DIMAPUR, SEPTEMBER 13 (MExN): In line up with the central government Capital Expenditure (Capex) plans to prioritize spending on infrastructure, Indian Railways leads ahead with the spending by 46.6 %. Highways occupy the second position with the spending of 46.4%.
A press release issued by NFR CPRO Sabyasachi De informed that the Railway Ministry has spent around Rs. 1.13 trillion (46.6%) of the capex target of approximately Rs. 2.44 trillion. Most of the spending is going into improving ease of movement and providing a safer rail network. Another focus of spending will be long-term infra projects like high-speed trains, freight corridors and modernization of trains and stations.
Railways is also speeding up its electrification works, aiming to make the entire network electric by this year. Laying of new tracks and doubling of tracks is expected to go up in current financial year, the CPRO stated.
NFR has incurred a total of 48.21% of capex for capacity augmentation works. 47.85% spending has been done for laying of new lines and 51.93% for doubling works. To enhance safety related works 59.84% has been spent for construction of new ROB’s/RUB’s and 74.90% for bridge related works. Moreover, capex of 57.58% has been spent for purchasing & upgrading of Machinery & Plant in different workshop and depots under NFR.
Capex is used to create assets like infrastructure and has a multiplier effect on the economy, creating demand, income and employment. The central government had increased the capex target by 13.4% in financial year 2024 over the revised target of about Rs. 6.46 trillion in financial year 2023.