Railways spends over half its budget in first six months of FY 2025-26

Indian Railways has set a new benchmark in infrastructure spending, using over half of its annual budget within the first six months of 2025-26. By September, the Railways had spent Rs 1,42,487 crore out of Rs 2,52,200 crore, marking the highest mid-year capital expenditure (CAPEX) utilisation in its history.

What is CAPEX and why it matters

CAPEX, or capital expenditure, is money spent to build, upgrade, or maintain physical assets such as tracks, trains, stations, and technology systems. For Indian Railways, CAPEX is a key measure of how effectively it is investing in safety, infrastructure, and passenger experience. High CAPEX utilisation indicates faster project execution and a more modern, efficient railway network.

Where the Money Went

• Safety first (56%) - Over Rs 22,000 crore has gone into expanding KAVACH, India’s homegrown train protection system, renewing tracks, building road overbridges, bridges, and improving level crossings. The goal: safer journeys for passengers and smoother operations.

• Expanding the network (45%) - Nearly Rs 49,000 crore has been spent on new lines, doubling tracks, electrification, gauge conversion, and city transport projects. These moves help reduce congestion, speed up freight and passenger trains, and improve last-mile connectivity.

• Passenger comfort (49%) - Rs 5,863 crore has been used to modernise stations, upgrade waiting areas, enhance sanitation, and add digital services, all aimed at making travel more convenient and comfortable.

• Modern trains (46%) - Around Rs 26,000 crore has gone into new locomotives, coaches, and wagons, including energy-efficient and high-speed models, pushing India closer to a faster, greener railway system.

How this was possible:

Officials say the record spending was made possible through better coordination among railway zones, faster tendering, and stricter project monitoring. Enhanced accountability in project execution has ensured that funds are deployed efficiently, with minimal delays.

The push aligns with the PM Gati Shakti National Master Plan, which focuses on multimodal connectivity, decongesting key routes, and improving logistics efficiency.

This achievement shows that Indian Railways is not just talking about modernisation,it’s putting the money where the tracks are, aiming for safer, faster, and more comfortable travel for millions.