The Indian Railways is likely to get a record allocation in Budget 2022, with the government planning to raise the plan capex size by up to 20 percent of last year’s budget estimates, Mint reported.

In FY21-22, the government had allocated Rs 2.15 lakh crore, which was the highest ever for the Railways. Of the total allocation, Rs 7,500 crore came from internal resources and Rs 1 lakh crore from extra-budgetary resources. Another Rs 1.07 lakh crore came from gross budgetary support.

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Gross budgetary support is the amount allocated by the government in the general budget for the Indian Railways.

With the government planning a makeover for the national transporter, this year the budget allocation for the railways is likely to be around Rs 2.5 lakh crore, Mint said quoting two sources. The proposed Rs 2.5 lakh crore capex plan may include Rs 1.25 lakh crore gross budgetary support from the government. Earnings from PSUs may also increase the extra-budgetary resources of the Indian Railways, they said.

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The budget allocation will help the Railway Ministry fund long-term infrastructure projects of freight corridors, modernise its fleet and introduce speedier trains. The ministry will also be able to use the resources for carrying out electrification work on all routes and overhauling the signalling systems.

The government has also set a target of becoming the world’s first 100 percent green railway with net-zero emission by 2030. To achieve the target, the national transporter plans to achieve 100 percent electrification of railway routes by 2023.

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In 2020-21, more than 6,015 km had been electrified, surpassing the record of 5,276 km in 2018-19, a senior official told The New Indian Express.

Indian Railways requires a higher plan capex allocation as its key infrastructure project reaches critical stages of implementation, Mint quoted a former Railway Board chairman as saying.

“The government supported it with a record increase in gross budgetary support last year and the expectation is that this level would be breached in FY23," the former railway official said.

A portion of the higher gross budgetary support may be used for the Ahmedabad-Mumbai bullet train project, Mint report said. Work on the project is progressing at full pace for the Gujarat leg. The government is also planning a high-speed train on the Delhi-Varanasi route.

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(Edited by : Shoma Bhattacharjee)

First Published:Jan 19, 2022 5:32 PM IST