On Track to Net Zero? The Strategic Dilemma of Indian Railways’ Electrification

Tulsi Jayakumar, Sanjeev Ganguly

Product #:W43477

Supplier:Ivey

Discipline:Strategy, Sustainability

Setting:India, 2024

Details:Case (PDF) • 14 pages • 2025-10-03

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In November 2024, the chairman and chief executive officer of the Railway Board, Ministry of Indian Railways, India, was preparing for a critical strategy meeting with the Union Minister of Railways. Just hours earlier, the minister had announced in parliament that 97 per cent of the Indian Railways broad gauge network had been electrified, bringing India close to its ambitious 100 per cent electrification target set in 2018. The milestone was aligned with the broader goal of Indian Railways to achieve net-zero carbon emissions by 2030 and promised multiple benefits such as lower operating costs, reduced reliance on imported energy, and enhanced environmental sustainability. However, the moment was fraught with tension and criticism from economists, energy analysts, and the media, who questioned its cost-effectiveness, operational flexibility, and environmental impact. With a cabinet-level policy review just weeks away, the chairman faced urgent questions. Should Indian Railways double down on full electrification, adopt a hybrid approach, or reorient investments toward renewable energy and green freight corridors?

Learning Objectives

This case is best suited for the second half of an MBA, executive education, or advanced undergraduate course on economics and policy, sustainability strategy, or infrastructure policy. The case should be placed after students have been introduced to foundational analytical frameworks. The case provides a platform to apply these tools in a complex real-world scenario, helping students integrate environmental goals with infrastructure strategy under uncertainty. It is particularly useful in exploring tensions between long-term policy ambition and short-term operational resilience, and the governance challenges of large-scale energy transitions in emerging economies. After working through the case and assignment questions, students will be able to accomplish the following objectives:

Assess the strategic rationale and trade-offs involved in public sector energy transition initiatives, using IR electrification as a focal example.
Apply systems thinking tools such as the iceberg model to uncover underlying structural, behavioural, and mental model drivers of policy implementation challenges.
Evaluate alternative infrastructure pathways (e.g., full electrification, hybridization, or staggered rollout) based on operational, environmental, and political considerations.
Formulate policy recommendations that balance long-term net-zero ambitions with short-term resilience, cost-effectiveness, and public accountability.

On Track to Net Zero? The Strategic Dilemma of Indian Railways’ Electrification

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Learning Objectives