India, August 2026 – The Cabinet Committee on Economic Affairs has approved five rail and highway projects across West Bengal, Odisha, Andhra Pradesh, Tamil Nadu and Bihar. The railway component accounts for approximately ₹9,450 crore, while the remaining ₹3,590.73 crore will fund an 82-km four-lane upgrade of the Muzaffarpur-Sitamarhi-Sonbarsa section of NH-22 in Bihar.
The four railway projects comprise a 173-km fourth line between Kharagpur and Bhadrak (Ranital), a 75-km fourth line between Bhadrak and Haridaspur, 90 km of third and fourth lines between Gummidipundi and Gudur, and 72 km of third and fourth lines between Cuttack and Paradeep (Badabandha). The projects are located along the East-South, or Howrah-Chennai, high-density rail network and are scheduled for completion by 2030–31.
The capacity expansion is intended to address congestion while supporting freight-intensive movements of coal, iron ore, cement, steel, containers, automobiles and food grains. The government estimates the projects could generate additional freight capacity of around 76 million tonnes annually and improve rail connectivity for approximately 6,448 villages with a combined population of about six million.
Beyond capacity, the projects are expected to improve operational efficiency and service reliability while reducing dependence on road-based logistics on key corridors. The Railway Ministry estimates that the rail works will reduce oil imports by around 130 million litres and CO₂ emissions by approximately 650 million kg, alongside generating substantial employment during construction.
The approvals underline India's continued focus on multi-tracking as a means of strengthening existing rail corridors rather than relying solely on new route construction. By targeting high-density routes with strong freight demand and improving connections to industrial, logistics and regional economic centres, the investment is positioned to support longer-term freight growth and more resilient transport infrastructure.
Source: Business Standard
India Approves ₹13,041 Crore Rail And Highway Infrastructure Package
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India is accelerating transport capacity expansion along high-density freight and passenger corridors as demand for logistics connectivity continues to grow. The Union Cabinet has approved four railway multi-tracking projects and one highway project worth a combined ₹13,041 crore, with the rail investments expected to add about 410 km to the national network.
