Rs 1.3tn fund for Indian Railways expected: Massive funding influx for Rail Safety & Infrastructure

New Delhi: The government is very serious in preventing train accidents and has made rail safety as one of the biggest priority. The government is considering allocation of a huge fund for Railway sector so that infrastructure could be developed and modernised which would help in preventing train accidents. Sources familiar with the matter told Mint that the proposed expenditure for security-related works could exceed Rs 1.3 trillion in FY 2027. On the condition of anonymity, a source said that this allocation of about 12 percent more than the current year's budget will be spent on renovation of rail tracks such as infra and maintenance of rail tracks as well as expansion of India's indigenous automatic train safety system Kavach.

Providing safety has become a priority for Indian Railways. This proposed increase will bring about a drastic change in capex, and nearly half of the total rail capex is likely to be spent on safety works in FY 2027. The total capex is expected to increase from Rs 2.52 trillion this year to about Rs 2.76 trillion. The rate of accidents has declined drastically in the last decade, but recent incidents have created a matter of concern about safety. The deadliest incident of this year was the collision near Bilaspur, where a MEMU passenger train crossed the red signal and collided with a parked freight train, killing 11 people and injuring more than 20 people.

Railways recorded 31 accidents in the financial year 2025 and 10 accidents in the current financial year till November. Such accidents include collisions, fires and derailments, which result in loss of life and property. Between FY 2015 and FY 2024, 748 people died in 678 accidents. Officials say that there has been a significant improvement in operational safety indicators. Accidents per million train kilometers declined from 0.11 in FY 2015 to 0.03 in FY 2024 — a growth of 73 percent.

To sustain this progress, the government has expanded the National Rail Safety Fund, under which more than Rs 1.08 trillion have already been spent on advancement of critical assets. Mint had reported on November 19, 2025 that Indian Railways is preparing to increase the capex next year. The security budget for FY 2026 is Rs 1.16 lakh crore, which is only a marginal increase of 2 percent from Rs 1.14 lakh crore in FY 2025. In FY 2024, the expenditure on security works was Rs 1.01 lakh crore, compared to Rs 87,327 crore in FY 2023.

Kavach is designated as India's National Automatic Train Safety System, which is designed to brake automatically, including poor visibility, in case the loco pilot does not respond. Till now, Kavach has been deployed on a 1,465 km route and 121 locomotives. Kavach 4.0 is being implemented on a 15,512 km route, but the total operational coverage is only slightly more than 2 percent of the rail network of about 67,000 km.

Some experts argue that funds alone will not ensure safe operations. Shubhranshu, a railway professional and former head of the rail wheel plant located at Bela, said Indian Railways has no shortage of funds for safety, renovation of tracks, new rail wheels or station development; who also led the design and production of Vande Bharat Express. More than Rs 1 trillion have already been allocated for armour, renovation of tracks, upgrades and new rail wheels in the coming few years.

He further said that organizational discipline plays a more important role than capital expenditure. Most improvements in safety are possible only with proper maintenance, training, accountability and high level of encouragement. It does not require huge funds. Investment alone does not guarantee safety. The expenditure on security related projects has increased drastically over time, which has increased from Rs 70,273 crore during the financial year 2005-2014 to Rs 1.78 lakh crore in FY 2015-2014, which means a 2.5 times increase. In the same period, track renovation expenses increased 2.33 times, from Rs 47,018 crore to Rs 1.09 lakh crore.