← Resources · September 18, 2026
Economics GS 4 min read

Union Cabinet approves new railway lines at a cost of ₹9,889 crore in Andhra Pradesh

What happened
01

The Union Cabinet approved construction of third and fourth railway lines between Nidadavolu (near Rajahmundry) and Duvvada (near Visakhapatnam) in Andhra Pradesh, at an estimated cost of ₹9,889 crore.

02

The project covers approximately 198 route-kilometres and is a multi-tracking (capacity-augmentation) project on an existing double-line section of the East Coast rail corridor.

03

The line is expected to improve connectivity to major ports on the Andhra Pradesh coast, ease access to tourist destinations in the region, and add an estimated 29.04 million tonnes per annum of freight-carrying capacity.

04

The project falls within the Ministry of Railways' ongoing multi-tracking programme aimed at decongesting saturated trunk routes and improving both freight throughput and passenger punctuality.

Static topic 1 of 3 · Economics

Multi-Tracking as a Railway Capacity Strategy

Multi-tracking refers to adding additional parallel lines (third, fourth, or more) alongside an existing double or single line to relieve congestion on saturated routes, rather than building an entirely new corridor. It is distinct from "new line" projects (which open previously unconnected areas) and from Dedicated Freight Corridors (which build a wholly separate freight-only network). Multi-tracking is typically the fastest and cheapest way to add capacity on high-traffic sections because it reuses existing right-of-way and stations.

Key Details

  • Governed administratively by the Ministry of Railways/Railway Board; individual projects above a cost threshold require Cabinet Committee on Economic Affairs (CCEA) or Union Cabinet approval.
  • Multi-tracking of congested routes and 100% electrification were flagged as priority targets under the Ministry of Railways' "Mission" targets feeding into the National Rail Plan, 2030.
  • Funding for such projects typically blends Gross Budgetary Support (GBS) with Extra-Budgetary Resources (EBR) such as market borrowings by IRFC.
Connection to this news

The Rajahmundry-Visakhapatnam project is a textbook multi-tracking case — converting an existing double line on a high-density East Coast route into a four-line section to remove a capacity bottleneck, rather than laying an altogether new alignment.

Static topic 2 of 3 · Economics

National Rail Plan, 2030

The National Rail Plan (NRP) is the Ministry of Railways' long-term perspective plan, aiming to build rail infrastructure by 2030 that can meet traffic demand projected up to 2050. Its central target is to raise the railways' modal share in freight from roughly 27% to 45%, while also cutting freight transit times by raising average freight-train speed to around 50 km/h.

Key Details

  • Prepared by the Ministry of Railways with support from institutions including RITES; released in draft form around December 2020.
  • Key levers identified include capacity augmentation on saturated routes (multi-tracking), new Dedicated Freight Corridors, electrification, and terminal capacity expansion.
  • Complements PM Gati Shakti, the ₹100-lakh-crore National Master Plan for multi-modal infrastructure launched on 13 October 2021, which covers seven infrastructure "engines" including Railways, Roads, and Ports.
Connection to this news

Capacity bottlenecks on routes serving Andhra Pradesh's east coast ports are precisely the kind of constraint the National Rail Plan's freight modal-share target seeks to remove; the new lines directly support the freight-capacity and speed objectives of the plan.

Static topic 3 of 3 · Economics

Port Connectivity and East Coast Freight Corridor

Visakhapatnam is home to one of India's oldest and largest major ports (Visakhapatnam Port Authority), while Kakinada and other Andhra Pradesh ports also handle significant cargo (notably iron ore, coal, containers, and petroleum products). Rail connectivity to major ports is a recurring theme in India's logistics-cost reduction strategy, since first-and-last-mile rail linkage to ports materially affects the cost-competitiveness of Indian exports.

Key Details

  • India's 12 Major Ports are governed under the Major Port Authorities Act, 2021, which replaced the Major Port Trusts Act, 1963, granting greater financial and operational autonomy to port authorities.
  • The National Logistics Policy (2022) and PM Gati Shakti both prioritise seamless multi-modal (rail-road-port) connectivity to reduce India's logistics cost as a share of GDP.
  • Improved port-hinterland rail links reduce dependence on road transport for bulk cargo, lowering per-tonne logistics cost and carbon footprint.
Connection to this news

By adding freight capacity of 29.04 million tonnes per annum on the Rajahmundry-Visakhapatnam stretch, the project directly strengthens rail evacuation capacity for cargo moving to and from Andhra Pradesh's major ports, aligning with the national logistics-cost reduction agenda.

Key facts & data
  • Project cost: ₹9,889 crore.
  • Route length: approximately 198 km, between Nidadavolu (Rajahmundry area) and Duvvada (Visakhapatnam area).
  • Additional freight capacity: 29.04 million tonnes per annum.
  • Nature of project: third and fourth line (multi-tracking) on an existing double-line section.
  • National Rail Plan, 2030 target: raise rail's modal share in freight to 45%; raise average freight-train speed to ~50 km/h.
  • PM Gati Shakti National Master Plan: launched 13 October 2021, covers seven infrastructure engines (Railways, Roads, Ports, Waterways, Airports, Mass Transport, Logistics Infrastructure).
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