THEBUSINESSBYTES
BUREAU
NEW
DELHI, JULY 15, 2026
In a major push to
strengthen India's railway infrastructure and logistics network, the Cabinet
Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi,
has approved two key multi-tracking railway projects worth approximately ₹3,907 crore. The projects are
expected to significantly enhance rail capacity, improve freight movement, and
accelerate economic development across Odisha and Jharkhand.
The approved projects
include the doubling of the Paradeep-Haridaspur rail line and the construction
of the fourth rail line between Rajkharsawan and Dangoaposi. Together, they
will add nearly 145 kilometres to the existing Indian Railways network and are
targeted for completion by 2030-31.
Designed under the PM
Gati Shakti National Master Plan, the projects aim to improve multimodal
connectivity, enhance logistics efficiency, and ensure seamless movement of
passengers, goods, and services through integrated infrastructure planning.
The railway expansion
will cover four districts across Odisha and Jharkhand, improving connectivity
for nearly 1,526 villages with a combined population of around 14 lakh. The
enhanced network is also expected to strengthen access to prominent tourist
destinations such as the Lalitgiri Buddhist Complex, Shree Baladevjew Temple
and Meghahatuburu Hills, providing an additional boost to regional tourism.
From a business
perspective, the projects are expected to deliver substantial gains in freight
transportation. The upgraded corridors serve as critical routes for the
movement of bulk commodities including coal, iron ore, dolomite, limestone and
gypsum. Once completed, the enhanced capacity is projected to facilitate an
additional freight traffic of 44 million tonnes per annum (MTPA), supporting
industrial growth while reducing logistics costs for businesses.
The government said
the projects would improve operational efficiency, increase service reliability
and ease congestion on some of the busiest railway corridors. The enhanced
connectivity is also expected to generate employment and self-employment
opportunities, contributing to the Prime Minister's vision of an Atmanirbhar
Bharat through comprehensive regional development.
Besides economic benefits, the rail expansion is expected to deliver significant environmental gains. By promoting rail as an energy-efficient mode of transport, the projects are estimated to reduce oil imports by nearly six crore litres and cut carbon dioxide emissions by around 29 crore kilograms — an environmental impact equivalent to planting one crore trees.
With rising freight demand and the government's continued focus on infrastructure-led growth, the latest investment underscores Indian Railways' strategic role in strengthening supply chains, supporting industrial corridors and driving sustainable economic development across eastern India.
