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Railways to focus on modernization

By IndianMandarins- 29 Jan 2018
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railways-to-focus-on-modernizationThe FY 19 budget is expected to make adequate allocations for a complete modernization of railways' signaling system, including automation at a cost of Rs 78,000 crore. The Budget may also focus on electrification as railways have advanced the deadline for the complete switchover from diesel to electric through 2020. As the transporter may get Rs 65,000 crore as gross budgetary support (GBS), an increase of Rs 10,000 crore from the last one, it will generate funds from internal resources and also from market to meet the huge requirement for infrastructure modernization. The new signaling system, meant to bring about greater efficiency, will be spread across 65,000 route km. This number is only going to increase in the future and the railways intend to leverage it to get a better deal from whoever bags the keen-watched contract. The government has stepped up investment in railways as it seeks to modernize the creaking infrastructure, a result of low investment and overuse. Railways' capex has increased from Rs 35,000 crore five years ago to Rs 1.3 lakh crore during the current fiscal, which is partly led by the need to step up public investment at a time when the private investment remains muted due to excess capacity and stressed finances of several Indian companies.

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