India to Prioritise Railway Modernisation in 2025/26 Budget

21 Jan 2025 CW Team

The Indian government is set to significantly increase funding for railway modernisation in the upcoming federal budget while making a modest rise in road infrastructure allocations, according to two government sources.

Prime Minister Narendra Modi’s administration, which has prioritised infrastructure spending to boost economic growth post-pandemic, is now shifting focus to railways due to challenges in road project execution. Finance Minister Nirmala Sitharaman will unveil the 2025/26 budget on February 1.

The railways ministry is expected to receive a budget allocation of Rs 2.9 trillion to Rs 3 trillion, up from Rs 2.55 trillion in the current fiscal year. This increase will support the expansion of Indian Railways' 68,000 km network, the production of 400 high-speed Vande Bharat trains by March 2027, and improvements in rail freight infrastructure.

Meanwhile, the road transport ministry anticipates a 3-4% budget increase, reaching approximately Rs 2.9 trillion. Despite a six-fold rise in road infrastructure spending over the past decade and a 60% expansion of the national road network to 146,000 km, the ministry faces constraints due to land acquisition challenges and spending limits.

Policymakers have raised concerns over the road transport ministry's slower spending pace, with only 54% of its full-year budget utilised by November 2024, compared to 76% by the railways ministry. Delays caused by national and state elections have also impacted road project execution. The ministry is now focusing on raising funds through internal resources to address these challenges.

(ET)

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..