Cabinet Approves ₹3,907 Crore Rail Expansion Projects in Odisha and Jharkhand

Two key railway projects will add 145 km of new rail infrastructure, improve freight movement, strengthen passenger connectivity and benefit over 14 lakh people across four districts.
Cabinet Railway Projects approved for Odisha and Jharkhand

New Delhi, July 15, 2026; The Union Cabinet has approved two major railway capacity expansion projects worth nearly ₹3,907 crore to improve rail connectivity, freight movement and operational efficiency across Odisha and Jharkhand. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.

The approved projects include doubling of the Paradeep–Haridaspur railway section and construction of a fourth railway line between Rajkharsawan and Dangoaposi. Together, the initiatives are expected to add around 145 kilometres to the Indian Railways network and are targeted for completion by the financial year 2030-31.

The railway projects will cover four districts spread across Odisha and Jharkhand, strengthening transport infrastructure in mineral-rich regions while easing congestion on busy rail corridors. The additional track capacity is expected to improve train movement, increase punctuality and support faster transportation of both passengers and freight.

Planned under the PM Gati Shakti National Master Plan, the projects aim to integrate different modes of transport and improve logistics through coordinated infrastructure development. The enhanced railway network is expected to provide smoother connectivity for industries, businesses and local communities.

According to the government, nearly 1,526 villages with an estimated population of around 14 lakh people are expected to benefit from improved rail access once the projects are completed. Better connectivity is also expected to create fresh opportunities for economic growth, employment and regional development.

The expanded rail infrastructure will improve access to important tourist destinations, including the Lalitgiri Buddhist Complex, Shree Baladevjew Temple and the Meghahatuburu Hills, making travel to these locations more convenient.

The upgraded routes are crucial for transporting bulk commodities such as coal, iron ore, limestone, dolomite and gypsum. Once operational, the enhanced network is expected to handle an additional freight capacity of nearly 44 million tonnes annually, supporting industrial growth and reducing transportation bottlenecks.

The government said the projects will also contribute to environmental sustainability by encouraging greater use of rail transport. The shift is projected to save around six crore litres of fuel imports while reducing carbon emissions by nearly 29 crore kilograms, delivering environmental benefits comparable to planting approximately one crore trees.

Officials said the infrastructure expansion reflects the government’s continued focus on modernising the railway network, lowering logistics costs and improving connectivity to support long-term economic development.

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