New Delhi, Feb 2 (KNN) Indian Railways has been allocated a record capital expenditure of Rs 2.93 lakh crore in the Union Budget 2026–27, the highest-ever outlay for the national transporter.
The allocation underscores the government’s continued focus on infrastructure expansion, capacity enhancement, and positioning railways as a key driver of economic growth and logistics efficiency.
The sustained investment push aims to improve passenger connectivity, decongest high-density corridors, strengthen freight movement, and reduce logistics costs across the economy.
Seven High-Speed Rail Corridors Approved as ‘Growth Connectors’
As part of its long-term mobility strategy, the government has announced seven new high-speed rail corridors connecting major urban and economic centres.
These include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri.
Together, the corridors span nearly 4,000 kilometres and are expected to attract investments of around Rs 16 lakh crore. According to Railway Minister Ashwini Vaishnaw, the corridors are designed to significantly reduce travel times while promoting environmentally sustainable passenger transport.
South High-Speed Network to Drive Regional Growth
In southern India, the Chennai–Bengaluru–Hyderabad network will form a South High-Speed Triangle or Diamond, linking major IT and industrial hubs.
Travel times are expected to reduce sharply, with Chennai–Bengaluru at about 1 hour 13 minutes, Bengaluru–Hyderabad around 2 hours, and Chennai–Hyderabad approximately 2 hours 55 minutes.
The network is expected to benefit Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Puducherry by improving regional integration and economic activity.
New Dedicated Freight Corridor Announced
To strengthen freight movement, the Budget proposes a new 2,052-km Dedicated Freight Corridor (DFC) between Dankuni in West Bengal and Surat in Gujarat, passing through Odisha, Chhattisgarh, Madhya Pradesh and Maharashtra.
The corridor will integrate with the Western DFC and enhance connectivity to west coast ports. The Railway Minister noted that existing Eastern and Western DFCs are operating near capacity, handling around 400 freight trains daily, making additional corridors essential to meet future demand.
Railways Positioned as Backbone of Growth
The record capital allocation reinforces Indian Railways’ role as a backbone of national development. With expanded high-speed connectivity and enhanced freight capacity, the government aims to strengthen rail-based logistics, regional connectivity and economic.
(KNN Bureau)
