Budget 2024 Expectations: What is in the box for Railway sector?

29 Dec 2023 , 12:00 PM

With the government’s emphasis on renovating railway assets and developing infrastructure, the railway industry is anticipated to enjoy increased capital allocation in the Union Budget 2024-25 as well.

In the Union Budget 2023-24, the Railway Ministry received a record Rs 2,40,000 crore in fiscal support. The all-time high allocation, which was nearly nine times that of 2013, has given a boost to railway infrastructure in the country this year. In the current fiscal year, a whopping Rs 1.85 lakh crore has been set aside for capital expenditure.

The introduction of brand new Vande Bharat trains, station refurbishment, and the construction of additional railway tracks not only accelerated expansion but also triggered a bull run in railway shares.

Rail stocks are predicted to maintain their pace in 2024, as the industry is expected to get increased allocation in the coming fiscal year.

The introduction of new Vande Bharat trains focuses on increasing safety and replacing infrastructure such as tracks, bridges, and locomotives, while the government’s ambitious initiatives such as the bullet train will continue to draw capital investment.

In addition, the projected India-Middle East-Europe economic corridor is expected to bring a significant boost to the railway sector. The ambitious initiative to connect India, Saudi Arabia, the United Arab Emirates, and Europe has the potential to be a game changer for the railway sector and a long-term economic growth engine.

The government set aside Rs 35,000 crore for new train lines in 2023-24, Rs 45,000 crore for the Railway Safety Fund, and Rs 10,000 crore for contributions to the Rashtriya train Sanraksha Kosh. It allocated around around Rs 1,85,000 crore under the Capital head.

The Railways Ministry has announced the ‘Amrit Bharat Station Scheme’ to renovate Indian Railways stations. So far, the government has designated 1,309 railway stations for modernization. For the current fiscal year, the capital budget for passenger facilities has been set at Rs 13,355 crore.

Therefore, it is evident that to follow the government’s initiatives, a huge capital will be allocated to the Railway sector in the upcoming Union Budget.

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