Tamil Nadu Secures ₹6,626 Crore for Railway Expansion in Budget 2025-26
Tamil Nadu’s railway infrastructure is set for further enhancement, with the Union Budget 2025-26 allocating ₹6,626 crore for the state’s railway projects. This marks a modest increase from the ₹6,326 crore allocated in 2024-25, reflecting the government’s continued focus on modernising railway networks, upgrading stations, and improving passenger safety.
Union Railway Minister Ashwini Vaishnaw highlighted that this year’s budgetary outlay for Tamil Nadu is 7.5 times higher than the average allocation of ₹879 crore between 2009 and 2014. This sustained investment aims to strengthen connectivity, boost economic growth, and enhance passenger convenience in one of India’s most industrially and economically vibrant states.
Currently, Tamil Nadu is witnessing significant railway infrastructure expansion, with 22 ongoing projects covering 2,587 km, at a total estimated cost of ₹33,467 crore. These projects are expected to enhance rail connectivity across the state, facilitating better freight movement and reducing travel time for passengers. A key focus area in the state’s railway development is station modernisation. Under the Amrit Station Scheme, 77 railway stations in Tamil Nadu are being redeveloped at an estimated cost of ₹2,948 crore. The scheme aims to upgrade passenger amenities, improve accessibility, and enhance station aesthetics, bringing them in line with global standards.
Another critical area of investment is railway safety. The government has prioritised the implementation of the Kavach Safety System, with 601 projects currently in progress at a sanctioned cost of ₹1,460 crore. This system enhances train safety by preventing collisions and improving automatic signalling systems. Tamil Nadu’s Electrification Drive Nears Completion, Tamil Nadu has also made remarkable progress in railway electrification. As of now, 2,242 km of railway tracks have been electrified, covering 94% of the total network in the state. This move aligns with India’s goal of achieving 100% electrification and transitioning towards sustainable, energy-efficient railway operations. Electrification not only reduces carbon emissions but also lowers operational costs, making train travel more economical.
Kerala’s Railway Development Also Gains Momentum, While Tamil Nadu has received a major share of railway funding, neighbouring Kerala has also seen a significant increase in budgetary outlay. For 2025-26, Kerala has been allocated ₹3,042 crore for railway projects—an eightfold increase from the ₹372 crore average allocation between 2009 and 2014. Currently, eight railway projects covering 419 km and worth ₹12,350 crore are in progress across Kerala. Similar to Tamil Nadu, 35 railway stations in the state are undergoing redevelopment under the Amrit Station Scheme, with an estimated cost of ₹2,560 crore.
A Step Towards Better Rail Connectivity, The increased allocations for Tamil Nadu and Kerala indicate the government’s commitment to modernising railway infrastructure in southern India. With station redevelopment, enhanced safety measures, and electrification projects progressing at a steady pace, rail travel in the region is expected to become safer, faster, and more comfortable. For daily commuters, businesses, and industries, these investments will improve connectivity between cities and rural areas, facilitate faster movement of goods, and support regional economic growth. As these projects move forward, Tamil Nadu’s railway network is set to play a pivotal role in India’s transportation and logistics sector.
