Indian Railways has crossed a significant milestone in the current financial year, utilising more than Rs 2 lakh crore of its allotted capital expenditure within the first nine months of FY26.
According to the Ministry of Railways, the national transporter spent Rs 2,03,138 crore by the end of December 2025, accounting for 80.54 per cent of its total Gross Budgetary Support (GBS) of Rs 2,52,200 crore.
The pace of spending marks a 6.54 per cent increase compared with the same period last year, reported IANS.
Railways’ capex momentum gathers pace
Officials said the sharp utilisation of funds reflects Indian Railways’ transformation into a future-ready organisation aligned with the vision of a modern, well-connected India.
The expenditure has been concentrated on four key areas: safety, capacity expansion, infrastructure modernisation and passenger amenities, all of which are central to handling rising travel demand while keeping fares affordable.
The ministry noted that capital spending during the first three quarters has remained on track with annual targets, indicating that the Railways is well positioned to fully utilise its budgetary allocation by the end of FY26.
Safety takes top priority
A large share of the spending has been directed towards safety-related works. As per the ministry’s data, 84 per cent of the funds earmarked for safety have already been utilised. These investments include track renewal, signalling upgrades and the expansion of advanced safety systems such as Kavach, the indigenous automatic train protection technology designed to prevent collisions and overspeeding.
Railway officials have repeatedly stressed that safety remains the cornerstone of the ongoing infrastructure overhaul, especially as train speeds increase and traffic density rises across major routes.
Capacity expansion to meet growing demand
Capacity augmentation has emerged as another major focus area. Of the Rs 1,09,238 crore allocated for expanding network capacity, Indian Railways has spent Rs 76,048 crore so far, translating into 69 per cent utilisation by December 2025.
This spending covers the construction of new lines, gauge conversion, track doubling and the creation of additional traffic facilities aimed at easing congestion on busy corridors. Over the past decade, such investments have helped improve average speeds and reduce travel time on several key routes.
Passenger amenities see strong spending
Customer-facing improvements have also received a significant boost. According to the ministry, 80 per cent of the funds allocated for passenger amenities have been utilised, amounting to Rs 9,575 crore till December 2025.
These upgrades include station redevelopment, better waiting areas, improved sanitation facilities, digital information systems and modernised onboard amenities. The government has maintained that enhancing passenger comfort is essential to making rail travel competitive with other modes of transport.
The Railways ministry said the benefits of consistent capital expenditure over the past ten years are now clearly visible on the ground. India currently operates 164 Vande Bharat train services and 30 Amrit Bharat trains, both aimed at providing faster and more comfortable travel options.
The near-complete electrification of the broad-gauge network, now exceeding 99 per cent, has reduced dependence on fossil fuels and lowered operating costs.
Simultaneously, extensive works are underway across new line construction, gauge conversion, track doubling, investments in public sector undertakings and the development of metropolitan transport systems.
These initiatives, officials said, have collectively improved speed, safety and reliability, while ensuring that rail travel remains affordable for millions of passengers.
Vande Bharat Sleeper and bullet train on the horizon
Looking ahead, Indian Railways is preparing to inaugurate the Vande Bharat Sleeper trainset, which is expected to significantly improve long-distance travel comfort. The ministry said the upcoming launch would mark another step in the Railways’ efforts to modernise its rolling stock and cater to evolving passenger expectations.
Railways Minister Ashwini Vaishnaw has also reiterated that India is on track to receive its first bullet train on August 15, 2027. The high-speed rail project spans 508 km between Mumbai and Ahmedabad, with 352 km passing through Gujarat and Dadra and Nagar Haveli, and the remaining 156 km in Maharashtra.
According to the National High-Speed Rail Corporation Ltd. (NHSRCL), more than 85 per cent of the corridor, around 465 km, is being constructed on elevated viaducts, with about 326 km already completed. The project is being positioned as a flagship initiative that could redefine intercity travel in India.
The ministry said the current pace of spending indicates that Indian Railways is firmly on course to meet its GBS utilisation targets for FY26. Infrastructure works across zones are progressing at a strong clip, supported by streamlined execution and steady fund flow.
