Indian Railways is one of the major consumers of commercial energy in the form of electricity and petroleum diesel. Majority of the electricity and diesel is consumed for traction purpose i.e. to haul the passenger and freight trains. Next to the requirement of traction railways have 6 production units and 41 workshops which are major consumers of energy. This paper attempts to study the energy consumption in two carriage repair workshops located in south India. Personal interviews were conducted with the managers and engineers of both the workshops and the various barriers to energy efficiency were noted down. These barriers were grouped into five categories viz. Policy and Regulatory Barriers (PRB), Behavioral and Personal Barriers (BPB), Institutional and Organizational Barrier (IAOB) , Financial and Economic Barrier (FAEB) and Awareness, Information and Knowledge Barrier (AIKB). To rank these five groups of barriers four criteria’s were considered viz. Intensity of Barrier (IoB): Easiness in Barriers Removal (EoBR) and Impact of Barrier removal on Techno-economic Performance (IBTP), Impact of Barrier removal on Socio-environmental Benefits (IBSB). Analytical hierarchy process methodology was adopted to solicit the responses (twenty each from both the workshops covering the officers and senior section engineers) and evaluate them so as to arrive at the ranking of barriers based on the four criteria’s. The study concludes that both the workshops have common ranking of barriers with Policy and Regulatory Barrier being the top most impediment for energy efficiency followed by BPB, AIKB. It is quite imperative that policy decisions need to be taken in right earnest due to the precarious financial condition of the Indian Railways in the recent years due to increase in staff and fuel costs.