Major Infrastructure Push: Rail and Highway Projects Get Cabinet Nod

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved several major infrastructure projects on Wednesday, including four railway projects with a combined estimated cost of around ₹9,450 crore.
The approved projects include a 173-km fourth railway line between Kharagpur in West Bengal and Bhadrak (Ranital) in Odisha, and a 75-km fourth line between Bhadrak and Haridaspur in Odisha.
The Cabinet also cleared the construction of third and fourth railway lines between Gummidipundi in Andhra Pradesh and Gudur in Tamil Nadu, as well as third and fourth lines between Cuttack and Paradip (Badabandha) in Odisha.

Together, these projects will add around 410 km to the Indian Railways network and are targeted for completion by 2030-31. The projects will pass through eight districts across West Bengal, Odisha, Tamil Nadu and Andhra Pradesh.
According to the Railways Ministry, the projects will improve connectivity to around 6,448 villages with a combined population of nearly 60 lakh. They are also expected to reduce logistics costs, cut crude oil imports by around 13 crore litres and lower carbon dioxide emissions by nearly 65 crore kg.
Bihar’s NH-22 to Be Upgraded to Four Lanes
The Cabinet also approved the four-laning of the 82.578-km Muzaffarpur-Sitamarhi-Sonbarsa section of National Highway-22 in Bihar.
The project will be developed under the Hybrid Annuity Model at an estimated cost of ₹3,590.73 crore.
The highway will provide an important link between the India-Nepal border at Sonbarsa and Muzaffarpur, an economic centre connected to the NH-27 corridor.
The project is expected to ease traffic congestion in areas including Muzaffarpur, Maksudpur, Runni Saidpur, Thumma, Dumra, Bhutahi and Sonbarsa.

It will also include seven major bridges, three railway overbridges and two flyovers. A 340-metre major bridge will be constructed over the Bagmati River.
No Decision on DA Hike Yet
Despite the expectations of millions of central government employees, the Cabinet meeting did not approve an increase in the Dearness Allowance (DA).
Employees are awaiting the DA revision for the July-December 2026 half-year. The hike is expected to be announced around October, if the government follows the usual timeline.
The DA increase is currently expected to be around 3 percentage points. If approved, the DA for central government employees could rise from the existing 60% to 63%.