Indian Railways’ Vande Bharat Express, India’s first semi-high-speed train, has been making waves for its speed and comfort, especially on the New Delhi-Varanasi route. However, questions have been raised about whether this new service is financially viable, particularly given concerns regarding its operational costs and its potential to cause losses to the government.
Vande Bharat Express: A Premium Service
The New Delhi-Varanasi Vande Bharat Express was launched in 2019 as a groundbreaking service, reducing travel time between the two cities. A second Vande Bharat Express was introduced on the same route in December 2023 to meet rising demand for faster travel.
Financial Concerns: Losses or Viability?
During the ongoing Winter Session of Parliament, MP Rajeev Rai raised concerns about the financial performance of the New Delhi-Varanasi Vande Bharat Express. He questioned whether the premium service was leading to financial losses. Railway Minister Ashwini Vaishnaw responded, clarifying that the route is served by multiple train services, including 27 pairs of trains and the two Vande Bharat Express trains. The extension of the train service to other regions depends on traffic demand and operational feasibility.
High Occupancy and Commercial Viability
Despite concerns over financial losses, the New Delhi-Varanasi Vande Bharat Express has shown strong passenger demand. The occupancy rate for the train between Kanpur and Varanasi was 113.78% in the 2024-25 financial year (up to October 2024). This high occupancy rate suggests that the train is commercially viable and in high demand, helping to offset its operational costs.
Costs and Ticket Prices
The cost of operating a semi-high-speed train like Vande Bharat is naturally higher than conventional trains. The ticket prices for the New Delhi-Varanasi Vande Bharat Express range from Rs 1740 to Rs 3270 for the AC Chair Car, and Rs 1795 to Rs 3320 for the Executive Chair Car. While these prices are higher than those of regular trains, they reflect the premium experience and speed that passengers enjoy.
Conclusion: Is It a Loss?
Although there are concerns about the financial aspects of the New Delhi-Varanasi Vande Bharat Express, the high occupancy rate and growing demand for quicker travel suggest that it is not a loss-making venture. In fact, with its popularity, the train is likely contributing positively to Indian Railways’ revenues. The government will continue to assess the viability of the service based on passenger demand and operational efficiency as the route expands.
Indian Railways’ Vande Bharat Express seems to be a step forward in enhancing India’s travel infrastructure while offering faster, more comfortable options for passengers, and it is likely to continue growing in both popularity and profitability.
