Indian Railways Achieves Record 56.5% Capex Utilisation in H1 FY26
Highest among all government departments; strong focus on safety, capacity, and rolling stock
Dr. Kumar Rakesh
Indian Railways has achieved its highest-ever capital expenditure (Capex) utilisation till date, with 56.5% of its annual allocation already spent by the end of September 2025 in the ongoing financial year 2025–26.
According to official data, the Railways has utilised ₹1,42,487 crore out of the ₹2,52,200 crore budgetary allocation for the fiscal year, marking a remarkable pace in infrastructure execution. This level of utilisation stands well above the all-department average of 38.5%, recorded till August 31, 2025, underscoring the Railways’ leading role in driving public capital formation.
Strong Momentum in Key Infrastructure Sectors
The data indicates that the Railways has made substantial progress across multiple core sectors including safety works, capacity augmentation, customer amenities, and rolling stock.
Under safety works, which encompass KAVACH (an indigenous train collision avoidance system), track renewals, construction of Road Over Bridges, bridges, and level crossings, the Railways has utilised ₹22,286 crore out of the ₹39,456 crore allocated—reflecting a 56% utilisation rate. This underlines the continuing emphasis on passenger and operational safety.
In capacity augmentation, which includes new line construction, doubling, gauge conversion, electrification, and metropolitan transport projects, the Railways has recorded ₹49,001 crore expenditure out of ₹1,09,986 crore—representing 45% utilisation. These works are crucial to decongest key routes, enhance freight movement, and improve passenger connectivity.
For customer amenities, aimed at improving passenger comfort and station facilities, ₹5,863 crore has been spent out of ₹12,004 crore allocated, registering 49% utilisation. Meanwhile, under rolling stock, which covers the procurement and upgradation of locomotives, coaches, and wagons, the Railways has achieved 46% utilisation—with ₹25,948 crore spent from a ₹56,693 crore outlay.
Driving India’s Infrastructure Push
The record utilisation reflects the Railways’ focus on accelerating infrastructure creation, supporting India’s broader growth and employment objectives. Analysts say the trend positions the Railways as a major driver of capital expenditure under the Union Government’s infrastructure-led growth strategy.
With nearly ₹1.42 lakh crore spent within six months, the Railways has not only surpassed its previous benchmarks but also reaffirmed its role as a catalyst for economic expansion through sustained public investment.
