What does the Budget offer Railways?
(Source – The Hindu, International Edition – Page No. – 4)
| Topic: GS3 – Indian Economy – Government Budgeting |
| Context |
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Railway Budget: From Spectacle to a Footnote
- Before 2017, the Railway Budget was presented separately and was a major event.
- After merging with the Union Budget, Indian Railways (IR) no longer receives a distinct focus.
- The last two budgets in 2024 did not even mention IR explicitly.
Dependence on Capital Expenditure
- IR’s earnings barely cover its operational costs.
- The government has invested ₹13 lakh crore in infrastructure modernization over the last decade.
- Electrification has reached 95%, track length has increased, and rolling stock has expanded.
- Despite these investments, returns remain underwhelming.
- Freight traffic is growing at only about 2%, even though the economy is expanding.
- Passenger revenue is increasing, but total patronage has not yet reached pre-COVID levels.
Post-Budget Announcements and Expansion Plans
- The Railways Minister stated that the focus remains on infrastructure development, station modernization, better connectivity, safety, and passenger comfort.
- The construction of new railway lines, doubling of tracks, and gauge conversion will continue at a faster pace.
- Since 2014, an average of 150 km of new tracks have been laid annually, compared to 113 km per year between 2009-2014.
Safety Concerns and Kavach Implementation
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- The budget for safety initiatives has been increased to ₹1,16,514 crore.
- Grade separation work has improved, but expansion of Kavach, the indigenous train collision avoidance system, has stalled.
- Investments in Amrit Bharat station redevelopment are highlighted, but progress is slow.
Electrification and Sustainability Issues
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- The Minister stated that electrification rates from 2014-2025 have increased significantly compared to the previous period.
- India is set to become the only 100% electrified railway system, making it the “greenest” in the world.
- However, questions remain about the necessity of rapid electrification, with around 5,000 diesel locomotives worth ₹30,000 crore lying idle or underutilized.
- Additionally, much of the electricity used by IR still comes from fossil fuels.
Vande Bharat and Other Pending Projects
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- The government announced the introduction of 200 more Vande Bharat trains but provided no timeline.
- No updates were given on major projects like:
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- Western Dedicated Freight Corridor
- Mumbai-Ahmedabad High-Speed Rail
- Conversion of Integral Coach Factory (ICF) coaches to Vande Bharat standards
- Instead, a distant vision of a 7,000-km high-speed rail network by 2047 was announced, without a clear strategy.
Freight and Operational Challenges
- The government claimed that IR will become the world’s second-largest freight carrier, reaching 1.6 billion tonnes of cargo.
- However, the crucial question remains:
- How will IR regain its lost freight market share?
- Can IR improve train speeds and passenger comfort beyond minor second-class coach additions?
Conclusion
- The budget suggests that IR is not undergoing a major transformation but is merely maintaining its operations.
- There is a continuous cycle of headline-grabbing announcements without significant execution.
- Structural issues, such as financial sustainability, project delays, and underutilized assets, remain unaddressed.
| Practice Question: How can Indian Railways enhance financial sustainability while balancing infrastructure expansion, freight growth, and passenger services? Suggest viable policy measures. (250 Words /15 marks) |
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