New Delhi, February 1, 2025 – The Union Minister for Railways, Ashwini Vaishnaw, has hailed the Union Budget 2025-26 as “amazing,” emphasizing the government’s continued focus on railway expansion, modernization, and safety. With a ₹2.52 lakh crore allocation for the railways—matching last year’s record budget—the sector is set to undergo a major transformation.
Major Railway Developments in Budget 2025
Expansion of Passenger Services
The budget has laid out an ambitious plan to revolutionize rail travel across India with the introduction of:
- 200 Vande Bharat trains
- 100 Amrit Bharat trains
- 50 Namo Bharat rapid rail services
- 17,500 general non-AC coaches
These additions, expected within the next 2-3 years, aim to improve intercity and suburban connectivity, offering passengers more modern and comfortable travel options.
Freight Growth & Infrastructure Investment
Indian Railways is on track to become the second-largest freight carrier in the world, targeting 1.6 billion tonnes of cargo movement by the end of FY 2025-26. To support this growth, the government has allocated ₹1.16 lakh crore specifically for safety and infrastructure development, ensuring efficient and secure rail operations.
High-Speed Rail & Electrification
- India aims to develop a 7,000 km high-speed rail network by 2047, with trains reaching speeds of 250 km/h.
- Indian Railways will achieve 100% electrification by the end of FY 2025-26, reducing carbon emissions and promoting sustainable travel.
- The introduction of Small Modular Reactors as a non-fossil energy source will further aid in electrification efforts.
Budget Breakdown & Additional Funding
- The government has retained last year’s record ₹2.52 lakh crore gross budgetary support, ensuring continued investment in infrastructure.
- An additional ₹10,000 crore will be raised from extra-budgetary resources, bringing the total capital expenditure (Capex) to ₹2.62 lakh crore.
- ₹200 crore has been allocated from the Nirbhaya Fund for enhanced passenger safety, particularly for women.
- ₹3,000 crore will be mobilized from Indian Railways’ internal resources to meet its modernization goals.
Strategic & Financial Commitments
- Reimbursement for losses on strategic railway lines has been increased to ₹2,739.18 crore from last year’s ₹2,602.81 crore.
- ₹706 crore has been allocated for debt servicing of national project borrowings.
- The net revenue expenditure of Indian Railways for FY 2025-26 has been set at ₹3,02,100 crore, up from ₹2,79,000 crore last year.
- The gross budgetary support for Railways is now 9 times higher than the ₹28,174 crore in 2013-14, showcasing the government’s long-term commitment to infrastructure growth.
Speaking to the media at Rail Bhawan after the Budget presentation, Union Minister Shri Ashwini Vaishnaw stated that the railway allocation not only supports economic growth and job creation but also provides a major relief for the middle class through improved travel infrastructure.
He reiterated the government’s ‘Viksit Bharat’ vision, highlighting how investments in high-speed rail, freight corridors, and railway electrification will shape the future of Indian Railways.
With this record-breaking investment, Indian Railways is set to become more efficient, safer, and sustainable, marking a new era of modern railway infrastructure in India.
The Impressive Times
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