The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two railway projects that will span eight districts across Andhra Pradesh, Telangana, and Bihar, along with a fund to support startups in the space sector.
One of the projects involves a new railway line connecting Amravati, the proposed capital of Andhra Pradesh, with an investment of ₹2,245 crore. Union Rail, IT, and Information and Broadcasting Minister Ashwini Vaishnaw announced that the line is expected to be completed within five years and will enhance connectivity for approximately 168 villages, benefiting around 1.2 million residents with nine new stations.
Additionally, a rail corridor in northern Bihar will focus on multi-tracking to improve connectivity to the aspirational districts of Sitamarhi and Muzaffarpur, serving about 388 villages with a total population of around 900,000. Together, these projects are projected to generate approximately 1 million human-days of direct employment, Vaishnaw stated.
In Bihar, the project will also include the doubling of the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur railway sections, covering a total of 256 km. This development aims to strengthen connectivity with Nepal, northeastern India, and border areas.
The new railway line between Errupalem and Namburu, spanning 57 km, will link Amravati to major metropolitan areas, passing through NTR Vijayawada and Guntur districts in Andhra Pradesh and Khammam district in Telangana. This initiative is expected to provide a much-needed infrastructural boost to one of the busiest sections of Indian Railways, easing operations and reducing congestion.
The Cabinet also approved a ₹1,000 crore venture capital fund for space sector startups, aimed at supporting around 40 enterprises. This initiative, first announced by Finance Minister Nirmala Sitharaman during the presentation of the Union Budget for 2024-25, is designed to accelerate the growth of India’s private space sector and foster advancements in space technology.
The fund’s disbursement period will last for five years, with annual allocations ranging from ₹150 crore to ₹250 crore. For the financial year 2025-26, the Centre has estimated an initial allocation of ₹150 crore, increasing to ₹250 crore in the following three years, and concluding with ₹100 crore in the final year. The fund will be managed by the Indian National Space Promotion and Authorization Center, which promotes private sector involvement in the space industry.
Each startup can expect an average funding amount between ₹10 crore and ₹60 crore, depending on its stage, growth trajectory, and potential impact on national space capabilities. The fund is anticipated to enhance employment in the Indian space sector by supporting startups across the entire supply chain, enabling them to scale, invest in research and development, and expand their workforce.
