India’s railway network, one of the largest in the world, spans nearly 68,000 kilometers. Over the past decade, the Indian Railways has seen significant modernization, introducing high-speed trains such as Vande Bharat Express and Shatabdi Express. But while these trains are operated by Indian Railways, their ownership is a different story.
Who Owns Vande Bharat and Shatabdi Express?
While Indian Railways manages and operates these premium trains, they are technically owned by the Indian Railway Finance Corporation (IRFC). Established in 1986, IRFC serves as the financial arm of Indian Railways, raising funds for infrastructure projects and train acquisitions.
How Does IRFC Own These Trains?
IRFC leases locomotives, coaches, and wagons to Indian Railways for a period of 30 years. This means that nearly 80% of Indian Railways’ passenger and freight trains are actually the property of IRFC. The corporation funds these assets using money raised from domestic and international markets at low-interest rates.
What Is IRFC’s Role in Indian Railways?
IRFC provides financial support to Indian Railways by:
- Funding the purchase of trains, wagons, and coaches
- Financing railway infrastructure projects
- Supporting container manufacturing, port connectivity, and electricity supply for railways
In March 2024, IRFC was granted Navratna status, giving it more financial autonomy to raise and allocate funds efficiently. This status strengthens its ability to support Indian Railways’ rapid expansion and modernization.
How Profitable Is IRFC?
IRFC has an annual revenue of ₹26,000 crore and a profit of ₹6,500 crore after taxes. With Indian Railways needing over ₹4 lakh crore annually for infrastructure projects, IRFC plays a critical role in securing funds to keep India’s railway system running smoothly.
While Indian Railways operates high-speed trains like Vande Bharat Express and Shatabdi Express, their ownership rests with IRFC. By providing financial backing and leasing railway assets, IRFC ensures the continued expansion and modernization of India’s railway network.
