Railway stocks to be in focus as FM Sitharaman reviews capex plan

  • Industry News
  • Sep 18,24
The Finance Minister emphasised the need for the ministry to meet the capex target for the fiscal year 2024-25 within a set timeframe, building on the progress made in the first 100 days of the Modi government.
Railway stocks to be in focus as FM Sitharaman reviews capex plan

Railway stocks are expected to be in focus following Finance Minister Nirmala Sitharaman's review of the capital expenditure (capex) plan for the Ministry of Railways. In a meeting held in New Delhi, Sitharaman urged the ministry to accelerate the conversion of 40,000 regular rail bogies to Vande Bharat standards, a move that was initially announced in the Interim Budget for 2024-25.

The Finance Minister emphasised the need for the ministry to meet the capex target for the fiscal year 2024-25 within a set timeframe, building on the progress made in the first 100 days of the Modi government. She also called for the expedited implementation of the Kavach system, a train collision avoidance system, in a phased manner. Ministry officials reported that Kavach-related work is currently underway on over 3,000 route kilometres on the Delhi-Howrah and Delhi-Mumbai sections.

In line with the government’s push to enhance logistics efficiency and reduce rail movement costs, the Budget for 2024-25 included provisions for three Economic Railway Corridors under the PM Gati Shakti initiative. These corridors will facilitate multi-modal connectivity, including energy, mineral, and cement corridors, port connectivity, and high-traffic density corridors. Ministry officials informed Sitharaman that 434 railway projects, spanning 40,900 kilometers, have been identified under these corridors with a total investment plan of Rs 11.16 trillion. So far, 55 projects, covering 5,723 kilometers and valued at Rs 1.03 trillion, have been sanctioned. During the current year, 101 projects are set to be appraised under this corridor program.

Sitharaman also highlighted the importance of enhancing the ‘ease of living’ for citizens through the doubling and electrification of existing railway tracks, as well as the construction of new lines in line with the Budget's capital expenditure. The capital allocation for the railways stands at Rs 2.55 trillion for FY25, compared to the revised estimate of Rs 2.4 trillion for FY24. A significant portion, totalling Rs 1.3 trillion, is earmarked for rolling stock, new lines, doubling and track renewals, and electrification.

These developments are seen as positive for companies involved in railway infrastructure and rolling stock manufacturing, including KEC International Ltd, Larsen & Toubro (L&T), Siemens Ltd, RVNL Ltd, RITES Ltd, KPIL, IRCON International Ltd, BEML Ltd, Titagarh Rail, Texmaco, and other engineering, procurement, and construction (EPC) firms.
?
(Business Today)

Related Stories

Railways
Balu Forge and Swan Energy partner for railways, defence, and aerospace ventures

Balu Forge and Swan Energy partner for railways, defence, and aerospace ventures

According to an exchange filing, BFIL will hold a 40% stake in the SPV, with SEL taking the remaining 60%.

Read more
Railways
BEML submits lowest bid for 70 driverless trains for Chennai Metro Phase II

BEML submits lowest bid for 70 driverless trains for Chennai Metro Phase II

The contract is valued at approximately Rs 36 billion, with the trains likely to be produced in Bengaluru.

Read more
Railways
BEML’s Q2 profit drops amid weakening demand

BEML’s Q2 profit drops amid weakening demand

BEML’s material costs, which constitute over half of its expenses, rose slightly by 0.2%, while total expenses dropped 7% to Rs 8.2 billion.

Read more

Related Products

Ball Rail Systems

Railways

Jinisha Electrolites offers a wide assortment of ball rail systems

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016