Indian Railways' Capex Surge and Modernization Plans for FY27
Key Ideas
  • Indian Railways is set to increase its capex by 15% in FY27 to over Rs 3 lakh crore, focusing on network infrastructure, rolling stock, safety, and station redevelopment.
  • Key investment areas include projects like bullet trains, hydrogen trains, and Hyperloop, with plans to expedite work on these initiatives from FY26 onwards.
  • Production of locomotives, wagons, and coaches is expected to grow significantly, with the railways aiming to enhance electronic interlocking at stations and implement automatic block signaling.
  • Passenger safety is a priority, with investments in projects like Kavach for automatic train protection systems and trackside works covering around 15,000 route km.
The Indian Railways is gearing up for a substantial increase in its capital expenditure by about 15% in FY27, reaching over Rs 3 lakh crore. This surge follows a flat capex allocation of Rs 2.62 lakh crore in FY26 due to political and fiscal constraints. The railways ministry aims to enhance consumption and reduce logistics costs by expanding the rail network and modernizing infrastructure. Key investment areas include network infrastructure, rolling stock, safety measures, and station redevelopment. The railways is also focusing on new projects like bullet trains, hydrogen trains, and Hyperloop, with plans to accelerate work on these initiatives starting from FY26. Production of locomotives, wagons, and coaches is expected to increase significantly in the upcoming years. Passenger safety remains a top priority, with investments in projects like Kavach for automatic train protection systems. Moreover, the railways ministry is advancing modernization efforts by inviting bids for trackside works covering 15,000 route km and equipping Kavach in 10,000 locomotives. Additionally, the Indian Railways has developed hydrogen trains, with plans to introduce 35 such trains under the project. These modernization initiatives signal a positive outlook for the future development and efficiency of the Indian Railways.
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