The Union Cabinet of India on Tuesday, February 24, 2026, approved a range of major infrastructure and policy decisions worth ₹12,236 crore (about ₹122.36 billion). These approvals cover a wide variety of sectors, including railways, airports, metro systems, and agriculture and power reforms. Union Minister Ashwini Vaishnaw made the announcements during a press briefing after the Cabinet meeting.

This meeting was significant because it was the first full Cabinet meeting at the new Prime Minister’s Office complex called ‘Seva Teerth’. Prime Minister Narendra Modi chaired the session, which marked a symbolic shift in governance style according to officials.

1. A New Phase at Seva Teerth

The meeting at Seva Teerth highlighted the government’s focus on a renewed governance agenda. Minister Ashwini Vaishnaw explained the importance of the venue, saying, “This meeting and this building are a direct expression of the reconstruction of New India.” He also added that the Cabinet has reaffirmed its commitment to the vision of “Viksit Bharat 2047” — a long-term national development goal.

2. Major Railway Projects Approved

The Cabinet Committee on Economic Affairs (CCEA) approved three large railway projects, worth ₹9,072 crore (about ₹90.72 billion). These projects will add approximately 307 kilometres (km) of railway track to the network and benefit more than 5,400 villages across Maharashtra, Madhya Pradesh, Bihar and Jharkhand.

The projects include:

• Doubling the railway line from Gondia to Jabalpur.
• Adding a third and fourth line between Punarakh and Kiul in Bihar.
• Adding a third and fourth line between Gamharia and Chandil in Jharkhand.

According to the government, these new railway lines will help increase freight capacity by up to 52 million tonnes per year. They are expected to reduce logistics costs, save around 6 crore litres of fuel, and cut carbon dioxide emissions by about 30 crore kg annually.

3. New Terminal at Srinagar Airport

Another major infrastructure decision was the approval of a new civil enclave project at Srinagar International Airport. The CCEA cleared this project at an estimated cost of ₹1,677 crore (about ₹16.77 billion).

This project will be built on 73.18 acres and include:

• A new terminal building measuring 71,500 square metres.
• A terminal that can handle 2,900 passengers during peak hours.
• Facilities to handle up to 10 million passengers per year.
• An apron that can hold 15 aircraft, including at least one wide-body plane.
• A multi-level car parking area for about 1,000 cars.

Officials said this project will also help boost tourism, job creation and economic activity in the Kashmir Valley.

4. Ahmedabad Metro Extension from GIFT City to Shahpur

The Cabinet approved the expansion of the Ahmedabad Metro, including an extension from GIFT City to Shahpur, at an estimated cost of ₹1,067 crore (about ₹10.67 billion).

This new metro stretch will be 3.33 km long and have three elevated stations. It is expected to be completed within four years. The project will be carried out by the Gujarat Metro Rail Corporation Limited (GMRC), which is a 50:50 joint venture between the Government of India and the Government of Gujarat.

Officials estimate that this extension will serve around 23,700 passengers daily by 2029 and close to 58,000 people per day by 2041, significantly improving connectivity between Ahmedabad and the GIFT City region.

5. Power Sector Reforms

In addition to transport projects, the Cabinet also took steps to support improvements in the power sector. It increased the equity investment limits available to Powergrid’s subsidiaries from ₹5,000 crore to ₹7,500 crore per project. This change is expected to help the subsidiaries take part in larger and more valuable competitive bidding schemes for power transmission projects.

6. Name Change: Kerala to Keralam

One of the most discussed decisions from the meeting is the approval to rename the state of Kerala to “Keralam.” The Cabinet approved the Kerala government’s proposal and will now send the Kerala (Alteration of Name) Bill, 2026, to the President.

Under the Constitution, once the President refers it to the Kerala Legislative Assembly, the Assembly will give its views. After that, the Centre will introduce the Bill in Parliament. The Kerala Assembly passed an initial resolution supporting this change in June 2024, stating “Keralam” is how the state is known in the Malayalam language.

7. MSP Increase for Raw Jute

Finally, the Cabinet approved raising the Minimum Support Price (MSP) for raw jute (TD-3 grade) to ₹5,925 per quintal for the 2026–27 marketing season. This is an increase of ₹275 per quintal compared with the previous year.

Officials said the MSP for raw jute has now increased by more than 2.5 times since 2014, climbing from ₹2,400 to ₹5,925 per quintal. The Jute Corporation of India will handle price support operations, and any losses will be reimbursed by the Centre.