Railway Budget 2024-25 Highlights

“Assam grapples with floods every year. We will provide assistance to Assam for flood management and related projects. Himachal Pradesh suffered extensive losses due to floods, our govt will provide financial support for redevelopment. Uttarakhand suffered to due massive landslides, we will provide assistance. Sikkim saw devastating flash flood, our govt will provide assistance to the state,” Sitharaman said.

The survey had noted current databases do not fully measure how much infrastructure is needed or how well facilities are being used in different areas. It also highlighted that looking at other countries’ examples can teach us how local efforts can help gather money for building infrastructure. The Budget stated that infrastructure is one of the focus areas for Modi 3.0. FY24-25 can now see more focus on infrastructure efforts.

Union Budget has announced Rs 2.66 lakh cr for rural development. Sitharaman also said that 3 cr more houses will be allocated under PM Awas Yojana. The limit for Mudra loans will increase from Rs 10 lakh to Rs 20 lakh for borrowers who have successfully repaid their previous loans. The government also has plans to introduce a comprehensive scheme to provide internships in leading companies to one crore youth over the next five years.

Sitharaman in her speech said the Bihar will be allocated Rs 26,000 cr for highways. The state will also get new airports and medical facilities. A comprehensive plan will be developed for Purvodaya to foster the overall development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. This includes projects like the Patna-Purnea expressway, Buxar-Bagalpur expressway, Bodhgaya-Rajgir-Vaishali-Darbanga connections, and an additional two-lane bridge over the Ganga at Baksar, with an investment of ₹26,000 crore, she announced.

According to the survey, the Railways is developing projects for three significant corridors: high-traffic density corridors, energy, mineral, and cement corridors, and Rail Sagar (port connectivity) corridors. These initiatives aim to lower logistics costs and carbon emissions. Additionally, the Railways plans to decrease its carbon footprint by prioritizing renewable energy sources for its energy needs.

The survey had said that the priority for investments lies in areas like Vande Bharat, Amrit Bharat Express, Aastha Special Trains, high-capacity rolling stock, dedicated freight corridors, high-speed rail, among other services. Keeping this in mind, the budget is most likely to announce new trains from these modern passenger transport systems.

The Economic Survey 2023-24 that was presented on Monday, emphasized that rapid capacity expansion, upgrading rolling stock, and enhancing energy efficiency are pivotal priorities for the Railways. The budget is expected to take all these areas into consideration and announce innovative schemes and plans.

Sitharaman began the speech by putting focus on women, youth, and farmers. She will be delivering the railway budget soon. Stay with us for further updates.

Finance Minister Nirmala Sitharaman has begun the Union Budget 2024-25 speech. Stay with us as she reveals the annual plan and budget allocation for India‘s railway network.

The Centre needs to promote incorporate eco-friendly choices and reducing environmental footprint. This could involve lowering energy use, minimizing waste, or opting for sustainable products. The Budget is expected to take all this in consideration and accordingly announce new policies and schemes.

Union Budget 2024 copies have arrived at the Parliament. Finance Minsiter NIrmala Sitharaman will begin her speech at 11:00 am. This is Sitharaman’s seventh consecutive budget speech.

By March 2024, fifty-one pairs of Vande Bharat trains have been introduced. The accelerated infrastructure expansion is attributed to increased financial allocations, rigorous project monitoring, and regular engagement with stakeholders to expedite land acquisition and approvals, the Economic Survey stated on Monday.

Spotlight is on rail stocks as investors are anticipating increased allocations from this year’s budget. These key rail stocks include Rail Vikas Nigam Ltd (RVNL), Indian Railway Finance Corporation Ltd (IRFC), RITES Ltd, IRCTC, Railtel Corporation of India Ltd amid others.

The Economic Survey on Monday highlighted that the Amrit Bharat Station Scheme, launched in August 2023 to enhance stations continuously, includes creating master plans and phased implementations aimed at improving amenities, infrastructure, multimodal integration, and sustainability. As of now, 1,324 stations have been earmarked for upgrading under this initiative.

As per the survey findings, the Railways intends to launch Vande Metro trainset coaches equipped with sealed wider gangways, centrally controlled automatic sliding doors, CCTVs for safety and surveillance, route map indicators, passenger information and infotainment systems, fire detection systems, and aerosol-based fire suppression systems. The first set of lot is anticipated to roll out in the coming year.

According to the Economic Survey 2023-24 released on Monday, capital expenditure on the Railways has surged by 77% over the last five years, driven by substantial investments in new line construction, gauge conversion, and track doubling projects.

FM Nirmala Sitharaman has arrived at the Parliament. She will begin the budget speech at 11:00 AM today.

In the light of multiple train accidents, the budget today is expected to allocate sufficient budget to the safety enhancing tech for Indian Railways. Keeping that in mind, Sitharaman could also enhance the budget of the KAVACH safety system.

Prime Minister Narendra Modi on Monday emphasized the critical role of the upcoming budget in shaping India‘s economic path for the next five years, laying the groundwork for the nation’s goal of becoming a developed country by 2047.

Finance Minister Nirmala Sitharaman departed from the North Block offices of the Finance Ministry on Tuesday carrying a digital tablet of the Union Budget 2024-25, continuing the tradition. Prior to the budget presentation, Minister Sitharaman visited Rashtrapati Bhavan for a meeting with President Droupadi Murmu.

Dressed in a simple white saree with a pink border, Nirmala Sitharaman was seen posing with the ‘Bahi khata’ – the digital tablet, before leaving for the Rashtrapati Bhavan.

The Economic Survey highlighted the Indian Railways‘ efforts to enhance the passenger experience. One key initiative was the rollout of Wi-Fi facilities at a whopping 6,108 stations. This widespread access helped bridge the digital gap between rural and urban areas, offering passengers a valuable amenity while they travel.

The survey also commended on the Indian Railway Catering and Tourism Corporation’s (IRCTC) online ticketing system. It stated that this user-friendly platform has become a frontrunner in e-commerce, not just within India but across the Asia Pacific region. Passengers can conveniently access it through the IRCTC website, mobile app, or authorized agents, making the ticket booking process smoother than ever.

Revenue-earning freight excluding Konkan Railway Corporation Limited jumped by 5.3% year-on-year. This growth is even more impressive considering the consistent rise in freight volume over the past few years. The survey attributes this success to the railways’ focus on expanding capacity, acquiring new rolling stock (wagons and locomotives), and streamlining operations for better efficiency.

Enhanced funding will definitely facilitate extensive upgrades to railway tracks, stations, and signaling systems, resulting in enhanced safety, reduced travel durations, and improved passenger satisfaction. Moreover, increased investments will expedite the deployment of advanced trains such as Vande Bharat, thereby enhancing operational efficiency and increasing transport capacity. Railway investment transcends passenger convenience; it serves as a vital economic catalyst. Streamlined freight transport will effectively link producers to markets, stimulating economic expansion. Furthermore, railway development initiatives generate employment opportunities and stimulate local economies.

The unified budget offers several advantages. It provides a comprehensive view of the government’s financial health, allowing for better resource allocation across sectors based on broader national priorities rather than isolated sectoral needs. Additionally, it facilitates integrated planning for transportation infrastructure, encompassing railways, highways, and waterways.

Internationally, India stood out with its separate railway budget, whereas most countries integrated transport funding within a unified budget framework. While the merger aligns with global practices, proponents of separate budgets argue it ensures focused attention on railway development and safeguards against its priorities being overlooked amid broader governmental objectives.

Until 2017, India maintained separate budgets for railways and the general government (Union Budget). This changed following recommendations by the government’s think tank, Niti Aayog. The decision to merge the budgets was primarily driven by several factors. Firstly, the significance of railway revenue had declined over the years as other sectors grew, reducing its proportion in the overall budget. Niti Aayog highlighted this trend, advocating that a separate budget for railways was no longer justified.

With a focus on bolstering economic growth through improved transport networks, job creation in the railway sector, and sustainable development practices, Modi 3.0 is likely to allocate substantial resources to propel railway modernization initiatives forward. Stay tuned for updates as the budget unfolds to see how these plans will unfold and impact India‘s railway landscape.

The government this year is expected to provide a significant boost to railway modernization. The government has been proactive in emphasizing infrastructure development, including railways, as a cornerstone of economic growth and connectivity across India. Key priorities under Modi 3.0 include enhancing passenger safety, improving train services, modernizing railway infrastructure, and expanding high-speed rail networks like the ambitious bullet train projects. Investments in technology upgrades, track electrification, and station modernization are also anticipated to feature prominently in the budget allocations.

Infrastructure development will feature prominently in Sitharaman’s Budget speech, sharing the spotlight with crucial sectors like aviation and roadways. Despite challenges, the Modi 3.0 government is poised to sustain its strong focus on capital expenditure, underscoring ongoing commitments to infrastructure investment. The government has been actively advocating for infrastructure development and offering incentives to states to bolster capital expenditure.

Read More Here: Infrastructure Budget 2024 Live Updates

Expectations are high for increased funding towards upgrading existing stations and establishing new ones under the Amrit Bharat scheme. These developments aim to elevate the travel experience for passengers, stimulate local economies, and promote tourism in regions served by these stations. Stay tuned for updates on how these expansions will shape the future of rail travel in India.