Ministry of Railways
Indian Railways Maintains Stable Debt Servicing; Consistent Principal Repayment and Declining Interest Share of Lease Charges Reflect Financial Discipline Over the Last Five Years
Growing Gross Budgetary Support for Infrastructure and Rolling Stock Reducing Dependence on Extra Budgetary Resources
Posted On:
07 AUG 2026 4:32PM by PIB Delhi
Indian Railway Finance Corporation (IRFC) is dedicated market borrowing arm of the Indian Railways (IR). Its primary business is financing of Rolling Stock Assets, Railway Infrastructure Projects and leasing them to Indian Railways. Moreover, IRFC has the mandate of lending to other entities which have a forward and backward linkages for the Railways such as power generation and transmission, mining, fuel, coal, warehousing, telecom, hotels and catering, etc.
However, during the recent years, the Government of India has given adequate support to Indian Railways from Gross Budgetary Support, which has been utilized for infrastructure projects and Rolling Stocks which were previously financed through Extra Budgetary Resources.
The details of principal repayment and interest payment of lease charges paid to IRFC and MoF by IR during the last 5 years is as under:
(Rupees in crore)
|
F.Y.
|
Principal Repayment
|
Interest Payment
|
Total
|
|
2021-22
|
14,192
|
14,510
|
28,702
|
|
2022-23
|
16,922
|
17,267
|
34,189
|
|
2023-24
|
20,084
|
17,946
|
38,030
|
|
2024-25
|
23,938
|
21,630
|
45,568
|
|
2025-26
|
24,853
|
21,685
|
46,538
|
Debt servicing has stabilized over last few years despite the shock of Covid.
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Dharmendra Tewari/ Dr. Nayan Solanki/ Manik Sharma/ Vanshita Jaiswal
(Release ID: 2296057)
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