Railway Reforms

What does the Budget offer Railways?

Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.
Note4Students

From UPSC perspective, the following things are important :

Mains level: Infrastructure; Railways;

Why in the News?

The Railway Budget was once a major event before the Union Budget. Since merging with the general Budget in 2017, Indian Railways has lost prominence, with no mention in the July 2024 or February 2025 Budgets.

What specific safety measures are planned for the Railways?

  • Enhanced Safety Budget – ₹1,16,514 crore allocated for safety-related initiatives, including infrastructure upgrades and accident prevention.
  • Kavach Train Protection System – No new expansion beyond the initial 1,465 km; implementation delays remain a concern.
  • Grade Separation & Track Upgrades – Elimination of level crossings, doubling of railway lines, and gauge conversion to reduce congestion and accidents.
  • Modern Signaling & Electrification – Upgrading signaling systems and achieving 95% electrification to improve train control and safety.
  • Station & Train Modernization – Redevelopment of key stations and introduction of new Vande Bharat and Amrit Bharat trains with better safety features.

Which states will benefit the most from the railway budget allocations?

  • Uttar Pradesh – Major railway station redevelopments (e.g., Ayodhya, Varanasi), new Vande Bharat trains, and increased connectivity through high-speed rail projects.
  • Maharashtra – Mumbai-Ahmedabad High-Speed Rail (Bullet Train), Western Dedicated Freight Corridor, and urban railway modernization projects.
  • Gujarat – High investment in freight corridors, bullet train project, and Amrit Bharat station redevelopment.
  • West Bengal – Expansion of railway network, doubling of tracks, electrification, and modernization of key stations like Howrah and Sealdah.
  • Tamil Nadu – Focus on gauge conversion, station redevelopment (e.g., Chennai), and enhanced connectivity with new semi-high-speed trains.
  • Bihar & Jharkhand – Increased railway line expansion and connectivity improvements, particularly for freight movement and passenger services.
  • Rajasthan & Madhya Pradesh – Dedicated freight corridor benefits, track doubling, and station upgrades for better passenger services.

How will the new Amrit Bharat trains improve connectivity?

  • Infrastructure Development & New Tracks: Expansion of railway lines to extend connectivity to new areas to ensure broader access to transportation. Example: Increased track laying to enhance regional rail access.
  • Modernization of Stations: Upgrading stations to improve passenger experience and integrate different modes of transport. Example: Redevelopment projects enhancing station facilities and efficiency.
  • Expansion of Rail Network to Underserved Areas: The introduction of Amrit Bharat trains will improve connectivity to tier-2 and tier-3 cities, bridging gaps in regional transportation. Example: Faster and more frequent services to cities like Hubli, Gorakhpur, and Siliguri.
  • Faster Travel Between Major Economic Hubs: These trains will operate at semi-high speeds, reducing travel time between key business and industrial centers. Example: Quicker connectivity between Mumbai–Surat and Bengaluru–Hyderabad, supporting trade and commerce.
  • Boost to Religious & Tourism Circuits: The new trains will enhance access to religious and tourist destinations, promoting cultural and economic growth. Example: Improved rail access to Ayodhya, Varanasi, Puri, and Rameswaram for pilgrimage travelers.
  • Better Regional Connectivity in the Northeast & Border Areas: Amrit Bharat trains will strengthen rail links in remote and border regions, enhancing security and development. Example: Enhanced rail connectivity in Arunachal Pradesh, Manipur, and Mizoram to integrate them with the national rail network.

What are the challenges? 

  • Underwhelming Returns on Investment: Despite a ₹13 lakh crore investment in modernization and freight traffic is growing at just over 2%, failing to match India’s economic growth.
    • Passenger revenue is increasing, but ridership remains below pre-COVID levels, limiting overall gains.
  • Slow Implementation & Execution: Major projects like the New Delhi station redevelopment have been delayed for nearly a decade due to repeated re-tendering.
    • Safety initiatives like Kavach have seen no expansion beyond the initial 1,465 km rollout near Secunderabad.
  • Financial and Sustainability Concerns: Expenses are exceeding earnings, raising doubts about maintaining new infrastructure under the EPC model.
    • The aggressive electrification push has left 5,000 diesel locomotives worth ₹30,000 crore idle or underutilized, questioning cost-effectiveness.

Way forward: 

  • Prioritize Efficient Implementation & Safety Expansion – Expedite key infrastructure projects, expand Kavach beyond the initial 1,465 km, and streamline bureaucratic approvals to prevent further delays.
  • Enhance Financial Sustainability & Asset Utilization – Optimize freight revenue growth, repurpose idle diesel locomotives strategically, and adopt a phased electrification approach to balance costs and efficiency.

Mains PYQ:

Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (UPSC IAS/2022)

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