The train offers passengers a faster, more comfortable, and premium travel. But do you know who owns the Vande Bharat train in India?
It is the Indian Railways, which comes under the Government of India. These trains are manufactured in India itself, like in Chennai's Integral Coach Factory (ICF) and other factories. These are a great example of 'Make in India'.
Why does Indian Railways pay rent to another company?
The Indian Railways pays a whopping amount in rents to the Indian Railway Finance Corporation (IRFC), a Navratna Public Sector Enterprise under administrative control of the Ministry of Railways. Every year, the Indian Railways has to make or buy thousands of new trains, engines, coaches and tracks. Buying all this costs a lot of money, and it is difficult for any large organisation to bring so much money together. This is where IRFC enters the picture and helps Indian Railways to do so.
What is IRFC?
IRFC is a company that raises money only for Indian Railways. It acts as a bank or finance partner of Indian Railways. IRFC has a market cap of Rs 1.59 lakh crore, as of September 4. The company borrows money from common people and big companies through 'bonds' and 'debentures'.
IRFC uses the money it raises from the market to buy or build new trains (like Vande Bharat), engines, coaches, or big projects like laying new tracks for Indian Railways. Once IRFC buys these things, it 'rents' them to Indian Railways.
For example, if Indian Railways wants to buy expensive trains like Vande Bharat. It doesn't have all the money at once. So it asks IRFC to buy these trains for it. IRFC raises money from the market, buys or builds Vande Bharat trains with that money, and then 'rents' those trains to Indian Railways, which pays 'rent' to IRFC every year. This rent is called 'lease rental'.
 
Vande Bharat Express train
The Vande Bharat Express can run up to a maximum speed of 160 kmph. Currently, 150 services of Vande Bharat Express trains are operational across the country. This semi-high-speed train has not only reduced the travel time between two cities but also enhanced connectivity.