Union Budget 2024: Will the railway budget allocate more funds for upgrades and safety?
Railway Union Budget 2024: According to news reports, the Union Budget for the Railways in the upcoming fiscal year 2024–25 is expected to prioritise increasing passenger capacity and improving safety measures within the railway system. This year’s Interim Budget, which was presented by Finance Minister Nirmala Sitharaman, included a significant gross budgetary assistance commitment of Rs 2,52,200 crore for the railroads. This amount was further enhanced by an extra-budgetary contribution of Rs 10,000 crore.
Plans for the national transporter to produce 10,000 non-air-conditioned coaches over the next two fiscal years were recently revealed by Union Minister of Railways Ashwini Vaishnaw.
Key Expectations for the Railway Budget:
Expansion and Upgrades: The government is expected to allocate substantial funds to expand facilities for the general public, aiming to increase rail capacity through network expansion. This effort seeks to reduce congestion, prevent operational mishaps, and enhance the overall transportation experience for passengers.
Major Projects Announcement: In the Interim Budget, it was announced that railway corridors worth Rs 11 lakh crore would be part of the government’s upcoming projects. The railway ministry stated that this budget would cover approximately 400 projects currently in the preparation phase.
Focus on Modernisation: Manish R Sharma, Partner & Leader Infrastructure, Transport & Logistics at PwC India, mentioned that the government might continue focusing on modernising facilities for at least another five years due to the vast network.
Increasing Train Services: To reduce waitlisting, more trains and trips are expected to be added. The Indian Railways currently runs 10,754 daily train trips, serving about 700 crore passengers annually. By 2030, it aims to increase services to accommodate up to 1,000 crore passengers and eliminate waitlists. Minister Vaishnaw indicated a need to increase train trips by at least 30%, which translates to about 3,000 additional trips.
Financial Resources for Enhancements: The budget is anticipated to fund enhancements to the metro network, development of NaMo Bharat corridors, expansion of Vande Bharat trains, establishment of high-speed corridors, and creation of economic corridors, sustaining current positive progress.
PLI Scheme for Rail Components: A Production-Linked Incentive (PLI) scheme for rail components is expected in the upcoming budget. This scheme offers output-linked incentives for products typically imported.
Safety and Infrastructure Improvements: Analyst Ajay Bagga highlighted key expectations, including maintaining high capital expenditure, funding safety measures through the rapid rollout of the Kavach anti-collision system, launching new Vande Bharat and Amrit Bharat trains, increasing freight wagons and passenger compartments, and significantly funding safer and faster tracks in congested networks.
Increased Budgetary Allocation: CareEdge Ratings anticipates a 12-15 percent increase in budgetary allocation for the railways in the Union Budget. Expectations include the introduction of a hybrid annuity model to improve public-private participation and asset monetisation efforts.
Enhancing Vande Bharat Capacity: According to CareEdge, converting rail bogies to Vande Bharat standards is likely to augment Vande Bharat Train Capacity by 50-60 times in the medium term. The focus on economic rail corridors to achieve first-mile-last-mile connectivity and station redevelopment will be a continual theme in this Budget.