Railway Budget 2024 Highlights: FM Nirmala Sitharaman puts spotlight on metro and Namo Bharat in post-Interim Budget presser

FM Sitharaman says, “The government is equally focused on GDP – Governance, Development and Performance.” She also added that during its second term, the government bolstered its principles, and our development philosophy embraced all facets of inclusivity, encompassing social and geographical dimensions.

The finance minister emphasized the significance of the India Middle East-Europe trade corridor, introduced during the G20 Summit in the previous year, noting its potential to transform not only India but also the global landscape. She further outlined the vision for “Viksit Bharat,” aiming for prosperity in harmony with nature and ensuring equal opportunities for all to fulfill their potential.

“We focus on outcomes and not outlays,” says FM Sitharaman. The finance minister highlights timely delivery of large infrastructure projects. Projects are not built in “record-time”.

Nirmala Sitharaman reveals the Union Interim Budget 2024-25. She expressed – Our young nation holds lofty aspirations, takes pride in its present, and harbors hope and confidence for a promising future.” The FM further stated that the Narendra Modi-led government is poised to secure a significant mandate in the Lok Sabha 2024 elections.

Union Minister Nirmala Sitharaman presents the Union Interim Budget 2024-25 at the Parliament.

Indian Railways is presently undertaking multiple infrastructure projects in the Northeastern states, including the expansion of the rail network to Sikkim and the conversion of Narrow Gauge (NG) lines to Broad Gauge (BG). Earlier, Vaishnaw had stated that in the railway sector, significant development projects are underway in the northeastern region. The Railways has allocated an annual budget of approximately Rs 10,269 crore for the northeast, a substantial increase from the previous Rs 2,122 crore. Projects by the Railways are progressing rapidly in the northeastern states, with plans for two additional Vande Bharat trains in the region. Indian Railways is committed to the holistic transformation of the northeastern states.

A key priority for the government will be the introduction of the Vande Bharat Sleeper Version. This new version was unveiled by the Railway Minister during post-budget 2023 media briefings. These trains are designed for longer journeys, spanning over 800 kilometers. Currently, production of these trains is underway at ICF Chennai.

On Thursday morning, stocks of companies associated with railways showed positive momentum ahead of the interim Budget presentation. IRCON International shares surged by 3.26%, while Texmaco Rail & Engineering saw a jump of 2.71%. Indian Railway Finance Corporation climbed by 2.58%, and Rail Vikas Nigam advanced by 1.52% on the BSE. Additionally, Jupiter Wagons‘ stock rose by 1.46%, while Indian Railway Catering and Tourism Corporation (IRCTC) saw an increase of 0.88%, and Titagarh Rail Systems rose by 0.71%.

Union Cabinet headed by Prime Minister Narendra Modi approves pre-election Budget. Sitharaman, the first full-time female finance minister of the country, has delivered five complete budgets since July 2019 and is set to present an interim or vote-on-account budget on Thursday.

In adherence to tradition, Finance Minister Nirmala Sitharaman, along with her colleagues Ministers of State Bhagwat Karad and Pankaj Chaudhary, visited President Droupadi Murmu at Rashtrapati Bhawan before presenting the Budget in Parliament on Thursday morning. She was seen carrying a red-coloured ‘bahi khata’ which contains Budget document, in paperless form.

Indian Railways is poised to bolster safety measures with the adoption of cutting-edge technology called Kavach. Railway Minister Ashwini Vaishnaw highlighted that Kavach, an indigenous anti-collision technology, is SIL4 certified, ensuring robust safety standards. With recent rail accidents, including the tragic Balasore incident claiming hundreds of lives and injuring over 1,200, there’s a pressing need for the effective implementation of Kavach. This Automatic Train Protection System holds the potential to significantly enhance safety in train operations, underscoring its importance in safeguarding passengers and preventing accidents.

The Union Cabinet convened in Parliament ahead of the interim Budget presentation.

Finance Minister Nirmala Sitharaman, holding the Budget tablet, has arrived at Parliament to present the interim Budget for the nation.

The Union Budget is expected to emphasize the introduction of new Dedicated Freight Corridors (DFCs), aimed at facilitating seamless freight transportation. Focused on enhancing logistics and reducing costs for industries, these Dedicated Freight Corridor projects aim to facilitate the ‘Make in India’ initiative. Read More

The government plans to increase the production of Vande Metro trains nationwide, with the goal of replacing the current local and suburban train fleet.

Currently, numerous railway projects are progressing in various states, including USBRL, the building of the new Pamban Setu, and enhancing rail connectivity to Sikkim and other northeastern states. However, in the Union Budget 2024-25, the government must also prioritize certain areas for attention.

Copies of the Interim Budget have been delivered to Parliament, where Finance Minister Nirmala Sitharaman is poised to deliver her sixth consecutive budget presentation today.

ALSO READ | Interim Budget 2024: What will become costlier and cheaper this time? Take a look at last year’s budget list

The budget allocation for Indian Railways in 2024-25 is anticipated to reach unprecedented heights as the government prepares to facilitate a significant transformation for the national transporter. This includes the introduction of more modern and faster trains, along with enhanced safety features. The railway ministry is likely to request an augmentation in its planned capital expenditure to support long-term infrastructure initiatives such as freight corridors and high-speed trains, as well as the modernization of the fleet with state-of-the-art trains, wagons, and locomotives.

The Railways Ministry has unveiled a Rs 2,800 crore initiative aimed at developing 35 hydrogen fuel cell-based trains to operate on several heritage hill routes. This initiative is poised to propel sustainable growth within the railways sector.

Union Finance Minister Nirmala Sitharaman will present the interim budget today. Finance Minister, along with her team, poses for media before the presentation of the country’s interim Budget.

Passengers hope that the government will implement measures to enhance the speed of trains.

The national railway system is diligently enhancing its infrastructure throughout its network. This involves various initiatives such as the modernization of railway stations, conversion of Narrow Gauge (NG) to Broad Gauge (BG), electrification of railway lines, track doubling, new line construction, and train launches. Furthermore, the Ministry of Railways is actively progressing on the Mumbai-Ahmedabad High-Speed Rail Corridor (MAHSR).

MoS Finance Pankaj Chaudhary arrives at the Ministry of Finance.

The Union Budget 2024-25 is anticipated to prioritise addressing waitlisting tickets, with expectations of the government allocating additional coaches on trains to alleviate this issue.

In the forthcoming budget, there is expected to be increased emphasis from the government on the expansion of Namo Bharat trains and Amrit Bharat Express. Both trains were introduced last year and are likely to receive further attention and support in the upcoming fiscal plan.

Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance ahead of presenting the interim Budget today.

The Railways Ministry introduced the ‘Amrit Bharat Station scheme’ to refurbish stations across the Indian Railways network. The government has identified 1,309 railway stations for modernisation under this initiative. A capital outlay of Rs 13,355 crore has been allocated for passenger amenities in the current fiscal year.

According to media reports, analysts are hopeful that the forthcoming budget will see a notable increase in capital expenditure (capex) directed towards infrastructure, particularly in the railway sector. Additionally, there is anticipation surrounding the proposed India-Middle East-Europe economic corridor, a significant initiative aimed at linking India, Saudi Arabia, the United Arab Emirates (UAE), and Europe. This ambitious project is expected not only to provide a substantial impetus to the sector but also serve as a key driver of long-term growth.

The government has earmarked funds for vital projects including the expansion of new rail routes, the doubling of current tracks, gauge conversion, and the improvement of passenger amenities. These allocated funds are aimed at constructing new trains, railway tracks, and enhancing passenger facilities, elevating the infrastructure to global standards.