Cabinet approves major rail corridor expansion, ₹3,030 crore BHAVYA Rasayan scheme
- In Reports
- 01:06 PM, Jul 25, 2026
- Myind Staff
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved two major proposals aimed at strengthening India's infrastructure and industrial development. Union Minister Ashwini Vaishnaw announced the decisions after the Cabinet meeting. The government approved the construction of third and fourth railway lines on an important economic corridor connecting Andhra Pradesh and Karnataka. It also cleared the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme, a new ₹3,030 crore initiative announced in the Union Budget 2026–27 to strengthen the country's chemicals sector.
Vaishnaw said the railway project will improve one of the country's key economic corridors. The route passes through Guntakal in Andhra Pradesh and Ballari, Hosapete, Hubballi and Ankola in Karnataka. The Cabinet approved the construction of third and fourth railway tracks between Guntakal and Ballari. The project covers a distance of 46 kilometres and will cost around ₹1,264 crore.
The railway project includes the construction of a major bridge across the Vedavathi River. It will also include seven additional major bridges and 52 minor bridges. The government expects to complete the work within three years.
The latest approval follows an earlier decision to expand the railway line between Ballari and Hosapete. Officials have already started preparing the Detailed Project Report (DPR) for the Hosapete-Hubballi section. Once this section is complete, along with the proposed Hubballi-Ankola railway line, the entire corridor across North Karnataka will become a fully developed economic route. The project will strengthen rail connectivity between Andhra Pradesh and Karnataka and support trade and industrial activity in the region.
"The project approved today is a major one," Vaishnaw said, highlighting its importance for regional economic growth.
Union Minister Ashwini Vaishnaw further said, "As you know, transporting cargo by rail results in 89 per cent lower CO₂ emissions compared with highway or road transport. In other words, it is 89 per cent less polluting than road transportation. Secondly, rail transport is significantly more cost-effective than road transport. It is cheaper and also less polluting. That is why many countries around the world have prioritised railways. Since Prime Minister Narendra Modi assumed office in 2014, he has been consistently working to overhaul and transform the entire railway sector."
He also highlighted the progress made in railway electrification across the country.
"As you know, the Indian Railways network is now 99.6 per cent electrified, making it the world's largest electrified railway network. In percentage terms, India ranks second globally after Switzerland. Switzerland has achieved 100 per cent electrification, while India has reached 99.6 per cent," he added.
Apart from the railway expansion, the Cabinet approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme with an outlay of ₹3,030 crore for the chemicals sector. The scheme, announced in the Union Budget 2026–27, aims to strengthen and modernise one of the country's core industries. Vaishnaw described the chemicals sector as a foundational industry for the economy, much like semiconductors, and said the government wants to adopt a completely fresh approach to develop it. The initiative is expected to prepare the industry to meet current and future economic needs through new strategies.
The Cabinet's decisions reflect the government's continued focus on improving infrastructure and strengthening core industries. These initiatives aim to support long-term economic growth and improve industrial capacity across the country.
Vaishnaw also shared an update on India's first hydrogen-powered train during the Cabinet briefing. The train completed 1,000 kilometres of trouble-free operation after its inauguration by Prime Minister Narendra Modi on July 17. The achievement marks an important milestone during its initial phase of operation.
"The hydrogen train has performed very well," Vaishnaw said.
"As of this morning, it has successfully completed 1,000 kilometres of flawless operation without any issues," he said.
The minister said officials are closely monitoring the train's performance during its early operations.
"We are closely monitoring every aspect of its performance and continuously tracking around 130 parameters to assess its behaviour and overall performance," he added.
Vaishnaw said the railway project will also deliver major environmental and economic benefits. The new railway line will help transport an additional 16 million tonnes of cargo. The shift towards rail transport is expected to reduce carbon emissions. The environmental impact will be equal to the carbon absorption achieved by planting around 27 lakh trees.
The project is also expected to create 31 lakh human-days of employment. It will improve logistics efficiency and reduce the country's logistics costs by nearly ₹149 crore.
The hydrogen train forms an important part of India's efforts to promote cleaner transportation. The project supports the country's wider goal of adopting sustainable and environment-friendly technologies in the railway sector. Officials continue to collect operational data to improve the technology and support future expansion plans.
During the media briefing, reporters also asked Vaishnaw about the anti-paper leak law that the Centre had earlier assured amid the ongoing protests at Jantar Mantar. The minister said the Union Cabinet did not discuss any draft Bill on stricter punishment for paper leak cases.
"No paper leak is happening today," he said when asked whether the Union Cabinet had approved a draft Bill providing for stricter punishments in paper leak cases.

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