Railway Budget 2024-25 Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on Tuesday in the Parliament. She was expected to reveal some significant announcements regarding the Railway Budget but the Centre kept the capex same as was announced in the Interim Budget 2024. So no major announcements were made for the Railway sector. Among the highlights expected in this budget were announcements regarding new trains such as Vande Bharat, Vande Metro, and progress on the ambitious Mumbai-Ahmedabad bullet train and Namo Bharat initiatives.
Stay tuned as we provide real-time updates, insights, and analysis on how the Railway Budget 2024-25 unfolds, shaping the future of India’s railway network.
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Nirmala Sitharaman likely to focus on Kavach safety system, new Vande Metro and sleeper trains. Stay tuned for Railway Budget 2024 Live Updates Here:
The Railways have marked significant infrastructure milestones. Over the past decade, they have commissioned 31,180 kilometers of track. The pace of track laying has surged from 4 kilometers per day in 2014-15 to 14.54 kilometers per day in 2023-24. Furthermore, from 2014 to 2024, Indian Railways electrified 41,655 Route Kilometers (RKMs), a notable increase compared to the 21,413 RKMs electrified up to 2014.
Railway Minister Ashwini Vaishnaw highlighted that a significant portion of the Indian Railways' budget will be dedicated to enhancing train safety measures and implementing the "Kavach" automatic train protection system, as stated during discussions on the Union Budget 2024-25.
"A big chunk of this allocation -- Rs 1,08,795 crore -- is meant for safety-related activities, such as replacement of old tracks with new ones, improvement in the signalling system and construction of flyovers and underpasses, and to install Kavach, among others," he said.
In Union Budget 2024, Finance Minister Nirmala Sitharaman has unveiled a historic capital expenditure of Rs 2,62,200 crore for Indian Railways, supported by a Gross Budgetary allocation of Rs 2,52,200 crore. The Ministry of Railways underscores the government's dedicated efforts to elevate the Railways into a globally renowned system.
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2024-25 in Parliament today. For FY 2024-25, the government has allocated a record capital expenditure of Rs. 2,62,200 crore for railways. The gross budgetary support for railways during 2024-25 is Rs. 2,52,200 crore, according to an official statement. Previously, the gross budgetary support was Rs. 2,40,200 crore in 2023-24, compared to only Rs. 28,174 crore in 2013-14.
The infusion of capital expenditure has yielded significant results, with Indian Railways achieving an all-time high freight loading of 1588 MT in FY 2023-24, up from 1095 MT in 2014-15. The Railway is now aiming to reach a freight loading target of 3,000 MT by 2030. Additionally, Railways recorded an all-time high total receipt of Rs. 2,56,093 crore in 2023-24 and generated a net revenue of Rs. 3,260 crore to supplement its capital expenditure.
Ashwini Vaishnaw has announced that a substantial portion of this record budget allocation is dedicated to safety-related initiatives within the Railways.
At a press conference later in the day, Ashwini Vaishnaw expressed his gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the record ₹2,62,200 crore allocation to Railways. He highlighted that a substantial portion of this funding is dedicated to safety-related initiatives. Vaishnaw noted that in the third term of this government, Railways continues to receive strong support and investment.
Union Minister for Railways, Information and Broadcasting, and Electronics & IT, Ashwini Vaishnaw, stated today that the economy is more resilient and stronger than in the past. He highlighted that the current economic landscape combines welfare, fiscal prudence, capital investment, and manufacturing investments. Vaishnaw emphasized that the Union Budget presented by Finance Minister Nirmala Sitharaman continues Prime Minister Narendra Modi's economic policies focused on inclusive growth, which have been central to the government over the past decade.
Vaishnaw also noted the government's commitment to modernizing the Railways. For FY 2024-25, the government has allocated a record ₹2,62,200 crore in capital expenditure for Railways, with a gross budgetary support of ₹2,52,200 crore.
The Railway Minister highlighted that ongoing initiatives, such as expanding railway infrastructure, removing bottlenecks, increasing engine and coach production, and adopting new technologies, will continue.
He noted that the railways primarily serve low and middle-income passengers, maintaining a ratio of one-third air-conditioned coaches to two-thirds general coaches in train sets.
To address the growing demand for general coaches, the government has decided to manufacture an additional 2,500 general coaches this financial year. Furthermore, 10,000 more general coaches will be produced to meet rising demand, with these measures included in the current budget.
Vaishnaw highlighted that among the safety-related initiatives, installing Kavach is the highest priority for the railways. The upgraded automatic train-protection system, Kavach 4.0, has recently received approval from the Research Designs and Standards Organisation, and its installation is set to proceed swiftly.
According to Vaishnaw, over 4,275 km of optical fibre cable, a key component of Kavach, has already been laid. Other components, including telecom towers, track RFID devices, station Kavach, and loco Kavach, are also being installed at an accelerated rate.
In today’s trading session, railway stocks with strong performance histories faced a sharp decline following the Union Budget 2024-2025's minimal attention to the sector. Investors had hoped for substantial funding for railways, but Finance Minister Nirmala Sitharaman’s budget speech offered limited details, causing notable drops in stock prices.
Ircon International’s shares fell by 8% to ₹293.25, while Rail Vikas Nigam, Indian Railway Finance Corporation, RailTel Corporation of India, and Indian Railway Catering & Tourism Corporation experienced declines between 3.3% and 6.2%.
Despite today’s setbacks, these stocks have gained over 100% in the past year. The government has previously prioritized railway investments, and investors had anticipated a continuation of this trend in the Modi 3.0 budget.
In response to recent accidents, Union Minister Ashwini Vaishnaw announced on Tuesday that the ₹1.08 lakh crore budget allocation for 2024 will be used to enhance railway safety. He also revealed that the Kavach '4.0' safety system received approval last week.
Speaking at a post-budget conference, Vaishnaw stated, "The ₹1.08 lakh crore budget allocation to Indian Railways will be dedicated to boosting railway safety in 2024-25."
The Indian Railways is set to advance its technological initiatives with the adoption of digital systems for ticketing, freight management, and passenger services. Integrating artificial intelligence and data analytics is expected to enhance operational efficiency and elevate the passenger experience.
Finance Minister Nirmala Sitharaman’s budget speech made no mention of new trains or modernization plans for Indian Railways. Instead, it concentrated on infrastructure development projects in Bihar and Andhra Pradesh.
Despite a series of train accidents over the past year, the recent budget did not include any new measures to bolster passenger safety, such as the KAVACH safety system. There was no focus on improving safety standards for either passenger or freight services.
Finance Minister Nirmala Sitharaman's Budget speech on July 23 included only a single mention of the Indian Railways, contrary to broader anticipations. She noted that funds will be allocated for essential infrastructure under the Andhra Pradesh Reorganization Act, including railways, at strategic nodes like Kopparthy on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal on the Hyderabad-Bengaluru Industrial Corridor. This was the sole reference to Railways in the 2024-25 Budget address.
On July 23, Finance Minister Nirmala Sitharaman upheld the capital expenditure (capex) allocation for FY25 at ₹11.11 lakh crore in the Union Budget presented by the third Narendra Modi government. This figure matches the allocation set in February and exceeds last year’s revised cap of ₹9.5 lakh crore. The government aims to allocate 3.4% of the Budget to capex, up from 3.2% the previous year, marking a significant increase from five years ago. Although capex growth has been robust, with double-digit increases for six of the past seven years, a deceleration is expected from the 28.4% growth in FY24 and 24.8% in the year before.
🚉RAILWAY BUDGET AT A GLANCE 👇#unionbudget2024 #budgetforviksitbharat #budget2024 pic.twitter.com/6FR7YRZ6gx
— PIB India (@PIB_India) July 23, 2024
The post-budget press conference has started and is currently underway. During the media interaction, FM Sitharaman said that employment captures everything to do with this Budget.
Although Nirmala Sitharaman in her budget speech did mention 'Atmanirbhar Bharat' and 'Amrit Kaal', but she did not mention anything about bringing in high-tech tools for the Indian Railways. Needless to say, had there been any announcements regarding upgrading the technology of the rail network, it would definitely be a step towards making India more self-reliant.
PM Modi praising the Union Budget said that over the past decade, 250 million people have risen above poverty. He emphasized that the current budget aims to empower the emerging middle class, offering abundant opportunities for youth. However, there was no mention of their popular mode of travel which is the Indian Railways.
Prime Minister Narendra Modi while commenting on Union Budget 2024-25 said, This budget will empower every section of society and that its puts emphasis on manufacturing as well as infrastructure. He added that the budget will speed up growth and that it will open many new opportunities for youngsters.
Going by multiple train accidents that the country saw this past year, people were expecting an enhanced budget especially to improvise safety standards, such as the KAVACH safety system. However, no such announcements were made by the FM.
Nirmala Sitharaman did not make any announcements regarding new trains or modernisation of Indian Railways. The budget speech heavily focussed on the infra development of Bihar and Andhra Pradesh.
Nirmala Sitharaman did not give any specific announcements related to the railway sector, but did mention it once while announcing the infra projects in Andhra Pradesh. She said, "Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor."
Surprisingly and quite shockingly, Finance Minister Nirmala Sitharaman did not announce any new plans or initiatives for the Indian Railways in her Budget 2024 speech. The allocation that was provided in the Interim Budget to the railway sector, will remain the same without any change.
Highlighting the significance of digitalizing the procurement process, the Economic Survey had noted that the Indian Railways has implemented a comprehensive IT system for material management called the Indian Railways e-Procurement System and Integrated Material Management System. More such initiatives are expected to be announced in Sitharaman's budget for FY24-25 shortly.
As of March 2024, the Railways has commissioned 231 megawatts of solar plants (both rooftop and ground-mounted) and 103 megawatts of wind power plants. Additionally, agreements have been made for an additional 5,750 megawatts of renewable capacity. Sitharaman is expected to announce more eco-friendly initiatives in this Railway Budget speech.
The Economic Survey on Monday outlined the Railways' strategy to significantly reduce its carbon footprint by emphasizing renewable energy sources for its energy needs. It projected a requirement of installing approximately 30 gigawatts of renewable capacity by 2029-30. Other initiatives include transitioning from diesel to electric traction, promoting energy efficiency, and enhancing afforestation efforts. Under the current trajectory, carbon emissions by 2029-30 are forecasted to reach 60 million tonnes.
On July 23, Finance Minister Nirmala Sitharaman maintained India's FY25 capital expenditure (capex) allocation at Rs 11.11 lakh crore in the first Union Budget of the third Narendra Modi government, matching the figure set in February. This amount surpasses last year's revised estimate of Rs 9.5 lakh crore. The government plans to allocate 3.4 percent of the Budget to capex, up from 3.2 percent the previous year, nearly double the expenditure from five years ago. Capex growth has remained in double digits for six of the past seven years, although it is expected to decelerate from the 28.4 percent increase seen in FY24 and the 24.8 percent in the year before that.