Focus on automatic train protection system, staff welfare, capacity expansion: Par Committee to Railways

Presented in Lok Sabha on Monday, the third report on "Demands for Grants (2025-26) of the Ministry of Railways" made several observations and recommendations for the improvement of its functioning as well as revenue generation

Along with prioritising capacity expansion and safety enhancement, the thrust areas of the Railways should also remain technological advancements and execution of automatic train protection systems, according to a report of the Standing Committee of Railways.

Presented in Lok Sabha on Monday, the third report on "Demands for Grants (2025-26) of the Ministry of Railways" made several observations and recommendations for the improvement of its functioning as well as revenue generation.

Improving crowd management, adopting energy-efficient technologies, enhancing onboard amenities, using innovative pricing strategies and focusing on doubling railway lines are some of the suggestions.

The Committee stressed "the importance of ensuring efficient utilisation of the budget through a well-planned strategy prioritising capacity expansion and safety enhancement".

It was of the view "that the thrust areas should also remain technological advancements and execution of automatic train protection systems," the report said while highlighting the need for speedy implementation of Kavach.

Recommending that the Railway Ministry should prioritise the efficient utilisation of capital expenditure to accelerate infrastructure development, modernisation and asset replacement, ensuring timely completion of projects and avoiding cost overruns, it suggested optimisation of revenue expenditure.

According to the Committee, the optimisation is possible by streamlining recurring costs, particularly in operating expenses, and adopting energy-efficient technologies and exploring cost-saving measures without compromising service quality.

"The Committee also urge the Ministry to focus on staff welfare initiatives to boost employee morale and productivity while maintaining fiscal discipline and strategic alignment in all financial allocations," the report said.

It added, "The Committee expect full utilisation of the budget allocation made in 2024-25 which stands at 83% as on 31.01.2025 and desires the Ministry for timely execution of projects to prevent cost overruns."

After examining the Railway Ministry's stand on internal resources, the Committee said it has shown a downward trajectory since 2022-23 and urged it to explore and review all possible areas where resources can be mobilised to increase internal earnings and ensure a gradual reduction of dependence on Gross Budget Allocation (GBS)/EBR to the extent possible.

The Committee also suggested that the Ministry explore the option of supplementing GBS with market borrowing by leveraging private sector expertise.

Observe that the net earnings of Railways have remained marginal in the financial years 2022-23 and 2023-24, the Committee urged the Ministry "to explore alternative avenues to boost passenger revenues by including service-based revenue generation, improved onboard amenities thereby increasing of passenger base by allowing passenger transition from road and air transport to more sustainable railway alternatives."

The Committee said that the Ministry of Railways should "take proactive measures to improve the Operating Ratio by enhancing revenue generation and controlling working expenses."

"Efforts should be made to increase freight and passenger traffic revenues through innovative pricing strategies, improved service quality, and better utilisation of existing assets," the report said.

As far as the doubling of railway lines is concerned, the Committee observed that while the financial utilisation of the budget stands at nearly 74 per cent, the physical achievement of the doubling target is merely 39 per cent.

"The Committee would like to be apprised of the factors leading to this disparity. They urge the Railways to exercise due diligence in identifying and addressing obstacles to ensure seamless project execution," the report said.

The Committee also observed that the Railways had consistently fallen short of achieving their physical targets for the closure of manned level crossings since 2021-22, highlighting the need for focused attention in this area.

"To address the persistent issue of unmet production targets for coaches and wagons, the Committee recommend that the Railways significantly increase manufacturing capacity at existing units and explore the creation of new production facilities in areas lacking them," the report said.

Making several significant suggestions on the ongoing station redevelopment schemes, the Committee recommended that the scheme, among other things, should focus on improving crowd management to prevent any untoward incidents.

"To enhance freight traffic, the Committee recommend a commercially viable, market-driven approach, with a focus on diversification beyond bulk commodities.

Additionally, the Committee stress the need for prioritizing Dedicated Freight Corridors (DFCs) development and usage to ease congestion on high-density routes and improve freight efficiency," the report said.

Regarding the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, according to the report, the Committee noted that an expenditure of Rs.71,116 crores has been incurred so far as of January 2025 and the overall physical progress stands at 48.55 per cent, with key construction activities ongoing, including viaducts, tunnels and station buildings.

"The Committee recommend the Ministry to expedite the finalisation of remaining contract packages and associated works to ensure timely completion of the MAHSR Project. The Committee also desire the Ministry to address potential bottlenecks, such as delays in utility shifting and construction challenges, to avoid cost overruns and ensure the project stays on track," the report said.

It added, "To support the long-term sustainability of high-speed rail operations, the Committee desire that indigenous manufacturing of Shinkansen technology components under the Make-in-India initiative be expanded."

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