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The Indian Railways' ambitious modernization plans have suffered a significant setback with a substantial reduction in its Research and Development (R&D) allocation. The Union Budget for 2025-26 revealed a 15% decrease in funding for R&D compared to the previous fiscal year. This decision raises serious concerns about the long-term implications for the safety, efficiency, and technological advancement of the Indian railway system. The allocated budget for R&D in 2024-25 was Rs 72.01 crore, which was later revised down to Rs 63.64 crore. However, for 2025-26, the allocation plummeted to a mere Rs 60.80 crore. This contrasts sharply with the increased allocations for other crucial aspects of railway infrastructure, such as rolling stock and track renewals, where revised estimates exceeded the initial budget estimates. The underfunding of R&D signifies a troubling prioritization within the Indian Railways, potentially hindering its ability to implement crucial safety enhancements and adopt innovative technologies.
The Research Designs and Standards Organisation (RDSO), the sole R&D body for Indian Railways, is directly impacted by these budget cuts. RDSO plays a critical role, serving as the technical advisor to the Railway Board, zonal railways, and production units. Its responsibilities include developing specifications for railway materials and products, inspecting crucial safety components of rolling stock, locomotives, signaling equipment, and track components. RDSO also conducts technical investigations to enhance safety and reliability, and provides essential statutory clearances after rigorous testing. The organization's work is paramount to passenger safety, yet the chronic underfunding severely hampers its effectiveness. Official figures reveal a significant disparity between allocated funds and actual expenditure. For instance, in 2022-23, despite a revised estimate of Rs 107 crore, the actual expenditure was only Rs 39.12 crore. Similarly, in 2023-24, with a revised estimate of Rs 66.52 crore, the actual expenditure dwindled to a mere Rs 28.34 crore. This demonstrates a persistent inability to effectively utilize even the limited funds allocated, highlighting deeper systemic issues within the R&D process.
The concerning state of R&D funding in the Indian Railways has not gone unnoticed. The Parliamentary Standing Committee on Railways, in its report on Demands for Grants (2024-25), explicitly addressed the issue, urging the Ministry to increase its R&D investment. The Committee rightly highlighted the importance of R&D as a strategic long-term investment vital for the modernization of the Railways. The Committee’s strong recommendation underscores the need for a fundamental shift in the Railways’ approach to research. It emphasizes that robust R&D is not merely an expense, but a crucial investment that yields significant returns in terms of improved safety, efficiency, and the adoption of cutting-edge technologies. The continued underfunding threatens to undermine the modernization efforts and compromise the safety of millions of passengers who rely on the Indian Railways daily. The committee's call for urgent action should be heeded, and a substantial increase in R&D funding should be prioritized to ensure the long-term sustainability and competitiveness of the Indian railway system.
The consequences of neglecting R&D are far-reaching and potentially devastating. Underinvestment in research can lead to outdated technologies, compromised safety standards, increased operational costs, and a diminished capacity to compete with other modes of transportation. Furthermore, the lack of investment in innovation hampers the development of indigenous technologies, making the Indian Railways overly reliant on foreign suppliers. This dependence not only increases vulnerability to global supply chain disruptions but also limits the potential for economic growth within the domestic manufacturing sector. A comprehensive review of the R&D allocation process is urgently required. This review should involve a thorough assessment of the current needs of the Indian Railways, considering factors such as safety improvements, operational efficiency enhancements, the integration of advanced technologies, and the development of sustainable practices. Based on this assessment, a realistic and adequately funded R&D plan must be developed and implemented, ensuring that the Railways can embrace the technological advancements crucial for its future success.
Source: Modernisation takes hit as Rlys R&D allocation slashed by 15%