Cabinet Approves ₹9,072 Crore Rail Multitracking Projects Across 4 States; 307 Km Expansion to Strengthen MSME Logistics

Cabinet Clears ₹9,072 Crore Rail Multi-Tracking Push Across 4 States; 307 Km Network Expansion to Boost MSME Logistics

Indian Railways has received a significant infrastructure boost as the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved three critical multi-tracking projects spanning Maharashtra, Madhya Pradesh, Bihar, and Jharkhand.

With a total estimated investment of ₹9,072 crore, the projects will add approximately 307 km to the existing railway network and are targeted for completion by 2030-31. For India’s MSME ecosystem, this decision signals faster freight movement, lower logistics costs, and stronger regional market integration.

The Three Strategic Rail Projects

The approved projects include:

1. Gondia – Jabalpur Doubling

2. Punarakh – Kiul 3rd and 4th Line

3. Gamharia – Chandil 3rd and 4th Line

Together, these corridors cut across 8 districts and are designed to enhance operational efficiency, decongest high-traffic routes, and significantly increase line capacity.

This expansion aligns with the government’s broader infrastructure modernisation strategy under the PM-Gati Shakti National Master Plan, focusing on integrated, multimodal connectivity.

Why This Matters for MSMEs

For India’s MSMEs — especially those in manufacturing, mining, agro-processing, steel, cement, and fertiliser sectors — rail capacity augmentation is not merely an infrastructure story; it is a competitiveness story.

🚛 Key Economic Impacts:

• Additional Freight Capacity: 52 Million Tonnes Per Annum (MTPA)

• Reduced Logistics Costs

• Improved Reliability & Transit Time

• Decongestion of High-Density Routes

• Better Access to Ports & Industrial Clusters

Rail remains India’s most energy-efficient and cost-effective freight mode. With enhanced capacity, industries in central and eastern India are expected to gain improved access to both domestic and export markets.

Direct Impact on 5,407 Villages

The projects are expected to benefit approximately 5,407 villages with a combined population of nearly 98 lakh people. Improved rail connectivity often translates into:

• Increased local trade activity

• Faster agricultural produce evacuation

• Industrial cluster development

• Job creation in logistics, warehousing, and allied sectors

From an MSME perspective, better rail access can catalyse local entrepreneurship, especially in Tier-2 and Tier-3 districts.

Boost to Tourism and Regional Economies

Enhanced connectivity will also benefit key tourism destinations such as:

• Kachnar Shiv Temple (Jabalpur)

• Kanha National Park

• Pench National Park

• Dhuandhar Waterfall

• Bargi Dam

• Chandil Dam

• Dalma Wildlife Sanctuary

• Raijama Ghati and other scenic locations

Tourism-linked MSMEs — including hospitality, transport services, handicrafts, and food enterprises — are likely to experience stronger visitor inflows due to improved rail accessibility.

Strategic Commodity Corridors

These routes serve as critical arteries for transporting bulk commodities, including:

• Coal

• Steel

• Iron ore

• Cement

• Fertilisers

• Limestone

• Manganese

• Foodgrains

• Petroleum products (POL)

Capacity enhancement will help industries reduce bottlenecks and improve supply chain resilience — particularly important in a global trade environment that increasingly demands reliability and speed.

Environmental & Sustainability Gains

The government has highlighted significant environmental benefits:

• Reduction of 6 crore litres of oil imports

• Lowering of 30 crore kg of CO₂ emissions

• Equivalent environmental benefit of planting 1 crore trees

Railways, being substantially more energy-efficient than road transport, play a pivotal role in India’s climate commitments and green logistics strategy.

Alignment with PM Gati Shakti Vision

These projects are being executed under the integrated planning framework of the PM Gati Shakti National Master Plan, aimed at synchronising infrastructure development across railways, roads, ports, and industrial corridors.

For MSMEs, such integration means:

• Predictable freight timelines

• Lower inventory holding costs

• Better working capital management

• Stronger participation in national and global supply chains

Completion Timeline: 2030-31

With execution targeted by 2030-31, the projects represent medium-term infrastructure investments that can support India’s projected manufacturing and export expansion over the next decade.

SMEStreet Insight

From an MSME growth perspective, rail capacity augmentation is foundational. Lower logistics costs directly improve profit margins for small and medium enterprises. Enhanced reliability strengthens export credibility. Improved regional connectivity unlocks previously underserved markets.

As India positions itself as a global manufacturing and export hub, railway multi-tracking projects such as these are critical enablers of inclusive economic growth.

For entrepreneurs operating in logistics, warehousing, mining, agro-processing, steel fabrication, or tourism sectors across Maharashtra, Madhya Pradesh, Bihar, and Jharkhand — this is an infrastructure milestone to watch closely.