Mumbai, June 29 -- Indian Railways utilised nearly 30 per cent of its capital expenditure budget for FY2026-27 within the first two months of the financial year, spending more than Rs 840 billion (bn) in April and May against a planned outlay of Rs 2.93 trillion (tn) for the year. The Union Budget allocated Rs 2.93 tn in total capex, comprising Rs 2.81 tn through gross budgetary support and Rs 120 bn from extra-budgetary resources. The early absorption indicates robust project execution and an aggressive infrastructure push.
A significant share of the spending is being channelled towards track infrastructure, including new lines, doubling and gauge conversion, with more than Rs 790 bn earmarked for these segments in the current year. The expansion programme aims to reduce congestion, enhance freight movement and improve passenger services across the country, aligning with the broader national infrastructure strategy.
Safety and modernisation also account for a major portion of the capex, with roughly Rs 551.7 bn allocated for safety initiatives, including signalling upgrades and deployment of advanced train protection technology such as Kavach. Modernisation plans extend to station redevelopment, rolling stock upgrades, electrification and digital infrastructure, forming part of a long-term strategy to transform the network into a safer and more efficient transport system.
The rapid pace of spending follows full utilisation of the previous year's allocation and reflects continued emphasis on infrastructure-led growth, with railways remaining one of the largest recipients of public infrastructure investment. Officials indicated that spending remains on track to meet annual targets and that the strong start is expected to support faster project completion and significantly bolster economic activity, logistics efficiency and employment generation.
Published by HT Digital Content Services with permission from Construction World.