Introduction
Indian Railways’ green transition is accelerating from pilots to platform-level change. The July 2025 hydrogen-coach trial, near-universal electrification, and rapid renewable integration signal a shift to cleaner traction, efficient assets, and freight rebalancing. Backed by sovereign green bonds, IRFC financing, and multilateral support, the programme targets net-zero by 2030. The agenda spans infrastructure, operations, and finance, with system-wide implications for emissions, logistics costs, and India’s broader “Panchamrit” climate commitments. A green transition accelerating at express speed.
Initiatives taken for Indian Railways’ green transition
A) Infrastructure & operations initiatives
- Near-universal electrification: In the last decade, Indian Railways has electrified about 45,000 km of track, and over 98% of the broad-gauge network is now electrified, which sharply reduces diesel use and emissions.
- Renewables on the system: The Railways has commissioned 756 MW of renewable capacity (553 MW solar, 103 MW wind, and 100 MW hybrid), and more than 2,000 stations and service buildings now operate on solar power.
- Energy-efficient buildings: Several railway buildings, including in the Northeast Frontier zone, have earned the BEE “Shunya” (net-zero) label, showing improved energy performance.
- Clean traction innovation: In July 2025, the Railways successfully tested a hydrogen-powered coach at the Integral Coach Factory, as part of the “Hydrogen for Heritage” plan that aims to deploy 35 such units.
- Freight shift to rail: The Railways is working to raise freight’s rail modal share to 45% by 2030. The Dedicated Freight Corridors (DFCs) are already operational and are expected to avoid 457 million tonnes of CO₂ over 30 years.
- Other greening measures: The Railways is introducing biofuel blends, applying green building standards, and redesigning infrastructure, operations, and processes to lower energy consumption.
- Mission 41K (2017): The Ministry of Railways launched Mission 41K to save ₹41,000 crore in energy costs over a decade by accelerating electrification, expanding renewable energy use, and improving efficiency through energy-efficient locomotives and LED lighting.
B) Finance & institutions initiatives
- Sovereign Green Bonds: Since FY2023, the government has issued ₹58,000 crore in sovereign green bonds, of which about ₹42,000 crore has been allocated to electric locomotive procurement and metro/suburban rail expansion, integrating climate goals into core capital spending.
- IRFC’s green financing role: The Indian Railway Finance Corporation (IRFC) began with a $500 million green bond in 2017 to refinance the procurement of electric locomotives, and most recently it extended a ₹7,500 crore loan to NTPC Green Energy to develop additional renewable power capacity, demonstrating cross-sector low-carbon financing.
- Multilateral support: In June 2022, the World Bank approved a $245 million loan for the Rail Logistics Project, which supports better rail freight infrastructure, reduces corridor congestion, and lowers greenhouse gas emissions.
Impact of Indian Railways’ green transition
- Alignment with India’s “Panchamrit” goals : Alarger rail share powered by clean electricity advances India’s COP26 “Panchamrit” targets: 500 GW non-fossil capacity, 50% electricity from renewables by 2030, 1-billion-ton CO₂ reduction by 2030, ≤45% emissions-intensity cut by 2030, and net-zero by 2070. Rail is a major, durable demand anchor for clean power.
- Lower logistics cost: A greener rail system lowers logistics costs; this directly improves India’s export competitiveness. At the same time, Dedicated Freight Corridors attract industries to set up near rail nodes, creating regional manufacturing and logistics clusters.
- Fuel savings: Electrification and efficiency measures can save over ₹1 lakh crore cumulatively by 2030, easing fiscal pressure.
- Macro co-benefit: shifting trips away from the dirtiest mode share: With road transport responsible for the bulk of transport CO₂ in India, every sustained percentage-point shift of passenger and freight demand to rail bends the national emissions curve and reduces externalities (air pollution, congestion, accidents).
Way forward
- Electrification with truly green power: Directly procure large-volume solar/wind via long-term contracts (PPAs) so traction demand is met by renewables, not a coal-heavy grid..
- Green last-mile, passenger & freight
- Major stations should be redesigned as multi-modal green hubs that integrate electric buses, bicycle-sharing, and safe, pedestrian-first access.
- For freight, the first and last mile should use cleaner options such as electric trucks, LNG vehicles, and emerging hydrogen mobility so that rail’s low-carbon advantage is not lost at the edges.
- Accelerate rolling-stock & efficiency innovation
- Pilot hydrogen fuel-cell trains on non-electrified branch/heritage lines where full electrification is uneconomic.
- Adopt lightweight coaches, aerodynamic locomotive designs, and AI-driven energy optimisation to lower traction energy.
- Data transparency: The Railways should publish route-level energy use, emissions factors, and savings through robust measurement, reporting, and verification (MRV). Open dashboards and third-party audits will build credibility, enable better planning, and help attract green finance.
- Financing & value capture for green expansion:
Rail projects should use land-value capture around stations, station redevelopment revenues, and blended finance (sovereign green bonds, multilateral lines, and private capital) to fund electrification, renewables, and network upgrades. Clear green-taxonomy criteria and performance-linked financing can lower cost of capital and speed deployment.
6. Behavioural change: Introduce green certification for trains, carbon labelling for freight services, and public awareness campaigns so users actively choose low-carbon options.
Question for practice:
Discuss the key initiatives driving Indian Railways’ green transition and outline the way forward to ensure truly green traction power.
Source: The Hindu
