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Sunday, February 15, 2026

Cabinet approves major rail projects in Bihar and Andhra at a cost of Rs 6,798 cr

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In a big push to infrastructure development in Bihar and Andhra Pradesh, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Thursday cleared two rail projects with an estimated cost of Rs 6,798 crore.

The projects are scheduled to be completed in five years and provide connectivity, facilitate ease of travel, minimise logistics costs, reduce oil imports, and lower carbon emissions.

The two rail projects are doubling the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur sections, covering 256 km in Bihar, and construction of a new line between Errupalem and Namburu via Amaravati in Andhra Pradesh, covering 57 km.

The doubling of the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur sections is expected to strengthen the connectivity to Nepal, north-east India, and border areas.

The new rail line project Errupalem-Amaravati-Namburu traverses through NTR Vijayawada and Guntur districts of Andhra Pradesh and Khammam district of Telangana. It will provide direct connectivity to Amaravati, the proposed capital of Andhra Pradesh, and improve mobility for industries and the population.

“The two projects covering eight districts in three states, i.e., Andhra Pradesh, Telangana, and Bihar, will increase the existing network of Indian Railways by about 313 km,” an official statement said.

The statement further said. “These are essential routes for transportation of commodities such as agriculture products, fertiliser, coal, iron ore, steel, cement, etc. The capacity augmentation works will result in additional freight traffic of magnitude 31 MTPA (million tonnes per year).”

Briefing media on Cabinet decisions, Union Information and Broadcasting (I&B) Minister Ashwini Vaishnaw said that the Modi 3.0 government has so far approved infrastructure projects worth Rs 9.17 lakh crore.

The Union Cabinet also approved setting up a Rs 1,000 crore venture capital (VC) fund dedicated to the space sector under the aegis of IN-SPACe.

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