Railway Budget 2025: Indian Railways is expected to receive a 15-20% increase in capital expenditure allocation for FY26 in the forthcoming Union Budget, as it progresses towards utilising the current year’s funds. The total capital expenditure allocation for the national transporter could exceed Rs 3 lakh crore, up from the current fiscal year’s Rs 2.65 lakh crore.
The budget for FY26 will be presented by Finance Minister Nirmala Sitharaman on February 1.
Saif Ali Khan Health Update
Indian Railways’ priorities for the upcoming year include completing upgraded railway station projects, introducing modern trains, and reducing track network congestion, according to sources familiar with the discussions who spoke to ET.
Indian Railways’ increased budget allocation is likely to focus on track expansion, modernisation of existing infrastructure, and procurement of essential equipment including locomotives, coaches and wagons.
Also Check | Namo Bharat Trains: Travel From Delhi To Meerut In Just 35 Minutes At 160 Kmph On RRTS! From Fares To Route Map & Stations – Top 10 Facts
The bullet train project, formally known as the Mumbai-Ahmedabad High Speed Rail Corridor (MAHSR), is likely to receive additional financial support to accelerate its progress.
“Railway capex is expected to rise by up to 20% in budget 2025-26,” said a government official.
Railways data indicates approximately 80% of the Rs 2.65 lakh crore capex allocated for FY25 has been utilised to date. “The Railway Board has spent more than Rs 2 lakh crore in the current fiscal. Capex target will be met well before the fiscal ends,” a senior railway official was quoted as saying.
Indian Railways Capex
Indian Railways’ current fiscal year PPP capital expenditure target was Rs 10,000 crore, with nearly 90% achieved by mid-January.
The current fiscal year’s planned expenditure includes Rs 50,903 crore for rolling stock. Rs 1.2 lakh crore was designated for capacity enhancement, covering new lines, gauge conversion, track doubling, facilities, electrification, PSU investments, and metropolitan transport. Safety-related initiatives received Rs 34,412 crore.
Indian Railways allocated Rs 21,000 crore to the National High Speed Rail Corp. Ltd (NHSRCL) for FY25, overseeing the bullet train project. A substantial increase in funding is anticipated to expedite infrastructure development along this important route.
The introduction of Vande Sleeper trains, offering enhanced passenger comfort for extended journeys, is scheduled for the next fiscal year.
Also Read | Vande Bharat sleeper hits 180 kmph during trials! Check viral video of new Indian Railways train better than Rajdhani Express
The business community has urged the government to maintain substantial capital investments to encourage private sector participation and bolster the decelerating economy.
India’s GDP growth is forecast to decrease to 6.4% this fiscal year, down from 8.2% in FY24, marking a four-year low. The government had allocated Rs 11.1 lakh crore for capital expenditure in the current year, an increase from Rs 10 lakh crore in FY24.
FY26 is expected to see an increased target for public private partnership (PPP) investments.
