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

The Finance Minister in the post-Interim Budget press conference clarified that the 40,000 normal rail bogies are being converted to the ‘Vande Bharat standards’, however, this does not mean that they will be replaced by the Vande Bharat train coaches, but that there will be addition of certain amenities in the existing bogies to enhance safety, convenience and comfort of passengers.

Urbanisation initiatives focusing on Metro and Namo Bharat to drive urban transformation.

In response to a query on capital expenditure growth, the finance minister stated, ‘It reflects an 11 percent growth on a high base.’ She also noted, ‘And, we can see signs of the private sector also coming in.’

1. Social justice as effective governance model
2. Focus on poor, youth, women, and the Annadata
3. Focus on infrastructure
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Northern Railway Lucknow Division DRM, Sachinder Mohan Sharma, announced an investment of Rs. 19,575 crores over the next five years. Plans include laying new tracks spanning 1978 kilometers. Additionally, the division has achieved 100% electrification.

Sudeep Kumar Sinha, Partner at Deloitte India, applauded the 11.1% increase in capital outlay, especially given the challenges posed by the country’s debt situation. This step reflects the government’s dedication to addressing infrastructural bottlenecks, building on previous increases in funding. The emphasis on railways aligns with expectations, particularly the commitment to raise its modal share to 40-45%. Dedicated corridors for port connectivity, energy, cement, minerals, and high-traffic density are crucial for enhancing logistics efficiency. Additionally, the renewed focus on tourism infrastructure at iconic destinations will stimulate tourism, complementing existing initiatives. Other announcements, such as those regarding housing for the middle class and modernisation of agriculture infrastructure, are expected to enhance efficiencies across the agriculture value chain and reduce losses.

The finance minister highlighted that the railway corridors would enhance logistics efficiency and reduce costs, while the conversion of coaches would improve safety, convenience, and comfort for passengers.

As per the Union Housing and Urban Affairs Ministry, the Metro systems in the country carry approximately one crore passengers daily. With operational lines spanning over 895 kilometers across nearly 20 cities and an additional 986 kilometers under construction in various urban centers, India is steadily progressing towards having the world’s second-largest Metro network. Union Housing and Urban Affairs Minister Hardeep Singh Puri recently affirmed India’s significant strides in this direction.

FM Sitharaman highlighted the rapid urbanisation occurring in India during the presentation of the interim Budget 2024-25 on Thursday. She emphasised that Metro Rail and NaMo Bharat trains have the potential to act as catalysts for the necessary urban transformation. Sitharaman announced that the expansion of these systems will receive support in large cities, with a focus on transit-oriented development. “We have a fast-expanding middle class and rapid urbanisation is taking place,” Sitharaman said.

Indian Railways plays a crucial role in driving economic growth. It has been prioritising initiatives such as enhancing safety measures, upgrading infrastructure, introducing new trains, and revitalising railway stations.

Union Minister Nitin Gadkari expressed confidence on Thursday that the interim Budget 2024-25 would accelerate India‘s journey towards becoming an economic superpower. He lauded the innovative budget for its alignment with Prime Minister Modi’s dedication to uplift farmers, women, youth, and the underprivileged, stating his thoughts on X.

In her presentation of the interim budget for 2024-25, FM Sitharaman unveiled plans to implement three significant economic railway corridor programs and upgrade 40,000 regular railway bogies to Vande Bharat standards. These initiatives, she emphasized, aim to alleviate congestion in high-traffic corridors while enhancing the efficiency of passenger train operations. By creating dedicated economic corridors, the government seeks to streamline rail traffic flow, thereby reducing bottlenecks and improving overall railway infrastructure across the country.

In less than a year, three domestic carriers—Air India, IndiGo, and Akasa Air—have collectively placed orders for a total of 1,120 aircraft. Last month, Akasa Air revealed an order for 150 Boeing 737 Max aircraft. In 2023, Air India and IndiGo jointly made orders for 970 planes from Boeing and Airbus. Air India, owned by the Tata Group, placed an order for 470 planes—250 from Airbus and 220 from Boeing—in February last year. Subsequently, in June, the country’s largest airline, IndiGo, announced an order with Airbus to acquire 500 narrow-body planes.

The Ude Desh ka Aam Naagrik (UDAN) regional air connectivity scheme primarily focuses on enhancing the affordability of air travel. “Expansion of existing airports and development of new airports will proceed swiftly,” stated Sitharaman.

India ranks among the fastest-growing civil aviation markets globally, with a steady increase in domestic air passenger traffic. “Roll out of air connectivity to tier-two and tier-three cities under UDAN scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers,” Sitharaman said.

During the presentation of the interim Budget for 2024-25, Finance Minister Nirmala Sitharaman highlighted the rapid expansion of existing airports and the ongoing development of new ones. She emphasised the significant progress made in the country’s aviation sector over the past decade, noting that the number of airports has doubled to 149. Additionally, Sitharaman mentioned that Indian carriers have proactively ordered over 1,000 new aircraft.

The alleviation of congestion in high-traffic corridors will not only enhance the operation of passenger trains but also ensure safety and increase travel speed for passengers. When combined with dedicated freight corridors, these three economic corridor programs will expedite GDP growth and mitigate logistical expenses.

The FinMin also highlighted that the UDAN scheme has seen substantial progress, with 517 routes now operational, connecting 76 airports, including 9 Heliports and 2 Water Aerodromes. Expansion of existing airports and development of new airports will continue expeditiously.

Union Finance Minister Nirmala Sitharaman says, “In the full budget in July, our Government will present a detailed roadmap for our pursuit of Viksit Bharat.”

Sitharaman highlighted the government’s efforts in revitalising the aviation sector over the past decade. She noted that the number of airports has doubled to 149 during this period.

Sitharaman announced the expansion of key rail infrastructure projects such as Metro Rail and Namo Bharat to additional cities. She also mentioned the conversion of approximately 40,000 rail bogies into Vande Bharat coaches.

Sitharaman highlighted that the reach of the Indian aviation industry has reached to tier-2, 3 cities in the past few years. The Finance Minister also hailed the Indian carriers fr their proactive orders for more than 1000 aircrafts.

The next 5 years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047, says Finance Minister in her Budget speech.

The outlay for infrastructure has been increased to Rs 11.11 lakh crores in FY25, says FM Sitharaman.

“Three significant Railway economic corridor programs are set to be rolled out, focusing on energy, mineral, and cement corridors, port connectivity corridors, and high traffic density corridors,” stated Finance Minister Nirmala Sitharaman. These projects, identified under the PM Gati Shakti initiative, aim to enhance multi-modal connectivity, thereby boosting logistics efficiency and reducing costs.