India’s Train Derailments Increase as Track Renewal Investment Declines

India has witnessed a troubling increase in train derailments, with 19 incidents reported in the first seven months of this year alone. This surge in derailments, which has resulted in significant loss of life and damage to infrastructure, has intensified concerns about the safety and maintenance of the country’s railway tracks.

A recent analysis reveals a stark contrast between rising railway revenues and declining investment in track renewal. Despite an uptick in overall railway revenue—from Rs 1.2 lakh crore in 2022-23 to an anticipated Rs 1.8 lakh crore in FY25—the proportion of funds allocated to track maintenance has markedly decreased. In the fiscal year 2022-23, track renewal expenditure accounted for 13.5% of railway revenue, but this figure has diminished to a projected 9.7% for FY25. The issue has been highlighted in a December 2022 report by the Comptroller and Auditor General of India, which underscored how inadequate funding and maintenance are adversely impacting track safety. The report’s findings are corroborated by recent derailments in July, which underscore the urgent need for enhanced focus on track renewal and maintenance.

The trend is particularly concerning given that the overall capital expenditure for railways is rising. However, a significant portion of this budget is being diverted towards new line construction rather than the renewal of existing infrastructure. The decline in track renewal investment coincides with a rise in derailment incidents, often caused by poorly maintained tracks, outdated signalling systems, and operational errors. The disparity between increasing railway revenues and shrinking maintenance budgets suggests a growing misalignment between financial resources and infrastructural needs.

As the railway sector continues to grapple with these challenges, there is an urgent call for policy adjustments and increased investment in track maintenance to mitigate the risks associated with railway operations and ensure passenger safety.