Indian Railways has hit a major milestone this financial year, spending over ₹2 lakh crore of its capital budget in just the first nine months of FY26. By the end of December 2025, they had used ₹2,03,138 crore, representing a hefty 80.54% of their total budget of ₹2,52,200 crore. That’s a 6.54% increase compared to last year, according to IANS.
This rapid spending shows how committed Indian Railways is to modernizing and connecting the nation better. The funds are focused on four key areas: safety, expanding capacity, upgrading infrastructure, and enhancing passenger amenities. All of these are crucial as travel demand continues to rise, and the aim is to keep fares affordable.
Safety is Key
A significant portion of the budget has gone towards safety. Around 84% of the allocated safety funds have already been utilized. These improvements include renewing tracks, upgrading signaling systems, and implementing the Kavach system, which helps prevent accidents. Safety is a top priority, especially as train speed and traffic volume increase.
Meeting Growing Demand
Capacity expansion is another major focus. From the ₹1,09,238 crore set aside for network growth, ₹76,048 crore has already been spent, reflecting a 69% utilization rate. This investment supports projects like building new lines and doubling tracks, which help reduce congestion and improve travel times. Over the last decade, such efforts have considerably enhanced train speeds.
Improving Passenger Experience
Investments in passenger amenities are also significant, with 80% of the allocated funds already used. This amounts to ₹9,575 crore spent on upgrading stations, improving waiting areas, and enhancing onboard services. These improvements are designed to make rail travel a more attractive option compared to other forms of transportation.
The benefits of consistent capital expenditure over the years are becoming evident. Currently, India operates 164 Vande Bharat train services and plans for more. The near-total electrification of the broad-gauge network—now over 99%—has cut reliance on fossil fuels and reduced operational costs.
Future Developments
Looking ahead, Indian Railways is set to launch the Vande Bharat Sleeper train, enhancing long-distance travel comfort. The first bullet train is also on the horizon, expected to debut on August 15, 2027. This project, connecting Mumbai and Ahmedabad, aims to redefine intercity travel in India. More than 85% of the 508 km route is being constructed on elevated viaducts, promising faster, smoother journeys.
As spending continues at this rapid pace, Indian Railways is on track to meet its financial targets for the year. Infrastructure projects across the country are in full swing, ensuring that rail travel remains an affordable and reliable choice for millions.
For more information on Indian Railways’ progress, you can check the Ministry of Railways.
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