Cabinet approves ₹7,798 crore for two railway projects and venture capital fund to boost space economy

New Delhi: The Union Cabinet on Thursday approved a sum of ₹7,798 crore for two railway connectivity projects and a venture capital (VC) fund to boost India's space economy.

One rail project runs from Narkatiaganj to Darbhanga, covering 256km, and the other from Errupalem and Namburu via Amaravati, covering 57km. The projects will be completed over the next five years.

“The 256km railway project will benefit Uttar Pradesh and North Bihar. It will be vital for Indo-Nepal trade, connecting the inland container depot at Birgunj, Nepal. It will fasten movement of foodgrains, fertilizers, cement, containers, etc. The other railway project will improve connectivity of central and northern India with southern India, with direct connectivity between Amravati, Hyderabad, Chennai and Kolkata,” Union railway minister Ashwini Vaishnaw said, briefing reporters about the cabinet decisions.

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Additionally, capacity augmentation works will result in additional freight traffic of 31 million tonnes per annum. The railways, being an environment-friendly and energy-efficient mode of transportation, will help in achieving climate goals and minimizing logistics cost, lowering CO2 emissions by 1.68 billion kg, which is equivalent to planting 70 million trees. 

These projects will generate 10.6 million human days of employment, the minister said.

The projects fall under the PM-Gati Shakti national masterplan for multimodal connectivity, which has been possible through integrated planning and will provide seamless connectivity for moving people, goods and services.

Vaishnaw said 7,000 special trains are being run ahead of Diwali and Chhath Puja, accommodating an additional 200,000 people against last year’s 4,500 special trains.

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VC fund for space economy

The space economy VC fund, which is aimed at driving economic growth and job creation, will also be developed over the coming five years, with proposed investments of ₹10-60 crore each in 30-35 space startups over the next 10 years.

It will be structured as per Sebi guidelines for alternative investment funds.

“The number of startups is just a goal—it is not restrictive. The amount will be in two phases. In the first phase, it will be ₹5-10 crore, and in the later phase it will be ₹10-60 crore. The number can grow based on the company type and its profile. We will be transparent in evaluation, selection of the companies and a fund manager will be operating the fund,” Indian Space Research Organisation chairman Sreedhara Panicker Somanath who was also present at the press briefing said.

“This decision will push India to stand alongside developed nations like the UK, US, Germany, France, etc. Through this, young entrepreneurs and scientists will get an opportunity,” the railway minister said.

At present, India’s space economy is about ₹70,000 crore, which is likely to grow to ₹3.5 trillion by 2033. There are already 250 startups in the space sector, Vaishnaw said.

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