Discover the Owner of the Vande Bharat Express: Why Does Indian Railways Pay Rent to This Company?

The Vande Bharat Express trains, introduced in 2019, have transformed travel in India. These trains make journeys between cities faster and more comfortable, showing India’s commitment to modern transportation. But have you ever wondered who actually owns these trains? The answer is Indian Railways, a government entity. They manufacture these trains at facilities like the Integral Coach Factory in Chennai, highlighting the ‘Make in India’ initiative.

Now, why does Indian Railways pay rent to a finance company? That’s where the Indian Railway Finance Corporation (IRFC) comes in. Every year, Indian Railways needs to purchase or build numerous trains, engines, and tracks, which requires substantial funds. It’s challenging for such a large organization to gather all that money. So, IRFC steps in as a financial partner.

IRFC operates like a bank for Indian Railways. With a market cap of around ₹1.59 lakh crore, it raises money from the public and large corporations through bonds and debentures. This capital is then used to buy or build new trains, including the Vande Bharat Express. Afterward, IRFC leases these trains back to Indian Railways, which pays annual lease rentals.

As for the Vande Bharat trains, they can reach speeds of up to 160 km/h. Currently, there are 150 services running across India, enhancing connectivity and reducing travel times significantly. This has not only made traveling easier but has also spurred economic growth in various regions.

Experts highlight that the introduction of these semi-high-speed trains is part of a larger trend. According to a recent survey, over 70% of travelers prefer trains for intercity travel due to comfort and efficiency. This preference is reshaping the travel landscape in India.

In conclusion, the partnership between Indian Railways and IRFC is a smart strategy that allows for the growth of modern infrastructure while maintaining financial stability. These trains are not just a mode of travel; they’re a representation of India’s aspiration towards a developed future.

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