Budget 2022: Faster Vande Bharat trains, new cargo terminals on cards; here’s how rail stocks react

Shares of Railways-related companies traded mixed after Finance Minister Nirmala Sitharaman announced slew of measures to boost railways infrastructure in the country. FM Sitharaman, while presenting her fourth Union Budget in Parliament, announced that Indian Railways will reach out to small farmers and micro, small & medium enterprises (MSMEs) through ‘One Station One Product’ to facilitate local supply chains.

The FM said that as many as 100 PMG (PM Gati Shakti) cargo terminals will be developed in the next three years. In November 2021, Prime Minister had launched PM Gati Shakti – a national master plan for multi-modal connectivity - to bring 16 ministries including railways and roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. The multi-modal connectivity will provide integrated and seamless connectivity for the movement of people, goods and services from one mode of transport to another. It will facilitate the last mile connectivity of infrastructure and also reduce travel time for people.

The budget also proposed that 2,000 km of the network be brought under KAVACH, while 400 new-generation Vande Bharat trains to be built over the next three years.

Last year, the central government had allocated ₹1.1 lakh crore to the Railways for new development projects to enhance levels of safety and comfort for passengers.

Following the budgetary proposals, shares of railways-related stocks such as IRCTC, Titagarh Wagons, Siemens were trading higher up to 1.5% on the BSE.

Meanwhile, shares of Texmaco Rail and Engineering and BEML dropped up to 5%.

In contrast, the benchmark BSE Sensex, was trading at 58,521, up 500 points, or 0.9%.