Cabinet Approves ₹1.60 Lakh Crore Infrastructure Projects in Final South Block Meet

In a landmark decision, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a massive tranche of projects totaling ₹1,60,504 crore during its final meeting held at the historic South Block on February 13, 2026. This significant move signals a substantial push for infrastructure development, urban transformation, and innovation across India. Union Minister Ashwini Vaishnaw confirmed these approvals, stating that future Cabinet meetings would be relocated to the newly dedicated Seva Teerth complex, effectively concluding a 95-year era of governance from South Block. The approved projects encompass a wide array of sectors, including railways, road infrastructure, metro expansion, urban development, and startup funding. This comprehensive package is poised to boost connectivity, enhance logistics efficiency, stimulate economic growth, and generate substantial employment opportunities nationwide. One of the most notable approvals is for the construction of India's first underwater road-cum-rail twin tunnel under the Brahmaputra River in Assam. This strategic project, valued at ₹18,662 crore, will connect Gohpur on NH-15 to Numaligarh on NH-715. The 33.7 km greenfield corridor includes a 15.79 km twin-tube TBM-driven tunnel designed for both a four-lane access-controlled highway and railway infrastructure in one of its tubes. This engineering marvel is expected to dramatically reduce travel time between Numaligarh and Gohpur, currently around 240 km and a six-hour journey, to a mere 34 km and approximately twenty minutes. The project aims to significantly enhance strategic connectivity, improve freight movement efficiency, and reduce logistics costs across Assam, Arunachal Pradesh, Nagaland, and other Northeastern states, while also integrating with key national highways and railway sections. In a major initiative to revitalize India's urban landscape, the Cabinet also approved the launch of the Urban Challenge Fund (UCF) with a total Central Assistance of ₹1 lakh crore. This fund is designed to drive market-led, reform-driven, and outcome-oriented urban infrastructure development, moving away from traditional grant-based financing. The UCF is projected to catalyze a total investment of approximately ₹4 lakh crore in the urban sector over the next five years (FY 2025-26 to FY 2030-31), with potential extension until FY 2033-34. The central government will cover 25% of the project cost, provided that cities raise a minimum of 50% from market sources like municipal bonds, bank loans, or Public-Private Partnerships (PPPs). The remaining 25% can be contributed by states, Union Territories, or Urban Local Bodies. The fund emphasizes reforms in urban governance, financial systems, operational efficiency, and planning, aiming to build resilient, productive, inclusive, and climate-responsive cities. Additionally, the Cabinet cleared three crucial multi-tracking railway projects aimed at augmenting capacity and decongesting high-density corridors. These include the 3rd and 4th lines between Kasara and Manmad (₹10,154 crore), Delhi and Ambala (₹5,983 crore), and Ballari and Hosapete (₹2,372 crore). These projects, totaling over ₹18,509 crore for railway enhancements, will add nearly 400 km to the Indian Railways network across 12 districts in Delhi, Haryana, Maharashtra, and Karnataka, and are expected to be completed by 2030-31. They are projected to generate significant direct employment and enable additional freight traffic. The Cabinet also approved the 11.56 km extension of the Noida Metro Aqua Line from Sector 142 to Botanical Garden, involving an investment of ₹2,254 crore, which will add eight elevated stations and improve connectivity within the National Capital Region. Further fostering innovation, the Startup India Fund of Funds 2.0 was approved with a corpus of ₹10,000 crore, designed to mobilize venture capital for the country's growing startup ecosystem, particularly supporting early-stage startups and deep-tech innovation. The relocation of Cabinet meetings from South Block to the new Seva Teerth complex holds symbolic significance, marking the end of an era for the 95-year-old building, which was originally constructed by the British. This transition is seen as a move towards modern governance and infrastructure. The extensive approvals underline the government's commitment to strategic infrastructure development, fostering economic growth, and improving the quality of life for its citizens through robust connectivity and urban modernization efforts.

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