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Indian Railways’ financial condition is good, providing more subsidy to passengers: Vaishnaw

The cost of travel per kilometer by train is ₹1.38, but passengers are charged only 73 paise.

Yajati Rout by Yajati Rout
March 17, 2025
in National
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Union Minister of Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, today, during the discussion on the working of the Ministry of Railways in the Rajya Sabha, highlighted the achievements of Indian Railways and its future plans.


Vaishnaw said that Indian Railways is not only providing safe and quality services to passengers at affordable fares but is also making a distinct identity at the global level. He also mentioned that in India, railway fares are lower compared to neighbouring countries like Pakistan, Bangladesh, and Sri Lanka, whereas in Western countries, they are 10 to 20 times higher than in India.


  • This year, 1,400 locomotives have been produced, which is more than the combined production of America and Europe.
  • By March 31, Indian Railways, with 1.6 billion tons of cargo carriage, will be among the world’s top 3 countries.
  • Important steps have been taken to prevent incidents like the New Delhi Railway Station accident in the future.

Regarding the subsidy being given to rail passengers, the Railway Minister said that currently, the cost of travel per kilometre by train is ₹1.38, but passengers are charged only 73 paise, meaning a 47% subsidy is provided. In the financial year 2022-23, passengers were given a subsidy of ₹57,000 crore, which increased to approximately ₹60,000 crore in 2023-24 (provisional figure). Our goal is to provide safe and better services at minimal fares.

Highlighting the benefits of railway electrification, the Union Minister said that despite the increasing number of passengers and freight transport, energy costs have remained stable. Indian Railways is working on the target of achieving ‘Scope 1 Net Zero’ by 2025 and ‘Scope 2 Net Zero’ by 2030. He informed that the export of locomotives manufactured at the Madhepura factory in Bihar will soon begin. Currently, Indian Railways’ passenger coaches are being exported to Mozambique, Bangladesh, and Sri Lanka, while locomotives are being sent to Mozambique, Senegal, Sri Lanka, Myanmar, and Bangladesh. Apart from this, bogie underframes are being exported to the United Kingdom, Saudi Arabia, France, and Australia, while propulsion parts are being sent to France, Mexico, Germany, Spain, Romania, and Italy.

This year, 1,400 locomotives have been produced in India, which is more than the combined production of America and Europe. Along with this, 2 lakh new wagons have been added to the fleet. The Minister stated that in the financial year ending March 31, Indian Railways will transport 1.6 billion tons of cargo, making India one of the top three countries in the world, including China and America. This reflects the increasing capacity of the railway and its significant role in the logistics sector.

Talking about railway safety, Union Minister Shri Ashwini Vaishnaw said that 41,000 LHB coaches have been prepared, and all ICF coaches will be converted into LHB coaches. Long rails, electronic interlocking, fog safety devices, and the ‘Kavach’ system are being implemented rapidly. Thanking Prime Minister Narendra Modi, Vaishnaw stated that earlier, the railway used to receive ₹25,000 crore in support, which has now increased to more than ₹2.5 lakh crore, leading to significant infrastructure improvements. Meanwhile, 50 Namo Bharat trains are being manufactured, offering both AC and non-AC options for short-distance travel.

Regarding the recent accident at New Delhi Railway Station, the Union Railway Minister informed the House that a high-level committee is investigating this tragic incident. CCTV footage and all data have been secured, and facts are being examined by talking to about 300 people. Important steps have been taken to prevent such incidents in the future.

The Minister said that our government is committed to the poorest of the poor. That is why the number of general coaches is being increased by 2.5 times compared to AC coaches. According to the current production plan, there is a program for the manufacturing of 17,000 non-AC coaches. Along with this, he stated that the financial condition of Indian Railways is good, and continuous efforts for improvement are ongoing. The railway has successfully overcome the challenges related to the COVID-19 pandemic. The number of passengers is increasing, and freight transport is also rising. Now, railway revenue is about ₹2.78 lakh crore, and expenses are ₹2.75 lakh crore. Indian Railways is covering all major expenses from its income, which has been made possible due to the better performance of the railway.

In his concluding remarks in the Rajya Sabha, Shri Vaishnaw assured that the railway would emerge as a more modern, safe, and environmentally friendly transportation system in the future.

Tags: Affordable TravelIndia InfrastructureIndian railwaysPassenger SubsidyRailways Financial ConditionRailways RevenueRailways SustainabilitySubsidized TravelTrain Travel CostUnion Railway Minister
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Yajati Rout

Yajati Rout

Yajati K. Rout is a dynamic journalist at Pragativadi, known for delivering nuanced and impactful storytelling that spans Odisha’s societal fabric to global sports arenas. His reporting navigates seamlessly between grassroots realities, high-profile political developments, and the pulse of international tennis and cricket. With a flair for SEO-driven storytelling and a deep cultural lens, Yajati crafts content that resonates with a diverse readership—bridging insight with accessibility.

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