The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two large-scale railway projects spanning Andhra Pradesh, Telangana, and Bihar, alongside a substantial funding initiative for space sector startups. These projects, aimed at improving connectivity and driving innovation in critical sectors, underscore the government’s commitment to boosting infrastructure and supporting private enterprise in space technology.
New Railway Line to Connect Amaravati, Andhra Pradesh’s Proposed Capital
One of the key projects approved is a new railway line connecting Amaravati, the proposed capital of Andhra Pradesh, with a budget allocation of ₹2,245 crore. Union Minister Ashwini Vaishnaw briefed the media, confirming that the 57-kilometer line between Errupalem and Namburu will traverse the districts of NTR Vijayawada and Guntur in Andhra Pradesh and Khammam in Telangana. This route will link Amaravati to major metros and is expected to significantly enhance connectivity across these regions, providing a direct connection to over 168 villages and a population of approximately 1.2 million.
The new rail line will establish nine stations along the route, generating employment equivalent to about 1 million human-days, according to Vaishnaw. The project aims for completion within five years, offering Andhra Pradesh’s new capital a critical infrastructural boost that aligns with the region’s growth and development ambitions.
Multi-Tracking Project to Strengthen Connectivity in Bihar
In Bihar, the Cabinet approved a multi-tracking project covering the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur rail sections, a total of 256 kilometers. This project will serve nearly 388 villages and a population of 900,000, supporting vital connectivity across northern Bihar and enhancing links with Nepal, northeast India, and border areas.
The expansion of this corridor aims to support smoother operations along one of Indian Railways’ busiest sections, reducing congestion and facilitating more efficient travel. Improved connectivity with border regions is expected to stimulate local economies and foster regional growth, marking a strategic step forward in infrastructure development.
Boosting India’s Space Sector: ₹1,000 Crore Venture Capital Fund for Startups
In a significant move to stimulate India’s private space sector, the Cabinet has approved a ₹1,000 crore venture capital fund aimed at supporting around 40 space-sector startups over five years. Initially announced in the Union Budget 2024-25, this fund aims to catalyze advancements in space technology by promoting startups involved in various stages of the space supply chain—upstream, midstream, and downstream.
Managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the fund will offer startups financial backing in the range of ₹10-60 crore, tailored to each company’s growth stage and potential impact on national space capabilities. The Cabinet statement emphasized the fund’s role in enhancing research and development, fostering job creation, and supporting the expansion of startups across the space industry.
The funding disbursement is expected to follow an incremental model, with ₹150 crore allocated in the 2025-26 fiscal year, ₹250 crore for the following three years, and a final tranche of ₹100 crore in the last year. The initiative aligns with the government’s ambition to make India a formidable player in the global space economy by empowering private enterprises to contribute to the nation’s space exploration and technology efforts.
Expected Impact on Employment and Innovation
These initiatives are projected to have a wide-reaching impact on employment and innovation in India. The two rail projects alone are estimated to create a significant number of jobs and will address vital connectivity needs in rural and urban areas alike. The Amaravati rail link will bring Andhra Pradesh’s proposed capital closer to major urban centers, while the Bihar multi-tracking project will enhance cross-border travel and commercial exchanges with Nepal.
In the space sector, the venture capital fund will enable startups to scale up operations, invest in cutting-edge research, and increase their workforce. By investing in R&D and providing resources for emerging enterprises, the fund is expected to support the growth of an entire ecosystem of space tech innovation, positioning India as a leader in the global space industry.
Building a Future-Ready India
The government’s approval of these railway projects and the space-sector fund reflects a forward-thinking approach to infrastructure and innovation. By enhancing connectivity and supporting technological advancements, these projects contribute to the vision of a modernized, future-ready India. With a focus on both physical infrastructure and high-tech industry, the Union Cabinet’s decisions are set to drive growth across multiple sectors, providing long-term benefits for the Indian economy and its citizens.