Indian Railways has achieved a historic milestone by utilising 56.5% of its capital expenditure (Capex) by September 2025 — its highest-ever mid-year Capex utilisation. This marks a major leap in the government’s infrastructure momentum, reflecting the railways’ efficiency in project execution and fund deployment ahead of schedule.
In the first half of FY2025–26, Indian Railways has used more than half of its annual Capex allocation, a feat that surpasses previous years by a clear margin. With this performance, the railways have not only demonstrated improved financial management but also accelerated their modernization and expansion projects.
Key areas absorbing major Capex include:
Network expansion and new lines to enhance connectivity and freight efficiency.
Track doubling and electrification for capacity and energy efficiency improvements.
Station redevelopment projects under the Amrit Bharat and Vande Bharat initiatives.
Rolling stock upgrades, including advanced locomotives and freight wagons to boost operational reliability.
The early and effective utilisation indicates faster tendering, timely project clearances, and better coordination between ministries, funding agencies, and contractors.
Several factors have propelled this record-breaking utilisation:
Robust government support through higher budget allocations aimed at promoting transport infrastructure as a growth catalyst.
Digital project monitoring tools improving transparency and accountability in fund deployment.
Momentum in Vande Bharat and Gati Shakti corridors, which are scaling up passenger convenience and freight logistics efficiency.
Focus on Make in India for rail production units and domestic procurement to reduce import dependence.
These steps have ensured that funds are channelled into productivity-enhancing projects across India rather than lying idle in bureaucratic delays.
The sharp rise in Capex utilisation reflects the Centre’s larger vision of an infrastructure-led economic revival. For the stock market, this achievement may act as a bullish signal for sectors linked to railways such as:
Capital goods (e.g., BHEL, Siemens, Cummins India)
Infrastructure and construction (e.g., IRCON, RVNL, RITES, L&T)
Steel, cement, and engineering firms supplying to large rail projects
Improved project execution also builds investor confidence in public-sector efficiency and long-term policy consistency in infrastructure development.
With the government committed to sustained Capex spending, Indian Railways is on track to exceed its annual capital budget targets by FY2026-end. As projects like semi-high-speed corridors, freight terminals, and new stations near completion, railways are poised to play a central role in India’s push toward a $5 trillion economy.
This record 56.5% mid-year Capex utilisation sets a new benchmark for public sector performance — not just for the Railways but for all infrastructure ministries moving forward.
source economictimes
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