Mumbai: The Mumbai Railway Vikas Corporation (

MRVC

), in collaboration wi-th IIT-Bombay, has commissioned a Rs 5-crore study to assess the financial and economic sustainability of the suburban railway network.
The study, which is expected to be completed by July 2027, is crucial for a detailed, bottom-up assessment of costs associated with suburban rail operations and service delivery, said an MRVC official. It will focus on optimising cost structures related to operations, maintenance, and energy consumption. It will also provide recommendations for improving service quality through better scheduling and infrastructure planning and reducing annual losses of Rs 3,000 crore. Additionally, it will identify potential funding models to support the expansion of suburban rail services and explore ways to integrate Mumbai's suburban rail with other modes of urban transport for better connectivity.
The official added that as suburban rail services gradually transition towards AC trains, a detailed cost analysis of procurement, operations, and maintenance is essential for creating a viable financial model. The study will also examine global best practices in operations and maintenance to minimise losses and improve efficiency. Additionally, MRVC will assess the feasibility of implementing a Unified Ticketing System (UTS) to enhance passenger convenience.
The study will take a holistic approach to evaluating the suburban railway's economic, social, and environmental impact, going beyond traditional financial accounting frameworks that often fail to capture indirect benefits. A social cost-benefit analysis will be undertaken to measure the broader value of the suburban railway system to Mumbai's economy and its commuters.

Currently, MRVC functions as a financing agency for suburban railway projects, while Central Railway (CR) and Western Railway (WR) handle the operations and maintenance of these services along with their long-distance and freight operations. The study will explore alternative financial and operational models used in India and abroad, including those where suburban railway corporations have greater financial flexibility and control over fare structures. The official said different models of suburban railway management, including those with dedicated infrastructure and separate operational frameworks, will be examined to understand whether similar mechanisms can be applied to Mumbai's railway network.