Capex of Indian Railways to reach Rs 2.45 trillion in FY 2022-23

The Indian Railways is prepared to witness its highest capital expenditure (capex) of Rs 2.45 trillion for 2022-23, which is 14% more than the revised estimate of Rs 2.15 trillion for the current financial year in the Union Budget 2022-23. According to the media, in FY23, Railways aims to spend Rs 96.98 for every Rs 100 it makes. Ashwini Vaishnaw, railway minister, informed that they are targeting a 96.98% operating ratio in the upcoming year. He said that now, they are targeting a constant 4.5 million tonnes (mt) per day and later 5 mt per day. The Indian Railway's operating ratio has declined to 98.93% in the revised estimate for FY22. It is lower than the 96.15% operating ratio it had budgeted. Net income of the Railways crashed to Rs 875 crore in the revised estimate of FY22, lower than the budgeted Rs 6,561 crore. For FY23, Railways has budgeted a net income of Rs 5,360 crore. The railway minister told the media that usually, they complete loading of nearly 1,200 mt a year. This year, they are getting close to 1,400 mt, which is a record. He informed that since the physical performance has enhanced, there is no requirement to reimburse because of Covid-19 or any other reasons. The capex for FY23 comprises Rs 1.37 trillion from general revenues, Rs 1.08 trillion from internal and extra-budgetary resources (IEBR) and Rs 200 crore from the Nirbhaya fund. The total receipts of the railways, including revenues from passengers, goods, sundry, another coaching, and other heads were held at Rs 2.4 trillion in the BE for FY23 compared to a revised estimate of Rs 2.02 trillion for the ongoing fiscal. Image Source Also read: Indian Railways to set up EV charging infra at railway stations