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The Government of Indias upcoming Union Budget 2026-27 could once again prove crucial for the railway sector. Indian Railways has received consistently high allocations over the past few years and this time too capital expenditure is expected to remain stable or increase slightly. Experts estimate that the total allocation for railways could reach ₹2.65 lakh crore to ₹2.8 lakh crore representing an 8% increase from the previous budget (approximately ₹2.65 lakh crore in 2025-26). This focus will be in line with the vision of a developed India by the year 2047 with emphasis on safety modernization capacity expansion and passenger amenities. Key expectations and possible announcements Expansion of the Kavach system: Substantial funding is expected to implement the indigenous anti-collision system Kavach (Kavach 4.0–5.0) on a large scale. With safety as a top priority it will be rapidly rolled out on busy routes to minimize accidents. Vande Bharat Sleeper Trains: There is strong hope for the introduction of 20 new Vande Bharat Sleeper trains to revolutionize long-distance travel. The production and rollout of the 24-coach advanced version (with AC pantry more berths fire safety CCTV and armor integration) will be accelerated which could replace trains like the Rajdhani Express. ALSO READ: Today Petrol Diesel Rate February 01: Ahead of Budget check Petrol Diesel prices in Chennai Mumbai Delhi Kolkata AI and Smart Operations: The focus will be on station upgrades the use of AI in signaling systems smart monitoring and increased operational efficiency. This will improve train speed punctuality and capacity. Restoration of Senior Citizen Concessions: There is a strong demand for the reinstatement of the senior citizen concession (40-50% on Mail/Express trains) that was suspended in 2020 after COVID. An announcement in the budget could provide relief to millions of elderly travelers. Hydrogen train push: Policy support and funding are expected to scale up pilot projects for green hydrogen-based trains to commercial scale. This will be a major step towards making railways more environmentally friendly. Overall the continuation of capital expenditure will accelerate projects like Vande Bharat Kavach and green technology further strengthening Indian Railways global standing. Will the budget live up to these expectations? Finance Minister Nirmala Sitharamans presentation on February 1st will provide clarity.