JANAKPURDHAM: Despite the federal government outlining plans in its new budget to expand the railway network and link it to the Fast Track, Nepal Railway continues to operate under severe financial losses. The lack of a proper maintenance center and total reliance on ticket sales as the sole source of income have pushed the railway deep into the red.

According to the Economic Activity Study and Annual Report 2024/25 for Madhesh Province published by Nepal Rastra Bank, the railway has been facing continuous losses because its operational expenses significantly outpace its revenues.

The central bank’s report highlights that for the sustainable and efficient operation of the Jayanagar–Kurtha–Bijalpura rail service, there is an urgent need to establish necessary maintenance centers, workshops, fuel storage facilities, train washing bays, proper signaling systems, and skilled Nepali technical personnel. Improving infrastructure and strengthening management could drastically minimize the railway’s losses, the report notes.

The infrastructure construction for the Jayanagar–Janakpur–Bhangaha railway—managed by Nepal Railway Company Limited—has been completed, extending the service up to Bhangaha. Currently, the train operates once a day on the Bhangaha–Jayanagar route and three times a day on the Janakpur–Jayanagar route.

Fully funded by the Government of India, the project involved laying railway tracks, building platforms at various stations, and purchasing train engines and coaches. According to the company information cited in the report, the total cost incurred for the project stands at Rs 8 billion.

The company states that each train has a total carrying capacity of 1,300 passengers, accommodating 56 passengers in the AC cabin and 1,244 passengers in the general cabins.

Under the currently completed infrastructure, the train runs from Bhangaha in Mahottari through Kurtha, Janakpur, Parwaha, Baidehi, Mahinathpur, Khajuri, and Inarwa to reach the Indian border town of Jayanagar. The total length of this operational railway track is 52 kilometers. Meanwhile, a 35-kilometer section from Kurtha to Bijalpura remains under construction.

The 17-kilometer stretch from Kurtha to Bhangaha in Mahottari came into operation on July 16, 2023. Currently, the 52-kilometer rail service from Bhangaha to Jayanagar is fully functional. The central bank’s report further details that land acquisition and compensation distribution are currently underway for the remaining 18-kilometer section from Bhangaha to Bardibas.

Financial figures show that by the end of mid-January in the fiscal year 2025/26, the railway generated Rs 41.497 million from ticket sales, while its operational expenses soared to Rs 126.601 million. Based on these numbers, the report concludes that the railway is currently running at a net loss of Rs 85.104 million.

Out of the 165 employees currently working for the railway, 142 are Nepali citizens and 23 are foreign nationals.