Source: https://www.thehindubusinessline.com/opinion/editorial/rail-budgets-capex-boost-welcome-but-concerns-remain/article68457188.ece
Publisher: The Hindu Business Line
The Railways must attract higher freight volumes, even as it positions itself as a high end passenger travel option.
The recent years have seen a major transformation in Railways’ finances. The Centre has stepped up its gross budgetary support to the Railways, bringing down the latter’s reliance on external borrowings. A 77 per cent increase in capex over the last five years, culminating in ₹2.6 lakh crore in FY24 is geared towards modernisation of passenger and freight services. This effort to raise Railways’ modal share in freight transport (barely 30 per cent now, against 52 per cent in 2007-08) will take time to bear fruit.
