The Minister of Railways, Shri Suresh Prabhakar Prabhu while presenting the Railway Budget for 2016-17 in Parliament today said that electrical traction is more economical besides being environment friendly. In a business-as-usual approach, it may take us 10 to 15 years to complete the required electrification which government is targeting to complete in the next few years. He said the Indian Railways will accelerate the process and increase the pace multifold through innovative approaches of financing and project management including partnering with Ministry of Power. He said, the government will formulate a framework where the net savings from electrification will be able to finance the capital expenditure to minimise the strain on government exchequer. This year the Indian Railways intend to commission 1,600 kms, which is the highest ever. In the next financial year, the Railways have increased the outlay for railway electrification by almost 50% and propose to electrify 2,000 kms.

Railway electrification financing framework to use net operational savings to fund capital investment and accelerate electrification. The government will accelerate railway electrification through increased capital outlay, intensified commissioning and partnership with the power ministry, and will implement a financing framework that uses net operational savings from electrification to finance the necessary capital expenditure, reducing pressure on the exchequer.