Kolkata: With Finance Minister Nirmala Sitharaman all set to present the Union Budget 2025-26 on February 1, 2025, industry players engaged in the Railway sector are hoping for Big ticket announcements from the Modi 3.0 government. The players are expecting significant announcements in freight operations and infrastructure development.
The railway sector players want the government to increase the average speed of freight trains to 50 kmph and deploy advanced 12,000 HP electric locomotives.
Speaking on the expectations from the upcoming Budget, Texmaxo Managing Director Sudipta Mukherjee pinned hope on bagging substantial wagon orders. The Modi.2.0 administration in 2022 had announced that approximately 1.2 lakh wagon orders will be given to companies over three years. He expects the government to announce a similar mega order for wagons.
“Out of the total 3 lakh long-term wagon procurement plan to increase the total number to six lakh wagons, the government had placed nearly 1.2 lakh wagon orders in 2022, which are supposed to be fulfilled by 2025. We hope the government will repeat a similar mega order for wagons in the upcoming budget to push the railways’ share in logistics to 45 per cent from the current 26-27 per cent,” Mukherjee said.
The Texmaxo managing director advocated for increasing the funds that could be used for safety, technology, and predictable train running infrastructure.
While demanding a multi-pronged approach to strengthen freight operations, Vivek Lohia, Managing Director of Jupiter Wagons Limited, said there is a need to accelerate the expansion of Dedicated Freight Corridors (DFCs), including the proposed ‘Central India to Coast via DFC’, so that the competitiveness amongst the Indian industries is enhanced.
What Texmaxo MD wants from Budget 2025-26
- Increasing the average speed of freight trains to 50 kmph
- Deployment of advanced 12,000 HP electric locomotives
- Increasing the freight train length.
- Strategic railway geography assessments for key sectors like mining, NTPC, petrochemicals, cement, steel, FCI, dry ports, fertilisers, and textiles.
- More funds for modernising infrastructure, urban rail projects
- Implementation of real-time information system (RTIS) and the separation of parcel traffic from passenger operations.
- Kisan Rails for perishables to support agricultural supply chains.
Reports are suggesting that the government could announce a 10-20 per cent increase in the railway budget from the previous allocation. In 2024-25 Budget, Railways was allocated a record capital expenditure allocation of Rs 2.62 lakh crore.
Industry players in India’s railway sector anticipate significant announcements in the Union Budget 2025-26, focusing on freight operations and infrastructure development. Key expectations include increasing freight train speeds to 50 kmph, deploying advanced 12,000 HP locomotives, and placing substantial new wagon orders. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
