According to official statement, “This investment is seen in various infrastructure projects like New Lines, Doubling, Gauge Conversion and enhancing passenger amenities…Significant sum has been invested in enhancing the safety related works.”
Comparably the national transporter spent Rs 1.46 lakh crore in the same months of the previous fiscal. Capex utilization in the current year is approximately 33% higher over the corresponding period of last fiscal.
The Railways has been throwing its weight behind more tracks and deploying speedier trains in the current and remains on the same path in the coming one. This is in line with National Rail Plan 2030 targets which forecast freight movement to cross 8,000 million tonnes per annum (mtpa) by 2031, up from around 4000 mtpa.
These goals push the national transporter towards a capital expenditure binge which will largely be funded by budgetary allocation. It is estimated the Indian Railways needs to spend at least Rs 12 lakh crore (at current prices and rate of growth) till 2030 to meet the rising requirement. This will mean enhancing the budgetary allocation by 10% annually from 2023-24 level of Rs 2.40 lakh crore since inflation and higher pace of economic growth is anticipated.
There will also be an effort to complete electrification of the entire broad gauge network of the Indian Railways in the next fiscal. Among revenue expenditure, there will be a lower allocation for buying diesel to run trains, but more money being earmarked to purchase power. The pension and wage bill of the Railways is also expected to remain heightened.
