Union Rail Budget (2023-24) at a Glance

The Indian Railways is known as the country’s transportation lifeline, connecting villages, towns, and cities across the country cost-effectively and efficiently. Every year, the Union Budget is widely anticipated, with all eyes on the railway budget that details the various provisions for railways which connects the nations. The budget sets the tone for future development projects aiming at improving passenger safety and comfort.

Proposals for Railways in Union Budget for FY 2023-24

The Budget highlights for Railways are mentioned below:

• The Budget 2023-24 outlays a total of Rs 2.40 lakh crore as capital investment for the Indian Railways. This is around nine times the amount spent in the fiscal year 2013-14.
• Over the next few years, capital expenditures shall rise further, and the railway system will mature as a national growth engine.
• More private investment will be undertaken in the railway infrastructure sector. The recently established Infrastructure financing secretariat is expected to assist all stakeholders, such as roads, power, trains, and urban infrastructure that rely primarily on government resources.
• The Union Budget 2023-24 is predicted to boost the middle-class as railways are unlikely to raise passenger or freight fares.
• The Railway Budget 2023 is expected to support the Made in India initiative while emphasising the importance of renewable energy.
• The Indian Railways has developed a self-contained railway protection system known as Kavach (Train Collision Avoidance System). This technology has been designed to prevent mishaps caused by human mistakes.
• The Indian Railways plans to achieve a Net Zero Carbon Emitter by 2030. It seeks to reduce its carbon footprint and dependency on imported fuel while saving foreign exchange.
• Kavach is being phased in by Indian Railways. It has been implemented on the South Central Railway for 1,455 route kilometres with 77 locomotives until December 23, 2022. The Delhi-Mumbai and Delhi-Howrah segments are now being worked on by Kavach (3000 route km).
• The doubling of the railway track between Surendranagar and Rajkot is almost complete. According to the Ministry of Railways, 92% of the 116.17 km long doubling project has been completed.
• The Udhampur Srinagar Baramulla Rail Link (USBRL), which has been built to construct a broad-gauge railway line over the Himalayas, is presently 90% complete. Kashmir will be linked to the rest of India with this project.
• More than half of the Sivok-Rangpo New Broad-Gauge Rail Line Project is currently completed. With the help of this project, Sikkim will be linked to the rail network. From Sivok to Rangpo, the railway route will be 44.96 kilometres long. Sikkim will get a 41.55-kilometre-long railway line.
• Vande Bharat Express has resulted in major improvements in terms of speed and convenience. The train may attain a top speed of 160-180 km/h due to its quick acceleration and deceleration. The journey time will be cut by 25% to 45% with these trains.
• Four hundred new-generation Vande Bharat Express trains will be built and manufactured over the next three years. Furthermore, additional funds will be earmarked for the new Vande Bharat trains and the sleeper-class Vande Bharat 2.0.

Allocation of funds for Metro & RRTS

The Finance Minister has allotted Rs 19,518 crore for planned metro projects across the country in the Union Budget 2023-24. Furthermore, almost Rs 3,600 crore has been allocated to the National Capital Region Transport Corporation (NCRTC) for the ambitious Regional Rapid Transit System (RRTS) project connecting Delhi to Meerut. The budget has placed a heavy emphasis on infrastructure and the establishment of sustainable cities.

• Increase in budgetary outlay for next fiscal: According to authorities, the budget has made a larger provision for the next fiscal year than in past years. For example, the sanctioned amount for FY 2022-23 was Rs 15,628 crore, which has since been raised to Rs 19,518 for the next fiscal year.
• Budgetary allocation distribution to metro projects: All metro rail projects in India are funded by the finance ministry. This funding is a combination of loan and equity. For the next fiscal year, money is divided as follows: Rs 1,324 crore in subordinate debt, Rs 13,723 crore in pass-through aid, and Rs 4,471 crore in equity.
• Funding for the Regional Rapid Transit System: The National Capital Region Transport Corporation (NCRTC), which is developing India’s first Regional Rapid Transit System (RRTS), has been allocated Rs 3,596 crore by the government. This is 23 percent lesser compared to the previous year’s budget, which included Rs 4710 crore for the project. Several metro projects are active or under construction in Indian cities. An increase in budgetary allocation will accelerate the development of the country’s metro rail networks.

Comparative Analysis

Below outlined are proposals for Union Budget FY (2021-22 & 2020-21) to characterise the developments made in Union Budget for Railways. The trend shows that the development of Railways is the key agenda for GoI. The government is trying for a transformational development of Railways. This is the reason that the resource and fund allocation for railways has increased almost every year. The percentage growth in fund outlay and expenditure allocation has been very high for the last 7-8 years. This highlights the government’s efforts to make a significant change in almost every sector of national transporter in the country.

1. Proposals for Railways in Union Budget for FY 2021-22

These are the highlights of the proposals for the Indian Railways in the Union Budget (FY 2021-22):

• The Indian Railways granted Rs.1.1 lakh crore, of which Rs.1.07 lakh crore to be spent on capital expenditure.
• The Indian Railways submitted a National Rail Plan to the government as a framework to ensure that the railways meet the country’s developing needs and changing global standards.
• Metro services to be available in two forms, Metro Neo and Metro Lite, in tier II and tier III cities as well as peripheral areas for a more cost-effective experience while keeping the same safety and efficiency standards.
• By June 2022, the Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) to be operational on a Public Private Partnership (PPP) model. This includes 274.3 kilometres of WDFC in the Gomoh-Dankuni segment and 263 kilometres of EDFC in the Sonenagar-Gomoh section.
• Several dedicated freight corridor projects to be launched by the Railways, including the East-West Corridor from Bhusawal to Kharagpur to Dankuni, the East Coast Corridor from Kharagpur to Vijaywada, and the North-South Corridor from Itarsi to Vijayawada.
• The electrification of broad gauge routes to be completed by December 2023.
• Vistadome Linke Hofmann Busch coaches to be installed on tourist routes for improved aesthetic appeal and comfort.
• The Kochi Metro Railway Phase 2 project to begin soon at a cost of Rs.1,957.05 crore for a total length of 11.5 kilometres.
• The metro rail system to be expanded and improved in cities such as Chennai, Cochin, Nagpur, and Nashik.
• The Bangalore Suburban Railway network to be built, which would aid in resolving traffic issues in the IT sector.

1. Proposals for Railways in Budget (FY 2020-2021) :

Using PPP methods, a redevelopment project to be done to improve four stations. Focus on solar capacity development in Indian Railways. Other projects to be developed to connect various tourist destinations across the country. The Bengaluru Suburban Transportation Project to be inaugurated, with the government investing Rs.18,600 crore.

Below mentioned have been the prominent demand and major expectations for Railways in the Union Budget (FY 2020-2021) ;

• Safety: A rise in the frequency of train accidents in India has undoubtedly prompted concerns about the need for better and more modern rail infrastructure. The total number of train accidents increased to an alarming 48 the previous year. As a result of these factors, the railway sector is likely to receive the highest attention among all sectors. The main expectations are for increased preventive measures, enhanced infrastructure at railway stations and inside trains, improved facilities offered by executives serving inside trains, and new and advanced technical systems to signal warning in the event of an emergency. 
• Comfort: Despite bio-toilets and updated infrastructure, the trains’ condition remains poor and heavily contaminated. In an age where more and more people prefer to travel by air, a clean and dirt-free train experience can go a long way towards ensuring that people in the country continue to use trains as their priority mode of travel.
• Convenience: The project ‘golden quadrilateral’ includes the provision to connect all metro cities via a unified train network. The same is expected to receive a significant portion of the fund allocated and to begin this year.
• Technology: Railway automation signalling systems are slated to receive significant funding in the year’s budget.

Indian Railways is expected to make a major breakthrough this year with advanced technology and improved infrastructure.

Conclusion

Seeing the budget outlay for railways in the last three years, it may be concluded that the government has greatly prioritised the modernisation of railways. Accordingly, provision for required capital expenditure has been done through allocating sufficient budget for railways in almost every financial year since 2013. Government has been focussing on the redevelopment of stations, electrification of railway lines, improving freight transportation capacity in the country, upgrading passenger transportation at all levels with development in all other sectors.