Indian Railways electrification cushions oil supply risks during West Asia tensions

New Delhi: Indian Railways has undertaken electrification of its network in mission mode over the last decade, significantly reducing its dependence on imported diesel. As a result, 99.4% of the Broad Gauge (BG) railway network has now been electrified, marking one of the largest infrastructure transitions in the world.

With a growing share of the railway network now electrified, Indian Railways is able to rely more on domestically generated electricity, improving energy security, optimising energy expenditure and reducing exposure to volatility in global oil markets. This transformation has become particularly important in the current global context, where geopolitical tensions in West Asia may threaten crude oil supply chains.

Indian Railways saved 178 crore litres of diesel in 2024-25 compared to 2016-17, representing a 62% reduction in diesel usage. Today, the bulk of India's train operations run on electric traction, powered through a diversified electricity mix that includes coal, hydro, solar, and other renewable sources.


During 2024-25, Indian Railways spent Rs 32,378 crore on total energy consumption for traction, largely on electricity rather than diesel. The shift towards electric traction has therefore helped stabilise long-term energy costs while enhancing resilience against volatile global oil prices.

The near-complete electrification of the railway network is not just an infrastructure milestone, but also a strategic national preparedness measure - strengthening India's energy independence and ensuring uninterrupted mobility for passengers and freight during global crises.

By reducing dependence on diesel and increasing the use of electric traction, Indian Railways is strengthening the reliability, sustainability, and energy efficiency of one of the world's largest rail networks.

The development assumes significance amid the ongoing West Asia crisis, which has raised concerns about potential disruptions to crude oil supplies and energy security for countries dependent on imports from the region.