. 21/10/2024 12:51 PM
Why in News?
Indian Railways has been grappling with several train accidents recently, including the derailment of eight coaches of the Agartala-Lokmanya Tilak Express in Assam on October 17 and a collision between a passenger train and a goods train near Chennai on October 11—both fortunately without casualties. The most alarming incident was the Balasore accident on June 2, 2023, which resulted in over 275 fatalities and raised significant safety concerns. As the pressure mounts on the Railways to enhance safety measures, it faces the dual challenge of addressing these demands while also managing financial and operational strains.
Railway accidents in India have substantially decreased from 1,390 annually in the 1960s to about 80 per year over the last decade. However, there were 34 consequential accidents in 2021-2022, 48 in 2022-2023, and 40 in 2023-2024. These accidents lead to injuries, fatalities, infrastructure damage, and traffic disruptions. Public records reveal that 55.8% of train accidents stem from staff failures, 28.4% result from non-staff errors, and 6.2% are due to equipment failures. Notably, in high-profile cases like the Balasore and Kavaraipettai accidents, faulty signaling systems were identified as critical factors.
Kavach, or "armour," is India’s indigenous automatic protection system, developed since 2012 as part of the Train Collision Avoidance System (TCAS). This advanced electronic system aims to help Indian Railways achieve zero accidents. It was developed by the Research Design and Standards Organisation (RDSO) in collaboration with the Indian industry.
Deployment and Financial Implications
As of February 2024, Kavach has been installed on only 2% of Indian Railways' route length. Despite calls for expedited implementation after the Balasore incident, the system's cost—₹50 lakh per kilometre and ₹70 lakh per locomotive—poses financial challenges. Analysis suggests that full implementation would constitute less than 2% of the Railways' annual capital expenditure, yet the slow rollout has drawn criticism.
Effectiveness of Kavach in Preventing Accidents
Historically, nearly 70% of all major accidents in Indian Railways since 1990-1991 have been classified as derailments, with only 2% due to collisions. Thus, while Kavach effectively prevents collisions, it may not be a comprehensive solution to the Railways' safety challenges. For instance, the Kavaraipettai accident may not have been mitigated by Kavach due to relevant errors occurring beyond the system's operational thresholds.
The operating ratio (OR) measures how much is spent to earn ₹100, projected at ₹98.2 for 2024-2025. While this reflects slight improvement from ₹98.7 in 2023-2024, it marks a decline from ₹97.8 in 2016. A higher OR limits capital expenditure and increases reliance on budgetary support and extra-budgetary resources (EBRs). Since the merging of the railway budget with the general budget in 2016-2017, the Railways has enjoyed easier access to gross budgetary support, but EBR-related dues have surged, rising from 10% of revenue receipts in 2015-2016 to 17% in the current year.
Freight Services Performance
Freight services contribute 65% of Indian Railways' internal revenue. While both passenger and freight revenues have been rising, freight rates increased three times faster than passenger rates from 2009 to 2019. Nearly 30% of the railway network is overutilized, slowing freight movement to about 26 km/hr in 2016 and hindering revenue growth.
Challenges
Despite the government’s push for Dedicated Freight Corridors (DFCs) since 2005, only the eastern DFC is fully operational, with the western DFC partially ready and other corridors still in planning stages. The Railways heavily relies on coal, which accounts for half of the freight revenue and 45% of volume in the 2024-2025 estimates. However, the government's shift toward renewable energy threatens future coal demand, and maintaining infrastructure has become increasingly challenging, with capital outlay for track renewal dropping to 7.2% in 2023-2024.
Passenger Services Revenue
While freight services generate profits, passenger services incur significant losses. In 2019-2020, passenger revenue exceeded ₹50,000 crore, but losses reached ₹63,364 crore. Losses increased further to ₹68,269 crore in 2021-2022, largely due to the pandemic. The study estimates passenger revenue at ₹80,000 crore for 2024-2025, supported by new trains like the Vande Bharat on high-traffic routes. The Railways has also replaced many cheaper sleeper and second-class coaches with pricier AC coaches to boost revenue, though the last fare rationalization occurred in 2020.
Balancing Affordability and Profitability
Indian Railways must navigate the challenge of providing affordable travel while pursuing profitability, compounded by rising wage, pension bills, and fuel costs.
Stressful Working Conditions
Locomotive pilots endure high-stress conditions with 12-hour shifts, particularly in freight-heavy zones, while frequent changes in operating procedures add to the pressure, impacting safety.
Network Congestion and Safety System Limitations
High network congestion limits the effectiveness of safety systems like Kavach, as trains operate in close proximity with signals spaced only 1 km apart.
Revenue Shortfalls Affecting Safety
The Railways struggles to generate sufficient revenue, hampering its ability to enhance safety measures and manage growing demands on its budgetary resources.
What are the primary safety challenges facing Indian Railways?
Indian Railways contends with safety challenges stemming from human error, equipment failure, and outdated infrastructure. Despite initiatives like Kavach, slow implementation and network congestion compromise safety operations.
How does Indian Railways’ operating ratio affect its financial health?
The operating ratio, projected at ₹98.2 for 2024-2025, indicates a high expenditure relative to earnings, limiting funds for capital investment and increasing dependency on government support and extra-budgetary resources.
