The next 10 years will see a very high level of capital expenditure in the railway sector as capacity growth has to be accelerated so that by 2030 it is ahead of demand, CAPEX on the railway was barely Rs 45,980 crore per annum and consequently, the railway was characterised by high levels of inefficiency and highly congested routes unable to meet the growing demand.
With the forecasted growth and to meet the ambitious 5 trillion economy status speed, multi-location connectivity, passenger comfort and high tonnage carrying capacities become the top priorities of Indian Railways. This is visible through the Indian Railway CAPEX budget of Rs 2,15,000 Crore in 2021-22 which is more than five times the 2014 level. As more projects are taken on hand and several sources of capital funding are developed including public funding and funds through Global banks, Capex will increase further in coming years and the railway system will actually emerge as an engine of national growth to meet 5 trillion economies.
Railways continue to be the most popular means of transportation for the majority of Indians when travelling long distances due to its low cost and effective operations. India’s railway network is recognised as one of the largest railway systems in the world under single management. The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy-efficient and economic mode of conveyance and transport. Indian Railways is the preferred carrier of automobiles in the country. There are several projects under the Dedicated freight corridor which on completion will increase railway capacity to capture 45 per cent of freight traffic.
The government of India has focused on investing in railway infrastructure by making investor-friendly policies. It has moved quickly to enable Foreign Direct Investment (FDI) in railways to improve infrastructure for freight and high-speed trains. At present, several domestic and foreign companies are also looking to invest in Indian rail projects.
In order to transfer the modern fastening and turnouts global experience, Schwihag AG has already started establishing its local footprints in India. Schwihag is in contract with NCRTC to supply system 300 W for track fastening for Delhi – Meerut RRTS Project. Looking to the local demand for Track fastening and turn out, considering the business’s environmentally friendly culture and low-cost manufacturing status Schwihag has established a local entity Schwihag India Private limited. The entity will not only cater to local but will cater to global project needs under the banner of “Make in India” and support India to secure “Atmanirbhar Bharat “status for Track fastening and turnout technology.
Product Expertise Source: Schwihag AG | This Product Expertise is a part of our Latest Magazine: Subscribe to our Magazine Today
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