July17 , 2026

    Cabinet Approves ₹3,907 Crore Rail Capacity Projects to Strengthen Freight Connectivity in Eastern India

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    In a major boost to India’s freight transportation and logistics infrastructure, the Union Cabinet has approved two railway capacity enhancement projects worth ₹3,907 crore, including the strategically significant doubling of the Paradip–Haridaspur rail line in Odisha and the construction of a fourth railway line between Rajkharsawan and Dangoaposi in Jharkhand.

    The projects were approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi under the PM Gati Shakti National Master Plan, with the objective of strengthening multimodal connectivity, easing congestion on key freight corridors, and improving logistics efficiency across eastern India.

    The Paradip–Haridaspur rail line doubling, estimated at ₹2,542 crore, is expected to significantly enhance rail connectivity to Paradip Port, one of India’s largest cargo gateways. The project will facilitate faster evacuation of coal, iron ore and other bulk commodities from Odisha’s mining regions, improving cargo movement to domestic and export markets.

    According to the government, the project is expected to reduce logistics costs for industries by approximately ₹413 crore annually, while supporting higher export-oriented cargo volumes through Paradip Port.

    The second project involves the ₹1,365 crore construction of a fourth railway line between Rajkharsawan and Dangoaposi in Jharkhand. The corridor is a critical mineral transport route linking Jharkhand’s industrial belt with the iron ore-rich Keonjhar district of Odisha. The additional line will substantially increase freight carrying capacity, reduce congestion, and improve the punctuality of passenger services operating on the route.

    Together, the two projects will add around 145 km of enhanced railway infrastructure, benefiting nearly 1,526 villages with a combined population of about 14 lakh across Odisha and Jharkhand.

    The capacity expansion will also improve rail access to important tourist destinations, including the Lalitgiri Buddhist Complex, Shree Baladevjew Temple, and Meghahatuburu Hills, further supporting regional development.

    Railway Minister Ashwini Vaishnaw said the Paradip–Haridaspur project alone will enable an additional 28 million tonnes of freight movement annually, significantly improving logistics efficiency in the eastern region. He added that the project is expected to reduce carbon dioxide emissions by approximately 18.5 crore kg, equivalent to the environmental benefit of planting around 73 crore trees.

    The minister noted that the investments align with the government’s vision of developing a modern, efficient and sustainable railway network while generating employment opportunities and accelerating regional economic growth through improved connectivity.

    The projects are expected to play a key role in supporting India’s growing demand for efficient freight transportation, particularly for bulk commodities such as coal, iron ore, steel and other industrial cargo, while strengthening the logistics ecosystem serving ports, mining hubs and manufacturing clusters in eastern India.

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