Arjun Mk1A
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Its the chicken and egg problem. Now we have the trains, there will be basis for upgraded tracks to go along with the new trains. You can't solve everything all at once. What they are doing is creating demand. And with increased demand, they can justify the expense of getting new upgraded tracks which is the most expensive component of a railway system.
It's not a chicken and egg problem. It is simply IR don't show any interest to run passenger service as it was always a loss making service for them. On the other hand they will happily move bulk cargo as it was super profitable.
Combine with this IR behavior we have gems like Fodder yadav, Begum ji whose sole contribution is introducing 20 varieties of same ICF coach in an already congested lines. Nothing done to them.
With NDA in power things started to move in terms of Station Redevelopment, maintenance. Infact Railway Ministry decided to shift passenger ops to private mode which offload IR and also brings companies which are specialized in transport business. But IR sabotaged it successfully. They sabotaged Train 18 before GOI gave them a stick.
Railways way forward will be.
1. Repurpose Suburban sections on par with Metro. (Joint ownership by CG/SG or SG only)
2. Convert factories like ICF, MCF- RB, MCF-K, BLW, CLW into an PSU. eg. Bihar plant which leased to Alstom for WAG 12 production.
3. Make a separate company for Routes and allow private train operators to run train business. Meanwhile IR can collect money and do the maintenance.
Lot of things can be achieved with IR in coming years.