To support infrastructure investments, the Centre is likely to increase gross budgetary allocation for Indian Railways by 29 per cent from Rs 1.4 trillion to Rs 1.8 trillion.
The railway ministry’s total capital expenditure (capex) is expected to jump 20 per cent to Rs 3 trillion in FY24. In FY23, the outlay was Rs 2.45 trillion.
“Higher capex allocation is the need of the hour as the national transporter reaches a critical stage of implementing key infrastructure projects. The Centre supported the initiatives with a record increase in gross budgetary support last year. We expect it to increase further,” said a former rail board chairman.
The ministry has also asked the finance ministry to prioritise the allocation of long-term infra projects like high-speed trains, freight corridors and the modernisation of trains.
A significant portion of the funds for FY24 is also likely to go towards the Ahmedabad-Mumbai bullet train project.
Prime Minister Narendra Modi recently launched the Vande Bharat Express in West Bengal between Howrah and New Jalpaiguri. He said that the Centre was making “record investments” in modernisation. Tejas Hum Safar, Vande Bharat and VistaDome coaches, and the upgradation of all stations, electrification and doubling of rail lines are part of the modernisation plans, Mint added.
In FY22, the gross budgetary support to the ministry crossed Rs 1 trillion mark for the first time. In FY23, the ministry received the highest-ever capex allocation at Rs 2.45 trillion.
