80 percent of the passenger trains and freight trains of Indian Railways belong to IRFC. In this way, the company plays a key role in supporting the progress of Indian Railways.
New Delhi: India Railways today has many high-speed trains like Vande Bharat, Shatabdi Express, and Rajdhani Express. However, have you ever wondered who owns these premium trains? The IRFC (Indian Railway Finance Corporation) has been in the spotlight after being granted the status of a ‘Navratna’ company.
After the government granted IRFC the ‘Navratna’ status, the company’s CEO and CMD, Manoj Kumar Dubey, had an exclusive conversation with ABP News. He said that receiving the Navratna status has provided the company with several financial sovereign powers. With this status, the board is given autonomy in decision-making. Now, the company will be able to make decisions much faster. We will now accelerate our lending business in the railway sector.
Who Owns Vande Bharat and Shatabdi?
Who owns premium trains like Vande Bharat and Shatabdi? According to Manoj Kumar Dubey, all engines, wagons, and coaches used in Indian Railways belong to IRFC (Indian Railway Finance Corporation), which leases them to the Railways for 30 years.
These are financed using IRFC’s funds. According to the leasing model, they remain under IRFC’s name for 30 years. So, all premium trains like Vande Bharat Express and Shatabdi are technically the property of IRFC. This means around 80 percent of the passenger trains and freight trains of Indian Railways belong to IRFC. In this way, the company plays a key role in supporting the progress of Indian Railways.
What does IRFC do?
According to Manoj Kumar Dubey, apart from the budget allocated to the Railways, any additional funds required are raised from the market at lower costs and provided to the Railways with minimal margins — a task that IRFC has been performing for the past 40 years. He mentioned that in addition to the Railways, IRFC will also finance other quality projects that are part of the railway ecosystem’s backward and forward linkages. For all these projects, the company will provide funds at low interest rates.
