Railways get `2.52 lakh cr to boost infra, modernization, operations

New Delhi: The Union government has allocated Rs 2.52 lakh crore for the Indian Railways in FY26, maintaining nearly the same funding level as the previous year. The announcement was made in the Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday. As per budget documents, the total capital expenditure for the Railways has been set at Rs 2,65,200 crore, with Rs 2,52,000 crore coming from General Revenues. Additional funding sources include Rs 200 crore from the Nirbhaya Fund, Rs 3,000 crore from Internal Resources, and Rs 10,000 crore from Extra Budgetary Resources.

The Railways has projected total receipts of Rs 3,02,100 crore in 2025-26, up from Rs 2,79,000 crore in the revised estimates for 2024-25. The revised estimates for 2024-25 indicate improved earnings in both passenger and freight segments. Passenger revenue rose to Rs 80,000 crore from Rs 70,693 crore in 2023-24, while freight earnings increased to Rs 1,80,000 crore from Rs 1,68,199 crore. The revenue targets for 2025-26 remain at similar levels, with a 13.2 per cent growth in passenger receipts. Railway safety expenditure has been set at Rs 1,16,514 crore for 2025-26, with the network expanding by nearly 4,000 km annually.

Financial Commitment and Projections

With a gross expenditure projection of Rs 8, 20,310.75 crore for 2025-26, a significant increase is evident from the revised estimate of Rs 7, 87,832.50 crore for the previous fiscal year. This rise underscores the government’s continued push to expand the rail network, improve passenger services, and modernize existing infrastructure.

Minister of Railways Ashwini Vaishnaw, while presenting the budget, emphasized that the increased budget reflects the central government’s ambition to not only enhance the reach of the railways but also upgrade its technological capabilities to ensure greater efficiency. The Ministry’s revenue recovery for the upcoming year is projected at Rs 2, 62,765.57 crore, an increase from the Rs 2, 53,107.39 crore estimated for 2024-25. Passenger and coaching receipts are expected to generate Rs 3, 02,100 crore, reinforcing the importance of railways as the backbone of the country’s transportation network.

Infrastructure and Capacity Expansion

A significant portion of the budget is allocated to staff and operational costs, with staff expenses estimated at Rs 1, 30,309.86 crore. Fuel and energy costs, vital to railway operations, are projected at Rs 13,586.35 crore for diesel and Rs 24,707.17 crore for electricity for traction. Additionally, expenditure on government railway police and security has been earmarked at Rs 1,947.04 crore, highlighting the government’s ongoing commitment to ensuring safety within the rail network.

In terms of infrastructure, the budget places a strong emphasis on capacity expansion. The Ministry has allocated Rs 32,000 crore for the construction of new rail lines, reflecting a priority to connect more regions and enhance connectivity across the country. Furthermore, Rs 31,458.83 crore has been allocated for doubling existing railway lines to ease congestion, while Rs 4,550 crore is dedicated to gauge conversion projects aimed at enhancing operational efficiency.

Technological Modernization

Technological modernization is another cornerstone of the Railway Budget for 2025-26. In a bid to improve operational efficiency and service delivery, Rs 735.62 crore has been set aside for computerization and the digitization of various processes. These initiatives are expected to streamline operations, reduce delays, and improve overall passenger experience.

Debt Servicing and Asset Replacement

The government has also made provisions for debt servicing, with Rs 706 crore allocated for servicing market borrowings. An additional Rs 1,500 crore will be directed towards the Depreciation Reserve Fund, intended for asset replacement and renewal, ensuring the longevity of infrastructure. The railway sector continues to benefit from substantial government support, with the central government allocating Rs 3,445.18 crore in budgetary support from general revenues for 2025-26, further cementing its role in the sector’s ongoing transformation.

The Railway Budget for 2025-26 outlines a comprehensive roadmap for the modernization and expansion of India’s railway system. By prioritizing infrastructure development, technological advancements, and safety, the Ministry of Railways aims to make the sector more efficient, safer, and capable of handling the demands of a growing economy. As the country’s lifeline, the railways are poised for a transformational journey, with this budget setting the stage for a new era of progress.