The Union cabinet chaired by PM Narendra Modi on Thursday approved two railway projects covering eight districts of Andhra Pradesh, Telangana and Bihar, apart from a fund for startups in the space sector.
New Delhi: Union Minister Ashwini Vaishnaw briefs the media on the Cabinet�s decisions, in New Delhi, Thursday, Oct. 24, 2024. (PTI Photo/Manvender Vashist Lav)
The projects include a new railway line connecting Amravati — the proposed new capital of Andhra Pradesh — with investment of ₹2,245 crore. It will be completed within five years, Union rail and IT and information and broadcasting minister Ashwini Vaishnaw said, briefing reporters.
The new line will provide connectivity to approximately 168 villages and about 1.2 million population with nine new stations.
The rail corridor in northern Bihar approved by the Cabinet will be a “multi-tracking project will enhance connectivity to two aspirational districts of Sitamarhi and Muzaffarpur”, a statement said. The corridor will serve approximately 388 villages with a “cumulative population of nine lakh,” the statement added.
The projects together will generate direct employment for about 1 million human-days, Vaishnaw said.
In Bihar, doubling of the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur sections, covering a total of 256 km, will be carried out. This will in turn strengthen connectivity with Nepal, north-east India and the border areas, the minister said.
The construction of a new line between Errupalem and Namburu via Amaravati — the new capital of Andhra Pradesh — covering a distance of 57 km will connect the proposed state capital to several metros. The route will go through NTR Vijayawada and Guntur districts of Andhra Pradesh and Khammam district of Telangana.
According to the Cabinet statement, the project will also provide a much-required infrastructural boost to one of the busiest sections across Indian Railways — helping to ease operations and reduce congestion.
The Cabinet on Thursday also approved a venture-capital fund worth ₹1,000 crore for space-sector startups, which is expected to support about 40 enterprises.
The move is expected to accelerate the growth of the private space sector in India, driving advancements in space technology.
This fund was first announced by finance minister Nirmala Sitharaman while presenting Union Budget 2024-25.
The fund’s disbursement period will extend up to five years from the start of its operations, with an average annual tranche of ₹150 crore -250 crore, the minister said.
In the financial year 2025-26 (FY26), the Centre has estimated a funding of ₹150 crore for this project. In the three subsequent years, a fund of ₹250 crore will be allocated, while in the final year, the amount is expected to be ₹100 crore.
The fund will be managed by the Indian National Space Promotion and Authorisation Centre, an agency for promoting the private sector’s participation in the space industry.
The average ticket size per startup is likely to be in the range of ₹10- 60 crore, depending on the stage of the company, its growth trajectory, and its potential impact on national space capabilities, the Cabinet statement said.
“The proposed fund is expected to boost employment in the Indian space sector by supporting startups across the entire space supply chain—upstream, midstream, and downstream. It will help businesses scale, invest in R&D, and expand their workforce,” it said.