NEW DELHI (Reuters) - State-run Indian Railways has spent more than $22 billion so far in the current fiscal year, focusing on projects to expand capacity and deliver faster and safer travel to passengers, the government said on Wednesday.
The government is pushing to open new lines and expand electrification as part of efforts to achieve net zero carbon emissions on the railways by 2030.
By Jan. 5, the railways had spent 1.92 trillion rupees ($22.37 billion) of its 2.65 trillion rupees overall budget for the fiscal year, which runs from April to March. This included 344.12 billion rupees ($4 billion) spent on safety-related works and 403.67 billion rupees ($4.7 billion) on rolling stock, the government said in a statement.
Finance Minister Nirmala Sitharaman, who will present her annual budget for 2025/26 early next month, is expected to announce an increase in allocation for railways from the 2.52 trillion rupees allocated for the current fiscal year.
The railway, which operates a network of over 68,000 km (42,000 miles), is projected to earn 2.8 trillion rupees in 2024/25 from passenger and freight traffic, an 8% increase from the previous fiscal year. It is targeting 2.76 trillion rupees in operational spending.
"The fruits of consistent capital expenditure over the past decade are evident in the form of 136 Vande Bharat trains, 97% electrification of broad-gauge lines, and major upgrades to infrastructure, including new lines, gauge conversion, and track doubling," the statement said.
The Vande Bharat sleeper trains, currently undergoing speed and safety certification, are expected to come into service this year, improving long-distance rail travel.
Indian Railways transports an average of 23 million passengers daily, aiming to build a "future-ready" system for India's 1.4 billion population, the railway ministry said.
Critics say the railways face many challenges, including competition from an expanding road network and growing air traffic coupled with issues like slow train speeds and overcrowding.