The Union Cabinet on Friday approved a series of infrastructure projects, an urban challenge fund and a fund for startups. The total approved outlay is pegged at about INR 1,60,504 crore.
A significant portion of the approvals is directed at improving mobility, connectivity, logistics efficiency. Among the approved projects is the country’s first underwater twin tube road-cum-rail tunnel project in Assam. The project is expected to enhance connectivity for Arunachal Pradesh, Nagaland and other Northeast region.
The Cabinet Committee on Economic Affairs (CCEA) has approved a INR 18,662-crore project to construct a four-lane access-controlled greenfield corridor between Gohpur and Numaligarh, featuring India’s first road-cum-rail tunnel under the Brahmaputra river in Assam. The project is expected to provide significant benefit to Assam, Arunachal Pradesh, Nagaland and other northeastern States. It will also enhance the efficiency of freight movement, reduce logistics costs and drive socio-economic growth in the region. The Cabinet also approved the launch of the Urban Challenge Fund (UCF) with a total Central Assistance (CA) of INR 1 lakh crore. The CA will cover 25 per cent of the project cost, subject to raising minimum 50 per cent of the project cost from market. The Urban Challenge Fund will leverage market finance, private participation and citizen- centric reforms for delivery of high-quality urban infrastructure.
The Fund aims to build resilient, productive, inclusive and climate-responsive cities, positioning those as key driver of the country’s next phase of economic growth. The Fund will be operational from FY 2025-26 to FY 2030-31, with an extendable implementation period up to FY 2033-34.
The Cabinet has also approved three projects of the Railway Ministry entailing a cost of approximately Rs 18,509 crore. These projects include the construction of third and fourth lines between Kasara-Manmad, Delhi-Ambala, and Ballari-Hosapete. According to the statement, the projects are planned under the PM-Gati Shakti National Master Plan, with a focus on enhancing multi-modal connectivity and logistics efficiency . Outlining the commercial gains for Railways, a Government statement said, “The proposed projects are on essential routes for the transportation of commodities such as coal, steel, iron ore, cement, limestone/bauxite, containers, food grains, sugar, fertilisers and POL, among others. The capacity augmentation works will result in additional freight traffic of 96 MTPA (million tonnes per annum).”
The CCEA has further approved road projects worth more than Rs 11,000 crore in Maharashtra, Telangana and Gujarat, according to official statements. The Cabinet has also approved a Rs 10,000 crore Fund of Funds to mobile venture capital and support deep tech, tech-driven innovative manufacturing startups, and early-growth stage enterprises. This was the second part of the Fund of Funds (FoF) scheme under the Startup India initiative. The first was established in 2016.
