Indian Railways announced an investment of over ₹1.53 lakh crore for 2025-26 to expand more than 6,000 kilometres of railway network under the PM Gati Shakti National Master Plan. The Ministry of Railways sanctioned 100 projects involving new lines, doubling, multitracking, and other works in 2025-26. This expansion represents a 110% increase in route coverage compared to the previous financial year.
Project Sanctions and Financial Outlay
In 2024-25, 64 projects worth nearly ₹73,000 crore were approved, covering over 2,800 kilometres. For 2025-26, project approvals increased by 56%, with a 114% rise in route coverage. The total sanctioned projects for 2025-26 are valued at more than ₹1.53 lakh crore.
Scope and Objectives of Projects
The 100 projects include new railway lines, doubling of existing lines, and multitracking. The focus is on decongesting saturated routes, improving punctuality, enhancing passenger experience, and expanding connectivity to underserved areas. The projects aim to support inclusive growth and national integration.
Geographical Coverage
The expansion spans nearly all major states, including Maharashtra, Bihar, Jharkhand, and Madhya Pradesh. The projects ensure balanced development across regions and improve last-mile connectivity.
Operational and Strategic Goals
The sanctioned projects target easing route congestion and enhancing operational efficiency. The plan seeks to improve service quality and accessibility for passengers, contributing to a more integrated railway network.
What to Study for UPSC Exams?
- PM Gati Shakti National Master Plan
- Railway Infrastructure Financing
- Regional Connectivity Schemes
- Transport Sector Reforms
PM Gati Shakti National Master Plan
Launched in 2021, it integrates 16 ministries to coordinate infrastructure projects for holistic development. The plan uses GIS-based digital mapping for real-time project monitoring. It aims to reduce logistics costs from 14% to 8% of GDP by 2030.
Railway Infrastructure Financing
Indian Railways uses a mix of budgetary support, market borrowings, and multilateral loans for funding. The Railways Infrastructure Development Fund (RIDF) channels bank loans for modernization. Public-Private Partnerships (PPP) have been increasingly adopted since the 2000s.
Regional Connectivity Schemes
Schemes like UDAN (Ude Desh ka Aam Naagrik) focus on enhancing air and rail connectivity to tier-2 and tier-3 cities. These schemes subsidize routes to improve accessibility and boost regional economies. They often target underserved or remote areas.
Transport Sector Reforms
Reforms include corporatization, deregulation, and digitalization to improve efficiency. The introduction of GST unified interstate transport taxation. Emphasis on multimodal logistics parks supports seamless cargo movement across modes.
Last Modified: April 12, 2026