After registering an unprecedented growth rate, the Indian Railways is to upgrade rail infrastructure with procurement of new assets amounting an estimated expenditure of Rs. 37,500 crore. This will move further to boost Indian economy as well as the productivity of railways itself.
Achieving a cash surplus of Rs. 25,000 crore in 2007-08 in comparison to the Rs. 350 crore in 2000-01, the railways is now one of the major contributors to national economy. With a healthy financial backing, it is seeking to improve rail infrastructure which will facilitate critical sectors of economy such as steel and cement.
The plan includes procurement of new EMUs, MEMUs and Metro coaches, development of model stations and world class stations, construction of dedicated freight corridor and two powerhouses (one under construction and another proposed) to enhance its capacity and business return.
Railways will renew 2,941 km of rail track, 2,382 kms sleepers, electrification of 700 to 1000 km of railways track, manufacturing 3,000 new coaches, acquiring 2,873 EMUs, 1,091 MEMUs, 216 Kolkata Metro Coaches, 3 - phase propulsion system for 200 motor coaches and acquiring of 200 new electric locomotives.
Moreover, Indian Railways has also a Rs. 3000 crore (for 2009-10) plan to carry out the freight corridor, its biggest infrastructural development activity since independence, towards which an amount of Rs. 400 crore is being spent in 2008-09.
To address the requirement of energy, railways is developing a 1000 MW thermal power plant with the collaboration of National Thermal Power Corporation (NTPC) at Nabi Nagar, Bihar with estimated cost of Rs. 5,352-crore, besides a proposal for setting up a 2000 MW power plant.