Updated 04:22 IST, February 2nd 2025
Railway Budget 2025-26: Record Allocation For Growth And Efficiency
Finance Minister Nirmala Sitharaman has announced a monumental outlay of Rs 2,52,200 crore in the latest budget for the Indian Railways.

New Delhi: In the Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman in the Parliament on Saturday, the Union government has made a big move to accelerate the growth and efficiency of the Indian Railways. The finance minister has announced a monumental outlay of Rs 2,52,200 crore in the latest budget for the Indian Railways. This substantial allocation is expected to transform the railways, with a focus on capital expenditure (Capex) to drive growth.
In the budget for the railways, the main focus was the allocation of Rs 32,000 crore for the doubling of rail lines. The allocation of this investment is expected to enhance the railways' infrastructure, reducing congestion and increasing efficiency.
The budget also extends support to domestic MROs for railway goods, allowing them to benefit from the import of repair items, similar to the aircraft and ships MROs. The time limit for the export of such items has been extended from 6 months to one year, with the option to further extend it by another year.
Union Railway Minister Ashwini Vaishnaw welcomed the allocation, stating that the economy is on a strong footing and the budget continues the government's focus on inclusive growth.
200 Vande Bharat, 100 Amrit Bharat Trains Approved
Union Minister Vaishnaw said the Budget 2025-26 maintained the government's continuous push to improve Railways by allocating Rs 2.52 lakh crore to it and approving projects such as manufacturing 17,500 general coaches, 200 Vande Bharat and 100 Amrit Bharat trains, among others.
"New projects worth Rs 4.6 lakh crore have been included in the budget which will be completed in four to five years. These are related to laying of new lines, doubling, quadrupling, new constructions, station redevelopment, flyover, under-passes among many others," the Railway minister told reporters at Rail Bhawan here.
He added that 100 Amrit Bharat, 50 Namo Bharat and 200 Vande Bharat, both sleepers as well as chair car variants, will be manufactured in the next two to three years. "With new Amrit Bharat trains, we will connect many more short-distance cities." Regarding general coaches, Vaishnaw said 17,500 such coaches have been approved for manufacturing in the coming years.
17,500 Non-AC Coaches To Be Manufactured
Meanwhile, the Indian Railways has announced plans to manufacture 17,500 Non-AC General and Sleeper Coaches to accommodate the growing demand for affordable travel. This initiative, part of the broader Rail Budget 2025, aims to improve the travel experience for low-income passengers while addressing the increasing pressure on railway infrastructure.
Railway Minister Ashwini Vaishnaw had earlier emphasised a balanced approach to train production, ensuring that both economically weaker sections and premium travellers benefit. He reiterated that Indian Railways would maintain a 2:3 ratio for non-AC coaches and 1:3 for AC coaches. Additionally, the national transporter has initiated a special manufacturing program to increase the availability of general coaches across the country.
The Indian Railways has also ramped up the production of Amrit Bharat trains, a new generation of non-AC train sets developed by the Integral Coach Factory (ICF) in Chennai. The government has committed to manufacturing 100 such trainsets to provide affordable, comfortable, and modern travel experiences.
As part of its continued focus on passenger safety, Indian Railways has planned a complete transition from ICF coaches to LHB (Linke-Hofmann-Busch) coaches over the next five years.
Railway Budget 2025-26: Key Highlights
The Railway Budget for 2025-26 has been announced, with a vast increase in allocations for capital expenditure, revenue expenditure, and debt servicing.
Revenue Expenditure
The net revenue expenditure of Railways has been placed at Rs 3,02,100 crore in Budget Estimate 2025-26, a substantial increase from Rs 2,79,000 crore in Revised Estimate 2024-25. The newly allocated revenue expenditure will cover various expenses, including reimbursement of losses on the operation of strategic lines, which has been kept at Rs 2739.18 crore.
Capital Expenditure
The total outlay provided for Capital Expenditure in Budget Estimate 2025-26 is Rs 2,65,200 crore, comprising:
- Rs 2,52,000 crore from General Revenues
- Rs 200 crore from Nirbhaya Fund
- Rs 3000 crore from Internal Resource
- Rs 10,000 crore from Extra Budgetary Resources
The officials stated that allocation will be utilised for expenditure on assets, acquisition, construction, and replacement.
Debt Servicing
An amount of Rs 706 crore has been provided in Budget Estimate 2025-26 towards debt servicing of market borrowings for National Projects.
Repayment of Covid-Related Loans
The Railway Ministry will also repay interest on loans extended as 'Special Loan for Covid related Resource Gap' during Financial Year 2020-21.
The total receipts of Railways, comprising revenues from passenger, goods, other coaching, sundry other heads, and Railway Recruitment Boards, have been placed at Rs 3,02,100 crore in Budget Estimate 2025-26, as against Rs 2,79,000 crore in Revised Estimate 2024-25.
Published 19:09 IST, February 1st 2025