The Second Report evaluates the Government's response to recommendations contained in the First Report on 'Demands for Grants (2024-25) of the Ministry of Railways.
Key Issues Highlighted in the Report
- Net Revenue remains low: Due to high subsidies on passenger fares. E.g., Passenger revenue (₹80,000 crores) is significantly lower than freight revenue (₹1,80,000 crores).
- Insufficient Capital Expenditure: Indian Railway dependent on government budgetary support, with limited contributions from extra-budgetary resources (EBR). E.g., EBR contribution in the 2024-25 is only ₹10,000 crores.
- Freight trains Average Speed remains low (only 25.14 km/h): This affects efficiency in transporting freight.
- Land acquisition delays are affecting the timely completion of critical infrastructure projects. E.g., new lines.
- Modernization of railway stations is progressing slowly, and many stations still lack basic amenities.
- Other Issues: Insufficient non-fare revenue generation; Slow progress in electrification and energy efficiency, etc.
Recommendations
- Implement dynamic pricing models, explore non-fare revenue sources. E.g., advertising & station leasing, etc.
- Set higher Public-Private Partnership (PPP) targets to reduce dependency on government funds.
- Accelerate Kavach implementation across all high-density routes., upgrade signaling systems etc.
- Accelerate construction of Dedicated Freight Corridors (DFCs).
- Engage with state governments and local MPs to expedite land acquisition processes.
