Indian Railways Boosts Capex, Spends Over ₹2 Lakh Crore by Q3 FY26

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AuthorRiya Kapoor|Published at:
Indian Railways Boosts Capex, Spends Over ₹2 Lakh Crore by Q3 FY26
Overview

Indian Railways has utilized 80.54% of its allocated Gross Budgetary Support, totaling ₹2,03,138 crore by the end of Q3 FY26. Spending is concentrated on safety, capacity expansion, and passenger amenities. This sustained capital expenditure fuels modernization efforts like Vande Bharat trains and the Kavach system, positioning the sector for continued growth and improved services.

Railways Accelerates Capital Expenditure

Indian Railways has significantly advanced its capital expenditure plan, utilizing over 80% of its allocated funds by the close of the third quarter of the fiscal year 2026. As of December 2025, the entity spent ₹2,03,138 crore out of a total Gross Budgetary Support (GBS) of ₹2,52,200 crore. This represents a robust 80.54% utilization rate.

Focused Spending Drives Modernization

The utilization figure marks a notable 6.54% increase compared to the same period in the previous year. Funds have been strategically deployed across critical areas, with safety initiatives receiving 84% of their earmarked budget. Capacity expansion projects have seen ₹76,048 crore utilized, amounting to 69% of the allocated ₹1,09,238 crore. Customer-facing improvements also saw strong commitment, with ₹9,575 crore spent on amenities, reflecting 80% utilization.

Visible Infrastructure Gains

This sustained capital investment over the past decade is evident in the widespread rollout of 164 Vande Bharat train services and 30 Amrit Bharat services. The deployment of the Kavach automatic train protection system and near-complete electrification of the broad-gauge network are also key outcomes. Extensive new lines, track doubling, and metropolitan transport projects further underscore the modernization drive, enhancing speed, safety, and passenger comfort while maintaining affordability.

FY26 Targets on Track

The Ministry of Railways' expenditure plan for FY25-26 appears well-positioned to meet its targets, with infrastructure projects progressing steadily. This follows a trend from FY24, where the ministry exceeded its capital expenditure goal, spending ₹2.42 lakh crore against a target of ₹2.40 lakh crore. The total capital expenditure incurred by the Ministry of Railways over the years now stands at a substantial ₹9,13,439 crore.

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