The Major Revenue Sources of Indian Railways

Every year, the Indian Railways, the nation’s primary mode of transportation, moves around 8.101 billion people and 1.107 billion tonnes of freight. The first railway between Bombay and Thane, which ran for 34 kilometres, began its voyage in 1853. A modest start grew into a massive endeavour to connect the entire country with a standard network of lines. The Indian Railways is now one of the world’s largest railway networks, with around 1.54 million personnel and operations in 26 Indian states and three union territories.

Introduction to Indian Railways 

• India’s railway network is one of the largest in the world. The route network of the Indian Railways is 1,23,236 kilometres long.
• Under one administration, India’s railway network is the fourth biggest in the world and the second-largest in Asia.
• It helps to boost the country’s economic growth and integration.

Interesting facts about the railways in India

• The Fairy Queen is the world’s oldest working steam engine. It runs between New Delhi to the Rajasthani city of Alwar.
• UNESCO has designated four Indian Railways sites as World Heritage Sites. 
• In 1951, Indian Railways was nationalised.
• In 1909, Indian Railways introduced toilets.
• In 1986, Indian Railways launched automated reservations in New Delhi.
• Indian Railways is the largest rail network in Asia and the world’s second-largest network maintained under a single administration.
• With a length of 1,366 metres, the new platform at Gorakhpur Railway Station in Uttar Pradesh has become the world’s longest.
• Indian Railways is constructing the world’s tallest railway bridge, five times the height of the Qutub Minar and 35 metres higher than the Eiffel Tower.
• Pir Panjal, which connects Kashmir Valley with Banihal in Jammu, is India’s longest railway tunnel.
• Odisha’s Ib station has the shortest name.
• The station with the longest name in India is Venkatanarasimharajuvaripeta.
• More than 7,421 cargo trains transport 3 million tonnes of freight every day.

Indian Railways Revenue Analysis

Internal income for the railways is expected to reach Rs 2,40,000 crore in 2022-23, up 19% from revised forecasts for 2021-22. Revenues are expected to be 7% lower in 2021-22 than projected in the budget.

The Government of India owns and operates Indian Railways, a state-owned railway business. It is one of the world’s major transportation and logistics hubs. Indian Railways’ earnings are separated into three categories:

• Freight
• Compensation for passengers
• Earnings from the laundry

Sundry profits encompass all income inflows that are not related to freight or passenger business revenues, such as land leasing, brake vans, advertising revenues, and fees for different inspections and tender fees, among other things.

Growth of the Indian Railways

• The first railway line in India was opened for public travel between Mumbai and Thane on April 16, 1853, spanning a distance of 34 kilometres.
• Railway lines were constructed in the eastern portion of the nation, and the first rail line of the East Indian Railway was opened on August 15, 1854, and ran 37 km from Howrah to Hugli.
• The southern region of the country acquired its first 105 km railway line in 1856, which extended from Royapuram to Arcot.
• With approximately 10 lakh people employed in the operational and functional aspects of railways, India’s railway system is both the world’s largest government undertaking and the world’s largest employer.

Future of the Indian Railways

Sustainable pricing in the future:

The Indian Railways’ pricing strategy has to be revisited to make the passenger and freight divisions sustainable. Tariffs should be competitive with road transport costs.

Independent regulator:

Creating a fair playing field for private players would need the creation of an independent regulator.

To achieve this goal, establishing the Rail Development Authority, which the government has already approved, must be expedited.

Modernisation of railways:

The Bibek Debroy committee’s suggestions, such as expanding the Indian Railways manufacturing firm and corporatising essential railway activities, must be implemented.

Significance of railways

• Railways are the cheapest and most practical mode of passenger transportation for both long-distance and suburban traffic.
• Railways are responsible for much of agriculture’s development. Agriculture was only able to become industrialised with the support of the railway.
• By reducing the distance between urban and rural areas, railways have also played a significant role in the dissemination of innovations and new ideas.
• By ensuring price equality, railways promote the provision of the national market. The railway connects to key ports, boosting economic growth.
• The railway aids the nation’s defence and internal security by permitting personnel, defence equipment, and other commodities to be moved promptly to remote regions.

Conclusion

The Indian Railways intends to earn more money and enhance its financial health by using existing infrastructure such as railway stations, land, lines, and advertising. This is a deviation from the organisation’s traditional strategy of increasing rates to increase revenue.