Railways Save Rs 60 Billion Through Electrification, Vaishnaw

20 Mar 2026 CW Team

Railway Minister Ashwini Vaishnaw told the Lok Sabha that switching from diesel to electric traction has saved the Railways Rs 60 billion (bn) in operational costs, a shift he said underpins broader efficiency gains. He conveyed the figure during a debate on the demands for grants of the Railway Ministry on March 17. The minister also stated that the national transporter has become the second largest cargo carrier in the world, reflecting growth in freight operations.

Vaishnaw said that since the current government took office in 2014, some 35,000 km of track has been laid while 27,000 km has been electrified, and he linked the electrification drive directly to the fuel cost savings. He noted that staff cost remains the single largest expenditure for the Railways while energy is the second largest. The minister projected that diesel locomotives will progressively give way to electric locomotives as electrification continues.

He described the decision to merge the railway budget with the general budget as a visionary move that increased financial allocation and altered the rhythm of project announcements. He said that new trains are now inaugurated and new projects launched throughout the year, which has not been the earlier norm, contributing to a steady improvement in the organisation's financial health. Transparency in publishing accounts has improved, he added, and the Finance Ministry together with other agencies now monitor monetary metrics using information technology systems.

The debate drew 210 MPs and lasted two days, providing a broad forum for scrutiny of policy and spending priorities. Vaishnaw attributed the shift in style to a politics of performance that has replaced the earlier politics of vote, linking administrative reform to outcomes. He argued that ongoing electrification and the related decline in diesel use will reduce energy bills and support the Railways' operational transformation.

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