India’s Union Budget for 2021 was announced today by Finance Minister Nirmala Sitharaman in New Delhi.
Within this general budget, the Indian Railways has received a boost in infrastructure and financial support. Rs 1,10,055 crore has been allocated to the Railways, and “bringing down the logistics cost” is key, said Sitharaman.
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The budget is geared towards growth, but will also focus on recovering losses suffered by the Railways due to the coronavirus lockdown, low occupancy, and cancelled trains. Apart from this, it aims to improve India’s existing transport setup.
Here are this year’s highlights:
> Metro rail networks will be expanded to improve public transport. Notably, Rs 63,000 crore has been allocated for the Chennai Metro.
> Vistadome LHB coaches will be added to more tourist routes. These coaches are ideal for scenic train journeys, as they have see-through roofs, large viewing areas, seats that can rotate 180-degrees, and WiFi access.
> Anti-collision systems will be installed in high-density sectors and busy routes. These systems will be made in India and improve passenger safety.
> Rs 20,000 crore has been allocated for the Railways’ infrastructure (think construction and maintenance of stations, platforms, tracks, etc.).
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> Dedicated eastern and western freight corridors will be commissioned by June 2022. Freight trains transport machinery, fresh produce, grains etc, and were earlier being discussed for the countrywide distribution of COVID-19 vaccines.
> The broad gauge network will be 100% electrified by 2023. That comes up to more than 120,000 kilometres of railway tracks!
> And finally, India will have a National Rail Plan which will apply till 2030.
Background on the Budget
Sitharaman’s proposals this year are based on six pillars: health and wellbeing; physical and financial capital and infrastructure; innovation and R&D; inclusive development; strengthening human capital; and minimum government and maximum governance.
Starting in 1924, the Railway Budget was originally presented separately from the Union Budget. This practice began under the British, and ended in 2016.
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