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Union Cabinet approves rail, metro and airport projects worth INR 12,236 crore

#Infrastructure News#Infrastructure#India
Last Updated : 2nd Mar, 2026
Synopsis

The Union Cabinet approved infrastructure projects totaling INR 12,236 crore, covering railways, aviation, urban transport, and key policy reforms. Railway projects costing INR 9,072 crore, including Gondia Jabalpur doubling and Punarakh Kiul and Gamharia Chandil line expansions, will connect over 5,400 villages and boost freight by 52 million tonnes annually. Approvals also include a new Srinagar airport terminal and a 3.33 km Ahmedabad Metro extension. Policy decisions included power sector reforms, an increased minimum support price for raw jute, and the proposal to rename Kerala as Keralam, reflecting the government's broader development focus.

The Union Cabinet approved major infrastructure and policy initiatives worth INR 12,236 crore, aimed at enhancing connectivity, urban transport, and economic activity across India. The meeting, chaired by the Prime Minister at the newly constructed Seva Teerth complex, also focused on reforms in agriculture and the power sector. Union Minister Ashwini Vaishnaw noted that the approvals reflect the Cabinet's commitment to the vision of  Viksit Bharat 2047.


Railway projects account for INR 9,072 crore of the total investment. Three projects were cleared: Gondia Jabalpur doubling, Punarakh Kiul third and fourth lines, and Gamharia Chandil third and fourth lines. Together, these projects will add 307 km of rail network across Maharashtra, Madhya Pradesh, Bihar, and Jharkhand. The expansions are expected to enhance connectivity to 5,407 villages, benefiting nearly 9.8 million people, and accommodate an additional 52 million tonnes of freight annually. They are projected to cut logistics costs, save around 6 crore litres of fuel, and reduce CO2 emissions by 30 crore kg.

In aviation, a new civil enclave at Srinagar International Airport was approved at INR 1,677 crore. The 73.18-acre project will feature a 71,500 sqm terminal with peak-hour capacity for 2,900 passengers and an annual capacity of 10 million passengers. The apron will handle 15 aircraft, including one wide-body plane, and a 1,000 car multi-level parking facility will be constructed. The terminal aims to achieve a 5 star GRIHA rating and support tourism and economic activity in the Kashmir Valley.

Urban transport infrastructure will be strengthened with a 3.33 km Ahmedabad Metro extension from GIFT City to Shahpur at INR 1,067.35 crore. The corridor will feature three elevated stations and is expected to be completed within four years. The project, led by Gujarat Metro Rail Corporation Limited, a 50:50 joint venture between the Centre and the Gujarat government, is projected to serve over 23,700 daily passengers by 2029 and nearly 58,000 by 2041, enhancing connectivity between Ahmedabad and the GIFT region.

Policy measures include power sector reforms with increased equity investment limits for Powergrid subsidiaries from INR 5,000 crore to INR 7,500 crore, facilitating participation in high-value transmission projects. The minimum support price for raw jute (TD 3 grade) was raised to INR 5,925 per quintal for the 2026-27 marketing season, a rise of INR 275 from the previous year. The Jute Corporation of India will handle price support operations with losses reimbursed by the Centre.

The Cabinet also approved renaming Kerala to Keralam, reflecting its local name in Malayalam. The proposal, following a resolution by the Kerala Assembly in June 2024, will be referred to the state assembly for its views before being introduced in Parliament under Article 3 of the Constitution.

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