Snapshot

Touching bullet speeds

India has the fourth-largest railway system in the world, lagging behind only US, Russia and China.

The Indian rail network is spread across more than 66,000 km (approximately 90,000 running track km) with about 7,100 stations. The railways run close to 13,000 passenger trains that carry over 23 mn passengers daily. The Indian Railways transported over 1.2 bn tons of freight in 2017-18.

Indian Railways is the single largest employer in India and eighth largest in the world; employing close to 1.4 mn people.

  • Indian Railways envisages a prospective investment of $ 130.7 bn in the next 5 years
  • Mumbai-Ahmedabad high-speed rail project sanctioned at a total cost of $ 15 bn

100% FDI allowed in railway infrastructure under the automatic route.

For more details refer to FDI Policy 2017

  • 2.6%

    Passenger traffic growth (2010-15)

  • 4.3%

    Freight traffic growth (2010-15)

  • 23 mn

    Average daily passengers

  • $ 16.5 bn

    Revenue from freight traffic (2015-16)

A

4th largest railway system in the world

B

4th largest rail freight carrier in the world

C

Single largest employer in India and 8th largest in the world

Industry Scenario

The Indian Railways' passenger earnings in 2017-18 have been the highest ever and clocked a 4.2% increase to $ 7.2 bn from $ 6.9 bn during the previous financial year.

Indian Railways aspires to add 1.5% to the country’s GDP by building infrastructure to support 40% modal freight share of the economy.

Two Dedicated Freight Corridors (DFC), one on the Western route (Jawaharlal Nehru Port to Dadri) and another on the Eastern route (Ludhiana to Dankuni), have been fast-tracked.

The Indian Railways is looking to award 6 tenders worth $ 1.2 bn, for setting up a country-wide electricity transmission network as part of a strategy to reduce electricity bills.

  • 3,360 km dedicated freight corridors by 2019
  • 700 stations to be fed with solar power in the medium term
  • The Ministry of Railways has decided to redevelop 90 railway stations into world-class transit hubs
  • Track Renewal speeded up - 2148 km old rails have been replaced with new rails upto November 2017
  • Electric Traction of 2367 route kilometer has been achieved

Growth Drivers

  • Rising passenger & freight traffic

    Increasing urbanization, rising incomes (both rural and urban), growing industrialization across the country along with private sector participation 

  • Increasing freight traffic

    Growing industrialization across the country

  • Dedicated freight corridor

    Six high-capacity, high-speed dedicated freight corridors

  • Mass Rapid Transit Systems (MRTS)

    MRTS is planned between Gurgaon and Bawal to provide direct connectivity to Manesar Bawal Investment Region (MBIR)

  • Diamond Quadrilateral network of high-speed rail

    Connecting major metros and growth centers of the country

  • Open

    Participative Policy

    This policy aims for participative models for rail connectiv…

Major Investors

Data on Map

FAQ

Frequently
Asked Questions

  • Define Participative models for rail connectivity and capacity augmented projects.

    This policy supersedes the R3i and R2CI policies notified earlier. The policy provides for supplementing government’s investment in rail infrastructure projects by private capital flows. 
    The policy contains the following models:
    1) Non-government railway.
     2) JV with equity participation by railways. 
    3) Capacity augmentation through funding by customers
    4) Capacity augmentation – annuity model applicability.
    5) Build Operate Transfer.
    A few projects undertaken under the participative policy of Ministry of Railways include Jaigarh Port-Digni Port, Hamarpur-Rewas Port, Chiplun-Karad, Vaibhavwadi-Kolhapur and Indore-Manmad.

  • What is the purpose of R2CI?

    This new policy was initiated to improve rail connectivity to coal and iron ore mines. The policy offers the developer involved in the construction of the line to levy a surcharge on the freight over a period of 10–25 years. 
    The policy has two models, i.e. Capital Cost and SPV Models. The Capital Cost Model is relevant when there are 2 players, whereas the SPV Model is intended for a large number of players.

  • What is R3i policy?

    The policy aims to attract private sector participation in rail connectivity projects to create additional rail transport capacity. The policy allows for 4 models: 
    a) Cost Sharing-Freight Rebate.
    b) Full Contribution- Apportioned Earnings.
    c) Special Purpose Vehicle (SPV). 
    d) Private Line.

  • What is the purpose of SFOORTI?

    The Ministry of Railways, Government of India, has launched the Smart Freight Operation Optimisation & Real Time Information (SFOORTI) application to optimise freight operations and manage traffic flows.

  • What is national railway plan?

    The Government of India is going to come up with a ‘National Rail Plan’ which will enable the country to integrate its rail network with other modes of transport and develop a multi-modal transportation network.

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