Indian Railways Utilises 98% of Capex by February End; New High-Speed Corridors to Redefine Intercity Travel

Accelerated infrastructure development and electrification set to enhance rail dominance over air travel on key routes

In a significant milestone reflecting the rapid pace of infrastructure development, Indian Railways achieved utilisation of 98% of its capital expenditure (capex) allocation for the financial year 2025-26 by the end of February. This accelerated execution underscores the Ministry of Railways’ commitment to modernising and expanding the nation’s rail network, with transformative implications for intercity connectivity and modal competition with air transport.

Union Minister of Railways, Ashwini Vaishnaw, highlighted the scale and speed of ongoing projects, emphasizing that the substantial capex deployment well before the fiscal year-end demonstrates operational efficiency and robust project management. The near-complete utilisation of the budget by late February necessitated a temporary slowdown to ensure compliance with fiscal timelines, further illustrating the unprecedented momentum in railway infrastructure development.

Central to this expansion is the extensive electrification drive and track augmentation. Indian Railways has electrified approximately 49,000 kilometres of railway lines, surpassing the entire electrified network length of Germany. Additionally, the network has been expanded by 36,000 kilometres of new track, a length comparable to six times the railway network of Switzerland. These enhancements not only increase capacity but also contribute to sustainability goals by reducing dependence on fossil fuels.

Beyond quantitative growth, the projects are poised to deliver qualitative improvements in travel experience and time efficiency. The Ministry is prioritising the development of new high-speed corridors that will significantly reduce journey durations between major urban centres, thereby reshaping travel preferences and regional connectivity.

Key corridors under development include:

• Mumbai to Pune: Travel time is expected to be curtailed to approximately 28 minutes, a drastic reduction from current durations.
• Pune to Hyderabad: Projected travel time will be around 1 hour and 55 minutes.
• Hyderabad to Bengaluru: Estimated journey time is approximately 2 hours.
• Bengaluru to Chennai: The corridor will effectively integrate the two cities with a travel time of just 78 minutes, fostering greater economic and social integration.
• Delhi to Varanasi: Travel time will be reduced to under 4 hours (3 hours 50 minutes), enhancing connectivity to this culturally significant region.
• Delhi to Lucknow: Journey duration will be shortened to about 2 hours.

These reductions in travel time position rail as the preferred mode of transport on these routes, challenging the dominance of air travel. Minister Vaishnaw pointed out that the enhanced speed and convenience of rail services will render flights on these corridors largely redundant, with railways expected to command over 99% of passenger traffic. This shift is anticipated to have broad implications for the aviation sector, particularly for airlines operating short-haul routes between these cities.

The strategic focus on rail infrastructure aligns with the government’s broader vision to promote sustainable and inclusive mobility. By offering faster, more reliable, and environmentally friendly alternatives, Indian Railways is set to play a pivotal role in reducing carbon emissions and easing congestion in airspace and urban transport networks.

Moreover, the integration of these corridors is expected to stimulate regional economic development by facilitating the movement of people and goods, enhancing trade linkages, and supporting urbanisation. The reduction in travel times will also contribute to greater labour mobility and tourism growth, thereby generating multiplier effects across multiple sectors.

Indian Railways’ accelerated capex utilisation and the ambitious corridor projects underscore a transformative phase in the nation’s transport infrastructure. As these initiatives progress, the railway network is poised to emerge as the backbone of intercity travel, delivering enhanced connectivity, sustainability, and economic vitality.