Second Report of the Standing Committee on Railways (2024-25) Presented in the Lok Sabha | Current Affairs | Vision IAS
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Second Report of the Standing Committee on Railways (2024-25) Presented in the Lok Sabha

Posted 11 Mar 2025

2 min read

The Second Report evaluates the Government's response to recommendations contained in the First Report on 'Demands for Grants (2024-25) of the Ministry of Railways.

Key Issues Highlighted in the Report

  • Net Revenue remains low: Due to high subsidies on passenger fares. E.g., Passenger revenue (₹80,000 crores) is significantly lower than freight revenue (₹1,80,000 crores).
  • Insufficient Capital Expenditure: Indian Railway dependent on government budgetary support, with limited contributions from extra-budgetary resources (EBR). E.g., EBR contribution in the 2024-25 is only ₹10,000 crores.
  • Freight trains Average Speed remains low (only 25.14 km/h): This affects efficiency in transporting freight.
  • Land acquisition delays are affecting the timely completion of critical infrastructure projects. E.g., new lines.
  • Modernization of railway stations is progressing slowly, and many stations still lack basic amenities.
  • Other Issues: Insufficient non-fare revenue generation; Slow progress in electrification and energy efficiency, etc.

Recommendations 

  • Implement dynamic pricing models, explore non-fare revenue sources. E.g., advertising & station leasing, etc.
  • Set higher Public-Private Partnership (PPP) targets to reduce dependency on government funds.
  • Accelerate Kavach implementation across all high-density routes., upgrade signaling systems etc. 
  • Accelerate construction of Dedicated Freight Corridors (DFCs).
  • Engage with state governments and local MPs to expedite land acquisition processes.
  • Tags :
  • Kavach
  • Railway Reforms
  • DFCs
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