Indian Railways Utilises 98% Capex as High-Speed Corridors to Compete with Domestic Airlines

Indian Railways has nearly exhausted its FY26 capital expenditure allocation while accelerating large-scale infrastructure expansion and high-speed connectivity projects aimed at transforming intercity travel across India, as per PTI report. 

Railways Achieved Near-Full Budget Utilisation in FY26 

Ashwini Vaishnaw, Union Minister for Railways, said Indian Railways utilised around 98% of its FY26 budget due to the rapid execution of projects across the country. 

According to Vaishnaw, most of the capital expenditure had already been deployed by the first week of March, while nearly the entire budget was effectively utilised by the last week of February itself. 

The minister highlighted the pace of railway infrastructure development, stating that around 49,000 kilometres of railway tracks have now been electrified across India. He noted that the electrified network is larger than the entire railway network of Germany. 

Indian Railways has also added approximately 36,000 kilometres of new tracks, which Vaishnaw compared to adding the equivalent of 6 Switzerlands to the country’s railway infrastructure. 

New Corridors to Sharply Cut Travel Time 

The government is developing multiple high-speed and rapid-connectivity corridors aimed at reducing travel duration between major cities. 

Vaishnaw said travel time between Mumbai and Pune could fall to just 28 minutes, while Pune to Hyderabad may be covered in 1 hour and 55 minutes. Hyderabad to Bengaluru travel time is expected to reduce to around 2 hours. 

The minister also stated that Bengaluru and Chennai would effectively function like a single integrated economic region once travel time between the 2 cities falls to 78 minutes. 

In northern India, the proposed connectivity upgrades could reduce Delhi to Varanasi travel time to 3 hours and 50 minutes, while Delhi to Lucknow may take close to 2 hours. 

Railways Expected to Challenge Domestic Aviation 

Vaishnaw said the upcoming rail corridors are expected to significantly alter travel preferences, with passengers likely to choose trains over flights on several domestic routes. 

According to the minister, railways are expected to dominate many of these sectors because of the combination of reduced travel time, improved connectivity and convenience. 

The expansion reflects the government’s broader strategy of strengthening high-speed rail infrastructure and positioning Indian Railways as a major force in future intercity transportation. 

Read More: Best Railway Stocks in India for May 2026: BEML, Texmaco Rail, Dhara Rail, and More Based on Net Profit Margin! 

Conclusion 

Indian Railways is rapidly expanding its infrastructure network and high-speed connectivity projects as the government pushes to reshape domestic travel patterns through faster, electrified and large-scale rail corridors across India. 

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