The Hindu: Published on 10th Feb 2025:
Why in News?
The Railway Budget has failed to deliver a substantial capital expenditure push beyond the previous two years' allocation of ₹2.62 lakh crore.
There was no mention of IR’s financial health, raising concerns about revenue generation and sustainability.
The Railway Minister's post-budget statements focused on infrastructure, modernization, and connectivity improvements, but with little concrete progress on major pending projects.
Key Highlights
Infrastructure Development: Focus on new railway lines, station modernization, and rolling stock expansion.
Safety & Kavach System: ₹1,16,514 crore allocated for safety initiatives, but no expansion of Kavach, the indigenous train collision avoidance system.
Electrification: India aims to become the world's first 100% electrified railway, but concerns remain over the underutilization of diesel locomotives.
Freight & Passenger Growth: Despite economic growth, freight traffic growth remains sluggish (just over 2%), and passenger numbers are still below pre-COVID levels.
Vande Bharat Expansion: Announcement of 200 more trains without a clear timeline.
High-Speed Rail Vision: A grand target of a 7,000-km high-speed rail network by 2047 but without a detailed roadmap.
Key Issues & Concerns
Stagnant Capital Expenditure: No increase beyond ₹2.62 lakh crore signals a pause in aggressive infrastructure spending.
Execution Delays: Projects like the Mumbai-Ahmedabad bullet train and station redevelopment at New Delhi remain stalled.
Lack of Private Investment: Shift from PPP to EPC raises concerns about long-term sustainability.
Freight Revenue Struggles: IR is losing market share to road transport due to slow train speeds and infrastructure constraints.
Implications
For Passengers: Some improvements in station facilities and new trains, but no significant transformation in travel experience.
For Industry: Slower freight growth may impact logistics costs and economic competitiveness.
For Government: Need for financial restructuring as railway expenses continue to outpace earnings.
Conclusion
The Railway Budget 2025 appears more of a status-quo exercise rather than a transformative push. While infrastructure and safety get attention, financial concerns and execution delays remain key challenges. Without a clear revenue strategy, the IR risks stagnation despite ambitious long-term goals.
