Railway Sector Budget 2024: Finance Minister Nirmala Sitharaman announced a Rs 2,55,000 crore budget allocation for railways; stocks to watch out!

Railway Sector Budget 2024: Finance Minister Nirmala Sitharaman announced a Rs 2,55,000 crore budget allocation for railways; stocks to watch out!

Kiran Shroff
/ Categories: Trending, Mindshare, Budget 2024

The Indian Railways is a vast network that spans over 1,26,000 kilometres and consists of over 7,300 stations.

India's railway network is set for a major boost with the implementation of three crucial economic corridor programs under the PM Gati Shakti initiative. These programs focus on:

Energy, mineral and cement corridors: Streamlining the transportation of vital resources like coal, iron ore, and cement, contributing to industrial growth.

Port connectivity corridors: Enhancing efficiency by directly connecting ports to industrial hubs, reducing transportation time and costs.

High traffic density corridors: Decongesting busy routes by creating dedicated freight corridors, leading to smoother operations and faster passenger travel.

These projects, along with the existing dedicated freight corridors, are expected to significantly improve logistics efficiency, reduce costs, and accelerate India's GDP growth. Additionally, 40,000 existing coaches will be upgraded to Vande Bharat standards, enhancing passenger safety, convenience, and comfort.

Recognizing the growing urban population, the initiative also emphasizes the expansion of metro rail and NaMo Bharat programs in major cities. These projects focus on transit-oriented development, aiming to transform urban landscapes and cater to the evolving needs of a rapidly urbanizing India.

With a budget allocation of Rs 2.55 lakh crore, this initiative marks a significant investment in modernizing and expanding India's railway network. The expected outcomes – improved logistics, reduced costs, enhanced passenger experience, and efficient urban development – promise a positive impact on the nation's economic growth and quality of life.

The Indian Railways is a vast network that spans over 1,26,000 kilometres and consists of over 7,300 stations. In 2022-23, the network saw a significant expansion of over 5,200 kilometres of track, which is the highest ever recorded. The railways operate over 13,500 passenger trains and 9,100 freight trains daily. As of December 2023, freight loading reached 1154.67 million tonnes, with December alone recording an impressive 138.99 million tonnes, marking a 6.37 per cent improvement over the same period last year.

The Indian railway system is considered the backbone of the Indian economy and is one of the largest railway systems in the world under single management. It is an affordable and efficient mode of transportation for long-distance travel and is also ideal for the movement of bulk goods. Indian Railways is the preferred carrier of automobiles in the country.

Stocks to Watch Out from Railway Sector:

Railway Sector Stocks 

CMP (Rs) 

Indian Railway Finance Corporation Ltd 

172 

Texmaco rail & Engineering Ltd 

215 

Ircon International Ltd 

232 

Rail Vikas Nigam Ltd 

300 

Railtel Corporation of India Ltd 

427 

RITES Ltd 

707 

Container Corporation Of India Ltd 

900 

Indian Railway Catering and Tourism Corporation Ltd 

970 

Titagarh Rail Systems Ltd 

1,076 

Bharat Earth Movers Limited  

3,670 

Disclaimer: The article is for informational purposes only and not investment advice. 

DSIJ's 'Value Pick' service recommends long-term stocks based on Value Investing Philosophy. If this interests you, do download the service details here.

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