Rail Analysis India March 2018 Digital Magazine

Article | 25 Budget Viewpoints of Industry Experts on Budget 2018-19 Focus – Railway Sector Mr. Sushil Kumar Vice President – Business Development & Coordination - Gannon Dunkerley & Co., Ltd., Budget 26 | Article Viewpoints of Industry Experts on Budget 2018-19 Focus – Railway Sector What are your opinions on the Rail Budget 2018-19? What are your opinions on the Union Budget 2018-19? Looks good overall! The highest-ever capital investment of Rs. 1.48 L Cr. for capacity creation is the need of the hour. Though the details of the allocation of such expenditures are not known, I do hope that the monies will be invested in not only procuring new Rolling Stocks, but also in laying new railway lines to unconnected areas, particularly in the North Eastern part of the country. It is heartening to note that in their enthusiasm for expansion of railways, the government has not lost sight on safety issue with the subject becoming the corner stone of the railway policy. I also hope that a some of the investment is also allocated to renewable energies to meet the non–traction power requirements of the trains and stations. The Union Budget 2018-19 focuses on infrastructure as much as it does on agriculture and healthcare. It is heartening to note that the Government continues to recognise this sector to be the growth driver for the economy. From the perspective of railways in particular, the government is on the right track with the largest capital allocation to railways ever. Safety and modernisation are both top priorities of the Railways and is reflected in the measures announced. Even Railway Minister’s focus on introducing state of the art signalling system is a welcome move and one that will benefit the Railways immensely. What will be the impact of the Budget 2018-19 on the different Infrastructure projects in Railways in India? The Year 2018-19 will be a pivotal year, not just for the Indian Railways but for the new Railway Minister as well. The year will see the Mumbai Ahmedabad HSR (MAHSR) project coming out from drawing board to the actual start of construction works on ground. In addition, several up-gradation, gauge conversion and station redevelopment projects will be taking off simultaneously. The electrification of railway track that is yet be accomplished in the left out 65% of the track km will also see a significant boost. Overall, the companies engaged in the infrastructure sector, particularly in Railways, are in for an exciting time

Rail Analysis India March 2018 Digital Magazine | Page 26