Discover Who Operates Vande Bharat and Shatabdi Express: A Deep Dive into Premium Train Ownership

The Indian railway system is one of the largest in the world, covering about 67,956 kilometers. In recent years, under the leadership of Prime Minister Narendra Modi, it has seen significant upgrades and the launch of modern trains like the Vande Bharat Express.

When discussing India’s high-speed rail options, the Shatabdi Express and Vande Bharat Express often come up. But who actually owns and operates these trains? Let’s break it down.

The Vande Bharat, Shatabdi Express, and other premium trains are owned and operated by the Indian Railway Finance Corporation (IRFC). This organization was established in 1986 to help fund Indian Railways projects. The IRFC is crucial in mobilizing resources from both domestic and international markets to support various railway initiatives.

Recently, the IRFC was granted ‘Navratna’ status, which grants it more independence in financial decisions. This means they can lend money and support projects more efficiently. According to Manoj Kumar Dubey, the CEO of IRFC, all engines, wagons, and coaches used by Indian Railways technically belong to them and are leased to the national transporter for up to 30 years. This arrangement highlights that approximately 80% of Indian Railways’ passenger and freight trains are assets of the IRFC.

What Does IRFC Do?

Since its founding, IRFC has provided essential funding for railway projects at lower interest rates than the market average. They are also set to finance various quality projects that link backward and forward in the railway system, again at low-interest rates.

IRFC’s Revenue

The IRFC generates around ₹26,000 crore annually, with a profit of approximately ₹6,500 crore after taxes. Their steady growth positions them to effectively fund the entire Indian Railways ecosystem.

Funding Needs of Indian Railways

According to Dubey, the Indian Railways needs over ₹4 lakh crore each year for infrastructure projects. Although the railways spends about ₹2.5 lakh crore of its budget, the IRFC steps in with loans for various partner firms involved, including those working on container manufacturing and electricity supply for railways.

In conclusion, the IRFC plays a vital role in the funding and operation of key railway services in India, ensuring that trains like Vande Bharat and Shatabdi Express continue to run smoothly and meet public demand.