Indian Railways to hike hourly rental for diesel engines from August 1
Indian Railways has announced an increase in the hourly rental charges for diesel engines starting August 1, 2026. This decision comes in response to the international fuel crisis. The price hike will primarily affect the cost of shunting and siding operations for freight trains, which will make goods transportation more expensive.
What are the new rental rates for diesel engines?
According to a circular issued by Atul Kumar, Joint Director of the Railway Board, the rates for diesel train engines on broad gauge lines will increase to ₹17,740 per hour. However, the rental for diesel shunting engines will remain unchanged at ₹10,620 per hour. These new rates will be applicable from August 1, 2026, and private as well as commercial siding owners will be informed before the implementation.
Why is the Railway promoting electric engines over diesel?
Railway officials stated that electric traction is significantly cheaper for line-haul operations. For passenger transport, it costs about one-sixth of diesel traction, and for freight, it is about one-third. To achieve zero carbon emissions by 2030, the railways are shifting toward green energy. The following table shows the progress in electrification:
| Metric | Details |
|---|---|
| Electrification Investment (since 2014) | Over ₹46,425 crore |
| Electric Engines (as of Dec 2023) | 10,238 |
| Diesel Engines (as of Dec 2023) | 4,543 |
| Diesel Consumption Drop (2016-17 vs 2024-25) | 62% |
| Total Diesel Saved | 178 crore liters |
Frequently Asked Questions (FAQs)
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