Indian Railways’ Rs 17.4 Lakh Crore Revamp by 2025

23 Sep 2024 CW Team

Indian Railways is undergoing a transformative overhaul, with investments amounting to Rs 17.4 lakh crore between 2016 and 2025, according to a Crisil report. The funds are being directed toward a variety of modernization efforts, including high-speed rail projects and extensive electrification, as the nation aims to reinforce its railway network as a pillar of economic growth.

The report highlighted that over the past decade, Indian Railways has achieved a compound annual growth rate (CAGR) of 12% in capital expenditure, driven by infrastructure development and technological advancements. These improvements aim to boost operational efficiency and position the railways to meet growing demands for competitiveness and safety.

Major initiatives include plans to construct 100,000 km of new railway tracks over the next 20 years and to expand the Kavach safety system across 44,000 km of tracks within five years. In addition, 400 new Vande Bharat trains are slated for production in the next three years. These projects underline the need for Indian Railways to diversify its revenue streams to sustain growth.

The Crisil report suggested several strategies for revenue diversification, such as utilizing real-time data to optimize operations, offering premium services, and promoting commercial development around railway stations.

In recent developments, eight new railway line projects have been sanctioned, projected to create over 4.42 crore man-days of employment. Moreover, plans for metro expansions in Bangalore, Pune, and Thane, as well as developments at Varanasi’s Lal Bahadur Shastri International Airport and new civil enclaves in Bagdogra and Bihta, have also been approved.

This modernization drive positions Indian Railways to play a crucial role in India’s journey towards becoming a high-income economy.

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