Twesh Mishra

Budget 2024-25 had rejigged allocations to the Indian Railways public enterprises and tweaked amounts under other heads such as buying trains. Despite the tinkering, a broader push towards modernised Vande Bharat trains, easing congestion, and faster freight movement on energy, cement, and port connectivity routes continued.

Indian Railways is accelerating the deployment of its automatic train protection system, Kavach, aiming to equip 90% of its network by 2030. Contracts for installing Kavach on 10,000 locomotives and over 1,000 route kilometers are slated for this month, adding to the existing 1,500 kilometers already operational. This initiative enhances safety by preventing collisions and enabling faster train speeds.

India has revised its quality control rules for electrical goods, permitting testing and certification at labs owned by equipment makers. This move aims to attract companies looking to move production from China and address concerns about insufficient testing facilities in India. Private companies are expected to invest significantly in setting up new testing labs.

India's electric vehicle subsidy program, PM E-Drive, is nearing its target within weeks of launch. Sales of electric cargo three-wheelers have already surpassed the year's goal, making them ineligible for further incentives. Electric two-wheeler sales are also approaching the target, with smaller electric three-wheeler sales lagging behind.

India is establishing 23 exclusive container rail terminals to enhance the movement of export-import cargo. Private concessionaires will receive favorable financial terms to develop these terminals, which will prohibit bulk cargo handling. The initiative aims to boost container loading on Indian Railways and increase revenue.

India is launching a ₹30,000 crore Maritime Development Fund to bolster its shipbuilding industry and aims to lead the world in ship recycling by 2030. The government is also planning three mega shipbuilding clusters and extending financial assistance programs to support the industry's growth.

The government has reinstated subsidies for electric three-wheeler cargo vehicles at a reduced rate, following the early achievement of sales targets. The subsidies, now capped at Rs 25,000 per unit, were temporarily halted after the targets were met within weeks of the scheme's launch. Similar reductions are expected for electric two-wheeler subsidies as sales approach this year's goals.

Bharat Heavy Electricals Limited (BHEL) is on track to commission a record-breaking 9 GW of thermal power capacity in the current financial year, exceeding its average annual commissioning fourfold. This surge in capacity addition, valued at around ₹65,000 crore, is attributed to the completion of projects awarded since 2017 and active government support in resolving implementation hurdles.

India is launching a Technology Collaboration Portal (TCL) to connect research institutions with the chemical industry. The portal aims to facilitate technology transfer and domestic production, reducing reliance on imports. Over 1000 industries and 40 institutions have already registered, with more encouraged to join.

IIFCL's Managing Director, P R Jaishankar, assured investors that the company's investments in Adani Group projects are secure and isolated within special purpose vehicles. Despite the US Department of Justice's allegations against the Adani Group, Jaishankar emphasized that IIFCL's investments are protected and the company maintains a low NPA level of 0.22%.