NEW DELHI: The Union Cabinet on Thursday approved two major railway infrastructure projects. The projects, valued at an estimated Rs 6,798 crore, are aimed at improving connectivity in Bihar and Andhra Pradesh. These projects are expected to be completed within the next five years.
In another key decision, the Cabinet also gave its nod for the establishment of a ₹1,000 crore Venture Capital Fund for the space sector under the aegis of IN-SPACe. The fund aims to promote and oversee private sector participation in space activities.
Briefing the media after the meetings of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA), which were chaired by Prime Minister Narendra Modi, Information and Broadcasting Minister Ashwini Vaishnaw said the two railway projects are set to enhance connectivity, facilitate ease of travel, reduce logistics costs, lower oil imports, and curb carbon emissions.
The first project involves doubling the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur sections, spanning 256 km in Bihar, at an estimated cost of ₹4,553 crore. This initiative is expected to bolster connectivity to Nepal, Northeast India, and the border areas.
The second project involves constructing a new rail line between Errupalem and Namburu via Amaravati in Andhra Pradesh, covering 57 km, at a cost of ₹2,245 crore.
The line traverses through the NTR Vijayawada and Guntur districts in Andhra Pradesh and Khammam district in Telangana, providing direct connectivity to Amaravati, the proposed capital of Andhra Pradesh, and enhancing mobility for people and industrial goods.
“These two projects, covering eight districts across three states—Andhra Pradesh, Telangana, and Bihar—will extend the Indian Railways network by about 313 km,” the government said in an official statement.
It further said, “These routes are critical for transporting commodities such as agricultural products, fertilisers, coal, iron ore, steel, and cement. The capacity augmentation works will result in an additional freight traffic of 31 MTPA (million tonnes per annum)."
In his concluding remarks during the media briefing the Minister said, so far the Modi 3.0 government has approved infrastructure projects worth Rs 9.17 lakh crore.
Regarding the ₹1,000 crore venture capital fund for the space sector, the Minister stated that the deployment period is planned to span five years from the commencement of fund operations, with an average deployment of ₹150-250 crore per year, depending on investment opportunities and fund requirements.
He said, the fund aims to invest in startups with a proposed investment range of ₹10-60 crore, depending on the stage of the company, growth trajectory, and its potential to enhance national space capabilities. The fund is expected to support around 40 startups.
The government further elaborated that the fund is strategically designed to advance India’s space sector, aligning with national priorities and fostering innovation and economic growth. The initiative aims to boost global competitiveness, support the ‘Atmanirbhar Bharat’ mission, drive economic growth, and create jobs, while ensuring the long-term sustainability of the sector. The fund will also help position India as a leading space economy.