How Much Does it Cost the Indian Government to build a Train and Engine?

Trains and engines form the backbone of India’s transportation system. They offer a cost-effective, convenient mode of transport for millions nationwide. But have you ever considered how much it costs the Indian government to build a train or engine?

In this article, we will analyze the factors that drive up the cost of manufacturing a train and engine in India. Additionally, we’ll look at government funding initiatives for train and engine production and identify challenges facing this sector of the Indian industry.

The Indian Railways has recently slashed the cost of new electric locomotives for goods movement by over 2/3 to Rs 11 crore per loco against the previous cost cost of over Rs 30 crore.

Cost of Indian LHB coaches

• Sleeper class: 1.68 crore
• General class: 1.67 crore
• AC 3-tier: 2.36 crore
• AC 2-tier: 2.30 crore
• AC first class: 2.30 crore
• Luggage, parcel & generator car: 3.03 cr
• Pantry car: 2.32 crore.

Cost of Indian ICF coaches

• Sleeper class: 79.31 lakh
• General class: 72.16 lakh
• AC coach: 1.5 crore
• Parcel van: 56.76 lakh
• Luggage and break van: 68.26 lakh

Locomotive Cost breakdown

• WAP-7 (electric): 12.38 crore
• WDP-4D (Diesel): 13 crore

ICF Train Average Cost

Let us think of  12964 Mewar Express which has an ICF rake, its coach composition is as follows:

• 2 luggage & break van: cost=2×68.26=1.3652 cr
• 10 sleeper coaches: cost=10×79.31=7.931 cr
• 4 general coaches: cost=4×72.16=2.8864 cr
• 8 AC coaches: cost=8×1.5=12 cr
• This is a 24 coacher train then total cost=24.1826 crore.
• Cost with a locomotive=24.1826+12.38=36.5626 crore.

LHB Train Average Cost

The number of coaches are 22 for LHB train. So let us assume 19709 Udaipur City Kamakhya Kaviguru Express, it’s coach composition is as follows:

• 2 luggage, break & generator car: cost=2×3.03=6.06 crore
• 8 sleeper coaches: cost=8×1.68=13.44 crore
• 4 general coaches: cost=4×1.67=6.68 crore
• 6-3-tier AC coaches: cost=6×2.36=14.16 crore
• 1-2-tier AC coach: cost=2.30 crore
• 1 pantry car: cost=2.32 crore
• Total cost of train = 44.96 crore
• Cost with locomotive = 44.96 + 13 = 57.96 crore.

Calculating the Cost of Construction for a Train

Constructing a train is an intricate process requiring numerous raw materials and specialized machinery. The cost of building a train varies according to its type and technological sophistication level. Here are some factors that affect construction costs:

Materials Needed for Constructing a Train

Steel, aluminum, and other metals are necessary for building a train. These elements form the body of the train, wheels, and other components. The cost of these raw materials varies based on available resources and market demand.

Cost of Steel and Other Raw Materials Used in Train Manufacturing

Steel is one of the primary raw materials used during train manufacturing, accounting for approximately 15% of overall manufacturing costs.

Steel is an essential raw material in train manufacturing. Steel costs depend on several factors, such as demand for steel, transportation costs, and availability of raw materials. Furthermore, the quality and grade of steel used in production can affect pricing.

Labor Costs Involved in Train Manufacturing

The production of trains necessitates an immense amount of manual labor. The cost can vary considerably depending on the level of expertise needed and where the manufacturing facility is situated. Therefore, labor costs are integral in calculating the overall cost of constructing a train.

The cost of specialized machinery used in the production process

Manufacturing trains necessitates specialized machinery like welding, bending, and cutting machines. The cost of these items varies based on their quality and level of automation; consequently, machinery plays a significant role in determining the overall cost of constructing a train.

Calculate the Total Cost of Construction for a Train Engine

The cost of building a train engine can vary significantly based on several factors. Prices for engines range anywhere from several crores to several hundred crores, depending on the type and level of sophistication required.

The Cost of Constructing an Engine

The engine is the driving force behind a train’s operation. It provides its propulsion and guarantees its speed and efficiency. Here are some factors that contribute to engine construction costs:

What Types of Engines Are Used in Trains?

The type and sophistication of engines used in trains can differ. Accordingly, the cost of an engine may also change based on its location on a train.

Materials Needed for Constructing an Engine

Building an engine requires similar raw materials to those required for a train. However, their cost can differ depending on local resource availability and market demand.

Cost of Steel and Other Raw Materials Used in Engine Manufacturing

Engine manufacturing requires a substantial amount of steel, among other raw materials.

Steel is an essential raw material in engine manufacturing. Consequently, the cost of steel fluctuates depending on the availability of raw materials and market demand.

Labor Costs Involved in Engine Production

Engine manufacturing necessitates a considerable amount of manual labor. The cost of such labor depends on the level of expertise needed and where the manufacturing facility is situated.

The cost of specialized machinery used in the production process can be an expensive component.

Engine production necessitates specialized machinery like machining centers, lathes, and grinders. While these items may be expensive, their utility in engine production cannot be underestimated.

It depends on the quality and level of automation involved. Machinery costs are an essential factor that affects engine building expenses.

Calculate the Total Cost of Construction for an Engine

The total cost of building an engine depends on several factors. Prices can range anywhere from several lakhs to several hundred crores, depending on the type and level of sophistication required.

The Government’s Role in Funding Train and Engine Manufacturing 

The Indian government is essential in supporting train and engine manufacturing in the country. They provide financial assistance through various schemes and incentives.

One such initiative is the “Make in India” initiative, which promotes manufacturing within India. Under this program, the government provides financial incentives for training and engine manufacturers to establish facilities here.

The Ministry of Railways provides financial support to train and engine manufacturers. In addition, this ministry funds research and development of new technologies and modernizing existing production facilities.

Challenges Affrunting India’s Train and Engine Manufacturing Industry

The Indian train and engine manufacturing industry faces several obstacles that drive up costs associated with building a locomotive or engine. One major issue is the need for adequate infrastructure and logistics facilities.

Transporting raw materials and finished products is vital in train and engine manufacturing. A lack of adequate transportation infrastructure can cause delays and increase transportation costs, significantly impacting the cost of constructing a train and engine.

Another challenge faced by the Indian train and engine manufacturing industries is a shortage of skilled labor. Building trains and engines necessitate specialized skill sets, often needing improvement within India’s production sector.

Conclusion

Building a train and engine in India can be expensive depending on factors like raw material costs, labor costs, and technological sophistication. Therefore, the government is integral in funding train and engine manufacturing in India through various schemes and incentives available to support the industry.

However, the industry still faces several obstacles, such as a need for adequate infrastructure and logistics facilities and an acute shortage of skilled labor. Addressing these problems is essential for guaranteeing the long-term success of India’s train and engine manufacturing sector.

FAQs

How much does it cost to build a train in India?

Construction costs for trains in India can range anywhere from several crores to several hundred crores depending on the type and degree of sophistication involved.

How much does it cost to build an engine in India?

Depending on the type of engine and level of sophistication involved, the cost may range anywhere from several crores up to several hundred crores.

What role does the Indian government have in funding train and engine manufacturing in India?

The Indian government is integral in supporting train and engine manufacturing within the country. Through various schemes and incentives, they offer financial assistance to these manufacturers.

What are some of the challenges faced by the Indian train and engine manufacturing industry?

Indian train and engine manufacturing industry face several obstacles, such as an absence of adequate infrastructure and logistics facilities, a scarcity of skilled labor, and high raw material costs.