Budget 2021: What can the railway sector expect?

Earlier, the railway budget and the Union Budget were presented separately. However, the long-run practice came to an end in 2016, and the railway budget merged with the Union budget.

As finance minister Nirmala Sitharaman will present the Union Budget 2021 for the third time in Parliament on February 1, she will also table the budget for the railway sector for the year. The strategically important sector has suffered a huge setback owing to the financial losses due to the coronavirus pandemic and nationwide lockdown as full-scale services have not been operationalised since March 2020. Earlier, the railway budget and the Union Budget were presented separately. However, the long-run practice came to an end in 2016, and the railway budget merged with the Union budget.

The railway ministry has demanded gross budgetary support (GBS) of about ₹75,000 crore from the finance ministry in the budget. (PTI)

Here’s everything you can expect from Budget 2021 with respect to the railway sector:

1. The finance minister is expected to announce around ₹1.79 lakh crore allocations for railways, of which ₹75,000 crore will be gross budgetary support (GBS). If so, this allocation will be about ₹18,000 crore more than ₹1.61 lakh crore announced last year. The railway ministry has demanded gross budgetary support (GBS) of about ₹75,000 crore from the finance ministry in the budget.

2. The government is also expected to announce a few Tejas trains, a dedicated railway line to move agriculture goods and some infrastructural up-gradation of the railways.

3. The government is also likely to focus more on launching high-speed private trains that would connect major tourist hubs, pilgrimage spots, and other strategically important areas.

4. The Centre is also expected to announce plans with respect to the bullet train network expansion in the country. Last year, the government had announced the bullet train project between Mumbai and Ahmedabad but the Covid-19 pandemic stalled their plan.

5. It may also make a special allocation for 'green railways' projects to give a boost to railways' plan to turn fully green by 2030.

6. Enhancing the allocation for the railways' 'safety fund' which would prevent accidents and increase safety is also likely.

7. The budget could also include plans to help the Vision 2024 of the railways ministry. With multi-tracking of 16,373km planned, Vision 2024 would entail 32 essential projects, 68 critical projects, 58 supercritical projects, 146 electrification projects, 20 additional coal connectivity projects, 120 traffic facility works, 686 signalling and telecommunication works and northeast connectivity projects, among others.

(With agency inputs)