High-Speed Bonanza! Bullet Train Budget Soars to Rs. 25,000 Crore

In a significant development, Finance Minister Nirmala Sitharaman has announced a noteworthy adjustment in the budgetary allocations for key rail projects in the fiscal year 2024-25. The National High-Speed Rail Corporation (NHSRCL) is set to receive a substantial increase, with its budget reaching Rs. 25,000 crore. In contrast, the budget for the Dedicated Freight Corridor Corporation of India (DFCCIL) has been scaled down to Rs. 4155 crore, marking a reduction from Rs. 14,526 crore in the preceding fiscal year.

For the Mumbai-Ahmedabad Rail Corridor, popularly known as the bullet train project, the high-speed rail endeavor utilizing Japan's Shinkansen technology aims to establish a robust mass transportation system connecting Mumbai and Ahmedabad. Railways Minister Ashwini Vaishnaw has recently confirmed the completion of 100% land acquisition for the project, covering Gujarat, Maharashtra, and Dadra and Nagar Haveli.

The budgetary allocation for the high-speed rail project in the fiscal year 2023-24 was Rs. 18,592 crore. The project, funded by the Japan International Cooperation Agency (JICA) through a soft loan of Rs. 88,000 crore, faced delays in land acquisition, subsequently pushing the expected completion date to 2026.

The overall investment in public enterprises under the Ministry of Railways remains steady at Rs. 2.65 lakh crore, maintaining the same level as the fiscal year 2023-24. The net revenue expenditure of Railways is estimated at Rs. 2,78,500 crore in Budget Estimate 2024-25, compared to Rs. 2,58,600 crore in the previous fiscal year.

The Capital Expenditure provision for Budget Estimate 2024-25 includes Rs. 2,52,000 crore from General Revenues, Rs. 200 crore from the Nirbhaya Fund, Rs. 3,000 crore from Internal Resources, and Rs. 10,000 crore from Extra Budgetary Resources (EBR).

Total receipts of Railways, comprising revenues from passengers, goods, other coaching, sundry other heads, and Railway Recruitment Boards, are estimated at Rs. 2,78,500 crore in Budget Estimate 2024-25, compared to Rs. 2,58,600 crore in the Revised Estimate for 2023-24.

News by Rahul Yelligetti