Budget 2023: ‘Indian Railways needs more support’
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Union Budget 2023: Finance Minister Nirmala Sitharaman has claimed 2.40 lakh crore capital outlay in the budget for 2023-24, which is the highest ever outlay, which is nine times more than in 2013-14. From the point of view of development in railway infrastructure, there has been a remarkable change after 2014, due to which unprecedented progress has been made in the modernization of Indian Railways. Earlier the focus used to be more on maintaining the old system using the existing infrastructure but now the emphasis is on new technologies which are becoming very helpful in capacity development. The railway track is being made capable of higher speed, due to which it is possible to run semi high speed trains. Now Indian Railways is moving fast towards high speed track and technology. The budget for this work has also been increased considerably. Along with this, the results of focusing on self-reliance are also coming to the fore.
PM Gati Shakti Master Plan
At the center of this budget is the PM Gati Shakti Master Plan instead of Railways, whose dream was prepared in the last budget of Arun Jaitley. This is a huge plan of more than 100 lakh crore rupees. This includes road, rail, airport, port, public transport, waterways and logistics infrastructure. In the economic survey released a day before the budget, PM Gati Shakti has been considered very important for the future economy. At present, the arrangements made in the budget will strengthen the railways, but a large number of pending railway projects need more funds. The way the blueprint of private investment has been woven now, if it does not land on the ground, then the expected change can be a setback.
Railways marching towards better health
At present, Railways is moving towards better health. Due to the increase in the allocation of funds by the government, a lot of work is being done in the railways. Passenger and freight traffic has increased after the Kovid epidemic. There is a possibility that passenger traffic will increase in the coming years due to the demand for high speed trains. The major ongoing projects under the Indian Railways are Mumbai-Ahmedabad High Speed Rail Project, Dedicated Freight Corridor Project, Multi Modal Cargo Terminal, Vande Bharat Train etc. In this, the Dedicated Freight Corridor was started in the UPA government and this is also the most important project for the rejuvenation of rail transport, which is on the verge of completion belatedly. But semi-high speed Vande Bharat Express was supposed to run 42 by 2022-23, not even a dozen have been done yet. The government’s concern is to reduce the logistics cost in the country, which is currently between 14 to 18 percent of GDP. It is 8 percent in many places in the world.
Does not allow our products to survive in the markets
High transportation cost does not allow our products to survive in the world markets. In addition to railways, other means are also important in our transport system, but there is no better coordination among them. The capability and importance of railways is different. But the reality is that in PM Gati Shakti, there is more emphasis on roads, which are carrying more than 60 percent of the freight. During 2014 to 2022, an average of 1835 km lines were built annually. There is a plan to make 100 percent electrification of broad gauge railways a reality by December 2023. Important railway projects can be realized by 2024-25, after which congestion will reduce by 51 percent. Accordingly, by 2024-25, Railways is planning to transport 1600 million tonnes of freight. Despite all the challenges, railways is the most economical in passenger and goods traffic. It also provides travel at affordable rates.
Concern about privatization in railways
There is concern about privatization in railways, which can affect its basic nature. After the general budget of 2020-2021, it was decided to operate 150 passenger trains under PPP, then there were many speculations. Although there are still obstacles in it, but the work of handing over the stations to the private sector has started. This time also a blueprint has been prepared to start 100 new schemes with the help of the private sector.
Railways have recovered from the shock of Corona
Railways have recovered from the shock after Corona. It achieved Rs 42,370 crore more revenue as compared to the previous financial year. During Corona, all the concessions including senior citizens were stopped, which have not started yet. There are many problems on the financial front with the Railways. Already, the share of internal revenue in the total budget of Railways had come down from 5 percent to 2 percent. Internal revenue generation in 2020-21 was only 3.4 percent of the annual plan and the dependence of railways on borrowing from the market increased. Its social liability has reached 55,857 crores in 2018-19 and is increasing. At the same time, the operating ratio of the railways is worrying. The CAG said in 2019 itself that this is a sign of failing financial health of the Railways. It is necessary that the Railways make continuous efforts to increase internal revenue so that it can reduce the dependence on extra-budgetary resources.
Railway is Mahabali
Railway is a great power but it has to carry many essential items cheaply. Its dependence on essential bulk items and long-distance freight transport is the same. During 1950-51, railways were carrying 88 percent and roads 10 percent of the freight. The freight of the railways came down to 27 percent. Since independence, passenger traffic in railways increased by 1344 percent and freight traffic by 1642 percent, but railways increased by only 23 percent. In 2014, Prime Minister Narendra Modi made the rejuvenation of Indian Railways a part of the government’s priority. However, the resources available now are insufficient to meet the challenges ahead.
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