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Rail Budget 2021: Here is what to expect

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Finance Minister Nirmala Sitharaman will begin presenting the Union Budget on February 1 at 11 am

Railway Station (Representative image)

During the Budget for 2021-21, the Ministry of Finance is expected to make certain announcements for the Railways sector.

Indian Railways was severely impacted in 2020 since the COVID-19 pandemic disrupted services, which were completely halted for a few months.

In December 2020, the government had announced a draft National Rail Plan. The Budget for FY22 might include allocations and proposals to supplement this plan.

"In effect the National Rail Plan envisages an initial surge in capital investment right up to 2030 to create capacity ahead of demand and increase the modal share of the Railways in freight by 45 percent," the railways ministry said in a statement.

Finance Minister Nirmala Sitharaman will begin presenting the Union Budget on February 1 at 11 am.

Here is what the Railways sector can expect:

The Ministry of Railways has sought gross budgetary support (GBS) of about Rs 75,000 crore, according to a Business Today report.

"In our budget representation, we have pegged the total outlay for Railways at Rs 1,80,000 crore for 2021-22 to the Ministry of Finance. Out of this, GBS of Rs 75,000 crore has been demanded,” the report said.

There might be some announcements related to high-speed private trains.The Centre could potentially announce some funding for bullet train projects. Work on the Mumbai-Ahmedabad high-speed rail corridor has been delayed amid the pandemic. A survey on the Delhi-Varanasi High Speed Rail has already begun.

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