The Union Cabinet has approved four major multitracking and expansion projects for Indian Railways worth ₹24,634 crore, marking another major step toward modernizing and decongesting the country's transport network.

The projects will add nearly 894 kilometers of new multitrack lines across Maharashtra, Madhya Pradesh, Gujarat, and Chhattisgarh, helping improve both freight capacity and passenger flow on some of the country's busiest routes.

Rail freight traffic through the four approved corridors - Wardha–Bhusawal, Gondia–Dongargarh, Vadodara–Ratlam and Itarsi–Bhopal–Bina - will increase by an estimated 78 million tonnes a year and decongest some of the busiest railway sections.

According to SEBI-registered analyst Pradeep Carpenter, the decision would tie in with the government's PM Gati Shakti initiative for faster and integrated execution of infrastructure projects for seamless logistics and connectivity.

Market Reaction

Shares in railway-related companies were in high demand as investors anticipated new project opportunities and improved earnings visibility for the sector following the announcement.

Carpenter said RVNL and IRCON are likely to benefit directly through new project awards in construction and track development, while RailTel could see orders in communication, signaling, and electrification.

He added that IRFC may gain from higher financing demand as the expansion drives the need for additional rolling stock. Meanwhile, Titagarh Wagons and Jupiter Wagons could see indirect benefits as higher freight volumes lead to greater demand for wagons and components.

Sector Outlook

Carpenter said the Cabinet's decision reinforces the government's long-term commitment to infrastructure-led economic growth. While railway stocks reacted immediately, he noted that the real financial benefits will unfold gradually over the coming quarters, once project tenders are awarded and construction begins.

He added that the move strengthens confidence in India's rail and infrastructure story, positioning the sector as a key growth theme for the coming fiscal year.

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