Indian Railways gears up for the future with a Rs 1 lakh crore investment in new trains, addressing rising passenger demand
The Indian Railways has outlined a plan to invest Rs 1 lakh crore in procuring new trains in the upcoming years to address the growing demand in the passenger travel sector, according to a media report quoting Union Railways Minister Ashwini Vaishnaw.
Seventy per cent of the Rs 2.4 lakh crore capital budget allocated for FY24 has been expended by the national transporter. The Railways Minister noted that progress in track laying aligns with the established plan, as per a report from the Economic Times.
Vaishnaw outlined the plan to replace ageing rolling stock, indicating the need for 7,000-8,000 new train sets. Over the next 4-5 years, tenders for this purpose will be announced, involving a substantial investment of around Rs 1 lakh crore. The execution of these contracts is expected to span the next 15 years, facilitating the phased replacement of older rolling stock.
As part of an extensive railway upgrade initiative, the objective is to enhance the availability of trains for both passengers and cargo by optimizing tracks and expanding the frequency of trips.
Vaishnaw also highlighted that the Railways has implemented substantial structural and procedural reforms to accelerate capital spending, as evidenced by the robust utilization of its allocated capital budget. This budget is specifically designated for a comprehensive overhaul, encompassing the enhancement of critical infrastructure such as trains, tracks, safety technology, and stations. The planned train procurement contracts will include maintenance agreements and requirements specifying that they must be manufactured in India. The minister also mentioned that the progress of track laying aligns with the established plan