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Plans to boost railway receipts likely in FY26

Financial Express Bengaluru

|

December 30, 2024

Vande Bharat sleeper trains, revival of PPP on the cards

- MANU KAUSHIK

THE SURGE IN budgetary allocations in recent years has accelerated the pace of the railways' capacity building and the overall modernisation of the country's rail transportation infrastructure. However, whether this will be enough to generate the revenue streams needed to gradually reduce reliance on taxpayer money will depend on tariff policies, the ability to attract more passenger and freight volumes, and securing a critical level of private investments.

The national transporter is working on multiple projects that will boost the passenger segment revenues. For instance, the government is expected to launch Vande Bharat sleeper trains in 2025 which will provide greater comfort over long- and medium-distance journeys. At present, 10 Vande Bharat sleeper trains are under production with the first prototype to undergo field trials shortly.

Simultaneously, the railways is planning to roll out more Vande Metro trains (renamed Namo Bharat Rapid Rail) to cater to short-distance travel. Launched in September this year, the Vande Metro trains go beyond regular metro services, offering inter-city connectivity with modern amenities and an enhanced passenger experience.

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