Cabinet Clears Major Infrastructure Push: ₹2.5 Lakh Crore Boost for Roads, Rail, and Energy

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Cabinet Clears Major Infrastructure Push ₹2.5 Lakh Crore Boost for Roads, Rail, and Energy

India’s infrastructure development receives a significant boost as the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved four major multitracking railway projects worth ₹24,634 crore on October 6, 2025. This infrastructure push represents a crucial step toward strengthening India’s transport network across roads, rail, and connectivity systems.

The approved railway projects will span 18 districts across four states Maharashtra, Madhya Pradesh, Gujarat, and Chhattisgarh adding approximately 894 kilometres to the existing Indian Railways network. This infrastructure boost comes as part of India’s broader commitment to spending over ₹11 lakh crore annually on infrastructure development, marking a six-fold increase from ₹2 lakh crore in 2014-15.

Major Railway Projects Under Infrastructure Push

The four approved projects under this infrastructure boost include the Wardha-Bhusawal third and fourth lines (314 km) in Maharashtra, Gondia-Dongargarh fourth line (84 km) spanning Maharashtra and Chhattisgarh, the Vadodara-Ratlam third and fourth lines (259 km) in Gujarat and Madhya Pradesh, and the Itarsi-Bhopal-Bina fourth line (237 km) in Madhya Pradesh.

These railway infrastructure projects will enhance connectivity for approximately 3,633 villages with a combined population of nearly 85.84 lakh, including two Aspirational Districts – Vidisha in Madhya Pradesh and Rajnandgaon in Chhattisgarh. The infrastructure boost is designed under the PM Gati Shakti National Master Plan, focusing on integrated multimodal connectivity.

Economic Impact of Infrastructure Push

Railways Minister Ashwini Vaishnaw highlighted that seven railway corridors carry 41% of total railway traffic, and the government has decided to create minimum four lanes, and where possible, six lanes in these corridors as part of the broader infrastructure boost. The enhanced rail infrastructure is expected to handle an additional 78 million tonnes of freight annually.

This infrastructure push will contribute significantly to environmental sustainability, with projections showing CO2 emissions reduction of 139 crore kilograms – equivalent to planting six crore trees – and reducing oil imports by around 28 crore litres. The projects will also improve access to key tourist destinations including Sanchi, Satpura Tiger Reserve, Bhimbetka Rock Shelters, Hazara Falls, and Nawegaon National Park.

Broader Infrastructure Development Context

The latest railway infrastructure boost is part of India’s ambitious infrastructure spending program, with the government allocating over ₹11.21 lakh crore for capital expenditure in FY 2025-26. Indian Railways has achieved a record 56.5% capital expenditure utilisation by September 2025, the highest mid-year utilisation ever recorded.

The government is also considering a ₹20,000 crore risk guarantee fund to attract private sector investment in infrastructure, managed by the National Credit Guarantee Trustee Company Limited. This comes as India plans to spend an estimated USD 4.51 trillion on infrastructure by 2030 to achieve the vision of a USD 5 trillion economy.

Road and Energy Infrastructure Push

Beyond railways, India’s infrastructure push encompasses comprehensive development across sectors. The government has approved ₹4,645 crore for disaster mitigation projects across nine states, while Delhi PWD plans 153 road improvement projects following central government approval of ₹803 crore for road infrastructure.

The renewable energy sector continues gaining momentum as part of the infrastructure boost, with more than 50% of India’s installed power generation capacity coming from non-fossil fuel sources as of June 2025. Over 560 renewable energy projects are currently under construction across the country.

This latest infrastructure boost reinforces India’s commitment to building world-class connectivity and achieving the vision of Viksit Bharat by 2047, with coordinated development across roads, rail, and energy sectors driving economic growth and regional connectivity.

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Suryakant Gaur is a dedicated writer with a keen interest in exploring topics that inspire and educate. As an author at HuffIndia.com, Suryakant brings a fresh perspective to lifestyle, entertainment, and technology through his engaging and well-researched articles.
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