<p>One major highlight of the <a href="https://www.deccanherald.com/union-budget" target="_blank">Union budget</a> which was the presented last week was the high allocation for Indian Railways. The outlay of Rs 2.4 lakh crore is the highest ever for the Railways. It is in line with the focus on infrastructure development in the budget and will go some way in making the “nation’s lifeline’’ stronger, by improving the network and extending it to areas where it is not present. The Railways hold the prime position among all means of transport in the country, but it has suffered from underinvestment and poorly done investment in the past. Investments have often been made on the basis of political considerations, too. Instead of bringing returns, this has led to wastage of public funds which could have been used more productively elsewhere. The quality of investment is as important as the volume of investment.</p>.<p>The budget has earmarked Rs 30,000 crore for doubling of tracks as against Rs 9,000 in 2021-22, and Rs 32,000 crore for new tracks, which is a 50 per cent increase; Rs 40,000 crore has been set aside for rolling stock, as against Rs 8,000 crore last year. While these increases are welcome, there are doubts whether the Railways can absorb such a sudden hike in allocations and put them to productive use. This is relevant because the Railway system is not considered to be quick and efficient. It might need some pushing and monitoring to ensure that the funds are used well. The right projects have to be identified and the funds spent on them. Politics is still a major driver of decisions regarding the Railways and there may be an immediate electoral reason to mis-spend the funds. The Railway administration needs reforms and should be turned into a more professional organisation with a high level of independence. But there are no signs of that.</p>.<p>The Railways has a special place in the infrastructure sector because it is more public than other modes of transport and operates big volumes. It is necessary to create new lines, augment existing lines and integrate the entire system better with other modes of transport. There are plans to redevelop stations and introduce new trains. It has been stated that the production of Vande Bharat trains will be ramped up and a new Vande Metro series will be introduced to connect short distance locations. The first hydrogen train is proposed to be introduced later this year. Efficient rail services can push up economic growth, create employment, help to reduce pollution, and contribute to the transition to a net-zero economy. The higher allocation will hopefully have a positive impact in all these respects.</p>
<p>One major highlight of the <a href="https://www.deccanherald.com/union-budget" target="_blank">Union budget</a> which was the presented last week was the high allocation for Indian Railways. The outlay of Rs 2.4 lakh crore is the highest ever for the Railways. It is in line with the focus on infrastructure development in the budget and will go some way in making the “nation’s lifeline’’ stronger, by improving the network and extending it to areas where it is not present. The Railways hold the prime position among all means of transport in the country, but it has suffered from underinvestment and poorly done investment in the past. Investments have often been made on the basis of political considerations, too. Instead of bringing returns, this has led to wastage of public funds which could have been used more productively elsewhere. The quality of investment is as important as the volume of investment.</p>.<p>The budget has earmarked Rs 30,000 crore for doubling of tracks as against Rs 9,000 in 2021-22, and Rs 32,000 crore for new tracks, which is a 50 per cent increase; Rs 40,000 crore has been set aside for rolling stock, as against Rs 8,000 crore last year. While these increases are welcome, there are doubts whether the Railways can absorb such a sudden hike in allocations and put them to productive use. This is relevant because the Railway system is not considered to be quick and efficient. It might need some pushing and monitoring to ensure that the funds are used well. The right projects have to be identified and the funds spent on them. Politics is still a major driver of decisions regarding the Railways and there may be an immediate electoral reason to mis-spend the funds. The Railway administration needs reforms and should be turned into a more professional organisation with a high level of independence. But there are no signs of that.</p>.<p>The Railways has a special place in the infrastructure sector because it is more public than other modes of transport and operates big volumes. It is necessary to create new lines, augment existing lines and integrate the entire system better with other modes of transport. There are plans to redevelop stations and introduce new trains. It has been stated that the production of Vande Bharat trains will be ramped up and a new Vande Metro series will be introduced to connect short distance locations. The first hydrogen train is proposed to be introduced later this year. Efficient rail services can push up economic growth, create employment, help to reduce pollution, and contribute to the transition to a net-zero economy. The higher allocation will hopefully have a positive impact in all these respects.</p>
