Indian Railways eyes ₹1.1 trillion budgetary support for FY21-22

Indian Railways is looking forward to long-term infrastructure projects of freight corridors and speedier trains as it has got the highest-ever gross budgetary support (GBS) in the Union Budget. Capital expenditure for 2021-22 has been pegged at ₹2.15 trillion. This estimate takes into account GBS of ₹1.07 trillion, internal resources of ₹7,500 crore, and external budgetary resources raising ₹1.00258 trillion. This is significantly higher than the GBS of earlier years as GBS for 2020-21 stood at ₹70,250 crore, ₹69,967 crore in 2019-20 and ₹55,088 crore in 2018-19 respectively. Newly appointed chairman of Railway Board, Suneet Sharma, said, "Capex in the Budget is almost double and the record level of Capex is to ensure creating a system where we are looked at as an organization which believes in deliverance."

During 2021-22, the railways will be spending ₹40,932 crore in laying new lines and ₹26,116 crore in doubling existing lines. According to the Ministry's presentation, ₹37,270 crore of GBS will be allocated for investment in public sector undertakings, joint venture projects and special purpose vehicles. The Dedicated Freight Corridor Corporation of India will be getting an allocation of ₹16,086 crore while the National High Speed Rail Corporation Limited will be allocated ₹14,000 crore of GBS.

Finance Minister informed that the Indian Railways has prepared a National Rail Plan for India 2030 to create a future-ready railway system. Bringing down the logistic cost for the industry is at the core of the strategy to enable Make in India.