Unveiling the Ownership of Vande Bharat Trains: A Deep Dive into Railways’ Rental Costs

Vande Bharat trains are changing how people travel across India. These semi-high-speed trains come equipped with modern amenities, making journeys more comfortable. Recently, sleeper versions have been introduced, boosting their popularity even more.

But there’s a question: who really owns these trains? Indian Railways owns the Vande Bharat fleet, having produced them under the “Make in India” initiative. They manufacture these trains right here in India, mainly in factories from Chennai. So far, around 500 coaches have rolled off the production line, and some are even exported to other countries.

Despite owning the trains, Indian Railways spends a lot to keep them running each year. It might seem odd, but they pay an annual fee because building and maintaining these trains costs billions of rupees. Lacking sufficient immediate funds, Indian Railways relies on loans from the Indian Railway Finance Corporation (IRFC) to cover these expenses.

The IRFC helps fund projects like Vande Bharat trains and new railway tracks, then leases the assets back to the Railways. This allows Indian Railways to manage costs without huge upfront payments. Instead, they pay the IRFC “rent” from the earnings generated by train operations.

In the fiscal year 2023-2024, Indian Railways spent about ₹30,154 crore to repay loans, including over ₹17,000 crore on the principal and around ₹13,000 crore on interest. During this time, they leased assets worth ₹2.95 lakh crore, which includes about 13,000 railway engines and other coaches. This significant financial commitment shows the effort behind modernizing Indian Railways.

Recent reports indicate that Vande Bharat trains are making strides in punctuality and efficiency, responding to user feedback. On platforms like Twitter, users have appreciated the comfort and reduced travel times compared to older trains. It’s clear that these trains are not just a mode of transport; they symbolize progress in Indian Railways.

For more details on Vande Bharat trains and their impact, you can check out this article.

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