Why is it in the news?

• The Indian Railways faces significant stress due to recent accidents and financial constraints. On October 17, 2024, eight coaches of the Agartala-Lokmanya Tilak Express derailed in Assam, following an October 11 collision near Chennai. These incidents follow the June 2023 Balasore accident, which killed over 275 people.
• While annual accidents have dropped from 1,390 in the 1960s to around 80 recently, there were still 34 consequential accidents in 2021-2022, 48 in 2022-2023, and 40 in 2023-2024. Most accidents result from human error, with signalling failures being a key factor in the Balasore and Kavaraipettai incidents.

More about the news

• To enhance safety, Indian Railways introduced ‘Kavach,’ an automatic train protection system aimed at preventing collisions. However, as of February 2024, it has been installed on only 2% of the total route length, leading to criticism of its slow rollout.
• However, experts warn against comparing current accident rates with those of the past, as modern technologies could better prevent collisions. Still, ‘Kavach’ may not have averted the Kavaraipettai accident since the error occurred outside its operational parameters.
• Financial pressures complicate the situation, with the operating ratio (OR)—the amount spent to earn ₹100—remaining high at ₹98.2 for 2024-2025, leaving limited resources for upgrades and maintenance.
• Although government budgetary support and Extra-Budgetary Resources (EBRs) provide some relief, the Railways’ dues have increased to 17% of its revenue receipts, up from 10% in 2015-2016.
• Freight services, which generate 65% of the Railways’ revenue, face significant challenges. Freight rates have risen three times faster than passenger fares from 2009 to 2019, and about 30% of the railway network operates beyond 100% capacity, causing delays.
• While Dedicated Freight Corridors (DFCs) were proposed to ease these issues, only the eastern corridor is fully operational, with others still incomplete. The Railways’ freight revenue heavily relies on coal, which made up 50% of freight revenue in 2024-2025, but the government’s push towards renewable energy could impact this dependence.
• Maintenance and infrastructure upgrades have been hindered by reduced funding. The capital outlay for track renewal fell to 7.2% in the 2023-2024 budget, and appropriations to the Depreciation Reserve Fund decreased by 96% during the BJP’s first term.
• These funds were redirected to the Rashtriya Rail Sanraksha Kosh, a safety fund created in 2017-2018, raising concerns about maintaining aging infrastructure.
• Passenger services continue to be a financial burden. In 2019-2020, revenue from passenger services was around ₹50,000 crore, while losses totalled ₹63,364 crore.
• By 2021-2022, losses escalated to ₹68,269 crore, partly due to pandemic-related cancellations. Projected passenger revenue is expected to reach ₹80,000 crore in 2024-2025, boosted by new high-demand trains like the Vande Bharat.
• However, fares have not been adjusted since 2020, and many lower-cost sleeper and second-class coaches have been replaced with more expensive AC coaches.

Conclusion

• The Indian Railways faces immense pressure to provide affordable travel while striving for profitability. Rising wage, pension, and fuel costs exacerbate challenges, with train pilots reporting stressful working conditions, particularly in high-traffic freight zones.
• Network congestion limits the effectiveness of safety systems like ‘Kavach,’ while alternative measures, such as walkie-talkies for trackside workers, have proven inadequate.
• As a result, the Railways continues to grapple with safety, capacity, and financial sustainability while trying to meet increasing demands.