Union Finance Minister Nirmala Sitharaman's budget announcement did not bring any major changes for the Indian Railways, but there was an increase in funding. The government has raised the net revenue expenditure for the railways to Rs 2,78,500 crore for the fiscal year 2024-25, up from Rs 2,58,600 crore in the Revised Estimate for 2023-24.
While there was anticipation for a manufacturing-linked incentive for the railway sector, none were introduced. The government's primary focus will be on expanding and improving the Vande Bharat train series, including sleeper and metro versions, to enhance passenger comfort and efficiency.
In addition, the Economic Survey 2023-24 has outlined several key areas for railway development. It emphasized the need for fast capacity augmentation, modernization of rolling stock, and improving energy efficiency. Investments are being directed towards dedicated freight corridors, high-speed rail projects, and modern passenger services such as Vande Bharat and Amrit Bharat Express. The Railways is also focusing on high-capacity rolling stock and better last-mile connectivity.
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The survey highlighted plans for three major rail corridors: High-traffic density corridors, Energy, Mineral and Cement Corridors, and Rail Sagar corridors aimed at port connectivity. These projects are expected to help reduce logistics costs and the carbon footprint of rail transport.
In terms of sustainability, the Railways is setting ambitious goals to cut its carbon emissions by sourcing energy from renewable sources. By 2029-30, the Railways plans to install around 30 gigawatts of renewable energy capacity. This includes a shift from diesel to electric traction, promoting energy efficiency, and increasing afforestation efforts. As of March 2024, the Railways has commissioned 231 megawatts of solar power and about 103 megawatts of wind power, with an additional 5,750 megawatts of renewable capacity lined up.
Overall, while the budget did not introduce new incentives, the focus remains on modernizing the rail network and improving environmental sustainability.
