The Railway Budget 2025 has been announced, with a total allocation of ₹2.65 lakh crore, the same as last year. Although the budget prioritizes capital expenditure (Capex) and the expansion of infrastructure, there are worries due to cuts in funding for customer amenities, public sector investments, and freight corridors. Union Railways Minister Ashwini Vaishnaw highlighted that maintaining last year’s budget allocation is crucial for ongoing infrastructure development while emphasizing the importance of long-term investments. Let’s delve into the key highlights of the 2025 Railway Budget.
Rail Budget 2025 Allocation and Expenditure
- Total Allocation: ₹2.65 lakh crore (unchanged from last year)
- Capital Expenditure (Capex): ₹2.52 lakh crore, including Public-Private Partnership (PPP) investments
- Expenditure in FY 2024-25: ₹2.09 lakh crore (79.33% utilization till January 23, 2025)
- Actual expenditure for FY 2023-24: ₹2.45 lakh crore
Major Infrastructure Projects in Budget 2025 Railway
The Railways has announced new projects amounting to ₹4.6 lakh crore, which include:
- Laying of new railway lines
- Doubling and quadrupling of existing tracks
- Construction of flyovers, underpasses, and workshops
- Investment in rolling stock and station redevelopment
- Installation of modern signaling systems for improved safety
Decline in Customer Amenities and Freight Corridor Investment
Customer Amenities Budget Reduction
The allocation for customer amenities has seen a continued decline:
- FY 2024-25 (Budget Estimate): ₹15,510 crore
- FY 2024-25 (Revised Estimate): ₹12,993.97 crore
- FY 2025-26: ₹12,118.39 crore
These funds are crucial for maintaining station hygiene, improving ticketing systems, modernizing seating areas, repairing trolleys, and enhancing passenger safety measures.
Freight Corridor Corporation Investment
A sharp decline is seen in the allocation for the Dedicated Freight Corridor Corporation of India (DFCCIL):
- FY 2024-25 (Revised Estimate): ₹5,499 crore
- FY 2025-26: ₹500 crore
This could impact freight transportation capacity and delay critical projects aimed at reducing logistics costs.
Public Sector Unit (PSU) and Joint Venture Investments
The budget for investments in PSUs and JVs has been reduced significantly:
- FY 2024-25 (Revised Estimate): ₹27,570.77 crore
- FY 2025-26: ₹22,444.33 crore
This reduction raises concerns about the modernization and expansion of railway PSUs.
Railway’s Growth in Freight and Electrification Targets
Record Freight Capacity
Minister Vaishnaw announced that by March 2025, Indian Railways will achieve a milestone of 1.6 billion-tonne cargo carrying capacity, making it the second-largest railway cargo carrier globally, after China (3.7 billion tonnes).
100% Electrification Goal
The Railways is set to achieve 100% electrification of its network in FY 2025-26, reducing its carbon footprint and improving energy efficiency.
Bullet Train and High-Speed Rail Developments
Indigenous Bullet Train Project
India is progressing towards indigenous production of high-speed bullet trains, in collaboration with Defence PSU BEML and NHSRCL. These trains are designed to run at 280 kmph, with continued support from the Japanese government.
- FY 2023-24 Bullet Train Expenditure: ₹18,295 crore
- FY 2024-25 Budget Estimate: ₹21,000 crore
- FY 2025-26 Budget Allocation: ₹19,000 crore
Expansion of High-Speed Rail Fleet
The Rail Budget 2025 includes manufacturing of:
- 100 non-AC Amrit Bharat trains
- 50 NAMO Bharat trains (130 kmph for city connections)
- 200 Vande Bharat trains (Sleeper and chair car versions)
- 17,500 general coaches, of which 1,200 have already been manufactured
