August20 , 2026

    Centre Clears ₹9,450 Crore Rail Projects Across Four States

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    The Union Cabinet has approved four railway multitracking projects worth ₹9,450 crore across West Bengal, Odisha, Andhra Pradesh and Tamil Nadu, in a major push to expand rail capacity, ease congestion and strengthen freight connectivity. The projects will add nearly 410 km of additional railway lines and are scheduled for completion by 2030-31.

    Approved by the Cabinet Committee on Economic Affairs, the projects cover eight districts and are expected to improve the movement of both passenger and freight trains along some of India’s heavily utilised rail corridors.

    The largest project involves a 173-km fourth line between Kharagpur and Bhadrak (Ranital), covering West Bengal and Odisha, with an estimated cost of ₹3,352 crore. The project is expected to significantly increase capacity along the busy east coast railway route.

    In Odisha, the Cabinet has approved a 75-km fourth line between Bhadrak and Haridaspur, costing around ₹1,583 crore. Another project will add third and fourth lines along the 72-km Cuttack-Paradeep (Badabandha) section, with an investment of approximately ₹2,286 crore.

    The fourth project covers a 90-km third- and fourth-line corridor between Gummidipundi and Gudur across Andhra Pradesh and Tamil Nadu. The project carries an estimated investment of ₹2,229 crore and is expected to improve rail capacity between major industrial and commercial centres in southern India.

    Together, the projects are expected to reduce congestion, improve operational efficiency and provide smoother movement of freight trains. The additional tracks will allow passenger and freight services to operate with fewer capacity constraints, supporting more reliable transportation schedules.

    The expansion is particularly significant for freight logistics because several of the approved sections form part of important east-coast routes connecting industrial centres with ports and consumption markets. Increased rail capacity can support higher volumes of coal, minerals, steel, containers and other commodities while helping improve supply-chain efficiency.

    The government expects the projects to benefit around 6,448 villages and nearly 60 lakh people. The additional infrastructure could also create capacity for approximately 76 million tonnes of additional freight annually, strengthening rail’s role in India’s logistics network.

    The projects are also expected to support economic activity in the four states by improving connectivity to industrial areas, ports and markets. In particular, the Cuttack-Paradeep expansion could strengthen rail access to Paradeep Port, while the Kharagpur-Bhadrak corridor will enhance connectivity along one of India’s key coastal freight routes.

    The investment forms part of the government’s broader strategy to modernise the railway network, increase line capacity and support a shift toward more efficient rail-based freight transportation. By adding additional tracks rather than relying solely on existing infrastructure, Indian Railways aims to accommodate growing passenger and cargo demand over the coming decade.

    For the logistics industry, the ₹9,450 crore investment represents a significant capacity expansion across eastern and southern India. Faster and more dependable rail connectivity could help reduce freight bottlenecks, improve port-hinterland movement and strengthen India’s multimodal transportation network.