How the Indian Railways moves closer to becoming net-zero carbon emitter by 2030
The decarbonisation of railways will have a notable impact on India’s climate commitments, energy security, as well as the broader development trajectory. What are the key strategies being pursued for decarbonisation, and what kind of challenges arise in effectively realising this transition? See infographics.
As India pursues its goal of becoming a developed nation by 2047, railways are undergoing an unprecedented transformation at multiple levels. (Image enhanced using AI) — Kannan K
The Indian Railways is one of the largest consumers of electricity in the country, accounting for approximately 2 per cent of the national grid output. The decarbonisation of railways will therefore have a notable impact on India’s climate commitments, energy security, as well as the broader development trajectory.
The Indian Railways has already achieved 99.6 per cent electrification of the broad gauge network as of March 2026, thereby moving closer to its target of becoming net-zero carbon emitter by 2030. This massive transition from fossil fuels and diesel to electric traction also requires transformation in infrastructure, energy procurement, operations, financing, etc.
What is the strategic significance of the Indian Railways’ net-zero mandate, what are the key strategies for decarbonisation, and what kind of challenges arise in effectively realising this transition?
Indian Railways' Race to Net-Zero by 2030
Multiple benefits of railways’ net-zero mandate
As India pursues its goal of becoming a developed nation by 2047, railways are undergoing an unprecedented transformation at multiple levels. With over 68,000 kilometres of track, Indian Railways serves as the backbone of the country’s logistics network, along with providing safe, reliable, and accessible mobility to millions across India.
High-standard trains such as the Vande Bharat seek to modernise services and improve the travel experience, while Dedicated Freight Corridors (DFCs) enable faster and more efficient movement of goods. These efforts are complemented by an equally ambitious goal of achieving net-zero carbon emissions by 2030. The goal carries significance well beyond the railways.
Climate commitments: The decarbonisation will have a notable impact on India’s updated Nationally Determined Contributions (NDCs) under the Paris Agreement. It commits India to reducing the emission intensity of its GDP by 47 per cent from the 2005 levels by 2035. The amount of Green House Gases emitted per unit of GDP is known as the carbon intensity of GDP.
Energy security: Transitioning away from diesel traction can also help reduce direct exposure to global crude oil price volatility and supply disruptions due to international conflicts such as the blockade of the Strait of Hormuz. As per estimates of the Ministry of Railways, replacing high-cost imported diesel with domestic electric power can bring about recurring savings of Rs 10,000 crore to Rs 15,000 crore in the Indian Railways’ fuel bills every year.
Environmental benefits: The environmental benefits of shifting to rail freight are also compelling. Transporting cargo by rail generates 89 per cent lower CO₂ emissions compared with highway or road transport. Therefore, increasing the share of freight carried by rail will help in reducing emissions across industrial supply chains and achieving stated emission-reduction goals.
Modernising infrastructure, operations, and financing
However, achieving net-zero status requires the Indian Railways to move incremental efficiency gains to a larger structural overhaul across infrastructure, operations and financing. With nearly 99.6 per cent electrification achieved, the next phase of decarbonisation would involve ensuring cleaner sources of energy for electricity.
Total integration of clean energy into railway operations will be the most impactful infrastructure change. The Indian Railways has been developing a combination of ground-mounted and rooftop solar capacity, installing high-capacity OHE (Overhead Equipment), converting stations and workshops into green buildings, and implementing sustainable waste and water management practices.
Operationally, the railways are replacing End-on-Generation (EoG) power cars, which rely on diesel generators, with Head-On Generation (HoG) systems, which draw power directly from overhead electric lines. High-priority trains like Rajdhani, Shatabdi, Duronto, and Vande Bharat have already shifted fully to HoG, while express and mail trains are transitioning.
This shift brings large savings in fuel and, thereby, costs, while also improving seating capacity in trains, as HoG does not require diesel-generating cars at both ends of the train. The operational efficiency of the railways has also been boosted via the establishment of DFCs that enable heavier load transportation and higher average speeds.
On the financing side, the Indian Railways explores off-budget market borrowings, private sector participation via the Railway Energy Management Company (REMC Ltd), and the use of financial tools such as green bonds and blended finance partnerships with international funding agencies to make the railways more economically efficient.
What are the key strategies for decarbonisation?
The Indian Railways’ strategy to achieve net-zero relies on five interrelated, technology-driven interventions.
1. The initiative for 100 per cent electrification of the rail network. Full electrification brings down operating costs while increasing capacity and eliminating emissions.
Over 25 states and Union Territories have achieved complete electrification of broad gauge routes. Simultaneously, commercial non-broad-gauge routes are being converted to electric broad-gauge, while heritage non-broad-gauge routes are being converted to hydrogen fuel cell or battery-powered routes.
2. The integration of Renewable Energy (RE) into railways’ operations. The projected energy demand of Indian Railways in 2029-30 is expected to be about 8,200 Mega Watt (MW). To meet this demand sustainably, the railways have set the goal of procuring 30,000 MW of RE by 2030 through ground-mounted solar, rooftop station arrays, and coastal wind farms.
3. The use of alternative clean fuels such as Hydrogen in routes where electrification is not feasible, such as residual non-electrified spur lines and heritage routes. Under the ‘Hydrogen for Heritage’ initiative, the Indian Railways is now operationalising green hydrogen trains by retrofitting diesel electric multiple units (DEMUs) with fuel cells. It is also using 5 per cent biodiesel blends (B5), where overhead lines are technically unfeasible. This is expected to further reduce reliance on fossil fuels.
4. The green buildings initiative through which more than 100 major stations have received Indian Green Building Council (CII-IGBC) or Bureau of Energy Efficiency (BEE) star ratings for implementing rainwater harvesting and passive cooling. The process for manufacturing units to operate under the GreenCo rating system that enforces eco-friendly production processes is also being implemented.
5. The Indian Railway Finance Corporation (IRFC) has adopted multiple green financing initiatives through regular issues of green bonds in international capital markets to fund pure electrification and track renewals, while long-term Power Purchase Agreements (PPAs) are being used to ensure fixed, competitive tariffs for green electricity.
Policy framework for effective implementation
The decarbonisation initiative relies on a planned policy framework to enable its effective implementation. The National Rail Plan (NRP) 2030, which establishes a strategic master plan to increase rail’s modal freight share from roughly 27 per cent to 45 per cent, seeks to reduce the heavy carbon footprint of highway freight transport by diverting cargo onto electrified rail corridors.
Further, the Energy Conservation Act enforces regulatory compliance by mandating periodic energy audits across all railway zones designated as Designated Consumers under the Perform, Achieve and Trade (PAT) scheme. This ensures the maintenance of continuous energy efficiency standards.
The Indian Railways is also utilising the financial and technical backing from multilateral agencies to achieve the net-zero goal. The USD 245 million loan from the World Bank for the rail logistics project to support the Eastern Dedicated Freight Corridor (EDFC) is an example of this. Such partnerships optimise heavy-haul freight operations while also offering technical assistance for solarisation and carbon-tracking platforms.
Challenges in executing decarbonisation
Despite rapid structural progress, the practical execution of full decarbonisation faces some important challenges.
First, while electrification eliminates tailpipe emissions on railway lines, the net carbon reduction remains tied to the national energy mix, which is largely coal-based. Since state DISCOMs still rely heavily on coal-fired power plants, electrification can only currently transfer a portion of traction emissions to upstream thermal power generation. Thus, while the Indian Railways decarbonisation may be successful, it will require the decarbonisation of India’s grid for it to have real climate impact.
Secondly, the challenge of renewable intermittency and storage costs. The high traction power surges during peak traffic conflict with the availability of solar generation, which is available only during daytime. Storage technologies required to balance this fluctuation in energy generation, such as Battery Energy Storage Systems (BESS), currently carry high capital expenditure costs.
The lack of commercial viability of alternative fuels presents another important challenge. The production, storage, and supply chain infrastructure for green hydrogen fuel cell trains remain economically uncompetitive compared to standard overhead electric traction, adding high costs to decarbonising railways on non-electrified routes.
Way forward
Therefore, achieving a fully decarbonised rail network has three key requirements. The railways need to transition from plain renewable PPAs to generating Round-The-Clock (RTC) green power, with the infrastructure for energy storage. There is also a need to deploy hydrogen and battery trains specifically for last-mile shunting and heritage routes.
Effective investments in R&D will be required to enable the use of these technologies in a cost-effective manner. And finally, it is necessary that a larger decarbonisation process is undertaken in the Indian power sector, without which the electrification initiatives of the railways will attain net-zero by shifting fossil fuel reliance from the railways to the grid, instead of achieving true decarbonisation.
Post read questions
1. Transition of the Indian Railways towards net-zero emissions is as much an energy-security imperative as it is a climate imperative. Discuss.
2. Assess the potential and limitations of hydrogen fuel-cell technology in decarbonising the Indian railway network. Should India prioritise hydrogen over further electrification?
3. The success of Indian Railways’ net-zero strategy will depend as much on energy procurement and financial architecture as on technological innovation. Discuss.
4. The next frontier of railway modernisation is not merely faster trains, but cleaner energy, smarter infrastructure and more efficient freight movement. Discuss in the context of India’s development aspirations for 2047.
5. Examine the major challenges confronting Indian Railways in its transition from a diesel-dependent system to a renewable-energy-powered railway. Suggest suitable policy interventions.
(Kannan K is a Doctoral candidate at the Centre for Economic and Social Studies, Hyderabad.)
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