Indian Railways in sound financial health, says Union minister Ashwini Vaishnaw
Indian Railways’ financials are in good condition with continuous improvement efforts underway, Railways Minister Ashwini Vaishnaw informed the Rajya Sabha on Monday.
During a debate on the working of the Railways Ministry, Vaishnaw noted that the national transporter has successfully overcome pandemic-related challenges, with passengers returning to train travel and both passenger and cargo traffic showing growth.
During 2023-24, Indian Railways reported a revenue of approximately ₹2,78,000 crore against expenses of ₹2,75,000 crore. Major expenditure components include staff costs ( ₹1,16,000 crore), pension payments ( ₹66,000 crore), energy expenses ( ₹32,000 crore), and financing costs ( ₹25,000 crore).
“Railways is fulfilling its expenses from its own income because of good performance. …Overall, the financial condition is good and we are trying to improve it on constant basis,” Vaishnaw stated.
The minister highlighted that Railways subsidises passenger fares while generating revenue from cargo and freight operations.
While the actual cost per kilometer stands at ₹1.38, passengers are charged only 72 paise, resulting in a total passenger subsidy of approximately ₹57,000 crore for 2023-24.
Vaishnaw emphasised that Indian train fares remain the lowest compared to neighbouring countries.