The Costly Push for 100% Electrification of Indian Railways

  • 19 Dec 2024

Introduction

RITES Ltd., the consultancy arm of the Indian Railways, has secured two contracts to repurpose six broad gauge diesel-electric locomotives for export to African railways. These locomotives, originally designed for India’s broad gauge of 1,676 mm, will be modified for use on railways with the narrower Cape Gauge of 1,067 mm. While this is a commendable re-engineering effort, it also highlights a larger issue within Indian Railways: the unnecessary redundancy of functional diesel locomotives, leading to significant wastage of resources.

The Growing Problem of Idle Diesel Locomotives

As of March 2023, there were 585 diesel locomotives idling across the Indian Railways network due to electrification. This number has now reportedly grown to 760 locomotives, many of which still have more than 15 years of serviceable life. The root cause of this redundancy lies in the government’s mission to electrify the entire broad gauge network at an accelerated pace. This electrification push has resulted in the premature retirement of locomotives that could still serve the network for years, raising questions about the economic and environmental logic behind this decision.

The Justification for Electrification: Foreign Exchange and Environmental Concerns

The Indian government’s electrification drive is often justified on two primary grounds: saving foreign exchange by reducing the import of crude oil and reducing environmental pollution. Additionally, electrification is framed as a step toward a “green railway” powered by renewable energy sources like solar and wind. However, the reality of these claims is more complicated.

Foreign Exchange Savings: A Small Impact on National Diesel Consumption

While electrification may reduce India’s diesel consumption, the impact on national fuel use is minimal. Railways account for just 2% of the country’s total diesel consumption. A report by AC Nielsen in 2014 indicated that the transport sector consumed 70% of the total diesel, with railways accounting for only 3.24%. Even with 100% electrification, the savings in foreign exchange would have little impact on the country’s overall diesel consumption, leaving other sectors like trucking and agriculture as the main contributors.

Environmental Concerns: Shifting Pollution, Not Reducing It

The environmental argument for electrification is also flawed. Electricity in India is still largely generated from coal-fired power plants, with nearly 50% of the country’s electricity coming from coal. Since the Indian Railways is heavily involved in transporting coal, switching from diesel to electric locomotives simply shifts pollution from the tracks to the power plants. This means that the transition to electric traction will not result in a cleaner environment unless the country significantly reduces its reliance on coal. Without a substantial increase in renewable energy generation, the push for a “green railway” remains unrealistic.

The Dilemma of Retaining Diesel Locomotives for Strategic Purposes

Despite the goal of 100% electrification, a significant number of diesel locomotives will remain in service. Reports indicate that 2,500 locomotives will be kept for “disaster management” and “strategic purposes,” although it is unclear why such a large fleet is necessary for these purposes. Additionally, about 1,000 locomotives will continue to operate for several more years to meet traffic commitments. This suggests that even with a fully electrified network, Indian Railways will continue to rely on thousands of diesel locomotives, many of which have substantial residual service life left.

Financial Sustainability and Coal Dependency

The financial sustainability of this transition remains a concern. Currently, the Indian Railways generates a significant portion of its freight revenue from transporting coal—40% of its total freight earnings in 2023-24. If the railways become fully electrified, it will need to find alternative revenue sources, as coal is a primary contributor. Until non-coal freight options can replace this income, the financial health of the railways may be at risk.

Conclusion: Wasted Resources and Unmet Goals

The mission to electrify the Indian Railways, while ambitious, is an example of how vanity projects can lead to colossal waste. Thousands of diesel locomotives are being discarded prematurely, despite their potential to continue serving the network. The environmental and financial justifications for 100% electrification, while appealing in theory, fail to account for the complexities of India’s energy landscape. As a result, the drive to create a “green railway” is likely to fall short, leaving behind a legacy of wasted taxpayer money and unfinished goals.