Railways Demand for Grants (2025-26) passed in Lok Sabha amid noisy protests

Replying to a discussion on the Demand for Grants for Railways (2025-26), Union Railways Minister Ashwini Vaishnaw said on Tuesday (March 18, 2025) in the Lok Sabha that allocating ₹2.52 lakh crore as Gross Budgetary Support (GBS) for Railways is a historic decision.

Mr. Vaishnaw was speaking amid noisy protests by the Opposition over not being allowed to speak on Prime Minister Narendra Modi’s statement on the Maha Kumbh. Mr. Vaishnaw said that despite challenges during COVID-19, the Railways has now reached a healthy financial position. “The current situation is such that the Railways is now able to meet almost all its expenditures through its own income, covering both major and minor costs,” he stated.

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Breaking down costs, he explained, that the largest expenditure component in Railways is staff cost, which amounts to ₹1,16,000 crore. “There are nearly 15 lakh pensioners, and their pension cost is around ₹66,000 crore. The energy cost stands at ₹32,000 crore, while financing costs amount to ₹25,000 crore. Adding all expenses together, the total expenditure of Railways is ₹2,75,000 crore, whereas the total income is approximately ₹2,78,000 crore,” he said.

On passenger subsidy, Mr. Vaishnaw said that the cost of transporting a passenger per km is ₹1.38. However, the fare charged by Railways is only ₹0.71 per km.

“This means Railways recovers only 53% of the cost, while the remaining 47% is subsidised. The total value of this subsidy amounts to ₹60,000 crore annually which is considered a social obligation,” he explained.

Affordability and concerns of discrimination

Mr. Vaishnaw has also mentioned that passenger fares have not been increased since 2020. “Compared to neighbouring countries, Indian railway fares are significantly lower. For example, for a 350-km journey, India (General Class) costs ₹121, while in Pakistan it is ₹436, in Bangladesh it is ₹323, and Sri Lanka it is ₹413,” he added.

The Lok Sabha later passed the Demands for Grants under the control of the Ministry of Railways for 2025-26.

Replying to concerns raised by Members of Parliament regarding discrimination against Tamil Nadu, Kerala, and West Bengal in railway infrastructure development, Mr. Vaishnaw stated that record budget allocations have been given to every State.

He also stated that the biggest hurdle in progress were the land acquisition issues in some States. “In Kerala, only 14% of the land has been acquired; Tamil Nadu, only 23% land acquired; and West Bengal, only 21% land acquired. How will the work move forward under such conditions? I have personally requested several Members of Parliament to urge the Chief Ministers to support railway projects by assisting in land acquisition and law and order matters so that the work can progress smoothly,” he said.

On railway accidents, Mr. Vaishnaw stated that during Mr. Lalu Prasad Yadav’s tenure as Railways Minister, there were 234 railway accidents per year. Including derailments, the total was 464, bringing the annual accident count to around 700 — averaging nearly 2 accidents per day. During Ms. Mamata Banerjee’s tenure, there were 165 railway accidents per year. Adding 230 derailments, the total number of accidents was 395 — which means an average of one accident per day. And during Mr. Mallikarjun Kharge’s tenure, there were 118 railway accidents per year. Adding 263 derailments, the total reached 381 accidents per year, again averaging one accident per day, “By 2019-20, the number of accidents had been reduced to 291. Today, the number of accidents has further reduced to just 30, and even with derailments included, the total is only 73. This marks a 90% reduction from previous years and an 80% reduction since 2014-15,” he said.

On starting rail services between Jammu and Srinagar, Mr. Vaishnaw stated that the Commissioner of Railway Safety (CRS) inspection is complete, and the report has been received. “The suggestions given in the report are being implemented, and once finalised, approval will be obtained for train operations between Jammu and Srinagar,” he said.

On the progress of Kolkata Metro, he stated that while the project started in 1972 and went on till 2014, within a span of 42 years — only 28 km were completed. “In contrast, in the past 10 years, 38 km have been completed,” the Minister stated.

Regarding the bullet train project’s requirement, Mr. Vaishnaw said: “I want to emphasise that it is about a shift in mindset. Unfortunately, during Congress rule, there was a persistent attempt to instil a sense of inferiority about such ambitious projects. This is a result of that outdated mindset. We must take the country forward by implementing projects that will benefit future generations.”