employment Generation and Cost Structure

Vaishnaw informed the House that 5.04 lakh jobs were generated between 2014 and 2024, while another 1.5 lakh employment opportunities are being provided during the third term of the government.

Detailing the expenditure profile of Indian Railways, the minister said:

• Staff cost: ₹1.18 lakh crore for around 12 lakh employees

• Pension cost: ₹65,000 crore for nearly 18 lakh pensioners

• Energy cost: ₹32,000 crore

• Finance cost: ₹23,000 crore

• Maintenance cost: ₹8,000 crore

The overall annual cost of Indian Railways stands at approximately ₹2.74 lakh crore, he added.

“Railways is earning a small surplus after meeting all its costs because of the steps taken by the central government in the last 10 years,” Vaishnaw asserted.

Financial Performance Indicators

In a written reply, the minister shared key financial indicators for the 2024–25 financial year, stating that:

• Operating Ratio: 98.22 per cent

• Gross Traffic Receipts: ₹2,65,114 crore

• Surplus: ₹2,660 crore

The financial performance of Indian Railways over the last three years is as follows:

Electrification, Energy Savings and Freight Growth

Vaishnaw highlighted that the Prime Minister’s decision to achieve 100 per cent electrification of the railway network has resulted in a significant reduction in energy costs, along with major environmental benefits.

He said energy costs (diesel and electricity) have declined to about ₹32,400 crore, from ₹37,841 crore four years ago, despite a substantial rise in freight traffic.

The minister attributed the revenue surplus to:

• Operational efficiencies

• Energy savings of around ₹5,500 crore

• Improved maintenance practices

• Increase in freight traffic by 400 million tonnes

Passenger Subsidy Continues

Vaishnaw also informed Parliament that the government continues to support passengers through fare subsidies.

Indian Railways is currently providing a passenger subsidy of around ₹60,000 crore, with fares being subsidised by approximately 45 per cent, he said.