Budget 2025: Railway Capex To Focus On Efficient Wagons And Safety Systems, Say Industry Executives

Union Budget 2025 will likely sustain the healthy growth in Railway capital expenditure with priority on passenger mobility and safety systems, according to industry executives.

"I feel this budget will have more focus on passenger mobility because the Railways is committed to improving travel experiences," Indrajit Mookerjee, vice chairman of Texmaco Rail & Engineering Ltd., told NDTV Profit.

"There are reports that 400 Vande Bharat trains will be ordered. The target is 70,000 km of new tracks, which requires safety systems, signalling system, etc. There will be a lot for the Railway industry, maybe not all for rolling stock," he said.

"There would be focus on more efficient wagons that can carry higher load which reduce carbon emissions and promote technological advancement," he added.

Mookerjee also said the government may keep its focus on increasing the Railway freight's share in the logistics market, vis-a-vis roads.

Texmaco Rail's orderbook as of September 2024 was Rs 8,194 crore.

Prithish Chowdhary, deputy managing director of Titagarh Rail Systems Ltd., expects a hike in the Railway capex on the basis of National Railway Plan 2030, with a greater focus on safety systems.

He said this calendar year would see completion of major order deliveries issued in 2022. "We expect a much larger focus on safety-related items. Freight rolling stock procurement could be higher than last year."

Further, Chowdhary said the market for metro projects would continue to expand as big cities across India launch new lines for urban connectivity. "We expect to be the market leader in metro segment by the next financial year," the Titagarh Rail executive said.

As of September 2024, the order book stood at Rs 12,207 crore, comprising orders for approximately 14,560 wagons and 1,592 metro and Vande Bharat coaches.

The budget allocation for Indian Railways has seen a steady rise over the years, with Rs 1.59 lakh crore allocated in fiscal 2023, marking a 35.5% growth, followed by Rs 2.4 lakh crore the next year, a significant 50.9% increase. For FY25, the allocation stands at Rs 2.52 lakh crore, reflecting a moderate 5.8% growth.

Notably, the Railways was projected to utilise 76% of its budgetary outlay, amounting to Rs 1.92 lakh crore, by December 2024.

Watch Railway Budget 2025 Expectations Here: