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Govt Approves ₹11,169 Crore Rail Multitracking Projects to Boost Freight and Village Connectivity

Written by: Kusum KumariUpdated on: 1 Aug 2025, 7:57 pm IST
Govt clears ₹11,169 crore for 4 rail multitracking projects, adding 574 km. Expected to save ₹11,509 crore in logistics and improve access for 2,309 villages.
Govt Approves ₹11,169 Crore Rail Multitracking Projects to Boost Freight and Village Connectivity
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On August 1, 2025, the government approved 4 key multitracking projects for Indian Railways worth ₹11,169 crore. These projects will expand the rail network by 574 km across 13 districts in 6 states. The decision was made by the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, to improve both passenger and freight services.

Key Benefits: More Freight, Better Connectivity

The new tracks will allow Indian Railways to carry an extra 95.91 million tonnes of freight annually. In FY25, Indian Railways already achieved 1,617.38 MT of freight loading, a 1.68% rise from the previous year. These projects are expected to benefit around 2,309 villages, home to about 4.36 million people.

Highlights of Approved Railway Projects

  • Itarsi–Nagpur Fourth Line (₹5,451 Crore)

Part of the busy Delhi–Chennai route, this will ease congestion and speed up train services.

  • Dangoaposi–Jaroli Line

Will support iron ore movement to steel plants and contribute to India’s steel production goals of 300 million tonnes annually.

The 4 projects are expected to reduce logistics costs by around ₹11,509 crore over time.

Supporting PM Gati Shakti Plan

These projects align with the PM Gati Shakti National Master Plan, launched in 2021, which aims to enhance infrastructure through inter-ministerial coordination. The plan focuses on multimodal connectivity across economic zones in India.

Since the start of NDA’s third term, 31 railway projects worth ₹1.07 lakh crore have been approved, showing a strong government focus on rail infrastructure.

Read More: India and UK Signed FTA: What's Getting Cheaper for Both Nations?

Conclusion

With significant cost savings and improved connectivity for freight and rural areas, these multitracking projects will play a key role in boosting efficiency and supporting India’s infrastructure goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 1, 2025, 2:24 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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