Modi Approves ₹13,041 Crore Rail and Highway Projects

The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, approved five transport infrastructure projects totaling ₹13,041 crore on August 19, 2026. The package includes four railway multitracking projects costing ₹9,450 crore and a ₹3,591 crore highway project in Bihar. The rail expansions will add approximately 410 kilometers of track across West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu, with a completion target of 2030-31.

Specific rail projects include the Kharagpur-Bhadrak and Bhadrak-Haridaspur fourth lines, the Cuttack-Paradeep third and fourth lines, and the Gummidipundi-Gudur third and fourth lines. These initiatives, part of the PM Gati Shakti National Master Plan, target high-density networks that handle 40% of India's rail traffic despite comprising only 11% of the network. The government expects these projects to increase freight traffic by 76 million tonnes per annum, reduce oil imports by 13 crore litres, and cut carbon dioxide emissions by 65 crore kg.

In Bihar, the government authorized the upgradation of the Muzaffarpur-Sitamarhi-Sonbarsa section of NH-22 to a four-lane standard. This 82.578 km road project aims to link the India-Nepal border at Sonbarsa with major economic centers. Union Minister Ashwini Vaishnaw compared the rail expansion to a highway revolution, while Odisha Chief Minister Mohan Charan Majhi noted the projects would decongest critical corridors and boost regional tourism and pilgrimage.