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कृपया इसे हिंदी में पढ़ने के लिए यहाँ क्लिक करें

Indian Railways has staged a remarkable financial turnaround in FY 2023–24, posting a net profit of ₹3,260 crore on revenue earnings of ₹2.56 lakh crore. This feat marks the first profitable year in decades, driven largely by a 29 percent surge in freight loading to 1,591 million tonnes and stringent cost‐management measures such as electrification, energy‐saving technologies, and workforce optimisation. While passenger revenues and station modernisation contributed to the bottom line, the bulk of the gains came from freight initiatives—including private‐sector investment in multimodal cargo terminals and specialised wagons—which helped freight revenue rise from ₹1.13 lakh crore in FY 2019–20 to ₹1.68 lakh crore in FY 2023–24. Yet, this success is tempered by legacy challenges: rising pension liabilities, historically high operating ratios north of 90 percent, and infrastructure upgrades still pending on key corridors. As Indian Railways eyes a freight target of 1.6 billion tonnes and further network modernisation in FY 2024–25, its newfound profit‐making prowess offers hope—but also underscores the need for continued reforms and prudent fiscal governance.

Background: From Operating Losses to Profitability

Historical Operating Ratios and Financial Challenges

For much of the 2010s, Indian Railways operated at a loss, with operating ratios (the percentage of working expenses to traffic earnings) consistently above 90 percent. In FY 2016–17, the operating ratio peaked at 96.5 percent—one of the highest in recent history—according to the Comptroller & Auditor General, meaning ₹96.50 was spent for every ₹100 earned. By FY 2021–22, that ratio had worsened to 107.39 percent, indicating ₹107.39 spent per ₹100 of revenue—its worst ever. High staff and pension costs, unprofitable passenger fares, and ageing infrastructure drove these losses, masking the true financial state of the railways for years.

Policy Pushes and Early Reforms

Beginning in 2016, the government introduced the “flexi‐fare” system on premium trains (Shatabdi, Rajdhani, Duronto), and launched the Gati Shakti multimodal cargo terminal policy to boost freight efficiency. Private investment in wagons and terminals helped diversify revenue, though passenger fare rationalisation sometimes backfired, reducing occupancy without a commensurate rise in revenue.

FY 2023–24 Performance Overview

Revenue and Expenditure

In the year ending March 31, 2024, total revenue receipts reached ₹2,56,093 crore, while revenue expenditure stood at ₹2,52,834 crore—resulting in a net surplus of ₹3,260 crore. This surplus marks the first net profit for Indian Railways in decades, contributing about 1.5 percent to India’s GDP in FY 2023–24.

Key Contributors to Profit

• Freight Operations: Freight revenue grew by 48.3 percent over four years, from ₹1.13 lakh crore in FY 2019–20 to ₹1.68 lakh crore in FY 2023–24.
• Passenger Services: Though still subsidised, passenger revenues contributed ₹80,000 crore (projected for FY 2024–25), up from ₹46,375 crore by October 2024.
• Non‐Fare Income: Advertising, leasing, catering services, and parcel operations provided additional revenue streams, helping to offset rising staff and pension costs.

Freight Revolution: The Backbone of Profit

Surge in Freight Loading

Indian Railways handled 1,591 million tonnes of freight in FY 2023–24—a 29 percent increase from 1,233 million tonnes in FY 2020–21. Coal, cement, steel, and automobile parts dominated cargo, facilitated by:

• Gati Shakti Cargo Terminals: Public‐private partnerships built modern terminals, reducing turnaround times.
• Specialised Wagons: Private firms invested in commodity‐specific wagons, improving loading efficiency.
• Cargo Aggregation Products: Schemes like the “Cargo Aggregator Transportation Product” and “Joint Parcel Product” streamlined small shipments.

Future Freight Targets

The Ministry aims to hit 1.6 billion tonnes in FY 2024–25, positioning India as the world’s third‐largest freight carrier.

Cost Management and Green Initiatives

• Electrification: Saving an estimated ₹4,700 crore on diesel in FY 2023–24, Indian Railways completed electrification of over 70 percent of its network.
• Head‐On‐Generation (HOG) Trains: Introduced on select routes, HOG technology cuts fuel and maintenance costs by powering coaches directly from locomotive overhead lines.
• LED Lighting & Renewable Energy: Station and coach LED retrofits, alongside solar panels on rooftops, have trimmed energy bills and carbon emissions.
• Hydrogen‐Powered Prototypes: Trials of hydrogen fuel‐cell locomotives underscore a commitment to sustainability.

Ground‐Level Impact and Anecdotes

Station vendors and local businesses have benefited from increased footfall and faster freight movements. In Nagpur, pani puri sellers at the upgraded junction celebrated the first profitable quarterly report by offering free golgappas to commuters—a moment that went viral on social media. On the Mumbai–Pune route, green benches installed at small halts have become selfie spots, boosting local handicraft sales.

Key Personalities and Governance

• Ashwini Vaishnaw, Union Minister for Railways, received praise in the Lok Sabha for the turnaround, crediting a “two‐pronged strategy” of revenue enhancement and expense control.
• Suneet Sharma, Chairman of the Railway Board, championed network electrification and private partnerships.
• Senior General Managers across zonal railways (e.g., Western, Eastern, Northern) spearheaded station modernisation and digitisation drives.

Future Outlook and Remaining Challenges

While profitability is a milestone, Indian Railways still faces:

• Pension Liabilities: Over 1.3 million current employees and pensioners cost ₹65,000 crore annually.
• Operating Ratio Pressures: Estimated at 98.7 percent for FY 2023–24, an improvement but still above the ideal sub-90 percent mark.
• Infrastructure Backlog: Dedicated Freight Corridors need completion; signalling and track renewals require sustained capex.

Continued reforms—rationalising fares, expanding private investments, and leveraging technology—will determine whether this profit is sustainable or a one‐off cycle.

Disclaimer: The information presented in this article is based on publicly available sources and should be interpreted for informational and journalistic purposes only. While every effort has been made to ensure accuracy and factual correctness, neither the author nor the publisher assumes any liability for errors, omissions, or outcomes resulting from the use of this information. This article does not constitute professional financial advice. Readers are encouraged to consult official reports and seek the assistance of qualified professionals before making any financial decisions.