Union External Affairs Minister Dr. S. Jaishankar on Friday, 24 July 2026, announced two major decisions approved by the Union Cabinet under the chairmanship of Prime Minister Narendra Modi — a Rs 1,264 crore railway multi-tracking project spanning Karnataka and Andhra Pradesh, and a new chemical parks scheme with a central grant of up to Rs 1,000 crore per park.

Context

The Union Cabinet cleared a multi-tracking project worth Rs 1,264 crore that will extend the Indian Railways network by approximately 46 kilometres across three districts in Karnataka and Andhra Pradesh. The project is targeted for completion by 2028-29 and is expected to improve connectivity for approximately 99 villages in the region.

Multi-tracking — the addition of parallel rail lines on existing corridors — has been a recurring instrument in Indian Railways' capacity expansion strategy, reducing bottlenecks and enabling faster freight and passenger movement. This approval fits into a broader pattern of targeted rail investments in southern India.

Policy Backdrop

The railway approval aligns with the Pradhan Mantri Gati Shakti National Master Plan, launched in 2021, which seeks to integrate multimodal infrastructure planning across road, rail, ports, and logistics. The plan has been a guiding framework for large-scale connectivity investments, particularly in regions with dense agricultural and industrial activity.

Separately, the Cabinet approved the Scheme of Chemical Parks Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan), running from FY 2026-27 to FY 2030-31. The scheme targets the establishment of three dedicated Chemical Parks, with the Central government providing a grant of up to Rs 1,000 crore per park. The stated objective is to develop the chemical industry 'along the entire value chain,' with an explicit focus on reducing logistics costs. This sits alongside the Make in India initiative, launched in 2014, which has sought to build integrated domestic manufacturing ecosystems across sectors including chemicals.

Stakeholders and Impact

The railway project's most immediate beneficiaries are the estimated 99 villages across the three districts in Karnataka and Andhra Pradesh that will gain improved rail connectivity. Enhanced rail access typically lowers freight costs for agricultural produce and enables better access to markets, healthcare, and employment for rural populations.

For the chemical sector, the BHAVYA Rasayan scheme addresses a long-standing concern of the domestic industry: fragmented infrastructure and high logistics overheads that reduce competitiveness against imports. Dedicated chemical parks with shared utilities and integrated supply chains are expected to attract both domestic manufacturers and foreign investment into a sector that spans pharmaceuticals, agrochemicals, and specialty chemicals.

What's Next

Attention will now turn to the rollout timelines for the approved railway sections and the process for selecting sites for the three proposed Chemical Parks under BHAVYA Rasayan. The scheme runs through FY 2030-31, giving the government a five-year window to operationalise the parks and demonstrate measurable impact on the chemical value chain.

With southern India's rail network set for expansion and a structured push to anchor chemical manufacturing through dedicated parks, both decisions signal the government's continued use of targeted public investment to build productive infrastructure ahead of the next electoral cycle.