Cabinet Approves ₹3,907 Crore Railway Capacity Expansion Projects

The projects are expected to improve operational efficiency, reduce congestion on busy rail corridors and enhance the reliability of passenger and freight services.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved two railway infrastructure projects worth around ₹3,907 crore to strengthen rail connectivity and increase line capacity in Odisha and Jharkhand. The projects include the doubling of the Paradeep–Haridaspur rail line and the construction of a fourth line between Rajkharsawan and Dangoaposi.

The projects are expected to improve operational efficiency, reduce congestion on busy rail corridors and enhance the reliability of passenger and freight services. Planned under the PM Gati Shakti National Master Plan, they are designed to improve multimodal connectivity and support faster movement of goods and people.

Expanded rail network to benefit villages and key industries

Together, the two projects will add about 145 kilometres to the Indian Railways network and improve connectivity across four districts in Odisha and Jharkhand. Around 1,526 villages, with a combined population of nearly 14 lakh people, are expected to benefit from the enhanced rail infrastructure.

The upgraded routes will play an important role in transporting essential bulk commodities such as coal, iron ore, dolomite, limestone and gypsum. The additional capacity is projected to handle nearly 44 million tonnes of freight every year, helping industries move raw materials and finished products more efficiently while reducing logistics costs.

Tourism and environmental gains expected

The projects will also improve rail access to popular destinations, including the Lalitgiri Buddhist Complex, Shree Baladevjew Temple and the Meghahatuburu Hills, making travel more convenient for tourists and pilgrims.

According to the Government, shifting more freight to rail will reduce dependence on road transport, leading to fuel savings of around 6 crore litres and cutting 29 crore kilograms of carbon dioxide emissions. This environmental benefit is estimated to be equivalent to planting one crore trees, reinforcing the role of railways as an energy-efficient and environmentally sustainable mode of transport.