The Indian Railways is set to receive a capital expenditure push of ₹2.52 lakh crore for the financial year 2024-25, marking a 5 per cent increase from the ₹2.4 lakh crore allocated the previous year.

The budgetary allocation to the railway ministry, however, remains unchanged from the interim budget presented before the general elections.

Finance minister Nirmala Sitharaman, in her budget speech, did not specify the total outlay for the railways but the capital expenditure allocation was detailed in the budget documents released after her presentation.

Regarding the railways’ operational expenditure versus earnings (Operating Ratio), railway minister Ashwini Vaishnaw said the target for the operating ratio has been set at 98.22 per cent for 2024-25, down from 98.65 per cent in 2023-24.

Budget documents show that the railways’ revenue from the passenger segment rose to ₹73,000 crore in 2023-24, surpassing the budget estimate. The Indian Railways targets revenues of ₹80,000 crore from the passenger segment in 2024-25. However, freight transportation revenue fell short of the budget estimate by around ₹10,000 crore, totalling ₹1,64,700 crore for 2023-24. The target for freight revenue in 2024-25 is set at ₹1,74,500 crore.

Vivek Lohia, managing director, Jupiter Wagons, said: “Encouraging private sector participation through viability gap funding and market-based financing frameworks will foster a dynamic environment for infrastructure advancements. These initiatives are poised to improve connectivity, boost productivity, and create numerous jobs across sectors.”