The Center is going to increase the gross budgetary allocation for Indian Railways by 29%, from Rs 1.4 trillion to Rs 1.8 trillion, in order to support infrastructure development.
The entire capital expenditure (capex) for the railway ministry is anticipated to increase 20% to Rs 3 trillion in FY24. The expenditure for FY23 was Rs 2.45 trillion.
As the national transporter approaches a crucial stage of delivering important infrastructure projects, a higher capex commitment is urgently required. Last year, the Center increased its gross budgetary support for the initiatives by a record number. We expect it to rise even more, according to a former rail board chairman.
Additionally, the ministry has requested that long-term infrastructure projects including high-speed trains, freight corridors, and train modernization receive funding at a higher priority than other projects.
The Ahmedabad-Mumbai bullet train project is also set to receive a sizeable amount of funding for FY24.
The Vande Bharat Express, which runs between Howrah and New Jalpaiguri in West Bengal, was recently inaugurated by Prime Minister Narendra Modi. In order to modernise, he claimed that the Center was making “record investments.” The upgrading of all stations, electrification, and doubling of train lines are also included in the modernization plans, according to Mint. Tejas Hum Safar, Vande Bharat, and VistaDome coaches are also included.
The ministry’s gross budgetary support first surpassed the $1 trillion mark in FY22. With a capex allocation of Rs 2.45 trillion in FY23, the ministry received the largest amount ever.