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In line with the focus of the Budget, the Railways received its highest-ever allocation of Rs 2.4 lakh crore for 2023-24 — Rs 1 lakh crore higher than the previous year.
The Railways has kept a capital spend target of Rs 2.6 lakh crore for FY24.
In the Revised Estimates, Railways received Gross Budgetary Support of Rs 1.59 lakh crore from the Finance Ministry, which is over Rs 20,000 crore more than what was originally allocated in the last Budget. This figure is Rs 2.4 lakh crore for the next fiscal, a never-before jump in Gross Budgetary Support.
“This is the highest ever and also nine times that of 2013-14,” Finance Minister Nirmala Sitharaman said Wednesday.
Based on the trend of utilisation funds, Railways has pegged its capital spend at Rs 2.45 lakh crore by the end of this fiscal, same as the Budget Estimates, supported by Rs 4,300 crore of internal resources and Rs 81,700 crore of Extra Budgetary Resources, including borrowings.
“Based on the projects that are in the pipeline in Railways and Highways, we are confident of the capital spend,” Finance Secretary TV Somanathan told reporters after the Budget.
Apart from a bouquet of projects (new lines and doubling of existing tracks), the Railways will focus on increasing the pace of construction as well, Railway Minister Ashwini Vaishnaw said after the Budget.
“Currently we construct lines at the rate of 12 km per day. By next year we hope to increase it to 16 km per day,” he said.
Two to three Vande Bharat trainsets will roll out from the Railways stables every week by next year, produced simultaneously in four factories, he said. Additionally, there will be Vande Metro trainsets to shuttle from cities to areas within 50-60-km.
Vaishnaw said that the design of Vande Metros — trainsets like Vande Bharats but smaller — is being finalised.
“Currently Vande Bharat is manufactured only in ICF, Chennai. We will expand the production to factories in Sonepat in Haryana, Latur in Maharashtra and Raebareli in Uttar Pradesh so that by next year we can roll out two to three trainsets every week. That way the PM’s vision of connecting every major city and town with Vande Bharats will be fulfilled,” Vaishnaw said.
Vaishnaw also said the Railways will come out with hydrogen-run trains by the end of this year. These trains will initially run on heritage lines like Kalka-Shimla.
Based on its finances, the operating ratio of the transporter (money spent to earn every Rs 100; the lower the better) stands at 98.22 per cent, worse than last fiscal’s 96. 98 per cent. It has pegged its next fiscal operating ratio at 98.45 per cent.
The Railways also hopes to earn around Rs 22,000 crore more next fiscal from its commercial operations. So, its revenue receipts are kept at Rs 2.65 lakh crore, as against Rs 2.42 lakh crore pegged for this financial year.
This year, the Railways has estimated total freight of 1,500 million tonnes to be carried by the end of this fiscal, which is marginally higher than its Budget Estimate. But next fiscal, it is targeting 1,600 million tonnes of freight.
In the passenger segment, the Railways said that after Covid, non-suburban passengers (long distance) have increased to 2,918 million with 1,350 million in 2021-22.
Next year, it estimates it will carry 7,475 million passengers, up from 6,565 million this fiscal. The national transporter hopes to earn Rs 70,000 crore from its passenger business and Rs 1.79 lakh crore from freight.
Its working expenses have also overshot its budget estimates by Rs 6,000 crore to reach 2.4 lakh crore. The Railways said that the rising cost of diesel and appropriation of around Rs 56,000 crore towards pension from its revenues added to the rise in its revenue expenditure.
Union Budget 2023: All you need to know
