Budget 2026: Rail Safety Spending Seen Crossing ₹1.3 Trillion After Recent Accidents

The Centre is likely to consider its biggest-ever push on railway safety amid mounting accidents and growing scrutiny over rail operations. According to reports, budgetary allocations for rail safety could cross ₹1.3 trillion in FY27, marking a nearly 12% increase over the current year.

The proposed outlay is expected to be directed towards maintenance of rolling stock and critical infrastructure, including track renewals, as well as the expansion of India’s homegrown automatic train protection system, Kavach.

Indian Railways has faced sustained public backlash over casualties caused by accidents in recent years. One of the most fatal railway accidents this year was a collision near Bilaspur, where a MEMU passenger train overshot a red signal and rammed into a stationary goods train. The incident killed 11 people and injured more than 20.

The increased emphasis on safety marks a significant shift in capital allocation priorities, with safety-related spending expected to account for nearly half of the Railways’ total capital expenditure in FY27. Overall capital expenditure is projected to rise to around ₹2.76 trillion in FY27, compared with ₹2.52 trillion in the current year.

Railway Safety Draws Priority After Heightened Scrutiny

Indian Railways reported 31 accidents this year alone, including 10 “consequential” accidents in FY25 up to November, according to a Mint report. Between FY15 and FY24, a total of 678 accidents occurred, resulting in 748 fatalities.

Officials, however, point to improvements in operational safety indicators. Accident rates per million train kilometres declined to 0.03 in FY24 from 0.11 in FY15, reflecting a 73% improvement in safety metrics, according to official data.

Experts argue that funding constraints are not necessarily the key challenge, and that organisational discipline and execution play a larger role in improving safety outcomes.

“There is no shortage of funds for Indian Railways, whether for safety, renewal of tracks, new rolling stock or station development,” Mint reported, citing Shubhranshu, a railroad professional and former chief of the Rail Wheel Plant at Bela, who also led the design and production team for the Vande Bharat Express. “Most safety gains come from proper upkeep of existing systems, training, accountability and top-down motivation. These do not require excessive spending. Mere investments do not automatically deliver safety,” he said.

In FY26, the Railways allocated ₹22,800 crore for track renewals, ₹58,895 crore for rolling stock and maintenance, ₹8,601 crore for traffic facilities and ₹6,150 crore for electrification. According to reports, the increased focus on safety has also created opportunities for global collaborations, with firms such as Siemens and Alstom involved in signalling and safety system projects.