The Union Budget has proposed a record budgetary allocation of ₹1.37 lakh crore for the Railways, with a capital expenditure outlay of over ₹2.45 lakh crore for the upcoming financial year. With a 14% higher capital expenditure over last year, the national transporter plans to utilise the funds to complete key stalled projects and enhance passenger amenities and safety.
Finance Minister Nirmala Sitharaman on Tuesday also announced that 2,000 km network will be brought under Kavach — an indigenous technology developed for safety, in 2022-23, and 400 new-generation Vande Bharat trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years.
Terming the allocation as ‘historic’, Railways Minister Ashwini Vaishnaw told reporters that with the increased allocation, the focus will be on capacity expansion and enhancement of security, along with ‘supercritical’ projects.
Mr. Vaishnaw said for the upcoming fiscal, the Railways is targeting a 98% operating ratio, but he is hopeful of bettering this on the back of improved freight performance. The operating ratio indicates how much the Railways spends to earn a rupee.
Watch | Highlights of Union Budget 2022-23
“We are targeting 98% operating ratio in the coming year. But I think we should be able to achieve more than this…We are already achieving over four million tonne loading everyday… which is unheard of…we are now targeting freight loading of 4.5 MT everyday consistently and then move on to 5 MT/day gradually,” he said.
Vande Bharat trains
To a query on the Vande Bharat trains, he said, “The current Vande Bharat under operation is version 1. For version 2.0, the designing is complete and testing will begin in April. We plan to start serial production of these September onwards… Today’s target will see even better versions of this train.”
On the proposal to bring 2,000 km network under Kavach, the minister pointed out that it is SIL4 (Safety integrity level) certified which means there is the probability of a single error in 10,000 years.
Ms. Sitharaman said the Railways will develop new products and efficient logistics services for small farmers and Small and Medium Enterprises, besides taking the lead in integration of postal and Railways networks to provide seamless solutions for movement of parcels.
She also announced that the ‘One Station-One Product’ concept will be popularised to help local businesses & supply chains, and 100 PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years.
As per the Budget documents, the Railways receipts comprising revenues from passenger, goods, other coaching, sundry other heads etc will be ₹2.40 lakh crore in BE 2022-23 as against RE 2021-22 of ₹2.02 lakh crore. It expects passenger revenue of ₹58,500 in 2022-23 and goods revenue to be about ₹1,65,000 crore.
Vishnu Sudarsan, Partner, J. Sagar Associates (JSA), said the sector, which boasts a wide-reaching network and is a lynchpin of keeping crucial supply chains operational, can play a clinching role in the logistics growth story and meeting the climate change and sustainability goals. “However, to ensure a starring role for the Railways in the logistics segment, it is imperative that the Railways commence involving the private sector in a meaningful and phased manner that offers a win-win to all stakeholders.”
Vivek Lohia, Director, Jupiter Wagons and Chairman, National Council for Railways at industry body Assocham said the announcements will result in efficient movement of goods, cut down logistics costs, raise productivity and increase international manufacturing competitiveness. However, the industry body was hopeful that the ₹3.1 lakh crore identified for rolling stock procurement between 2021-2016 would be revived in this year due to the fact that since 2017-18, the wagon acquisition has been about 20-50% below target.
