NaMo Govt to Build Diamond Railway Quadrilateral – Realistic Budget

The Indian Government headed by Shri Narendra Modi Ji presented its rail budget today, which was closely watched for any clues as to the Union budget due on 10 July. Overall, the government presented a sensible budget as the new railway minister focused on the commercial aspects of Indian Railways (IR) and proposed baby steps, but in the right direction. Key focus areas are,

Revamping the organization: Indian Railways – IR will utilize its scarce resources in doubling and tripling the number of lines on routes that are running at over-capacity and are commercially more important than routes that are commercially unviable. IR will upgrade the present network to increase the average speed of trains on certain small haul routes to 160-200km/hr from less than 100km/hr currently. In order to improve transparency, the minister indicated that there will be a push to complete projects within deadlines and procurement would be done in a transparent manner.

NaMo Touch First, the railway minister initiated the diamond quadrilateral project of high-speed railways as promised in the BJP manifesto and indicated that the first high-speed rail corridor would be developed on the Mumbai Ahmedabad route. Second, the railways will look to boost fruit and vegetable supply chain via AC storage spaces. Third, the proposal to develop rail connections to and between new ports to be developed under the Sagarmala project (port development project) indicates an integrated approach to addressing the transport deficit in the country. Finally, the idea of utilizing the Corporate Social Responsibility route to improve passenger services (such as providing RO treated water) at railway stations is a signature Modi approach to solving micro problems by involving private sector.

Funding – FDI In Indian Railways
A scheme to allow the railway PSUs to deploy investible resources in developing railway infrastructure. Deploying the PPP model in areas such as high-speed railway, freight transport and in improving passenger services.

Overall, the rail budget presented today showcases the vision and strategy of the government in turning around railways in the coming years. Most of these changes will be implemented in the coming years, but the focus on bettering operational efficiency, greater use of technology and encouragement of private sector participation in
developing rail infrastructure are steps in the right direction.

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