The Union Cabinet has approved a series of infrastructure and policy decisions, including major investments in railways, urban transport, and aviation, with a total financial outlay of ₹12,236 crore.
It has also approved the Minimum Support Price (MSP) for raw jute for the marketing season 2026–27.
The Cabinet cleared the doubling of the Gondia–Jabalpur rail line at an estimated cost of ₹5,236 crore and also sanctioned the third and fourth rail line project between Punarkh and Kiul, involving an investment of ₹2,668 crore.
The proposed multi-tracking project will enhance connectivity to approximately 5,407 villages, having a population of about 98 lakh.
In another rail-related decision, the Cabinet approved the construction of the third and fourth rail lines between Gamharia and Chandil, with a project cost of ₹1,168 crore.
These three projects, covering eight districts across Maharashtra, Madhya Pradesh, Bihar, and Jharkhand, will increase the existing network of Indian Railways by about 307 km.
Boosting aviation infrastructure, the Cabinet also approved a new integrated airport terminal at Srinagar, entailing an expenditure of ₹1,667 crore.
The new civil enclave project, spread over 73.18 acres, will feature a state-of-the-art terminal building spanning 71,500 square metres, including 20,659 square metres of existing structure. It is designed to serve 2,900 passengers during peak hours and handle an annual capacity of 10 million passengers, as per the statement released by the Cabinet Committee on Economic Affairs.
The expanded apron will accommodate 15 aircraft parking bays, including one wide-body (Code E) aircraft (nine existing and six proposed), while the 3,658 m × 45 m runway will continue to be operated by the Indian Air Force. The project will also include the construction of a multi-level car parking facility for 1,000 cars.
The Cabinet further approved the extension of Phase 2B of the Ahmedabad Metro project, with an allocation of ₹1,067 crore aimed at strengthening urban connectivity. Additionally, the Cabinet approved the MSP for raw jute, involving a financial implication of ₹430 crore.
The MSP paid to jute-growing farmers during 2014–15 to 2025–26 was ₹1,342 crore, compared to ₹441 crore during 2004–05 to 2013–14.
The MSP of raw jute (TD-3 grade) has been fixed at ₹5,925 per quintal for the 2026–27 season, ensuring a return of 61.8 per cent over the all-India weighted average cost of production.
The announced MSP is in line with the government’s principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production, as announced in the Budget 2018–19.
The MSP for raw jute for the 2026–27 marketing season is an increase of ₹275 per quintal over the previous season. The government has increased the MSP of raw jute from ₹2,400 per quintal in 2014–15 to ₹5,925 per quintal in 2026–27, registering an increase of ₹3,525 per quintal (about 2.5 times).
The Cabinet Committee on Economic Affairs also approved enhanced delegation of powers to POWERGRID under the extant guidelines dated 4 February 2010 of the Department of Public Enterprises.
The approval enhances the permissible equity investment limit of POWERGRID from the current threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the existing cap of 15 per cent of the company’s net worth.