Connecting India for Freight Transportation: The DFC

The Railways in India have had gradual expansion in recent years and are now preparing to make a significant leap forward infrastructure in development. Even though India has one of the most significant rail networks in the world, it has to be upgraded and expanded to areas where there are still problems with rail connectivity. As a result, the sector is expected to expand significantly, supported by the government's drive and expensive projects like the highspeed rail corridor, the dedicated freight corridor (DFC), and station refurbishment.

Allocations under the Union Budget 2022-23 

One of the top-three industries in the nation, the railways also receive the highest funding from the government. Despite obstacles and disruptions due to Covid during the year, the Ministry of Railways (MoR) capital expenditure surged by almost 58% to Rs 2.34 trillion (revised estimate). The progress of ongoing and forthcoming railway projects has not been hampered in the country as the central government provided vital support to the sector with significant funding. However, the capital expenditure is expected to have moderated in 2021–22, as per revised and updated estimates.

Over the past two years, the central government’s overall budgetary support has increased significantly. Additionally, it is planned to boost capital expenditure from Rs 2.15 trillion in 2021–2022 to Rs 2.46 trillion in 2022–2023 (revised estimates).