Cabinet sanctions 8 new line projects for Railways worth Rs 25,000 crore

The Union Cabinet on Friday approved eight new line projects for the Railways in a bid to improve connectivity, facilitate ease of travelling, minimise logistics costs, and others. In a statement issued late on Friday, the Cabinet said the total estimated cost of the projects is Rs 24,657 crore (approx.) and will be completed by 2030-31.

The 8 projects will cover 14 districts in seven states -- Odisha, Maharashtra, Andhra Pradesh, Jharkhand, Bihar, Telangana and West Bengal and will increase the existing network of Indian Railways by 900 km.

"The projects are in line with the Prime Minister Shri Narendra Modi’s Vision of a New India which will make people of the region “Atmanirbhar” by way of comprehensive development in the area which will enhance their employment/ self-employment opportunities. The proposed projects will improve logistical efficiency by connecting the unconnected areas and enhancing transportation networks, resulting in streamlined supply chains and accelerated economic growth," the statement said.  

With these projects 64 new stations will be constructed, providing enhancing connectivity to six aspirational districts (East Singhbum, BhadadriKothagudem, Malkangiri, Kalahandi, Nabarangpur, Rayagada), approx. 510 villages and about 40 lakh population.

Ajanta Caves, a UNESCO World Heritage site will be connected to Indian Railway Network facilitating large number of tourists.

"These are essential routes for the transportation of commodities such as agriculture products, fertilizer, coal, iron ore, steel, cement, bauxite, limestone, aluminium powder, granite, ballast, containers etc. The capacity augmentation works will result in additional freight traffic of magnitude 143 MTPA (Million Tonnes Per Annum). The Railways being environment-friendly and energy-efficient mode of transportation, will help both in achieving climate goals and minimizing logistics cost of the country, reduce oil import (32.20 Crore Litres) and lower CO2 emissions (0.87 MillionTonnes) which is equivalent to plantation of 3.5 crore trees," the statement said. 

The railway ministry is focused on achieving complete electrification of its network by July 2024 and aims to lay a minimum of 2,000 km of new tracks. Additionally, the ministry plans to introduce the new Vande Bharat trains.

In the Interim Budget for FY25, Finance Minister Nirmala Sitharaman allocated a total of Rs 2,52,200 crore to the railways as part of gross budgetary support, along with an extra Rs 10,000 crore from external resources. Furthermore, she disclosed plans for the development of three significant railway economic corridors in India, which included an energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor.

 FM Sitharaman maintained the allocation in the 2024-25 full Budget presented in July.