This rental model allows Indian railways to run trains without the full financial burden of ownership.
India’s pride on high-speed rail travel is reflected in premium trains such as Rajdhani Express, Shatabdi Express and Vande Bharat Express. These trains are widely recognized for their speed, comfort and modern amenities. But have you ever wondered who actually owns these trains? When they run under the flag of Indian Railways, the real ownership lies elsewhere.
Surprisingly, it is not the Indian Railways that own these quality trains, but the Indian Railway Finance Corporation (IRFC). The IRFC is a public sector enterprise owned by the Ministry of Railways Government and is responsible for funding most assets used by Indian railways. This includes engines, coaches, vans, and even many trains themselves.
Recently, the IRFC was granted Navratna status, improving its financial and operational autonomy. In an exclusive interview with ABP News, IRFC CMD Manoj Kumar Dubey explains how the new status empowers the company to make faster decisions and improve loans in the railway sector.
Dolby also revealed that technically, almost 80% of passengers and freight trains used by Indian railways are the property of the IRFC. The assets were leased to Indian Railways for 30 years, during which time the ownership of the IRFC was retained. The company uses funds raised from competitive rates it raises from the market to finance the production and acquisition of coaches and locomotives.
This rental model allows Indian railways to run trains without the full financial burden of ownership. From the sleek Vande Bharat to the long-trusted Shatabdi and Rajdhani, these trains were still on paper IRFC assets when Indian Railways operated them nationwide.
In addition to funding rolling stocks, the IRFC also plays a key role in financing projects related to railway infrastructure and logistics. With the new Navratna identity, the IRFC plans to expand its portfolio beyond traditional loans, enhancing the entire railway ecosystem.
In fiscal 25, Indian Railways grew 9% in coaching manufacturing, generating more than 7,000 coaches, reflecting its expanding capabilities. But behind this growth is the IRFC, silently providing impetus for India’s railway revolution.
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