NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Tuesday took a slew of decisions relating to infrastructure projects, including three multi-tracking works of railway lines, extension of Ahmedabad Metro Phase-2B connecting the Gift city, the industrial hub with residential locality Shahpur and capacity enhancement of the terminal area of Srinagar Airport worth Rs 11,806 crore.
In another decision the government has also increased the MSP for jute for 2026-27 season by Rs 275 per quintal over 2025-26 with an estimated cost of Rs 430 crore. The MSP would now be Rs 5,925 per quintal.
Briefing media after the meeting of the Union Cabinet, Chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Ashwini Vaishnaw said that together the three railway projects would have an estimated cost of Rs 9,072 crore.
The projects will expand the Indian Railways network by about 307 kilometres across eight districts in Maharashtra, Madhya Pradesh, Bihar and Jharkhand, he added.
The approved projects include the Gondia-Jabalpur doubling, Punarakh-Kiul third and fourth line and Gamharia-Chandil third and fourth line. Once completed, the projects are expected to enhance rail connectivity for nearly 5,407 villages, benefiting a population of around 98 lakh, the Minister said.
Later in an official release, the government said that the additional line capacity would improve mobility and significantly enhance operational efficiency and service reliability of Indian Railways. The multi-tracking works are aimed at easing congestion on busy routes and streamlining train operations, it added.
The capacity enhancement will also improve rail access to several key tourist destinations, including Kachnar Shiv Temple and Dhuandhar Waterfall in Jabalpur, Kanha and Pench National Parks, Bargi and Chandil dams, Dalma Hill Top, Dalma Wildlife Sanctuary and other attractions.
The routes are critical for transportation of commodities such as coal, steel, iron ore, cement, fertilisers, foodgrains and petroleum products. The projects are expected to facilitate additional freight traffic of about 52 million tonnes per annum.
The government also said the shift towards rail transport would help reduce logistics costs, cut oil imports by nearly six crore litres and lower carbon dioxide emissions by about 30 crore kilograms, equivalent to planting one crore trees.
Meanwhile, the CCEA also approved a 3.33-km extension of the existing North-South corridor of Gujarat Metro from GIFT City to Shahpur. The Minister said, the project, which is scheduled to be completed in four years, includes three elevated stations.
“The estimated cost of the project is Rs 1,067.35 crore. This extended corridor is expected to benefit approximately 23,702 passengers in 2029 and approximately 58,059 passengers in 2041,” Vaishnaw said.
He said that this corridor will strengthen connectivity between Ahmedabad and GIFT region. Major multinational companies, educational institutions and commercial centres located along the proposed route will directly benefit.
In another decision, the CCEA also approved the development of the civil enclave at the Srinagar airport for an estimated cost of Rs 1,677 crore. It will be spread across 73.18 acres and the new terminal building will come up in 71,500 square meters, the Minister said.
According to the Minister, the terminal building will be designed to handle 2,900 passengers during peak hours with an annual capacity of 10 million passengers per annum.
Giving a boost to jute growers in poll-bound West Bengal, the CCEA also approved a hike in the Minimum Support Price (MSP) of raw jute by Rs 275 to Rs 5,925 per quintal for the marketing season 2026-27.
In an official statement, the government said, the revised price ensures a return of 61.8 percent over the all-India weighted average cost of production, as the decision is in line with the Centre’s 2018-19 Budget commitment of fixing MSPs at a level of at least 1.5 times the all-India weighted average cost of production.
The MSP for raw jute has risen from Rs 2,400 per quintal in 2014-15 to Rs 5,925 per quintal in 2026-27, which is an increase of Rs 3,525 per quintal or nearly 2.5 times, over the period, it said, adding that the MSP amount paid to jute-growing farmers during 2014-15 to 2025-26 stood at Rs 1,342 crore, compared with Rs 441 crore during 2004-05 to 2013-14.
The Jute Corporation of India (JCI) will continue to function as the Central government’s nodal agency for undertaking price support operations. Any losses incurred during such operations will be fully reimbursed by the Centre.