Current Affairs

General Studies Prelims

General Studies (Mains)

Indian Railways: Safety and Revenue Challenges

Indian Railways: Safety and Revenue Challenges

As of 2024. Railways continues to grapple with safety concerns and financial sustainability. Recent incidents, including the derailment of the Agartala-Lokmanya Tilak Express on October 17 and a rear-end collision near Chennai on October 11, highlight ongoing challenges. The Balasore accident in June 2023, which resulted in over 275 fatalities, has intensified scrutiny on the Railways’ safety protocols. Despite a historical decline in accident frequency, the implementation of advanced safety measures like the ‘Kavach’ system remains slow, raising questions about operational efficiency and passenger safety.

About Railway Accidents

Historically, railway accidents in India have decreased , from approximately 1,390 annually in the 1960s to around 80 in recent years. However, consequential accidents—those causing injury or infrastructure damage—remain a concern, with 40 recorded in the 2023-2024 period. A notable finding is that 55.8% of these accidents are attributed to human error, predominantly involving railway staff, while equipment failures account for only 6.2%. This data puts stress on the need for better training and systems to enhance operational safety.

The ‘Kavach’ System

The ‘Kavach’ system is an automatic train protection mechanism designed to avert collisions by monitoring train positions and triggering alarms or automated braking when necessary. As of early 2024, it has been installed on just 2% of the railway network, despite its potential to enhance safety. The implementation cost is estimated at ₹50 lakh per kilometre, a fraction of the Railways’ annual capital expenditure, yet progress has been sluggish. Critics argue that the slow rollout compromises passenger safety, especially given the historical context of accidents.

Financial Sustainability of Indian Railways

The operating ratio (OR)—a critical measure indicating the efficiency of operations—has worsened over the years, with an estimated OR of ₹98.2 for 2024-2025. This figure shows that the Railways spends nearly ₹98 for every ₹100 earned, leaving little for capital investment. The financial strain is exacerbated by increasing operational costs, including wages and fuel, alongside a reliance on budgetary support and Extra-Budgetary Resources (EBRs).

Freight and Passenger Services

Freight services are crucial for revenue generation, accounting for approximately 65% of total earnings. However, inefficiencies in freight movement and a reliance on coal—responsible for half of the freight revenue—pose sustainability challenges. Additionally, passenger services have consistently incurred losses, with the 2021-2022 fiscal year alone seeing a loss of ₹68,269 crore. Despite an increase in passenger traffic and the introduction of new train services, the Railways has not adjusted fares since 2020, further complicating its financial outlook.

Impact on Safety and Operations

The dual objectives of affordability and profitability create a complex environment for Indian Railways. High operational costs, coupled with the demand for improved safety measures, create a perpetual cycle of financial strain. Stressful working conditions for locomotive pilots and inadequate signalling systems exacerbate the safety risks. The Railways’ struggle to enhance capacity and reduce congestion is critical, as evidenced by the limited effectiveness of existing safety measures in congested areas.

Questions for UPSC:

  1. Discuss the impact of the ‘Kavach’ system on railway safety in India.
  2. Evaluate the financial challenges faced by Indian Railways in the context of its operating ratio.
  3. Analyse the relationship between freight services and passenger services revenue in Indian Railways.
  4. What measures can be taken to reduce human error in railway operations?
  5. Examine the implications of the recent railway accidents on policy reforms in Indian Railways.

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