Laying foundations for improved rlys

In the 2025-26 Budget, the Ministry of Finance extended a government budgetary support of ₹2.52 trillion to the Indian Railways which is a generous capex outlay.

- R SIVADASAN

Riding on this, the Indian Railways continues rebuilding both moving and fixed infrastructure with improved safety, ushering in a new era of inter-city Vande Bharat trains with substantially enhanced travel comfort, frequency, and consistent punctuality, attracting a rise in ridership from middle class and lower middle class population during the last two years.

The rise in the share of intercity passenger kilometers travelled in second unreserved and second sleeper classes in mail/express trains, earn a staggering 45 per cent of passenger revenue as against 49 per cent of upper class passenger revenues, out of the total ₹77,140 crore non-suburban long distance passenger revenue.

While upper class passenger kilometer growth and revenue yield faces serious competition from air travel business, this impressive growth in long and medium distance second class travel is important. With proposed further development of 140 airports, the competition could become tougher.

Freight is railways' breadwinner. Growth in net tonne kilometres (NTKM) projections in 2024-25 and 2025-26 continues to be modest.