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August 5, 2026 5:09 PM IST

Railways utilises ₹1.14 lakh crore, 39% of FY27 Budget allocation till July

Indian Railways has utilised more than ₹1.14 lakh crore, nearly 39 per cent of its Budget allocation of ₹2.93 lakh crore for 2026-27, till July this year, while continuing to expand investments in safety, infrastructure and capacity enhancement, the government informed Parliament on Wednesday.

According to the Ministry of Railways, expenditure of ₹1,14,973 crore had been incurred by July against the total Budget grant of ₹2,93,030 crore for the current financial year.

Safety expenditure on the rise

The Ministry said safety remains the highest priority for Indian Railways, with expenditure on safety-related activities increasing steadily over the years. The allocation has risen from ₹39,200 crore in 2013-14 to ₹1,20,389 crore in 2026-27, contributing to a significant decline in railway accidents.

Kavach deployment gathers pace

The indigenously developed Automatic Train Protection (ATP) system, Kavach, has now been commissioned on 2,633 route kilometres across the country’s busiest railway corridors.

Of the total network, 1,423 route kilometres have been covered on the Delhi-Mumbai route and 1,210 route kilometres on the Delhi-Howrah route.

The Ministry said Kavach Version 4.0, approved in July 2024, incorporates improved location accuracy, better signalling interfaces and enhanced communication capabilities for large-scale deployment across the railway network.

Trackside implementation work has also been taken up on 21,794 route kilometres, while 11,547 km of optical fibre cable, 1,721 telecom towers, 1,009 station data centres, and 7,726 route kilometres of trackside equipment have already been installed. Kavach has also been fitted on 6,290 locomotives, with installation underway on another 7,190 locomotives and 1,200 EMU/MEMU rakes.

The Ministry informed that ₹3,875 crore had been utilised on Kavach-related works up to June 2026, while ₹2,066 crore has been allocated for the project during 2026-27.

Faster trains through track modernisation

Indian Railways said continuous investment in track upgradation, signalling systems, overhead electrification, modern coaches and high-powered locomotives has significantly enhanced speed potential across the network.

The proportion of railway tracks capable of supporting speeds of 110 kmph and above has increased from about 40 per cent in 2014 to around 81 per cent in 2026. The Ministry also said work is underway under Mission Raftaar to increase speeds up to 160 kmph on the New Delhi-Mumbai and New Delhi-Howrah corridors.

Capacity expansion

The government said railway capacity enhancement has accelerated over the past decade.

Between 2014 and 2026, Indian Railways commissioned 36,429 km of new track, averaging 8.32 km per day, nearly double the average of 4.2 km per day achieved during 2009-14.

As of April 1, 2026, 514 railway infrastructure projects, comprising new lines, gauge conversion and doubling works covering about 40,000 km, have been sanctioned at an estimated cost of ₹8.31 lakh crore. Of these, 12,583 km have already been commissioned.

Focus on workforce development

The Ministry said capacity building remains an integral part of railway operations, with approximately six lakh railway employees undergoing training every year through Centralised Training Institutes, Zonal and Divisional Training Institutes, specialised training centres and Gati Shakti Vishwavidyalaya.

Training programmes cover railway operations, freight logistics, digital technologies, safety, multimodal transportation and customer service, with regular updates to incorporate emerging technologies and evolving operational requirements.

The government said Gati Shakti Vishwavidyalaya also conducts specialised programmes for public sector organisations and logistics stakeholders to strengthen leadership, logistics management and modern transportation systems.

The information was provided by Union Minister for Railways, Information and Broadcasting, and Electronics and Information Technology Ashwini Vaishnaw in a written reply in the Lok Sabha.

Last updated on: 5th August 2026

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