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

The Union Cabinet on Tuesday approved infrastructure and policy proposals worth Rs 12,236 crore, spanning railways, aviation, urban transport, power sector reforms and agriculture, Union Minister Ashwini Vaishnaw said at a briefing.

The meeting, chaired by Prime Minister Narendra Modi, was the first to be held at the newly built Prime Minister’s Office complex, ‘Seva Teerth’.

“This meeting and this building are a direct expression of the reconstruction of New India,” Vaishnaw said, adding that the Cabinet reaffirmed its commitment to the vision of “Viksit Bharat 2047”.


Rs 9,072 crore railway projects cleared

The Cabinet Committee on Economic Affairs (CCEA) approved three railway projects — Gondia-Jabalpur doubling, Punarakh-Kiul third and fourth line, and Gamharia-Chandil third and fourth line — at an estimated cost of Rs 9,072 crore.

The projects, spanning Maharashtra, Madhya Pradesh, Bihar and Jharkhand, will add around 307 km to the network and enhance connectivity to about 5,407 villages with a population of nearly 98 lakh. The capacity augmentation is expected to facilitate additional freight traffic of 52 million tonnes per annum.

The government said the projects will reduce logistics costs, save an estimated 6 crore litres of oil and cut CO2 emissions by 30 crore kg.

New terminal at Srinagar airport

The CCEA also approved development of a new civil enclave at Srinagar International Airport at a cost of Rs 1,677 crore.

Spread across 73.18 acres, the project includes a new terminal building of 71,500 square metres with a peak-hour capacity of 2,900 passengers and annual capacity of 10 million passengers. The apron will accommodate 15 aircraft, including one wide-body aircraft. A multi-level car parking facility for 1,000 cars will also be built.

The project is targeted to achieve a 5-star GRIHA rating and is expected to boost tourism and economic activity in the Kashmir Valley.

Ahmedabad Metro extension approved

The Cabinet cleared a 3.33-km extension of the Ahmedabad Metro from GIFT City to Shahpur at a cost of Rs 1,067.35 crore. The corridor will have three elevated stations and is expected to be completed in four years.

The project will be implemented by Gujarat Metro Rail Corporation Limited, a 50:50 joint venture between the Centre and the Gujarat government. The extension is projected to serve over 23,700 passengers daily by 2029 and nearly 58,000 by 2041, strengthening connectivity between Ahmedabad and the GIFT region.

Power sector reforms

With transmission investments projected at ₹9.2 lakh crore by 2032, the Cabinet enhanced delegation of powers to Powergrid. The per-project equity investment limit for subsidiaries has been increased from Rs 5,000 crore to Rs 7,500 crore, enabling greater participation in high-value tariff-based competitive bidding projects.

Kerala to be renamed ‘Keralam’

The Cabinet approved a proposal to alter the name of the state of Kerala to “Keralam”. The Kerala (Alteration of Name) Bill, 2026, will now be referred by the President to the Kerala Legislative Assembly under Article 3 of the Constitution for its views.

The Kerala Assembly had passed a resolution on June 24, 2024, seeking the change, stating that “Keralam” is the state’s name in Malayalam. After receiving the Assembly’s views, the Centre will move the Bill in Parliament following the President’s recommendation.

MSP for raw jute raised

The Cabinet approved a minimum support price (MSP) of Rs 5,925 per quintal for raw jute (TD-3 grade) for the 2026-27 marketing season, an increase of Rs 275 per quintal over the previous year.

The government said the MSP has risen 2.5 times since 2014, from Rs 2,400 per quintal to Rs 5,925. The Jute Corporation of India will undertake price support operations, with any losses reimbursed by the Centre.