Cabinet approves new railway line connecting Andhra Pradesh and Karnataka
In a major boost to regional rail infrastructure, the Union Cabinet chaired by Prime Minister Narendra Modi on Friday, July 24, 2026, approved the construction of third and fourth railway lines between Ballari in Karnataka and Guntakal in Andhra Pradesh. The project, which aligns with the PM-Gati Shakti National Master Plan, aims to streamline connectivity and freight logistics across these two states.
- Project Scope: Development of 46 km of third and fourth rail lines between Ballari and Guntakal.
- Financial Outlay: Estimated cost of Rs 1,264 crore with a completion target by 2028-29.
- Capacity Boost: Expected to increase freight movement by 16.22 million tonnes per annum.
- Economic Impact: Projected annual logistics cost savings of Rs 149 crore and creation of 31 lakh human-days of employment.
Expanding Rail Capacity and Connectivity
Union Minister Ashwini Vaishnaw confirmed that this project is a strategic expansion of an economic corridor in North Karnataka. The infrastructure work is extensive, featuring the construction of a major bridge over the Vedavathi River alongside 59 additional bridges. Beyond logistical efficiency, the project is designed to support environmental sustainability by contributing to a significant reduction in CO2 emissions through optimized freight transport.
Boost for the Chemical Sector
While the rail expansion marks a win for transport infrastructure, the Cabinet also launched the “Bharat Audyogik Vikas Yojana Rasayan” (BHAVYA Rasayan) scheme. With an outlay of Rs 3,030 crore spanning five years (FY 2026-27 to FY 2030-31), the initiative focuses on establishing three “plug-and-play” chemical parks. These parks, each requiring 2,000 acres of land, will receive central grants of up to Rs 1,000 crore per facility, provided the state contributes at least Rs 500 crore. These hubs are expected to attract massive investments of up to Rs 20,000 crore per park, significantly strengthening India’s domestic manufacturing capabilities.