Cabinet approves mega railway and road projects, launches Rs 1 lakh crore urban challenge fund
NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved mega infrastructure projects, including three under the Ministry of Railways, entailing a cost of approximately Rs 48,250 crore. The railway projects include the construction of third and fourth lines between Kasara–Manmad, Delhi–Ambala, and Ballari–Hosapete, covering 12 districts across the states of Delhi, Haryana, Maharashtra and Karnataka. This was the last Cabinet meeting held on Friday evening in the iconic South Block.
Approval was also granted for the construction of four-lane, access-controlled, greenfield connectivity from Gohpur on National Highway (NH) 15 to Numaligarh on the NH 715 section, including a 15.79 km road-cum-rail tunnel under the River Brahmaputra. The project will be developed at a cost of Rs 18,662 crore in Assam and will be the first underwater road-cum-rail tunnel in India and the second in the world.
Briefing the media about the railway projects, Union Information and Broadcasting Minister Ashwini Vaishnaw said on Saturday that the capacity of the lines would be increased as per requirement.
According to a government statement, the projects are planned under the PM-Gati Shakti National Master Plan, with a focus on enhancing multi-modal connectivity and logistics efficiency through integrated planning and stakeholder consultations.
Road-Cum-Rail Tunnel Project in Assam
Currently, travelling between Numaligarh on NH 715 and Gohpur on NH 15 in Assam via the existing Kaliabhomora Road Bridge takes six hours. To address these challenges, a four-lane, access-controlled, greenfield connectivity project with a road-cum-rail tunnel under the River Brahmaputra is planned. The project will provide significant benefits to Assam, Arunachal Pradesh, Nagaland, and other northeastern states by improving freight movement efficiency, reducing logistics costs, and driving socio-economic growth in the region.
Rehabilitation and Upgrade of Highways
The CCEA also approved the rehabilitation and upgrading of the Ghoti–Trimbak (Mokhada)–Jawhar–Manor–Palghar section of NH 160A in Maharashtra. The 154 km-long project will cost Rs 3,320 crore and will help decongest the Ambad and Satpur areas in Nashik, which host a dense cluster of industrial units. Currently, this traffic moves through Nashik city via NH 848, adding pressure to urban roads. Upgrading NH 160A will provide an alternative route from these industrial areas via Trimbak, bypassing the city and reducing congestion.
The Committee also approved the construction of four-lane sections of Dhamasiya–Bitada/Movi (47.46 km) and Nasarpore–Malotha (60.21 km) in Gujarat, with a total project length of 107.67 km at a cost of Rs 4,583.64 crore. This project forms part of NH 56, which begins at Nimbahera in Rajasthan, passes through Dahod District in Gujarat, Alirajpur District in Madhya Pradesh, and re-enters Gujarat near Chhota Udepur District, terminating at its junction with NH 48 near Vapi.
Additionally, the proposal for widening National Highway 167 from Gudebellur to Mahabubnagar on the Hyderabad–Panaji Economic Corridor has been approved. The 80.01 km-long project will cost Rs 3,175.08 crore.
Urban Challenge Fund to Drive Market-Led Urban Transformation
A significant decision taken by the Cabinet is the launch of the Urban Challenge Fund (UCF) with total central assistance of Rs 1 lakh crore. The financial assistance from the Centre will cover 25 per cent of the project cost, subject to raising a minimum 50 per cent of the cost from the market.
Announced in last year’s budget, the scheme will support transformative and bankable urban projects through a competitive “challenge mode”. It is expected to mobilise a total investment of Rs 4 lakh crore in the urban sector over the next five years, marking a paradigm shift in India’s urban development approach from grant-based financing to market-linked, reform-driven, and outcome-oriented infrastructure creation.