Railways Bets on Rs 13-Lakh-Crore Expansion to Win Back Freight from Roads

Indian Railways has drawn up a Rs 13-lakh-crore infrastructure pipeline, betting that large-scale network expansion will help the national carrier reclaim freight traffic that has migrated to road transport over the years.

How many projects are being sanctioned under this plan?

According to a government official, the ministry is progressively sanctioning more than 400 projects under the plan, with completion targeted by around 2032. The official told Moneycontrol that Railways is working toward defined timelines, with the target set for project completion rather than mere commencement.

Why is network capacity central to this strategy?

Railways has identified congested sections across its network through internal planning mechanisms, forming the basis of this investment pipeline. The official said that without sufficient network capacity and redundancy, it is impossible to attract additional traffic away from road transport, underscoring why capacity expansion sits at the core of the plan.

What freight modal share is Railways targeting?

Expanding capacity and building network redundancy are seen as critical to pushing Railways’ freight modal share from the current 27 percent to a targeted 40-45 percent, according to the official, reflecting the scale of ambition behind the infrastructure push.

How does this investment benefit both passenger and freight traffic?

The investment is not earmarked for freight alone. Since Railways operates a mixed-traffic system, the official noted that any new line built primarily for one segment ends up benefiting both passenger and freight movement, given the shared use of tracks and infrastructure across the network.

What does this mean for India’s broader logistics ecosystem?

The scale of this capacity expansion signals Railways’ intent to position itself as a more competitive alternative to road freight, particularly for bulk and long-haul cargo movement, aligning with the government’s broader logistics cost reduction goals and its push to rebalance India’s freight modal mix in favour of rail.