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Indian Railways to Achieve 100% Electrification by FY26; ₹1.04 Lakh Crore Investment Underway

Written by: Team Angel OneUpdated on: Feb 27, 2025, 2:14 PM IST
Indian Railways aims for full electrification by FY26, progressing towards net-zero emissions by 2030 with ₹1.04 lakh crore investments.
Indian Railways to Achieve 100% Electrification by FY26; ₹1.04 Lakh Crore Investment Underway
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The Indian Railways is set to achieve 100% electrification by the financial year 2026 (FY26), reinforcing its commitment to sustainability. Union Minister of Railways, Mr Ashwini Vaishnaw, made this announcement at the Madhya Pradesh Global Investors Summit (GIS) 2025. He confirmed that over 97% of the electrification has already been completed, with the remaining work scheduled for completion within the next fiscal year.

This milestone is part of the government’s broader objective to make the Indian Railways a net-zero carbon emitter by 2030. The initiative is a key step towards reducing dependence on fossil fuels and integrating renewable energy into railway operations.

Railways Expanding Renewable Energy Portfolio

As part of its sustainability drive, Indian Railways is significantly investing in renewable energy. The minister revealed that the railway network has secured a renewable energy capacity of 1,500 MW (1.5 GW). The latest addition to this portfolio is a 170 MW power purchase agreement signed with Madhya Pradesh.

This agreement involves collaboration between the Indian Railways, Waree Energies, and Rewa Ultra Mega Solar Ltd (RUMSL). Mr Vaishnaw assured that Railways is prepared to procure all stable renewable energy supplies from Madhya Pradesh and expressed interest in wind and nuclear power projects if the state develops such initiatives. Furthermore, he indicated a willingness to sign similar agreements with other states to enhance energy sustainability.

Record ₹14,745 Crore Railway Budget for Madhya Pradesh

Highlighting the government’s commitment to infrastructure development, Mr Vaishnaw announced that Madhya Pradesh has received a record railway budget of ₹14,745 crore (US$1.70 billion) for FY26. This substantial allocation marks a significant increase in railway funding and development initiatives in the state.

Before 2014, the annual railway line construction in Madhya Pradesh was limited to 29.3 km. However, in recent years, this figure has surged to 223 km per year—an impressive 7.5-fold increase. The funding for railway projects has also expanded 23 times, enabling faster and more extensive railway network expansion.

₹1.04 Lakh Crore Investment in Railway Projects

The Union Minister provided an update on ongoing and newly sanctioned railway projects in Madhya Pradesh. He revealed that railway projects worth ₹1,04,000 crore (US$12 billion) are currently underway in the state. These investments encompass track expansion, electrification, and modernisation efforts aimed at improving efficiency, reducing transit times, and boosting overall railway connectivity.

Conclusion

With these initiatives, Indian Railways is progressing towards a more sustainable and energy-efficient future, aligning with the nation’s broader environmental and economic goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 27, 2025, 2:14 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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