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Eyes on the Tracks: Industry Expects Railway Budget Boost

23 Jan 2025 , 10:04 AM

Industry participants are hoping for big announcements for the railway sector, especially in freight operations and infrastructure expansion, as the Union Budget 2025–2026 draws near. The industry also emphasized the necessity of deploying cutting-edge 12,000 HP electric locomotives and raising the average freight train speed to 50 kmph.

Expanding on the government’s 2022 announcement of roughly 1.2 lakh wagon orders over three years, Texmaxo Managing Director Sudipta Mukherjee voiced optimism for a sizable wagon order.

Additionally, while talking to ET, he emphasized the need for more money for technology, safety, and reliable train operating infrastructure.

Jupiter Wagons Limited’s managing director, Vivek Lohia, advocated for a multifaceted strategy to improve freight operations, while talking to ET.

In order to make Indian industry more competitive, he emphasized the significance of quickening the development of Dedicated Freight Corridors (DFCs), such as the “Central India to Coast via DFC” proposal.

Highlighting the necessity of extending freight train length, deploying cutting-edge 12,000 HP electric locomotives, and raising the average freight train speed to 50 kmph.

The logistics industry expects the next budget to place more emphasis on railroads and canals due to the government’s emphasis on sustainability and net-zero goal. There are high expectations that the railway budget will increase by 10–20% above the previous allotment.

Railways earned a record amount of Rs 2.62 lakh crore for capital expenditures in the last budget, which was announced in July 2024. It is anticipated that this increase will finance improvements in rail freight, the installation of high-speed Vande Bharat trains, and track expansion.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • 2025
  • Budget
  • India
  • Logistics
  • railways
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