New Delhi
Investments worth Rs 17.4 lakh crore between fiscals 2016 and 2025 are being used to modernise Indian Railways, reinforcing its role as a key factor in India’s growth towards a high-income economy, according to a recent report. Indian Railways has undergone significant changes in the past decade, focusing on infrastructure development, technology, and operational improvements.
The report highlighted that railway capital expenditure has grown at a compound annual growth rate of 12 percent during this period. The government has been committed to developing tracks, trains, and the land required for railway operations.
Efforts like expanding tracks, improving safety measures, and introducing high-speed rail systems are expected to boost the efficiency and competitiveness of Indian Railways. However, the report noted the need for the railways to diversify its revenue sources to support ongoing and future expansion plans.
Plans include the construction of 100,000 km of new railway tracks over 20 years, the extension of the Kavach safety system to 44,000 km within five years, and equipping 50,000 locomotives with this technology. Additionally, 400 new Vande Bharat trains are expected to be produced in the next three years.
To meet these goals, Indian Railways may need to introduce premium services, use real-time data for efficiency, and focus on commercial development around stations. Recently, eight new railway projects were approved, expected to create 4.42 crore man-days of employment. Expansion plans for metro projects in several cities were also approved.
