10% Rise in Capex Allocation Likely for Roads, Railways in FY26

Big private investment is likely in BOT roads; railways to continue work on existing projects

- Subhash Narayan

The Centre proposes to keep its focus on rapid infrastructure growth in the next financial year, with plans to push capex allocation for the ministries of road transport and highways, and railways in the upcoming budget by up to 10%, two persons aware of the development said.

The proposed modest increase comes against the backdrop of the government targeting a big increase in private investments into the highway sector in projects being awarded under the build-operate-transfer (BOT) toll model.

Also, the railways will continue implementing existing projects with a focus on capacity augmentation and safety measures that will not require any additional capital. Meanwhile, the spending on manufacturing new generation trains such as Vande Bharat would be made in a staggered manner that reduces the pressure on capex in a particular year.