New Delhi: The Indian Railways is close to completing the electrification of almost its entire broad-gauge network, with more than 99 per cent already electrified and the remaining stretches expected to finish soon, according to a statement issued by the Railways Ministry on Sunday. 

“The pace of work in recent years has been extraordinary. Between 2019 and 2025, Indian Railways electrified over 33,000 route kilometres, working at an average speed of more than 15 Route KMs every single day. The total distance electrified during this period alone is almost equal to the entire railway network of Germany, showing the scale and seriousness with which India has expanded clean and efficient rail traction,” the statement said.

India’s achievement stands out even when compared with countries that have long-established railway systems. India has managed to electrify nearly its entire broad-gauge system despite operating one of the world’s largest and busiest rail networks.

This transition has reduced diesel consumption, cut emissions, lowered operational costs, and improved the efficiency and speed of train operations. While several advanced economies still depend heavily on diesel traction due to cost or structural limitations, India has moved forward with clear planning and consistent execution.

As the final stretches are completed, the country is set to operate one of the world’s largest fully electrified railway systems, supporting Indian Railways’ goal of becoming a net-zero carbon emitter and offering cleaner, faster and more reliable mobility to millions of passengers every day.

Railways Minister Ashwini Vaishnaw had informed Parliament on Wednesday that Indian Railways has planned to progressively meet its electric power requirement for traction purposes through renewable energy sources with a combination of solar, wind and other renewable sources based on strategic power procurement planning, thereby reducing its carbon emissions.

The minister said that till November 2025, about 812 megawatt (MW) of solar plants and about 93 MW of wind power plants have been commissioned, which are meeting the traction requirements of Indian Railways. Further, 100 MW of renewable power under the Round the Clock (RTC) mode tied up from the Solar Energy Corporation of India (SECI) has also started flowing for traction purposes.

In addition to this, 1,500 MW of renewable capacity under the RTC mode has been tied up to meet the traction power requirement. This is a hybrid solution consisting of solar, wind, and storage components.

He further stated that Indian Railways is now manufacturing and commissioning state of the art three-phase IGBT technology-based locomotives. These locomotives have regenerative features and are, therefore, able to regenerate part of the energy consumed during braking and are, therefore, more energy efficient.

Last Updated:December 15, 2025, 13:45 IST

Indian Railways starts cost-cutting ahead of 8th Pay Commission, set for retrospective implementation from January 01, 2026, to manage higher wage and pension expenses.

8th Pay Commission impact: Railways tightens spending before Jan 1, 2026

8th Pay Commission: Even though the 8th Pay Commission is expected to submit its report within 18 months of its formation, the implementation of recommendations will be likely effected retrospectively from January 01, 2026.

With the likely date of implementation nears, Indian Railways has reportedly begun cost-cutting across maintenance, procurement and energy use to avoid a big financial burden in the form of higher wages and pensions to current and ex-employees once the 8th Pay Commission takes effect, according to Times of India report.

After delays, the 8th Pay Central Pay Commission has been finally constituted by the Central government in October this year with the notification of Terms of Reference (ToR) to review the wages and allowances of its staff and pensioners.

The pay panel is constituted every 10 years to review the wages and allowances of its workforce. The 7th Pay Commission’s recommendations were implemented from January 01, 2016, with arrears paid within the 2016-17 financial year.

According to a TOI report, Indian Railways recorded an operating ratio (OR) of 98.90 per cent in 2024–25, leaving a net revenue of Rs 1,341.31 crore.

For 2025–26, the Railways has set a target OR of 98.42 per cent, with net revenue estimated at Rs 3,041.31 crore, highlighting continued pressure on margins despite higher revenues.

As per TOI report quoting officials, the railway will reduce its reliance on borrowing as Indian Railway Finance Corporation (IRFC) annual payments are expected to decline from 2027-28 on the back of recent capital expenditures funding through gross budgetary support (GBS).

8th Pay Commission Implementation Timeline

In the latest update, Minister of State for Finance Pankaj Chaudhary has said the timing and funding of the 8th Pay Commission will be decided later.

“The 8th Central Pay Commission (CPC) has already been constituted. The Terms of Reference (ToR) of the 8th Central Pay Commission have been notified vide Ministry of Finance’ Resolution dated 03.11.2025. The number of Central Government employees is 50.14lakh and the number of pensioners is 69 lakh approximately. The date of implementation of the 8th Central Pay Commission shall be decided by the government. Government will make appropriate provision of funds for implementing the accepted recommendations of 8th CPC,” Chaudhary said in response to a query in the Lok Sabha on December 8, 2025. The question was about whether the government proposes to implement the 8th Pay Commission with effect from January 1, 2026.

He added that the 8th Central Pay Commission will devise the methodology and procedure for formulating its recommendations.

“As specified in the Resolution notified on November 3, 2025, the 8th Central Pay Commission will make its recommendations within 18 months from the date of its constitution,” the MoS Finance added.

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New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a proposal to allow 100 per cent foreign direct investment (FDI) in insurance companies in a major economic reform that does away with the 74 per cent limit that was in place for such investments. 

The Cabinet approval will pave the way for attracting more foreign investment in the insurance sector, increase competition which in turn will benefit customers.

The Insurance Laws (Amendment) Bill 2025 is likely to be introduced during the ongoing winter session of Parliament which draws to an end on December 19.

The Lok Sabha bulletin lists the Insurance Laws (Amendment) Bill 2025, aimed at boosting insurance penetration, accelerating sectoral growth and development, and improving the ease of doing business, among the 13 legislative items for discussion in the parliamentary session.

Finance Minister Nirmala Sitharaman had, during the presentation of the Union Budget for 2025-26, announced a proposal to increase the foreign investment limit in the insurance industry from 74 per cent to 100 per cent as part of broader financial sector reforms.

The finance ministry has recommended revising several sections of the Insurance Act, 1938. These proposed changes include increasing the FDI limit to 100 per cent, lowering paid-up capital requirements, and creating a composite licence framework.

As part of a wider legislative overhaul, amendments will also be made to the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999, in addition to the Insurance Act 1938.

Changes to the LIC Act are intended to give its board greater authority over operational matters, such as opening new branches and hiring staff.

The overarching purpose of the amendment is to strengthen policyholder protections, bolster financial security, and encourage more participants to enter the insurance market, thereby supporting economic expansion and job creation.

These reforms are expected to improve industry efficiency, simplify business operations, and push insurance penetration forward to achieve the vision of Insurance for All by 2047, according to an official statement.