Budget 2026: FM Sitharaman proposes 7 high-speed rail corridors, new Dankuni–Surat freight corridor

Finance Minister Nirmala Sitharaman on Saturday proposed developing seven high-speed corridors between major cities as growth connectors and announced a new dedicated freight corridor from Dankuni in the east to Surat in the west to promote environmentally sustainable movement of cargo.

Presenting the Union Budget 2025-26, Sitharaman said the proposed east–west freight corridor would help decongest existing rail networks and lower logistics costs while enabling greener cargo transportation.

In the Budget 2025, Indian Railways received an overall allocation of ₹2.65 lakh crore, the same as the previous year. Of this, ₹2.52 lakh crore was earmarked for capital expenditure, which included investments through Public-Private Partnerships (PPP).

The allocation for passenger amenities declined to ₹12,118.39 crore from ₹15,510 crore in FY 2024‑25. These funds were used for improving station facilities, waiting areas, ticketing counters, toilets, water supply, seating, lighting, fans, and signage.

The Budget 2025 also proposed launching 200 Vande Bharat trains (sleeper and chair car) along with 100 Amrit Bharat trains (non-AC).

Fifty NAMO Bharat trains were announced for short city routes at 130 kmph, and 17,500 general coaches were declared to meet growing passenger demand.

New projects included track doubling, quadrupling, flyovers, underpasses, workshops, plant machinery and station redevelopment, with a projected life-cycle investment of ₹4.6 lakh crore.

In Budget 2025, allocation for the Dedicated Freight Corridor Corporation of India stood at ₹500 crore. The government also continued support for the indigenous ‘bullet train’ project, targeting speeds of 280 kmph in collaboration with BEML, NHSRCL and Japan, with an allocation of ₹19,000 crore.