Indian Railways Achieves Record 56.5% Capex Utilization in H1 FY26

Indian Railways (IR) has set a new benchmark in infrastructure investment by utilizing ₹1.42 lakh crore, or 56.5% of its ₹2.52 lakh crore capital expenditure (capex) budget for FY26, during the April-September period, according to data from the Ministry of Railways. This accelerated spending reflects IR’s commitment to modernizing India’s rail network to support economic growth.

Key Investment Areas

Network Expansion and Efficiency

IR allocated ₹49,001 crore, or 45% of the ₹1.1 lakh crore budgeted for capacity augmentation, to bolster freight and passenger services. Key initiatives included:

• Construction of new railway lines
• Doubling of existing tracks
• Gauge conversion
• Electrification projects
• Metropolitan transport infrastructure

These efforts aim to enhance network reach and operational efficiency.

Safety Enhancements

Safety remains a priority, with ₹22,286 crore (56% of the ₹39,456 crore annual target) invested in critical measures, such as:

• Implementation of KAVACH (Train Collision Avoidance System)
• Track renewals
• Construction of Road Over Bridges (ROBs) and other bridges
• Upgrades to level crossings

These initiatives underscore IR’s focus on ensuring passenger and operational safety.

Fleet Modernization

IR spent ₹25,948 crore, or 46% of its annual target, on rolling stock upgrades. This investment facilitated the addition of modern locomotives, coaches, and wagons to improve service quality and reliability.

Passenger Amenities

To enhance the user experience, IR invested ₹5,863 crore in station upgrades and improved facilities, prioritizing customer comfort and convenience.

IR’s Role in India’s Public Capex

IR’s robust capex performance aligns with accelerated spending by other sectors like highways and defense, contributing to an estimated 50% capex utilization across government departments in H1 FY26. Central public sector enterprises (CPSEs), including IR and the National Highways Authority of India (NHAI), achieved 35% of their combined annual capex target from April to August.

State government capex saw a 14% year-on-year increase in the first five months of FY26, despite a slowdown during the monsoon-heavy months of July and August.

Economic Impact

Public capex, driven by the Centre, states, and CPSEs like IR, plays a critical role in India’s gross fixed capital formation, particularly in the absence of significant private investment. IR’s strategic investments in infrastructure, safety, and modernization are pivotal to strengthening rail connectivity and supporting India’s broader economic objectives.

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Frequently Asked Questions Indian Railways’ H1 FY26 Capex Achievement