Indian Railway Minister Lalu Prasad Yadav while presenting the interim railway budget, said that they will spend around Rs 37,900 crore  to upgrade its infrastructure as well as boost the economy.

The state - run sector will invest  Rs 2.3 lac crore in 11th five year plan. The upgradation plan includes renewal of 2,941 km railway tracks that will require about 339,228 tonnes of steel and renewal of sleeper sheets along 2,382 km of railway lines. Wagon manufacturing companies and logistics firms gained on the bourses as introduction of new trains were announced in the budget.

This support by the government to the sector will fuel demand in the sector, thereby encouraging private equity investments in logistics, speciality infrastructure, and other railway related companies. The space, particularly the EPC segment has seen a lot of interest from the private equity space till now. 

A few highlights of the achievements made by the sector & investment estimates for the year FY 09 are as mentioned below:


Passenger trains to have 22% more capacity

FY10 , operating ration seen at 88%

FY 10, freight revenue seen at Rs 59, 060 crore

Freight traffic up 9% at 794 metric tonne

Wagon output to be increased from existing 6, 000 to 15, 000 per year this fiscal

Good trains to have 78% more capacity

Railways to invest Rs 2, 30,000 crore in the eleventh plan

Railways to spend Rs 37, 9,00 crore in FY10 

Fares on AC & Mail express cut by 2%

Freight Rate unchanged

Good trains to have 78% more capacity

Freight Capacity increased to 15,000 from 6,000 now

43 new trains to be introduced


Railways has earned profit of Rs 90,000 crore

Raised $100 M debt at 4%

Freight has grown at the rate of 8% in the past five years

Invested Rs 70, 000 crore out of surplus in last four years



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