Union Cabinet clears two key railway and road projects worth over ₹3,200 crore
Team Finance Saathi
09/Apr/2025

What's covered under the Article:
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Union Cabinet approved ₹1,332 crore for doubling the Tirupati-Pakala-Katpadi railway line.
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A ₹1,878.31 crore six-lane access-controlled Zirakpur bypass was cleared under hybrid annuity mode.
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These projects aim to decongest rail and road infrastructure across Andhra Pradesh, Tamil Nadu, Punjab and Haryana.
In a significant step towards enhancing transport infrastructure and reducing congestion, the Union Cabinet chaired by Prime Minister Narendra Modi has approved two large-scale development projects involving railways and road construction, Union Minister Ashwini Vaishnaw announced on Wednesday.
These two key projects include:
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Doubling of the Tirupati-Pakala-Katpadi railway line that stretches across Andhra Pradesh and Tamil Nadu
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Construction of a six-lane access-controlled Zirakpur bypass in Punjab and Haryana
Together, the projects represent a combined investment of ₹3,210.31 crore, aimed at improving both passenger convenience and freight movement efficiency.
Doubling of Tirupati-Pakala-Katpadi Railway Line Section – ₹1,332 Crore
The Union Cabinet approved the doubling of the single railway line running between Tirupati-Pakala-Katpadi, which spans 104 km through the states of Andhra Pradesh and Tamil Nadu.
This project will cost ₹1,332 crore and is expected to:
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Enhance line capacity
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Improve punctuality of train services
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Reduce logistic bottlenecks
Currently, this route handles a significant volume of passenger and freight traffic, and the single-track infrastructure often leads to delays and congestion. The doubling project will resolve this by allowing simultaneous two-way movement, ensuring faster transit times and improved scheduling.
It also aligns with the Indian Railways’ vision of creating more efficient and modern railway corridors across the country.
Strategic Importance of the Railway Line
Tirupati, a key pilgrimage and tourism city, attracts millions of passengers every year. The Katpadi Junction acts as a crucial connectivity node in Tamil Nadu’s railway network. Improving this route will have a direct impact on economic activity, tourism, and regional trade.
The project will also:
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Improve freight movement between southern states
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Reduce turnaround time for cargo
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Decrease maintenance-related delays
Such upgrades are essential as Indian Railways continues to aim for semi-high-speed and high-capacity operations in key corridors.
Zirakpur Bypass – ₹1,878.31 Crore under Hybrid Annuity Mode
The Cabinet also gave its nod to the construction of a 19.2 km six-lane access-controlled Zirakpur bypass in the states of Punjab and Haryana. This road project is being developed under the Hybrid Annuity Model (HAM) and is worth ₹1,878.31 crore.
The Zirakpur area lies along the busy Delhi-Chandigarh-Patiala corridor, and traffic congestion, especially from freight vehicles, has become a major issue for daily commuters and commercial transporters.
This project is designed to:
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Divert long-haul and heavy traffic from city limits
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Provide smooth and uninterrupted flow of vehicles
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Improve air quality and reduce road accidents due to decongestion
The HAM model involves a combination of government and private investment, ensuring faster project completion and minimal financial burden on the exchequer upfront.
Hybrid Annuity Model: A Balanced Approach to Infrastructure Financing
Under the Hybrid Annuity Model, the government typically pays 40% of the project cost during the construction phase, while the remaining 60% is paid as annuity payments over a set period along with interest.
This model has become popular for large-scale infrastructure projects as it ensures:
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Private sector participation in public infrastructure
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Reduced risk for developers
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Timely completion with built-in maintenance clauses
The Zirakpur bypass project under HAM ensures faster, more efficient development, with operational responsibility and upkeep resting partly on the contractor.
Boost to Regional Development and Connectivity
Both the railway doubling and road construction projects are expected to significantly enhance regional mobility, stimulate economic growth, and improve the ease of doing business in the respective states.
These infrastructure investments also align with the government’s broader objectives of:
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Gati Shakti National Master Plan
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Viksit Bharat @2047 Vision
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PM Gati Shakti - National Master Plan for Multi-modal Connectivity
Improved connectivity helps attract industrial investments, enables job creation, and accelerates logistics across vital economic zones.
Environment and Social Impact
By improving throughput and reducing congestion, both projects are expected to lower vehicular emissions, reduce fuel consumption, and contribute to climate-positive outcomes in the long run.
Additionally, these projects will also:
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Generate local employment during the construction phase
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Improve commuter safety through better road and rail infrastructure
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Enhance socio-economic integration across rural and urban areas
These aspects are integral to India’s journey towards sustainable and inclusive infrastructure development.
Final Thoughts: A Big Push to Infrastructure Modernisation
The Union Cabinet’s latest approval of over ₹3,200 crore for the Tirupati-Pakala-Katpadi railway line doubling and Zirakpur bypass construction is another milestone in India’s roadmap to becoming a global infrastructure powerhouse.
As Ashwini Vaishnaw, Union Minister for Railways and Communications, highlighted, these projects will:
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Remove logistical choke points
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Increase mobility efficiency
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Contribute to India’s high-growth infrastructure vision
The projects reflect the government’s ongoing commitment to modernise transport systems and build a resilient infrastructure backbone for India’s economy.
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