Indian Railways spent $22B on modernization projects this fiscal
What's the story
The Indian Railways has pumped in over $22 billion in the current fiscal year, mainly on projects to boost capacity and make journeys safer and quicker for passengers.
The Indian government revealed this information earlier today.
The plan involves introducing new train routes and expanding electrification, with an aim to achieve net-zero carbon emissions by the end of this decade.
Budget allocation
Breakdown of Indian Railways's expenditure
As of January 5, the Indian Railways had spent $22.37 billion of its total annual budget.
This includes $4 billion spent on safety and $4.7 billion on rolling stock.
Finance Minister Nirmala Sitharaman is expected to announce an increase in funds for the Railways in her upcoming budget presentation next month, from the current fiscal year's $29 billion allocation.
Financial outlook
Revenue projections and operational costs
The Indian Railways, which runs a network of over 68,000km, is expected to earn $32 billion in the fiscal year 2024/25 from passenger and freight traffic.
This would be an 8% increase over the previous fiscal.
The body has set an operational expenditure target of $32 billion for the year.
Infrastructure upgrades
Decade-long capital expenditure yields results
The government emphasized that the benefits of sustained capital expenditure over the last decade are now evident.
These comprise 136 Vande Bharat trains, 97% electrification of broad-gage lines, and major infrastructure upgrades like new lines, gage conversion, and track doubling.
The Vande Bharat sleeper trains are now undergoing speed and safety certification tests before they can enter service later this year.
Strategic goals
Indian Railways's vision for a 'future-ready' system
The Indian Railways, which ferries an average of 23 million passengers every day, is striving to develop a "future-ready" system for India's 1.4 billion population.
However, critics say the organization has a lot of hurdles to overcome including competition from a burgeoning road network and increasing air traffic.
These are further exacerbated by problems such as slow train speeds and overcrowding on trains.