The Union Cabinet approved on Friday two major infrastructure proposals worth a combined Rs 4,294 crore. It includes a Rs 1,264-crore railway capacity expansion project across Karnataka and Andhra Pradesh and a Rs 3,030-crore scheme to establish three world-class chemical parks under the newly launched Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan).
The decisions taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, aim to strengthen logistics infrastructure, boost industrial manufacturing, improve freight movement and generate employment.
Cabinet Approves Rs 1,264-Crore Railway Multi-Tracking Project
The Cabinet approved the construction of the third and fourth railway lines between Ballari and Guntakal, spanning Karnataka and Andhra Pradesh, at an estimated cost of Rs 1,264 crore.
The project, targeted for completion by 2028-29, has been planned under the PM Gati Shakti National Master Plan to improve multimodal connectivity and reduce congestion on one of the country's key freight corridors.
According to the government, the project will add around 46 kilometres to the Indian Railways network and cover three districts across the two states.
The upgraded railway corridor is expected to improve connectivity for nearly 99 villages with a combined population of around seven lakh people. It will also enhance access to tourist destinations including Ballari Fort and Sri Kumara Swamy Temple.
The government said the project is crucial for transporting bulk commodities such as iron ore, coal, steel, limestone, dolomite, fertilisers and food grains.
The additional capacity is expected to support 16.22 million tonnes of freight traffic annually, while reducing logistics costs and improving operational efficiency.
Officials also estimate the project will help save around 1.32 crore litres of fuel and reduce 6.67 crore kilograms of carbon dioxide emissions, equivalent to planting nearly 27 lakh trees.
Also Read: Cabinet Approves Rs 14,115 Crore Highway Projects, Clears Rs 6,970 Crore Dwarka Tunnel In Delhi
BHAVYA Rasayan Scheme Gets Rs 3,030-Crore Approval
The Cabinet also approved the BHAVYA Rasayan Scheme, announced in the Union Budget 2026-27, with a total financial outlay of Rs 3,030 crore to establish three dedicated chemical parks across India over the next five years.
The scheme allocates Rs 3,000 crore for creating common infrastructure and basic utilities, while Rs 30 crore has been earmarked for administrative expenses. It will remain operational from FY27 to FY31.
Under the scheme, the Centre will provide grants of up to Rs 1,000 crore per chemical park, subject to a minimum contribution of Rs 500 crore from the respective state government.
The parks will be selected through a challenge-based process and each must have at least 2,000 acres (8 square kilometres) of contiguous, encumbrance-free land.
Focus On Shared Infrastructure And Manufacturing
The proposed chemical parks will feature shared infrastructure including Common Effluent Treatment Plants (CETPs), hazardous waste management facilities, water supply systems, steam distribution networks, solvent recovery units, logistics hubs, warehouses and interconnected pipeline networks.
The government said the integrated infrastructure will lower production costs, improve environmental compliance and strengthen India's competitiveness in global chemical manufacturing.
Officials added that the initiative is expected to attract both domestic and foreign investment, encourage import substitution, increase exports and support industries such as pharmaceuticals, agriculture, textiles, automobiles, electronics, construction and nutraceuticals that depend heavily on chemical inputs.
Combined Push For Infrastructure And Industrial Growth
With approvals worth Rs 4,294 crore, the Cabinet has combined transport infrastructure expansion with industrial manufacturing development.
While the Ballari-Guntakal railway project is expected to improve freight mobility and logistics efficiency, the BHAVYA Rasayan scheme seeks to create integrated manufacturing ecosystems that can support India's long-term industrial growth and the government's Viksit Bharat 2047 vision.
Also Read: Cabinet Clears Mobile Manufacturing Scheme, Semiconductor Mission 2.0 & Urea Investment Policy
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