The Union Finance Minister, Nirmala Sitharaman has proposed to spend Rs 1.1 lakh crore for railways in the fiscal year 2021 - 2022. In her budget speech, the finance minister has allocated Rs 1,10,055 crores for the railway's sector, with Rs 1,07,700 crores set aside for the capital expenditure.
Railways are one of the most affordable forms of transportation available in India. The railway's connectivity in India has improved phenomenally over the last few years.
She announced that western and eastern dedicated freight corridors to be commissioned by June 2022.
The Indian Railways is set to have a National Rail Plan for 2030. The Indian Railways national plan for India will prepare a future-ready railway system by 2030 noted finance minister during her budget speech.
The rail stocks traded high after the finance minister announced budgetary allocations for the railway's sector.
She also announced plans for east coast corridor, north-south corridor, east-west corridors. 100% electrification of broad-gauge routes are projected to be completed by December 2023.
Sitharaman said that "The following additional initiatives are also proposed. The Sonenagar-Gomoh section of 263 km on EDFC will be taken up in PPP mode this year itself. Gomoh-Dankuni section of 274.3 km will also be taken up shortly in short succession".
The railways will take up a dedicated freight corridor projects connecting East-West corridor from Bhusawal to Kharagpur to Dankuni, East Coast Corridor from Kharagpur to Vijaywada, North-South Corridor from Itarsi to Vijaywada.
The detailed project report would be undertaken in the first phase.
The broad-gauge route electrification was expected to touch 46,000 route kilometres, which is 72% by the end of the year 2021 from 41,548 kilometres from October 1, 2020. The 100% electrification of such routes are forecasted to be completed by December 2023.
Speaking on the safety and convenience of passengers, she noted "The safety measures taken in last few years have borne results. To further strengthen this effort high-density network and highly utilised network routes will be provided with indigenously designed automatic train collision system that eliminates train collision due to human error".