The Lok Sabha on Tuesday (March 17, 2026) passed the Demands for Grants for the Railways for 2026–27, concluding a two-day debate that saw participation from over 210 Members of Parliament.

Accordingly, MPs demanded the introduction of Vande Bharat train services to stations in their constituencies, the reinstatement of trains suspended during the COVID period, and the restoration of concessions for elderly passengers and other categories.

Minister outlines 10-point response

Replying to the discussion, Vaishnaw presented a comprehensive 10-point response covering railway infrastructure, passenger services, safety systems, and employment generation.

Budget merger boosts funding

The Minister said the merger of the railway budget with the general budget has significantly strengthened the sector’s financial position.

Earlier, annual allocations for railway projects were around ₹24,000–25,000 crore and occasionally reached about ₹30,000 crore, whereas funding has now increased to around ₹2,72,000 crore.

The arrangement has also enabled decisions such as sanctioning new projects, introducing trains, approving stoppages, and adopting technology to be taken throughout the year instead of being restricted to the annual railway budget.

He added that the railways have received a record budget allocation of Rs 2,78,000 crore for the financial year 2026–27, which is expected to support development across States.

Financial health and expenditure trends

The Minister said the railways’ financial health has improved over the past decade.

On the expenditure front, he revealed that staff costs remain the largest at around ₹1,19,000 crore, followed by energy costs of about ₹32,000 crore, financing costs of around ₹23,000 crore, and pension liabilities of nearly ₹64,000 crore.

He said electrification and the shift from diesel to electricity have helped save around ₹6,000 crore, and despite these expenditures, the railways currently maintain a modest surplus while continuing to focus on safety, passenger amenities and improving facilities for travellers.

Major infrastructure projects gather pace

On infrastructure development, the minister said that the Eastern Dedicated Freight Corridor has now been completed.

He noted that prior to 2014, the project had not progressed, while currently, 2,800 km of the freight corridor has been completed, and about 480 trains operate on it daily.

Besides, he mentioned progress on the Ahmedabad–Mumbai bullet train project, noting that more than 350 km of work has been completed.

Apart from this, the minister said that station redevelopment remains a key focus area.

Vaishnaw noted that 180 stations have already been completed, while nearly 500 are at advanced stages of construction.

Focus on safety, technology and speed upgrades

On safety and technology deployment, the Minister said 3,000 km of railway tracks have been equipped with the Kavach safety system, and work is underway to extend it across 20,000 km.

Approximately 80 per cent of railway tracks have already been upgraded to a speed potential of 110 kmph.

Expansion in services and capacity

Furthermore, capacity expansion in freight and passenger operations has continued. As per the Minister, 128 cargo terminals have been commissioned across the country.

Additionally, 162 Vande Bharat services have been introduced and have been widely accepted by middle-class families.

In addition, 60 Amrit Bharat train services have been introduced, which Vaishnaw described as services designed for poorer passengers.

According to Vaishnaw, the railway network has expanded to 137,522 km and continues to grow annually. Infrastructure expansion includes the construction of 756 mega bridges and 13,815 major bridges.

Rolling stock capacity has also increased. The number of wagons, which earlier stood at 3,46,000, has now risen to a record 3,86,000. Passenger capacity has also expanded, with 98,000 coaches currently part of the railway network.

Currently, 25,571 trains are running daily across the country.

Improved travel experience during peak seasons

Vaishnaw noted that these improvements have enabled smoother travel during peak festival seasons such as Holi, Diwali and Chhath.

He pointed out that the railway system primarily serves poor and middle-class passengers. General coaches account for about 70 per cent of the total number of coaches in the railway network.

The capacity expansion, he said, has included the addition of 1,250 general coaches in 2024–25 and another 860 in the current financial year, 2025–26.

Affordable travel and subsidies continue

The Minister highlighted the Amrit Bharat train service, stating that it offers modern facilities similar to Vande Bharat trains but at a lower cost. A journey of more than 1,000 km costs about Rs 450.

Moreover, rail travel continues to be subsidised to maintain affordability, Vaishnaw said.

The government, he said, provides about ₹60,000 crore annually in passenger subsidies, translating into roughly a 45 per cent concession on ticket costs.

Published on March 17, 2026