Stress Factors for Indian Railways

Syllabus: GS3/Economy

Context

• The recent series of train accidents in India has highlighted the urgent need for a series of reforms in Indian railways.

About

• The number of railway accidents dropped from 1,390 per year in the 1960s to 80 per year in the last decade. 
• However there were still 48 consequential accidents in 2022-23, and 40 in 2023-2024.
  • A consequential accident injures and/or kills people, damages railway infrastructure, and disrupts rail traffic.

Stress factors for Indian Railways

• High Operating Ratio (OR): The OR for 2024-2025 estimated at ₹98.2, meaning the Railways spends ₹98.2 for every ₹100 earned, leaving little for capital expenditure (capex).
• Accidents and Safety Issues: Despite a drop in accidents from 1,390 per year in the 1960s to 80 per year recently, there were around 40 consequential accidents in 2023-2024.
  • Human error is a major cause, with 55.8% of accidents due to Railway staff failures, 28.4% due to non-staff errors, and 6.2% due to equipment failures.
• Delays in Dedicated Freight Corridors (DFCs): Only the eastern DFC is fully operational; the western DFC is partly ready.
  • East coast, east-west, and north-south corridors are still in the planning stage, limiting freight capacity expansion.
• Financial Losses in Passenger Services: In 2019-2020, passenger services earned ₹50,000 crore but faced a loss of ₹63,364 crore.
  • The challenge of balancing affordable travel with profitability persists, especially with growing costs from wages, pensions, and fuel.
• Stressful Working Conditions: Locomotive pilots face 12-hour shifts, especially in high-freight zones, leading to stressful conditions.
  • Increased congestion and operational pressures add to the difficulties in maintaining physical capacity.
• Reliance on Freight Services: According to NITI Aayog, the rates for freight service which accounts for 65% of total revenue has increased more than three times as fast as passenger rates between 2009 and 2019.

Steps Taken by the Government

• Integration of Railway and Union Budget: In 2016-2017, the government merged the Railway budget with the Union budget, providing easier access to gross budgetary support.
• Improved Safety Measures: Investments in modern signaling systems, better track maintenance, and upgraded safety protocols.
• Introduction of New Trains: Introduction of high-speed Vande Bharat trains to increase passenger revenue and improve service on high-traffic routes.
• Automatic Train Protection (ATP) system to help a vehicle steer clear of another vehicle or obstacles. 

Way Ahead

• Infrastructure Investments: Increase capital expenditure for track renewal and maintenance, as the current outlay of 7.2% is insufficient.
• Lowering Operating Ratio: Enhance internal revenue generation through better pricing models for both passenger and freight services.
• Improved Working Conditions: Ensure better scheduling and training for staff to minimize human error and prevent accidents.
• Reduce fuel costs by increasing electrification and exploring alternative energy sources to lower operational costs.

Source: TH