Budget 2023: Railway Got Highest-Ever Capital Outlay of Rs. 2.40Lk Crore

Union Budget 2023

On February 1, Union Finance Minister Nirmala Sitharaman announced the capital allocation of Rs. 2.40 Lakh Crore for Indian Railways while presenting the Union Budget 2023-24. She said that “it is nine times the amount provided in the Union Budget of 2013-14.”

India has the fourth-largest railway network in the world. Indian Railways is the biggest mode of transportation for the people of India. It serves close to 24 million passengers daily. And the government's initiatives in budget 2023 justify that. The budget allocated for Indian Railways for 2023-24 is the highest in a decade and four times the last year's budget.

The major focus of the Central Government for capital expenditure has been roads and railways, which have seen additional budget allocations in recent budgets. FM Nirmala Sitaraman said that the government proposed a 33% increase in capital expenditure to Rs. 10 Lakh Crore in 2023-24 or 3.3% of the GDP.

Proposal for Railways in Union Budget of 2023-24 

• Rs. 2.40 Lakh Crore earmarked for Indian Railways in this year’s budget. It is nine times higher capital allocation for the Railways than 2013-14.
• Aiming to meet the increased demands of passengers, the Railways planned to upgrade 1,000 coaches of premium trains such as Rajdhani, Shatabdi, Duronto, Humsafar and Tejas to give them a modern look and enhanced passenger comfort.
• The Indian Railways set to build at least 500 Vande Bharat Express trains and achieve 100 percent electrification. In addition, new Vande Bharat Express trains and Sleeper Vande Bharat 2.0 will receive more funds.
• It has also planned to start an ambitious station redevelopment plan under the “Amrit Bharat Scheme.” 
• As of December 23, 2022, Kavach has been implemented for 1,455 route km on the South Central Railway with 77 locomotives. While on the 3000 km route of Delhi-Mumbai and Delhi-Howrah sectors, the implementation of Kavach is underway.
• As of now, the construction of the Sivok-Rangpo, new Broad-Gauge Rail Line is more than half completed. Sikkim, the only North-Eastern state which is not connected yet, will be connected to the Indian Railway Network. From Sivok-Rangpo, this railway line will stretch 44.96 km.
• There will be a massive tranche of investments in initiatives such as the Gati Shakti Multimodal Cargo Terminal, the Mumbai-Ahmedabad High-speed Rail Project, and the Dedicated Freight Corridor Project.
• The Indian Railways intends to become a net Zero Carbon emitter by 2030. The plan is to reduce carbon footprints and reliance on imported fuels while saving foreign exchange in the process.
• Since the Railways will be focusing on clean energy, it is also looking to develop 35 hydrogen-fuel-based trains. In the first stage, these hydrogen-fuel-based trains will replace the diesel fuel-based trains on heritage routes.

In the union budget for 2022-23, Rs. 1.4 Lakh Crore was allocated to the Railways. Out of the total, Rs. 1.37 Lakh Crore was set aside for capital expenditure and Rs. 3267 Crore for revenue expenditure.

Getting overwhelmed to see numerous development plans in budget 2023, we are looking forward to the nation's economic growth in 2023. Announcing the budget for 2023-24, FM Nirmala Sitharaman said that the government planned to build on the groundwork of the previous budget and blueprint for India@100.

Just like Indian Railways is focusing on enhancing passengers’ experience, Trainman, an Authorised IRCTC Partner is elevating the overall train travelling experience as well. By offering its users a number of features and offers, Trainman makes sure that all the passengers get to experience premium services.