Cabinet approves Rs 11,000 crore Railway projects spanning 13 districts in 6 states

NEW DELHI: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Thursday approved four projects of the railway ministry worth approximately Rs. 11,169 crore.
Referring to the expansion of rail network through these projects, an official release said these four projects covering 13 districts across Maharashtra, Madhya Pradesh, West Bengal, Bihar, Odisha and Jharkhand will increase the existing network of Indian Railways by about 574 km.
These new projects are a fourth line between Itarsi and Nagpur, doubling of railway line between Aurangabad (Chhatrapati Sambhajinagar) and Parbhani, construction of third and fourth line between Aluabari Road and New Jalpaiguri as well as Dangoaposi and Jaroli.
“The increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for Indian Railways. These multi-tracking proposals are poised to streamline operations and alleviate congestion,” the release said.
According to the government, the projects are planned on PM-Gati Shakti National Master Plan with focus on enhancing multi-modal connectivity and logistic efficiency through integrated planning and stakeholder consultations as these projects will provide seamless connectivity for movement of people, goods, and services.
“The proposed multi-tracking project will enhance connectivity to approx. 2,309 villages, which have a population of about 43.60 lakh,” it said. In another decision, the Union Cabinet increased the budgetary outlay for the flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) by Rs 1,920 crore to Rs 6,520 crore to boost the food processing sector.
The enhanced funds, to be provided this fiscal, will be utilised for 50 multi-product food irradiation units and 100 food testing labs.
“The outlay of PMKSY has been increased to Rs 6,520 crore,” I&B Minister Ashwini Vaishnaw told reporters after cabinet decisions.
PMKSY, launched in 2017, was extended for one more year till the end of the current 2025-26 fiscal with an allocation of Rs 4,600 crore.
The Cabinet also gave its approval to a Rs 2,000 crore grant-in-aid to National Cooperative Development Corporation (NCDC) for four years, a move that will help the organisation mobilise more funds for lending to cooperatives.
At its meeting, chaired by PM Modi, the Cabinet approved the central sector scheme ‘Grant in aid to NCDC’ with an outlay of Rs 2,000 crore for a period of four years from 2025-26 to 2028-29 (Rs 500 crore each year).
“To further support a good financial model, the Cabinet approved the capital grant-in-aid of Rs 2,000 crore for NCDC for four years,” I&B Minister Ashwini Vaishnaw told journalists. .
With this financial aid, NCDC will be able to mobilise an additional Rs 20,000 crore for further lending, the minister said. Currently, NCDC has a 99.8 per cent loan recovery rate and zero NPA, he added.
According to a statement, the decision is likely to benefit around 2.9 crore members of 13,288 co-operative societies of various sectors like dairy, livestock, fisheries, sugar, textile, food processing, storage and cold storage.
“On the basis of a grant in aid of Rs 2000 crore to NCDC from 2025-26 to 2028-29, NCDC will be able to raise Rs 20,000 crore from the open market over four years,” it added. NCDC will use these funds to grant loans to cooperatives for setting up new projects/expansion of plants and working capital requirements.
India has more than 8.25 lakh cooperatives with more than 29 crore members, and 94 per cent of farmers are associated with cooperatives in some form or the other.