Indian Railways' Two-Pronged Strategy for Profit Growth and Sustainability
Key Ideas
  • Indian Railways' freight loading surged by 29% to 1,591 million tonnes in 2023-24, aiming for 1.6 billion tonnes in 2024-25, enhancing revenue streams.
  • The strategy involves private investment in terminals, modern wagons, cargo aggregation, and competitive tariff policies to boost freight business.
  • Efficiency measures like electrification and workforce optimization saved ₹4,700 crore on diesel in 2023-24, improving cost management and sustainability.
  • Initiatives include green practices like HOG trains, electrification, LED adoption, renewable energy, and the use of hydrogen-powered trains, promoting environmental friendliness.
Indian Railways has adopted a two-pronged strategy to boost profits by increasing revenue and enhancing operational efficiency. With a freight loading surge of 29% to 1,591 million tonnes in 2023-24, Indian Railways aims to become the world's third-largest freight carrier by targeting 1.6 billion tonnes in 2024-25. To achieve this, initiatives such as private investments in terminals, modern wagons, cargo aggregation, and competitive tariff policies are being implemented. Additionally, measures like electrification and workforce optimization have saved ₹4,700 crore on diesel in 2023-24, strengthening cost management. The railway network's speed potential has expanded to 80,000 km at 110 kmph, with 23,000 km upgraded for 130 kmph since 2014. Indian Railways is also pioneering green and sustainable initiatives with HOG trains, electrification, LED adoption, renewable energy procurement, and the introduction of hydrogen-powered trains. By promoting environmental practices and sustainability, Indian Railways is making significant strides towards a greener future. With a focus on cleanliness, the railways have implemented various measures at stations and trains, including mechanized cleaning, bio-toilets, and on-board housekeeping services. Furthermore, the railways have taken steps to increase non-fare revenue through initiatives like NINFRIS and e-auction policies. Overall, Indian Railways' efforts towards profit growth and sustainability reflect a positive approach towards modernizing operations, enhancing revenue streams, and promoting environmental responsibility.
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