The Union Ministry of Railways is seeking an approval for INR 5.25 lakh crore investment plan, which shall be spent to meet the targets of PM Gati Shakti Masterplan and Vision 2030. The investment will enable dedicated corridors for domestic freight movement.
July 31, 2023
The Union Ministry of Railways is seeking approval for an investment plan worth INR 5.25 lakh, spanning fiscal years 2024 to 2031. This investment is in alignment with Vision 2030 and PM Gati Shakti National Master. Vision 2030 seeks to boost the modal share of Indian Railways in freight transportation from approximately 27 percent to 45 percent.
The investment will enable the establishment of dedicated transport corridors for energy, minerals, and cement, with the primary objective of facilitating the smooth movement of coal, iron ore, bauxite, and cement. These corridors will focus on upgrading track infrastructure, including the doubling of existing routes and the creation of alternative routes in order to avoid congested areas.
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As per the Economic Times report, “The enhanced allocation will give a renewed push for improving freight movement on the national transporter.”
An official stated, “There is a need to augment connectivity to coal, iron ore, bauxite mines, and cement plants of the country and also increase the railways’ carrying capacity in line with demand for cement, coal, and minerals.” The railway network is responsible for transporting 90 percent of the raw materials. In 2019, the railways transported 1,210 million tonnes of the total freight basket of 4,700 million tonnes. By 2024, the goal is to load 2,024 million tonnes of the estimated 6,400 million tonnes of total freight.
According to data analyzed by the Department for Promotion of Industry and Internal Trade (DPIIT), the construction of new rail lines per day has increased from 4 kilometers to 12 kilometers in 2023, based on the Gati Shakti Masterplan. The railways have also planned the construction of 13,264 km of rail infrastructure projects, which is their highest-ever recorded length.
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The projects facing cost overruns may also be combined with the corridors plan. This integration will help streamline the implementation process and ensure efficient use of resources.
