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regular-article-logo Wednesday, 26 February 2025

Railway budget set for 15-20 per cent increase; focus on freight, safety, and innovation

Key initiatives that are likely to feature include progress on Mumbai-Ahmedabad High-Speed Rail Corridor, more Vande Bharat trains and the Kavach system — a homegrown GPS and RFID-based safety technology — expected to be extended to an additional 6,000 kilometres

R. Suryamurthy Published 31.01.25, 10:56 AM
Fast track

Fast track File image

The budget for railways is expected to rise 15-20 per cent to around 3 lakh crore (trillion) from 2.62 lakh crore a year ago.

Key initiatives that are likely to feature include progress on Mumbai-Ahmedabad High-Speed Rail Corridor, more Vande Bharat trains and the Kavach system — a homegrown GPS and RFID-based safety technology — expected to be extended to an additional 6,000 kilometres.

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Freight infrastructure is set to gain significant attention: accelerating dedicated freight corridors (DFCs), including the newly proposed Central India to Coast DFC, is a priority to enhance the efficiency and competitiveness of freight movement.

Vivek Lohia, managing director of Jupiter Wagons, said: “Increasing the average speed of freight trains to 50 KMPH, deploying advanced 12,000 HP electric locomotives and lengthening freight trains are pivotal steps to accelerate freight loading. Strategic railway geography assessments for sectors such as mining, NTPC, cement and textiles will align operations with industrial needs.”

To meet growing demands for coal, cement and agricultural transportation, the government is expected to float a 20,000-25,000 crore tender for wagon procurement. Dedicated Kisan Rails for perishables will further strengthen agricultural supply chains.

Safety expenditures are projected to see a boost, following the 34,414 crore allocated in FY24-25. This includes
investments in level crossings, track renewals and signalling systems, aimed at eliminating bottlenecks and improving passenger and freight
efficiency.

Upgrades to urban rail projects and infrastructure modernisation, coupled with innovative strategies such as the Real-Time Information System (RTIS) and separating parcel traffic from passenger operations, are expected to minimise delays and optimise operations.

Indrajit Mookerjee, vice-chairman of Texmaco Rail & Engineering Ltd., called for robust investments in infrastructure and rolling stock. Ashish Suman, a partner at JSA Advocates & Solicitors, highlighted the need for increased private sector participation and multimodal transport systems.

Manish Chowdhury, head of research at StoxBox, predicts a 15-18 per cent increase in railway allocations, emphasising initiatives such as the Kavach anti-collision system and AI integration in ticketing and track monitoring. He also highlighted the launch of new Vande Bharat trains and the Namo Bharat Corridor in Delhi to address congestion and pollution.

Rizwan Soomar of DP World North Africa and India Subcontinent stressed the importance of digitalisation in strengthening India’s logistics ecosystem.

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