Rise In Capex, World-Class Advancements In Both Freight and Passenger Transit Seen In Indian Railways: Economic Survey 2023

Indian Railways is a vital component of India's transportation network and can be considered its 'lifeline', having played a crucial role in regional and national integration.

The railways is the world's fourth largest network under single supervision, with about 68,031 route kilometres.

There is a significant increase in funding allocation, and different government initiatives have contributed to the quick pace of infrastructure development by the railways.

Increase In Capital Expenditure

Since 2014, capital expenditure (Capex) on railway infrastructure has increased substantially. It has steadily increased over the last four years, with Capex of 2.5 lakh crore in FY23, up roughly 29 per cent from the previous year.

Increase In Freight And Passenger Traffic

The freight traffic significantly increased during FY20-21 and FY21-22, which was a reflection of the robust recovery in domestic economic activity.

The amount of passenger traffic coming from the railways peaked in the pre-Covid-19 period (2019–20) at 809 crore, but it fell to 125 crore in 2020–21. Since then, it has recovered, reaching 351.9 crore in 2021–2022.

The number of originating passengers has reached 418.4 crore so far this fiscal year, maintaining the continuous growth of passenger travel (up to November 2022).

Major Undertakings of the Indian Railways 

1) Mumbai-Ahmedabad High Speed Rail (MAHSR) Project 

​​The MAHSR project, which was approved by the government in 2015 with technical and financial assistance from the government of Japan, is now being carried out, with survey and design aspects completed.

The country’s first ‘bullet’ train will traverse along west India’s landscape, covering 508.17 km distance between Mumbai and Ahmedabad in just about two hours.

2) Induction Of Semi High-Speed Vande Bharat Train Sets 

Integral Coach Factory, Chennai, produced semi-high-speed self-propelled Vande Bharat train sets with indigenous efforts. 

These trains have cutting-edge features such as rapid acceleration, significant reduction in travel time, a top speed of 160 kmph, on-board infotainment and a passenger information system based on the global positioning system (GPS), and so on.

Thus far, eight Vande Bharat Express trains are running on different routes in the country, with the latest one being the Secunderabad-Visakhapatnam Vande Bharat Express connecting the two cities.

The railways plans to run 400 Vande Bharat trains across India in the next three years.

3) Dedicated Freight Corridor (DFC) Project

The construction of two dedicated freight corridors, known as the Eastern and Western DFCs, along the golden quadrilateral, is one of the most ambitious and large-scale infrastructure projects in the history of the railways.

This project will increase the nation's transport production while reducing transit time and cost.

4) GatiShakti Multi-Modal Cargo Terminal (GCT)

GCTs are being created by private companies on non-railway land as well as fully/partially on railway land, based on industrial demand and freight traffic potential.

About 21 GCTs have been commissioned, and more than 90 other locations have been identified as potential GCT development sites (as of 31 October 2022).

This will encourage firms to invest in the development of additional rail cargo terminals.

5) Development Of Hyperloop Technology

Hyperloop is an emerging transportation system that has the potential to be faster and greener than aeroplanes and railways. Vehicles in this system operate in a vacuum environment while levitating (through linear induction motors/electromagnets). 

Indian Railways has partnered with IIT Madras to develop Hyperloop Technology by building a Rs 8.34 crore Centre of Excellence for Hyperloop Technology at IIT Madras.

6) Kisan Rails

Kisan Rail trains were introduced in FY21 to provide for the rapid movement of perishables from production or surplus regions to consumption or deficient regions.

Indian Railways operated 2,359 Kisan Rail services until 31 October 2022, transporting roughly 7.91 lakh tonnes of perishables, including fruits and vegetables.

Also read: Recovery Complete, India Back On Pre-Pandemic Growth Path: Economic Survey 2023

Economic Survey 2023: How The Russia-Ukraine War Dented The Western Economies

India's GDP To Grow At 6-6.8 Per Cent In FY24: Economic Survey 2023