Plans to Boost Railways' Operational Revenue Likely in 2025
RAILWAYS & METRO RAIL

Plans to Boost Railways' Operational Revenue Likely in 2025

Recent increases in budgetary allocations have accelerated Indian Railways’ capacity building and modernisation efforts across the country’s rail transportation infrastructure. However, whether these efforts will generate sufficient revenue to reduce reliance on taxpayer funds will depend on factors such as tariff policies, the ability to attract greater passenger and freight volumes, and private sector investments.

The national transporter is working on several initiatives aimed at boosting revenue from the passenger segment. The government is expected to introduce Vande Bharat sleeper trains in 2025, which will offer greater comfort on long- and medium-distance journeys. At present, ten such trains are under production, with the first prototype set for field trials soon.

At the same time, the railways plans to introduce more Vande Metro trains (renamed Namo Bharat Rapid Rail) for short-distance travel. Launched in September this year, the Vande Metro trains offer inter-city connectivity, combining modern amenities with an enhanced passenger experience.

A report by CRISIL highlights the railways' efforts in modernisation, which include the introduction of advanced locomotives and improved passenger services. Station redevelopment and the effective use of railway land have also boosted infrastructure and opened up new revenue opportunities. "Investments totalling Rs 17.4 lakh crore between 2016 and 2025 are modernising the railways and reinforcing its role as a key driver in India’s progress to a high-income economy," the report noted.

Experts predict that Indian Railways will increasingly turn to the Public-Private Partnership (PPP) model to ease financial pressures and accelerate infrastructure development. Despite previous challenges with PPP projects in rail stations and trains, there is optimism that railways will collaborate with the private sector on freight-side projects.

Recent increases in budgetary allocations have accelerated Indian Railways’ capacity building and modernisation efforts across the country’s rail transportation infrastructure. However, whether these efforts will generate sufficient revenue to reduce reliance on taxpayer funds will depend on factors such as tariff policies, the ability to attract greater passenger and freight volumes, and private sector investments. The national transporter is working on several initiatives aimed at boosting revenue from the passenger segment. The government is expected to introduce Vande Bharat sleeper trains in 2025, which will offer greater comfort on long- and medium-distance journeys. At present, ten such trains are under production, with the first prototype set for field trials soon. At the same time, the railways plans to introduce more Vande Metro trains (renamed Namo Bharat Rapid Rail) for short-distance travel. Launched in September this year, the Vande Metro trains offer inter-city connectivity, combining modern amenities with an enhanced passenger experience. A report by CRISIL highlights the railways' efforts in modernisation, which include the introduction of advanced locomotives and improved passenger services. Station redevelopment and the effective use of railway land have also boosted infrastructure and opened up new revenue opportunities. Investments totalling Rs 17.4 lakh crore between 2016 and 2025 are modernising the railways and reinforcing its role as a key driver in India’s progress to a high-income economy, the report noted. Experts predict that Indian Railways will increasingly turn to the Public-Private Partnership (PPP) model to ease financial pressures and accelerate infrastructure development. Despite previous challenges with PPP projects in rail stations and trains, there is optimism that railways will collaborate with the private sector on freight-side projects.

Next Story
Infrastructure Urban

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States’ share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?