Cabinet clears Rs 1.6 lakh crore push for rail, metro, roads, tunnels and startup funding

In a major infrastructure-boosting move, the Union Cabinet has approved projects worth over Rs 1.6 lakh crore, paving the way for large-scale upgrades across key sectors, including railways, roads, metro networks, tunnel construction, and urban development.

The government has also cleared a strengthened Startup India Fund of Funds 2.0, aimed at mobilising venture capital and accelerating India’s deep‑tech and advanced manufacturing ecosystem. The new fund broadens the mandate of the earlier FoF 1.0 scheme and introduces a more flexible operating structure. It enables backing for larger, longer-duration investment vehicles and allows higher government participation in Alternative Investment Funds (AIFs) that specialise in deep‑tech innovation and high‑tech manufacturing.

Under the project, three multi-tracking railway projects were approved, which will pass through several states, including Delhi, Haryana, Maharashtra, and Karnataka, covering 12 districts, and for this, the cabinet approved approximately Rs 1,500 crores.

Regarding the Brahmaputra River, the Indian Government has approved approximately Rs 18,662 crores for it.

Notably, the government also approved the corridor between Noida Sector 162 and Botanical Garden in the Delhi Metro's route. It's a corridor of about 11.56 km. Eight new stations will be built, and this extension has been approved by the Union Cabinet.

Along with this, an important step has been taken to strengthen urban infrastructure. Notably, an Urban Challenge Fund of Rs 1 lakh crore has been announced to generate funds for urban city sectors and improve the quality of life.

The fund will be active from FY26 to FY31, with the option to extend implementation until FY34. It is intended to support key budget initiatives focused on transforming cities into economic growth centres, driving innovative redevelopment efforts, and upgrading water and sanitation infrastructure.

The multi‑tracking railway projects are slated for completion by FY31 and are expected to create approximately 265,000 man‑days of direct employment during the construction phase. The expanded capacity is designed to ease congestion, streamline freight operations, and significantly improve overall network efficiency.