The Union Cabinet has approved two major infrastructure proposals worth ₹4,294 crore on Friday, as announced by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The decisions aim to strengthen logistics infrastructure, boost industrial manufacturing, improve freight movement and generate employment across the country.
The Cabinet approved the construction of the third and fourth railway lines between Ballari and Guntakal, spanning Karnataka and Andhra Pradesh, at an estimated cost of ₹1,264 crore. Union Railways Minister Ashwini Vaishnaw announced that the project forms part of the PM Gati Shakti National Master Plan to enhance multimodal connectivity and logistics efficiency. The multi-tracking project will increase the Indian Railways network by around 46 kilometres and is scheduled for completion by 2028-29. The project spans three districts across the two states and is expected to improve connectivity for nearly 99 villages with a combined population of around seven lakh people. The Ballari-Guntakal route serves as a major freight corridor for commodities including iron ore, dolomite, limestone, iron and steel, coal, fertilisers and food grains, with the capacity expansion expected to generate an additional freight traffic of 16.22 MTPA.
The Cabinet approved the BHAVYA Rasayan Scheme with a total financial outlay of ₹3,030 crore to establish three dedicated chemical parks across India over the next five years. The scheme, announced in the Union Budget for 2026-27, allocates ₹3,000 crore for creating common infrastructure and basic utilities, while ₹30 crore has been earmarked for administrative expenses, with operations planned from FY27 to FY31. Under the scheme, the Centre will provide grants of up to ₹1,000 crore per chemical park, subject to a minimum contribution of ₹500 crore from the respective state government. The parks will be developed by state governments through a challenge-based process and each must have at least 8 square kilometres (2,000 acres) of contiguous, encumbrance-free land.
The proposed chemical parks will feature shared infrastructure including Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution networks, interconnected pipeline networks, logistics and warehousing facilities. The government stated that the integrated infrastructure will lower production costs, improve environmental compliance and strengthen India's competitiveness in global chemical manufacturing. Officials added that the initiative is expected to attract both domestic and foreign investment, encourage import substitution, increase exports and support industries such as pharmaceuticals, agriculture, textiles, automobiles, electronics, construction and nutraceuticals that depend heavily on chemical inputs.
Addressing a Cabinet briefing, Union Information and Broadcasting Minister Ashwini Vaishnaw emphasized that the chemicals sector, much like semiconductors, is a foundational industry for the economy. The government expects the scheme to help the Indian chemical industry integrate better with global value chains, increase exports, reduce imports and attract both domestic and foreign investments. It also aims to promote environmentally sustainable industrial development through centralised waste treatment and hazardous waste management infrastructure, ensuring better compliance with environmental regulations. Recognizing that chemicals and petrochemicals serve as critical inputs for sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics, the scheme is expected to generate employment, strengthen domestic production and contribute towards the goal of Viksit Bharat 2047. The project aligns with Prime Minister Narendra Modi's vision of 'Atmanirbhar Bharat' by promoting regional development and creating greater employment and self-employment opportunities.
